DIRECTORATE GENERAL OF SUPPLIES

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DIRECTORATE GENERAL OF SUPPLIES DISPOSALS

• E-PROCUREMENT EXPERIENCE

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Background - Organization

• DGSD - Central Purchase Organization of Govt of
  India
• Headquartered at New Delhi with three regional
  purchase offices in Metros and 27 QA offices in
  major industrial towns
• Purchase directorates organized commodity wise to
  facilitate maintenance of data, market
  intelligence, technological advancement in
  products and processes
• Quality Assurance offices located near users and
  industry to facilitate quick response
• Technical and multi-disciplinary workforce
  including two Group A engineering services
  recruited thru UPSC
• ISS (purchase) officers posted in other
  ministries to assist in procurement of exclusive
  items

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Background Role

• DGSD is engaged in diversified activities like -
• Conclusion of Rate Contracts for over 350 product
  categories involving 20000 items besides spares
  etc.
• 6000 GoI users spread across the country
• Serves / facilitates over 10000 tenderers
  including 2600 DGSD registered suppliers,
• Pre-despatch inspection against DGSD contracts
  and direct orders on request
• Formulate procurement policies and procedures
• Cargo clearance at major ports
• Provide consultancy in the procurement management
• Goods procured worth Rs 40 bn during 2005-06.
• Estimated procurement by State Govt, PSUs other
  Organizations based on R/Cs Rs. 60 bn.
• DGSD provides single point contact for Govt
  users and vendors/suppliers for procurement of
  commonly used goods

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Transparency

• DGSD manual prescribes procurement procedures,
  forms, delegation to different functionaries and
  guides decision making. It is a priced document
  also available on DGSD website.
• All Products categories, specifications, bidding
  terms and conditions finalised through extensive
  consultative process with suppliers and users
• DGSD website (dgsnd.gov.in) contains details of
  products/ procurement specifications, tender
  enquiries, rate contracts, registered firms,
  policies procedures, forms etc.
• On-line tendering made compulsory from 1st April
  2006.
• Well defined delegation of powers and channel of
  submission.
• All R/C proposals scrutinized by Finance.
  Additionally CCA exercises checks at
  post-contract stage.
• Regular rotational transfers of officers.
• Works under a focused attention of Industry and
  vigorously interacts with industry, users and
  other connected with Purchase management.
• Full fledged vigilance set-up at DGSD and
  Department of Commerce.
• All contractual and other documents are regularly
  audited by a dedicated wing of CAG.

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E-Procurement - Benefits

• Increased Transparency Wider Competition
• Simplify Speed Up Tendering Processes
• Real Time Generation Of Detailed Accurate Data
  Elimination Of Human Error
• Seamless Sharing Of Information
• Ease Of Operation Quicker Decision
• Comprehensive Website To Facilitate Tendering,
  Contracting, Ordering And Retrieval Of
  Information To Authorized Functionaries - Online
  Interaction Avoiding Physical Visits
• Facilitating Pre And Post Contract Management
• Reduction In Cost Of Government Purchases

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E-Procurement - Components

• E-Tendering
• Tender Notice
• Tender enquiry
• Bid submission
• Bid opening
• E-Payments
• Bill submission
• Processing
• Payments
• Debit Adjustments
• Status
• Complaints

• E-Purchase
• Registration
• Store coding
• Technical Particulars
• Evaluation of Bids
• Award of Rate Contract
• E-Inspection / Supply
• Supply Order
• Inspection
• Dispatch Details
• Receipt Details
• 
  

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DGSD Website (http//www.dgsnd.gov.in)

• A comprehensive DGSD website facilitates
• A single access point for DGSD officers,
  suppliers and customers
• Downloading of DGSD Manual, forms, conditions of
  contract, circulars
• Notices, agenda and minutes of the Consultative
  Meetings
• Suppliers registration
• Download of summary and full text of Parallel
  Rate Contracts
• Creation and Hosting of
• Tender enquiries tender notices and corrigenda
• Rate contracts,
• Technical specifications.

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DGSD Website (http//www.dgsnd.gov.in)

• Provides access to Indentor's page and Vendors
  page for the following activities
• Indentors Page-
• Online placement of supply orders
• Entering Receipt Particulars of stores
• Intimation regarding shortages/quality
• Suggestions for bringing new items on RC
• Vendors page
• Online submission of Registration application
• Online inspection call
• Entering dispatch particulars
• Online submission of Bills
• Suggestions for bringing new items on RC

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ALLOCATION OF FUNDS
YEAR PLAN ALLOCATION ACTUAL ALLOCATION FUNDS UTILIZED
2001-2002 65.00 35.00 18.00
2002-2003 211.39 200.00 155.78
2003-2004 190.95 191.00 168.80
2004-2005 224.23 126.00 126.00
2005-2006 61.47 130.00 130.00
TOTAL 753.04
Note All amounts are in Rupees in lakhs
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Challenges (1)

• Integration of Nation wide spread of DGSD
  Purchase and QA offices
• Multiple Matrices of Rate Contract as against
  Single/Limited Matrix of Fixed Quantity (Ad-hoc)
  Contracts
• Integration of
• large Govt user base including those in far flung
  areas (over 6000)
• Tenderers spread across the country (over 10000)
• Registration of vendors (over 2600)
• Management of over 2500 Contracts and 60,000
  supply orders
• Different Purchase Directorates have different
  requirements

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Challenges (2)

• Adherence to GFR, DGSD Manual, CVC Guidelines
  and other Instructions issued by Government
• Interface With External Agencies like NSIC, DGQA
  (Defence), BIS etc.
• People and Process Change management
• Technical challenges like IT Infrastructure, Data
  Security, backups, etc.

