Using e-Procurement to Improve Procurement Outcomes

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e-GP : India Experience
Fiduciary Forum
(1st – 5th March 2010)
e-GP India Landscape
Union level
– Mission mode project of eGP (under National eGovernance
Plan)
– Agency specific systems – DGS&D, Railways, NIC
State level
– Roll out: AP, Karnataka, Orissa, UP, TN
– Pilots: Gujarat, MP, Chattisgarh, Delhi
– Plans: HP, Kerala, Assam, Punjab
Department/ PSE level
– Several examples with different models of implementation
e – GP India Landscape
STATES using eGP
CENTRAL
PSUs
using eGP
LINE MINISTRIES
using e-GP
E-GP system
assessment done by
World Bank
Andhra Pradesh
ONGC
Ministry of
Railways
GoAP e-GP System
(Jan-Feb’2008)
Karnataka
SAIL
DGS&D
BWSSB, Karnataka
(July’2008)
Uttar Pradesh
BHEL
GoK e-GP System (eproc) (May’2009)
Madhya Pradesh
HPCL
GoMP e-GP System
(July 2009)
Tamil Nadu
GAIL
SJVN, HP (October
2009)
Orissa
Our e-GP Strategy
National
Dialogue on e-GP
Research and knowledge sharing
Leadership, management and oversight structures
State
State specific strategies, with management structures
Implementation plans in sync with national standards
Building capacity
Framework to monitor progress/improvement
Linking to PFM dialogue/systems
Our e-GP Strategy
Project
Assessment of existing systems
Guidance on ways to improve
Conducting e-GP pilots
Exploring pathways to integrate project-department
implementations to the State strategy
Andhra Pradesh example
Salient features (AP)
Started in Yr 2000 as one of the several IT
initiatives led by the Chief Minister
First state-wide e-GP system in India
PPP model:
– Pilot = 4 departments
– In 9 months, developed templates for various
prevalent procurement practices
– Executive orders issued mandating use in the pilot
departments (value > $250,000)
– Limit lowered to $125,000
– All remaining departments (value > $25,000)
– In 30 months, 8 GoAP depts, 13 PSUs, 51
Municipalities & 5 Univs ($ 8.5 billion from 12,441
transactions)
Salient features (AP)
Benefits as documented
Tender cycle time
– 90-135 days to 42 days
Transparency
– Suppliers
– Public at large
Cost savings
– 20% in 2003-04 and 12% in 2004-05
– Cost of advertising
– Cost of MIS
Supplier participation
– 3 to 4.5
Key learnings (AP)
Reform initiative was largely IT driven, at
the cost of improving outcomes
Gains largely in efficiencies, which have
plateaued
Risks related to service provider
Could not develop into an end to end
integrated e GP system
Karnataka example
Overall architecture (GoK)
Public a nd Priva te
N etw ork
Sta te Da ta center
Hosting the e-Procurem ent
Infra structure
Supplier/ Contra ctors
Governm ent Depa rtm ents
e-Procurem ent O pera tion
center
Salient features (Karnataka)
Second state wide system - PPP model
HP as the service provider
Led by Center of e-Governance (separate
department headed by a Principal
Secretary)
Learnt lessons from AP experience
Preparation time = 3-4 years
Salient features (Karnataka)
Integrated systems:
–
–
–
–
–
–
–
–
Supplier registration & Indent management (goods , works)
e-Tendering (Creation, Bid submission, evaluation)
e-Auctions
Contract mgmt
Catalogue mgmt
MIS
Accounting
ePayment
Pilot statistics (GoK) – May’ 09
3000 users (1000 GoK & 2000
contractors)
75 users per week being added
Over 1200 tenders in the system
A set of 150 estimates/indents
25 departments using the system
Training program for buyers and suppliers
e-Procurement cell (GoK)
Organization Structure for e-Procurement Cell
External stakeholders
Project Director,
e-Procurement
ASP
Office
Assistant
Contractors
Government
users
NIC
Bank
PIC/
COO
Functional delivery team
Nodal
officer
Acc team
DSC officer
e-Proc
admin
Registrar
Tech. support
Key learnings (Karnataka)
Pilot strategy well thought through
covering IT, BPR & change management
Scale up is challenging – Procurement law
being modified;
State procurement capacity is low
Status of e-GP Assessment in India by
Bank
STATE
PROJECT SERVICE
STATUS
PROVIDER
Karnataka KMRP
Antares
(BWSSB)
Under pilot
Karnataka KSHIP-II
Assessment has been done. Final report
has been shared with the Client. Client
confirmation awaited on 4 critical gaps.
HP Sales
India
Madhya
Pradesh
MPWSRP WiproAssessment has been done and first draft
NexTenders report has been shared with the Client.
Himachal
Pradesh
SJVN
ITI
Assessment completed in October 2009.
First draft report has been shared with
Client.
e – GP initiatives :
Developed a Role Matrix in line with
guidance note from OPCS
Checklist for review of procurement
documents for Clients using e-GP
Web-page on e-GP progress in India
BBL on e-GP
Key Issues observed in GoK assessment
Virus Scanning of documents by the bidders
before uploading into the system
Option of manual mode of bid submission for ICB
Conflict of Interest: HPs participation in GoK
tenders
Time difference between bid submission and bid
opening
Third party audit report
Bidder is required to withdraw the bid in case he
wishes to modify the same before deadline for bid
submission.
Key Issues observed in GoMP
assessment
Standardization of processes
Registration fee
Option of manual mode of bid submission
for ICB
Bid modification before deadline for bid
submission
Time difference between bid submission
and bid opening
Contract award publication.
Key Issues observed in SJVN e-GP
assessment
Registration fee
Option of manual mode of bid submission
for ICB
Time difference between bid submission
and bid opening
Contract award publication.
Challenges we face
Several implementing agencies, each proposing
it’s own e-procurement process to be used in
Bank Projects
Demand for exclusive use of e-procurement
system irrespective of method of procurement
Efforts required to convince implementing
agencies of the MDB assessment needs of Bank
before it’s use for Bank funded Project
Registration fee (systems developed using PPP
model)
Links to e-GP websites :
Karnataka :https://eproc.karnataka.gov.in/eportal/index.seam
Andhra Pradesh : https://tender.eprocurement.gov.in/
Uttar Pradesh : http://etender.up.nic.in/nicgep/app
Orissa : https://tenders.ori.nic.in/nicgep/app
Madhya Pradesh : http://mpeprocurement.gov.in/Home/index.asp
Chhattisgarh : http://cgeprocurement.etenders.in/cg/index.asp
Tamil Nadu : http://tenders.tn.gov.in/
Rajasthan : http://eproc.rajasthan.gov.in/Home.do
Line Ministries
Ministry of Railways : http://www.ireps.gov.in/cgibin/ireps/ireps/home.do
DGS&D : https://dgsnd.govtprocurement.com/
Q&A
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