Electronic Government Procurement eGP for Commonwealth Games

1
Electronic Government Procurement (e-GP) for
Commonwealth Games

• Presented by Dr. G Narendra Kumar , Secretary
  IT, GNCTD

2
What is eProcurement

• eProcurement is the purchasing of goods and
  services using a web based application software

Web Based Application Software
Buyer
Supplier
3
Scope of eProcurement
4
The Mission of Common Wealth Games

• To deliver a reliable and effective technology
  platform to support the games

• To utilizing existing and proven technology
  solutions
• To leverage core competencies and experience of
  partners and key suppliers (PPP)

5
Requirements of Common Wealth Games
Product effectiveness, efficiency and
affordability. Goods and services must meet the
specified performance standards for their
particular function and be delivered on time,
within budget and with minimal risk. Transparency
and accountability. The procurement process
should be transparent, fair and respectful of
vendors through open bidding and equitable
opportunities. The integrity of the process
should be supported by clear accountabilities and
authorities that are regularly monitored.
6
Requirements of Common Wealth Games - Contd
Legal compliance. Meeting all applicable
regulatory and trade requirements is
mandatory. Ethical sourcing. Products and
services delivered through the supply chain
should be manufactured and distributed ethically
and with regard for international standards on
human and labour rights.
7
Requirements of Common Wealth Games - Contd
Value in Kind (VIK). The high profile of the
Common Wealth Games allows for opportunities to
seek required goods and services from the
business sector in exchange for marketing rights.
8
Infrastructure Requirements for Commonwealth Games

• For providing access to services in Delhi and
  games based services
• Airports
• Railway Station
• Bus Stands
• Stadiums
• Hotels and Tourist Places
• Urban Knowledge Centers
• Games Village

9
Infrastructure Requirements for Commonwealth
Games(2)

• Many Number of Stadiums
• Hospitality Management
• Security
• Media Outsource
• Print Services
• Selecting the major sponsor for the event by end
  of Mar 2007

10
Technical Requirements for the Common Wealth Games

• Making Delhi Wi-Fi enabled
• Information Kiosks
• Games Portal
• Games Display
• Call Centre
• Games Management System Contd..

11
Technical Requirements for the Common Wealth
Games Contd

• Web Services / 3G Data Communication
• Outsource of venue for showcasing of events in
  cinema halls / large display boards
• Game Villages Management System

12
e-Infrastructure Commonwealth Games
13
e-Infrastructure Commonwealth Games

• Not taken up by IOA or Govt. so far
• CII is the first to ponder over this
• May be because this infrastructure can be set up
  quickly
• Generally taken care of by IOA

14
e-Infrastructure Commonwealth Games

• Modules
• Games management System
• Games Result System
• Information System
• Games Website

• Infrastructure
• Network Development
• Bandwidth
• Command Control
• Program Support
• Program Control
• Logistics Installations

15
Opportunities Commonwealth Games

• Network Development
• WAN Design
• Venue LAN Design
• Venue IT Infrastructure Operation Support
• Logistics Installations
• Logistics management
• Software distribution
• Hardware
• Bandwidth
• Command Control
• Data Center operation
• Games Staffing
• Help Desk
• Security (ID Cards, Incident tracking etc.)

16
Opportunities Commonwealth Games

• High Definition TV (Nationwide digital
  broadcasting system)
• Broadband
• Games Web Site
• IT Support to Tourism Travel Industry
• IT Solutions to Transportation system being
  planned (common ticket for metro/bus etc.)
• GIS based IT solutions to Police for traffic
  management, crowd control etc
• Mobile or handheld payment system, venue entry,
  e-health etc.
• Creation of Hot-Spots/Wi-Max etc.