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e-Procurement Solution Interactive Modules -
Current Status

• Store Directory Coding of All RC items Complete
• Registration module Database of all
  registrations (over 2600)
• Tender module
• Tender Notices Tender Enquiries 250 RC cases
  since Jul05
• Rate Contract Module 240 RC cases since Jul05
  involving
• over 1400 parallel RCs.
• Other Parallel Rate Contracts not due for renewal
  placed on
• database
• Inspection Module
• Supply order module- Lateral entry of over 6000
  supply orders
• Inspection note module over 7500 inspection
  notes

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e-Tendering

• E-Tendering System (https//dgsnd.govtprocurement.
  com)
• Online Publishing download of tender enquiries
• Supplier registration
• Online bid submission by suppliers
• Online bid opening witness by suppliers
• Spot Price Comparative Chart
• Security Audit by STQC
• 102 RC tenders opened online
• Over 1000 bids submitted through e-tendering
• The e-Tendering system is implemented and
  maintained by M/s. C1 India Pvt. Ltd., New Delhi

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SECURITY AUTHENTICATION

• SECURED HOSTING FACILITY
• WEB SECURITY SSL TECHNOLOGY
• TWO FACTOR AUTHENTICATION WITH DIGITAL SIGNATURES
  PKI
• BID ENCRYPTION AT DATA BASE
• AUDIT TRAIL OF EACH ACTIVITY
• GOOD BACKUP POLICY
• SECURITY AUDIT BY INDEPENDENT THIRD PARTY
• TIME STAMPING
• ACCESS CONTROL SYSTEMS

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e-Tendering - Benefits

• To DGSD -
• Greater Transparency
• Reduced process cycle time
• Reduced costs
• Improved image
• Instant availability of real time information
• Cartel Breaking
• To Suppliers-
• Reduced costs
• Convenience of transacting online with DGSD
• No physical visits to DGSD
• No pressure of cartel
• Increased opportunities

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Training

• All the staff in DGSD trained in Computer usage
• Concerned Officers and staff trained on
  application software modules
• Few officers trained in system and database
  administration
• Over 120 Govt. DDOs trained at HQ and regional
  offices
• 700 suppliers trained on e-tendering module

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PROJECT OBJECTIVES

• TRANSFORMATION OF EXISTING PAPER BASED ACTIVITIES
  INTO COMPUTER BASED ENVIRONMENT
• PROCUREMENT OF NECESSARY HARDWARE AND SOFTWARE
• SETTING UP OF WEB/MAIL SERVER
• NETWORKING OF DGSD (HEADQUARTERS) WITH REGIONAL
  SUPPLY OFFICES AND REGIONAL AND FIELD QUALITY
  ASSURANCE OFFICES AND ALSO PAY AND ACCOUNTS
  OFFICES
• ON-LINE TENDERING PROCESS
• ENCRYPTION AND SECURITY OF DATA

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INTERACTIVE OPERATIONAL MODULES

• SUGGESTION SYSTEM
• REGISTRATION SYSTEM
• PURCHASE SYSTEM
• INSPECTION SYSTEM
• E-TENDERING
• STORE DIRECTORY
• MIS
• PAYMENT SYSTEM

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Recognition by GoI

• This initiative of DGSD has been recognized by
  Department of IT C, Govt of India.
• Few organizations have already approached DGSD
  to use its e-Procurement platform

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Future Roadmap

• Redesigning of website
• Integration with DGQA, Min. of Defence, NSIC, BIS
• Business Process Re-engineering
• Development of software for
• Specialized products
• Fixed quantity products
• Administration
• Shipping
• Litigation
• Integration of Govt DDOs and suppliers
• Advance Training on computers, System Data
  Administration to DGSD officers

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Future Roadmap

• Requirement
• Improving the capacity of the system
• Creating backup and security
• Professional assistance in software development
• Improving computer-Officials Ratio from present
  14 to12 in next three year
• Training of users and suppliers on application
  software

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HINDSIGHT A BETTER APPROACH

• E-PROCUREMENT INITIALLY NOT VISUALISED THOUGHT
  OF AS COMPUTERISATION OF HQ ONLY
• INCLUSION OF THE STAKEHOLDERS FOR INPUTS
  FEEDBACK
• CLEAR TARGETS GOALS NOT DEFINED WHAT TO
  DELIVER
• SOFTWARE DEVELOPMENT INCLUSION OF OUTSIDE
  EXPERTS
• DEDICATED TEAM OF OFFICERS BEFORE ATTEMPT
• CONNECTIVITY PLANNING SHOULD HAVE BEEN AS PER
  THE REQUIREMENT
• SYSTEMATIC APPROACH TO WEB DESIGN
• PROCESS RE-ENGINEERING BEFORE ATTEMPTING
  COMPUTERISATION

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THANK YOU