Post on 08-Jul-2018
Welcometo
Presentation on
e-GP: Govt of AP Experience
K.Bikshapathi, Project Manager
Information Technology & Communications Dept Government of Andhra Pradesh
Agenda for PresentationeProcurementSituation before eProcurementSituation after eProcurementImpactChallengesLearningsCritical Success Factors
e-Procurement :The GovernmentGovernment – Probably the “single largest buyer”e-Procurement, “a killer opportunity”, of E-GovernmentImportant Value Drivers
Potential savings – aggregated demandProcess efficiencyInstitutional complianceInstitutional MemoryTransparency
What is eProcurement
Doing procurement activities electronically over Internet with vendors/ suppliers.
RequestRequest SourceSource ReceiveReceive PayPay
eProcurementeProcurement
eTenderseForward/Reverse auctionseRate contractseCatalogues
eprocurement – A Global practice
North Carolina
Virginia
Florida
District of Columbia
California
Governments are aiming to manage 100% of their procurement electronically to cut lead times by 50-60% and cost savings 10-25%
Brazil Governement
UK
3
TIP OF THE ICEBERGTender scam busted in MCD office
Tribune News Service New Delhi, August 19The Crime Branch of the Delhi Police today claimed to have unearthed a tender mafia racket in the Municipal Corporation of Delhi with the arrest of eight contractors and an employee of the corporation.
Situation before eProcurement
Situation before eProcurement
Discrimination in issue of tender schedulesCartel formation - suppresses competition Physical threats to biddersManual movement of tender files – Cause of delayHuman interface – Manipulations, tampering or loss of recordsLack of adequate transparency Adverse Press coverage on Tender fracas
GoAP eProcurement Calender
Cabinet sub committee recommended eProcurement in 2000eProcurement identified as a core eGovernance in 2001 - project with relevance across the governmentFirst among governments to implement eProcurementAppointment of consultants in 2001Pilot launched in January 2003Scale up in July 2004
eProcurement Roll out
12 Govt DepartmentsIrrigation, Roads&Buildings, Panchayat Raj Engg, Public Health Engg, Animal Husbandry, Horticulture,Tribal Welfare,Fire Dept, Education
18 Public sector UnitsAPTS, AP Police Housing, APSRTC, APHMHIDC, APSTC,HUDA, HMWS&SB, APGenco, Singareni Collieries,APHB, APSHC, APSIDC,AP Beverages,APIIC, APCSCL, APTransco,AP Tourism
62 Municipalities4 Universities , IEG, TTDTurn over
2003-04: Rs.1,982 Cr (564 Nos)2004-05: Rs 15,600 Cr(2215 Nos)2005-06: Rs 15,808 Cr (9981Nos)2006-07: Rs 3722 Cr ( 5496 Nos)
18256 Tenders
Rs37112 CroresOr
US$8 Billions
eProcurement Roll out trendYear No of
DeptsValueTransacted in US$
No of transactions
% of eProcurement out of total govt spend
2003-04 8 447 564 20%
2004-05 7 Depts9 PSUs17 ULBs
3522 3746 85%
2005-06 8 Depts13 PSUs51 ULBs5 Univ
3740 9981 90%
Range of procurementsHardware, software, Office automationDrugs, Medical equipment, FurnitureVeterinary drugs, PesticidesPaper, Office stationaryCow ghee, Sugar, gingelley oilElectricity Sub-stations, Transmission equipmentAuto spares, Transformers, PumpsWorks contractsEPC - Turnkey contracts
ImpactTransparency brought improved imageContractors cartels dismantledCost savings
Rs 2400 Cr on account of competitive bidsAdvertisement costs in Print media reduced
Bidder Participation increased by 25%Reduction in transaction time
120 days to 35 daysEmpowerment of biddersMIS for decision supporting system
Cost savings- AnalysisCase 1:COT
Year No. of tenders ECV(Cr) TCV (Cr) %2001-02 188 755.29 735.57 (-)2.652002-03 125 558.36 510.07 (-) 8.652003-04 160 1101.69 884.21 (-) 19.742004-05 94 755.56 667.09 (-) 12.02
Type No. of tenders
ECV (Cr) TCV (Cr) %
eProcurement(2003-04) 107 733.55 549.93 (-)25Conventional(2003-04) 53 368.14 334.78 (-) 9eProcurement(2004-05) 90 725.52 638.29 (-)12.02%
Conventional(2004-05) 5 30.04 28.80 (-) 4.12%
Comparison between two systems
COT derived Additional savings due to eProcurement
Estimated/ Tender Contract Value
Cost savings- in Municipalitiessource- MA&UD Department
Type No. of ULBs
No of Procureme
nts
ECV (Cr) %
eProcurement for State Govt funded schemes
52 383 60.33 (-)10.31
Conventional for World Bank Schemes
35 173 29.33 (+) 7.4
Comparison of two systems in 2005-06 (up to Oct’05)
Effective cost savings due to eProcurement is 17.71%