17
Procurement in Common Wealth Games
There is a need of eprocurement in Common Wealth
Games to meet the requirements
18
Steps taken to meet the requirements ---Tender
Notice Information System - Implemented in 2003

• The web based tender notice information system
  allows publication of tender notices at one
  location which can be viewed by any one at any
  time on different keys.
• On publication of a tender notice the system
  provides free email notification to those who
  have registered themselves on the site.
• Since tenders lead to contracts, system has been
  designed to accept details of contract to enable
  the citizens to see different types of civil
  works being undertaken in their area

19
Steps taken to meet the requirements ---Tender
Notice Information System
Impact On an average of 2000 tender notices are
being published every month. So far 4864 vendors
have registered to get free email notification.
339 branches of 82 departments are using this
application software.
20
(http//delhigovt.nic.in/tender)
21
MCDs e-Procurement System

• Wipro providing system support and integration
  solution.
• E-payment gateway.
• CA for issue of digital certificates.
• SLA specifying uptime.
• Authorized representative to check adherence to
  SLA wrt throughput and response time.

Contd
22
MCDs e-Procurement System(2)

• Tender completed on preperation of comparative
  statement or placement of purchase order.
• Payment for tenders processed on a monthly basis.
• PIC to work out infrastructure, process changes
  , motivating vendors to move to EPS for tenders
  valued at more than Rs 10 Lakhs and training .

Contd
23
MCDs e-Procurement System(3)

• Paper based and EPS to run parellely for 6
  months.
• Free training for officials and vendors, but
  infrastructure is to be provided by MCD.
• Onsite support maintenance telephone support
  and help desk.

Contd
24
MCDs e-Procurement System(4)

• Termination of contract in the event of security
  breaches.
• No software to be installed on user computers
  other than that normally used.

25
MCDs e-Procurement System- MCDs Role

• Requirement gathering, analysis, design and
  customisation.
• Formulation of ATP and to get accepted by MCD.
• Provision of Hardware and software on ASP Basis.
• Management including system administration of EPS
  System of MCD.
• Hosting and domain registration for MCD.
• Integrate with PKI and Payment Gateway.
• To provide digital certificate for MCD users and
  vendors.
• To provide training to MCD users and Vendors
• Set up help desk.

26
MCDs e-Procurement System Indent Approval

• Facility for raising an online indent by
  different users and aggregation of the same, with
  facility for different levels of online approval
  depending on the value or type of the tender.
• System follows workflow environment covering
  various levels of indent generation, its
  consolidation and approval process in an online
  environment.
• Provision for special approvals other than the
  approved hierarchy may be built into the system.
  
• The relevant approving authority should get an
  email alert whenever any indent has come to him/
  her for approval.

27
MCD- Vendor Registration

• Facility for empanelment of vendors on the portal
  
• Facility for creation of a database for
  registered vendors .
• Assignment of classes to appropriate vendor based
  upon pre-qualification criterion
• System should have the capability of query,
  searching through well-defined software like
  Vendor/ Contractor Information System.
• The system should provide web space (say 5MB) for
  each vendors to upload and save all the
  certificates and documents

28
MCD- Tender Creation and Publication

• Facility for generating Notice Inviting Tender
  (NIT) which includes all necessary details like
  tender Type, schedules dates, EMD Details etc
  Facility for generating NIT for Newspapers.
• Facility for sending and generating secured
  electronic request to the existing suppliers .
• Secured electronic alert facility to the
  registered suppliers on the portal.
• Search facility for the tender floated on the web
  site.
• Facility to authorised personnel of MCD for -
  Online Creation, Approval Posting of Notice
  Inviting Tenders (NITs), etc.
• The System allows the authorised personnel of
  MCD to upload tender documents.
• The relevant approving authority should get an
  email alert whenever any NIT has come to him/ her
  for approval.
• Each NIT, corrigendum and addendum issued by MCD
  to have a unique reference number for future
  reference.

29
MCD- Bid Preparation and Uploading

• The system should have the functionality of
  online purchase of tender document by the
  supplier. It should support both offline and
  online payment mechanisms.
• Facility to interact with payment gateways to
  deposit the Tender document fees, EMD and all
  other payments to the buyer organisations.
• The system should provide for downloading of the
  tender document by the suppliers only on payment
  of the requisite amount.
• The system should support both online and offline
  payment mechanisms for EMD.
• Bids to be encrypted in a manner that even with
  the connivance of the System Administrator,
  designated authority, software developer, service
  provider or any entity it should not be possible
  for any other bidder or third party to view,
  tamper, delete, open, modify, or manipulate into
  the confidential contents of a bidder's bid till
  the time of Public Tender Opening

30
MCD- Pre Bid Meeting

• The software should have online pre-bid meeting
  functionality like chat rooms.
• It should allow the supplier to post multiple
  queries on a tender online.
• It should allow the department user to centrally
  reply to all the queries of the suppliers
• The system should retain the confidentiality of
  the supplier asking the question.
• All the queries logged in by the supplier should
  get the date and time stamp.

