Centre for e-Governance
Government of Karnataka
e-Procurement Project
A NOTE ON ROLL-OUT OF E-PROCUREMENT TO ALL
DEPARTMENTS / AGENCIES OF GOVERNMENT OF KARNATAKA.
Introduction
A presentation on the e-Procurement Project was made to the Core Committee in
its meeting held on 12th December, 2008. The Core Committee decided that eProcurement should be rolled out across all the departments by March 2010. This
note presents the status and issues for roll out of e-Procurement for all the
Departments of Government of Karnataka.
Original Plan: As per RFP floated for selection of private partner, the project
ought to have gone live in April 2006. However, the process of selection of
Private Partner was completed only in December 2006. The first live transaction
on e-Procurement happened in December 2007.
In the RFP a semester wise schedule was prepared to bring departments on board,
which is given in annexure.
Current status: Since live transactions on e-Procurement started in December
2007 only. It can be said that the project has completed two semesters and now it
is in third semester. As against the envisaged roll out plan for first 3 semesters,
the departments which have started using e-procurement have been indicated in
Annexure. It shows that by the end of 3rd semester 25 agencies should have been
on e-Procurement. However out of these 25 agencies only 08 agencies are using
e-Procurement. Two agencies, KPTCL & BESCOM, which have already been
notified have not yet started using e-Procurement.
However the following 11 departments/agencies, which were not envisaged in
original roll-out plan have also been notified and started using e-Procurement
platform.
Sl.No
1.
2.
3.
List of Departments
Department Name
Unit Name
e-Governance
e-Governance
e-Governance
CEG
Dept. of Agriculture
APMC
1
Notified
Yes
Yes
Yes
4.
5.
6.
7.
8.
9.
10.
11.
Youth Services
Public Works Dept.,
Revenue
Dept. of Agriculture
Infrastructure
Finance Department
Water Resources Dept.
DPAR
Youth Services
KLAC
IG & Registration
KSSCL
IDD
Dir of Treasuries
Minor Irrigation
DPAR Executive
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
National Highway Zone, PWD (4th Semester) & KHSDP, Health & Family
welfare (5th semester) have also been notified for using e-Procurement.
Thus, a total of 23 departments/agencies have been notified on e-Procurement
platform. Out of these 23 departments/agencies, 20 agencies have started floating
tenders on e-Procurement.
Future plan of Action: On seeing the envisaged semester wise indication pattern
for departments/agencies on e-Procurement, it can be concluded that departments
doing major spending of Government funds have been included in first 05
semesters; (except Zilla Parishads & Municipal Corporations). As per ongoing
schedule, the 05th semester will be over by May-2010. The goal of e-Procurement
cell will be to bring all these envisaged agencies and departments on board by
March-2010. In this way the number of e-Procurement user agencies will increase
from 23 (at present) to 56.
To achieve these goals, strengthening has to be done in following areas
a) Capacity Building:- Except Project Director, all other resources for eProcurement cell have been hired from the market. Continuous interaction
between user department and e-Procurement cell is required to facilitate
smooth use of e-Procurement platform. In its organization structure, the eProcurement cell has envisaged “Nodal Officer”. A “Nodal officer” will be
responsible for handling 8-10 departments/agencies. It has been observed
that people having aptitude for IT along with experience of Governments
functioning will ideally suit for this assignment. However, it has been seen
that either such resources are not relieved by concerned departments or they
are not interested in coming to e-Governance.
Considering the importance of various e-Governance projects, the concerned
departments may be advised to depute such resources to e-Governance.
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b) Support at policy level:- A clear directive needs to be issued from the
Government to concerned departments to start using e-Procurement
platform as per envisaged roll out plan.
c) Financial Support:- In roll-out of e-Procurement platform to different
Government departments, non availability of necessary IT infrastructure,
especially reliable internet connection, computers etc. is a serious
bottleneck. Rs. 10 crore has been provided under 12th Finance Commission
Funds for providing necessary IT infrastructure to user departments on gap
filling approach. While KSWAN is likely to provide connectivity to many
offices, considering the requirement of IT infrastructure in user departments
another Rs. 15 crore will be required by March-2010.
Forecasting of Value & Volume of Tenders on e-Procurement:
It has been observed that number of tenders floated on e-Procurement platform on
a day varies form 05 to 40 Similarly the value of tenders varies from Rs 10 lakhsto Rs 100 crores. Number of tenders being floated on e-Procurement has
increased significantly in last 02 months. (i.e. January & February-2009). By 15th
February more than 750 tenders have been floated on e-Procurement and the value
is more than Rs 2000 crores. At present, Big spending departments like PWD,
KRDCL, KDLWS are floating tenders on e-Procurement for values of more than
Rs 50/- lakh.
If the induction of departments goes on as per envisaged roll out plan and the limit
for floating tenders for big departments is reduced to Rs 10 lakh from existing Rs
50 lakh; the turnover on e-Procurement for year 2009-2010 will likely to be
around Rs 7500/- crores.
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