Awards 2006: Topped the independent assessment study conducted by MIT, GOI- Score 83.72006: A case study hosted in World Bank website2005: Recognised as best practice by GOI, All GOI, States asked to migrate by 4/20072005: Best egov project in country by PCQUEST for creating Social Impact2003: Golden Icon award by GOI
Awards
Golden Icon Award-2003 from Ministry of Administrative Reforms, GOI
Best IT Implementation-2005 for Maximum Social Impact from PCQuest
Ministry of Information Technology, GoI
www.mit.gov.in/SA/index.asp
39 Summary Assessment Projects Details
E-PROCUREMENT
Implementations in IndiaS.No State / Department Level of eprocurement Service Provider URL
1 Andhra Pradesh Indent - Award of Contract C1 India Pvt Ltd www.eprocurement.gov.in2 Punjab, DoIT Indent - Award of Contract C1 India Pvt Ltd https://punjab.govtprocurement.com/3 Gujrat Tender publishing - Award (n) Code Solutions of
GNFCwww.nprocure.com
4 Karnataka Tender publishing - Award / Auctions Wipro / Antres www.tenderwizard.com5 Assam Tender publishing - Award Wipro / Nextenders http://pwd.as.nextenders.co.in6 Chattisgarh Tender publishing - Award Wipro / Nextenders http://pwd.cg.nextenders.co.in7 Rajasthan Tender publishing - Award Tender City-eNucleus
8 DGSND Indent - Award of Contract C1 India Pvt Ltd http://dgsnd.govtprocurement.com/9 Northern Railways Tender publishing - Award Broadvision/HCl www.nreps.com
10 South Central Railways Tender - Contract Management C1 India Pvt Ltd www.etendering.scrailway.gov.in11 Hindustan Shipyard Ltd Indent - Award of Contract C1 India Pvt Ltd12 Neyvelli Lignite Corpn Tender publishing - Award Tender City 13 NTPC, Mumbai Tender publishing - Award Nex Tenders http://www.ntpctender.com14 Municipal Corpn of Delhi Tender publishing - Award Wipro / Nextenders www.mcdetenders.com15 Kerala State Civil Supplies corpn ltd Pilot phase Antares Systems www.pilottenderwizard.com16 ASRTU, Delhi Tender publishing - Award Antares Systems www.tenderwizard.com/asrtu17 NIC, Delhi Tender publishing - Award C1 India Pvt Ltd
Challenges in Implementation
Sustainable Business ModelChange ManagementSecurity & Authentication issues
Setting up an eProcurement Exchange is not mere Technology but a Major Reform
PPP Business Model
No Capital cost to the GovernmentState of the art technology High quality resourcesLow RiskCombining accountability with efficiencyServices are governed by SLAs
Role of Private Partner/ Service Provider
Implementation of the E-Procurement functionality across all departmentsCustomizing softwareSetup and management of hardware and software for the PortalTrainingsHelpdesk servicesOperation & Maintenance
Change Management
E- Govt Procurement is not an off the shelf softwareImplementation involves cultural change, attitudes, perceptions, ProcessesIt is not mere IT but more of Reform
Change Management
Steering committee chaired by the Chief Secretary- Inter Departmental coordinationCapacity Building in DeptsInvolvement of stake holders right from conceptual stageTrainings to suppliersPost implementation support- Help DeskSecurity & authentication
Security & AuthenticationSecured Hosting facilityWeb security
SSL technologyFirewalls, Anti Virus, IDS
Two factor authenticationPasswordDigital Certificates: IT Act 2000
Bid encryption at data base- Asymmetric public key Cryptographic method.Audit trail of each activityGood backup policySecurity audit by independent third partyTime stamping.Access control systems
BPR- StandardisationCut down non-value processesRedesign bid formsStandardisation of processes
Sub-committee Secretary(Projects)Universal item codesAuto Bid EvaluationContractors DatabaseEstimations modules
Standardisation reduces customisation- facilitates quick scale up
Learnings
Reforms/ BPR in Procurement processes and eProcurement to synchronise to derive full potential of eProcurementStatewide eProcurement portal beneficialSuppliers adaptability to change is betterStakeholders are demanding for complete automation- Auto Bid EvaluationDesirable to Develop a Monolithic platform with all modules, but implement incrementallyHoD support is criticalPPP Model useful for rapid Scale up
Critical Success Factors
Top Political leadership supportHigh level Project Implementation CommitteeRight policies, ObjectivesSignificant Process Re-engineeringActive involvement of StakeholdersWorkshops/trainingsPublic Private Partnership ModelCIOs from domain are project leadersActive Helpdesk