31
MCD- Tender Evaluation

• Facility to receive online digitally signed and
  electronically sealed (i.e. encrypted) bids. It
  should not be possible to open these Bids till
  the specified time has elapsed.
• Online receipts to be given by the System for
  bids, which are received on date and specified
  time.
• Receipts and storage of multiple bid parts.
  Different bid-parts could be opened in the same
  or separate Tender opening events as specified by
  MCD online.
• Facility for Multi Stage Tender Opening should be
  available.
• The system must allow the flexibility of dynamic
  assignment of officers for opening the various
  tenders, as per the stage of the tender and the
  policies of the dept.
• Facility to participate authorised personnel of
  the bidder-organisations for Tender Opening Event
  from remote locations electronically with full
  security procedures being followed.
• Tender opening event should be simultaneously
  viewable by all attendees from their respective
  locations in the form of a collaborative chat
  with full security features.

32
Proposed e-procurement Solution for GNCTD

• The Government of GNCTD is in process to
  implement a common e-procurement platform for all
  the departments of GNCTD. to procure works
  ,services and goods.
• IT Department , GNCTD is exploring the
  possibility to join the national level
  e-procurement solution provider like DGSD to
  enjoy the scale of economy at national level.
• The proposed e-procurement solution of Delhi
  Government will serve as end to end solution for
  entire procurement cycle with Contract Management

33
Proposed e-procurement Solution for GNCTD
Indent Management
NIT Management
Supplier Management Registration, Verification,
Catalog, Bidding, Order Notification, Rate
Contract, Contact Mgmt
E-Tendering Electronic Request for X
(eRFX) Tender Publish, Submission, Technical and
Commercial Evaluation, L1 Notification, Elec
Purchase Order
Contract Management Order Notification, Works
Contract Monitoring, Milestone Status Updates
Electronic Payments
34
Benefits of eProcurement in Common Wealth Games

• Smart governance
• Increased transparency
• Real time information on procurement
• Better monitoring and control
• Cost Reduction
• Demand Aggregation
• Streamlined Procurement Processes
• Reduced procurement cycle time
• Automated workflows
• Status update
• Elimination of non-value adding steps

35
Benefits of eProcurement in Common Wealth Games
- Contd

• Supplier Enablement
• Opportunity to small medium suppliers
• Smart governance
• Cartel formation can be arrested
• Bidders will be able to participate with
  anonymity
• Fair, free and fearless participation of bidders
  becomes possible
• Better decision making

36
Benefits of eProcurement in Common Wealth Games -
Contd

• New Improved Image
• Transparency in Buying
• More information timely to more people
• Tight Monitoring and control on Procurement
• Improved Accountability
• Improved response time

37
Benefits of eProcurement in Common Wealth Games -
Contd

• Stream lined Procurement Process
• Efficiency
• better administration leads to lower transaction
  cost
• shorter bidding periods few errors
• management of information improves decision
  making
• Process Efficiency
• Elimination of non-value added steps
• Automated Work flows
• Automated status update
• Enforcement of Standard process

38
Benefits of eProcurement in Common Wealth Games -
Contd

• Availability of Supplier Database
• Standard categorization of Products Services
• Real Time information
• Equality Fairness
• geography and time neutral
• simplified procedures reduce skill gap
• transparent rules and processes establish level
  the playing field

39
Benefits of eProcurement in Common Wealth Games -
Contd

• Discourages cartel formation
• Bidders will be able to participate with
  anonymity
• Fair, free and fearless participation of bidders
  becomes possible
• Increases competition
• Aggregated Demand
• Gets Govt. Better prices
• New Supplied Discovery
• Access to national international network of
  suppliers
• Encourages SMEs
• Simplifies bidding

40
Benefits of eProcurement in Common Wealth Games -
Contd

• Cost Reduction
• Increased competition gets govt. lower prices
• Substantial saving of expenses on advertisement
• Improved inventory mgmt
• Reduced transaction costs
• Elimination of Tender publishing costs
• Demand Aggregation
• Savings on Stationery

41
Role of EGP-for Common Wealth Games
The E-Procurement will cater all the procurement
need of the common wealth games for procurement
of the Works, Services and Goods through a single
robust and scalable procurement system with the
efficiency and transparency
42
Thanks
Dr. G. Narendra Kumar Secretary (IT) Govt. of
NCT of Delhi secyit_at_nic.in
43
eProcurement Emerging Alternative

• eProcurement is the purchasing of goods and
  services using the internet
• - covers full life cycle of purchasing
  (requisition to receipt of goods)
• - connects buyers and suppliers through
  electronic exchange of catalogs, contracts,
  Pos, invoices etc
• - includes on-contract and off-contract buying
• - includes a variety of off-contract techniques
  such as RFPs, quotes, auctions and reverse
  auctions

44
Traditional Procurement
Need
Receipt of bids
Tech bid Evaluation
Tender Notice
Fin. bid Evaluation
Award
Receipt of Goods
Payment
45
Problems Faced Today

• Time consuming
• No information on
• number of suppliers
• number of items, and
• total quantum of purchase
• Difficult to use bargaining power of big
  purchaser as there is no way to consolidate
  demand
• No scope of bid auction/reduction
• Pooling of bidders as they form cartels

46
Solution
eProcurement
47
With all of above we need a robust procurement
system with transparency in the Government
Procurement system for the Commonwealth Games
48
eProcurement Contd.

• Covers full life cycle of purchasing of goods
  (requisition/indent to e-tendering to receipt of
  goods and contract management)
• connects buyers and suppliers through electronic
  exchange of catalogs, contracts, Pos, Invoices
  etc
• includes on-contract and off-contract buying
• includes a variety of off-contract techniques
  such as RFPs, quotes, auctions and reverse
  auctions
• Enables worldwide commerce on internet

49
eProcurement Contd.

• Indent Management
• Notice Inviting Tender Management
• eTendering Bid Document Mgmt preparation,
  publish, submission, bidding
• Electronic Bid Evaluation
• Electronic Purchase Order
• Order receipt acknowledgement

50
eProcurement Contd.

• Goods receipt notification
• Electronic Contract Management
• Electronic invoicing, payment
• Electronic order notification, acknowledgement
• Catalog and Rate Contracting Procurement

51
Benefits of eprocurement in Government Sector

• Cost reduction by 10
• e-Tender, e-Auction and e-Contract Management
• Avoid grouping of Bidders
• Avoid Mafia
• User friendly and paperless procurement process
• Better decision making
• 24 discount due to anonymity
• low publishing cost of NIT

52
Benefits of eprocurement in Government Sector -
Contd

• Savings in processing time by 30 - 40 (34 35
  days tender time)
• e-Indent
• Online creation of NIT/Tender
• Online Posting/ e-Contract Management
• Online Evaluation of Bids
• File Movement Minimized
• Better monitoring and control

53
Requirement of E-GP for Commonwealth Games

• For successful organizing of the Common Wealth
  Games we need a procurement system with following
  features
• Common Procurement System for procurement of
  Works,Good and Services
• Real time information on procurement
• Better monitoring and control
• More information timely to more people
• Tight Monitoring and control on Procurement
• Improved Accountability
• Improved response time

54
Requirement of E-GP for Commonwealth Games-Contd

• Discourages cartel formation
• Bidders will be able to participate with
  anonymity
• Fair, free and fearless participation of bidders
  becomes possible
• Increases competition
• Aggregated Demand
• Gets Govt. Better prices
• New Supplied Discovery
• Access to national international network of
  suppliers
• Simplifies bidding