1 presented by june-2013, iim indore. 2 ppt downloaded from

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Executive Post Graduate Programme in e-Governance (EPGP-EG), 2013-14

Procurement for e-governance Projects

Pravin KolhePresented by

Prototype: A Crucial Tool for

Evaluation of Bids

June-2013, IIM Indore

PPT downloaded from www.pravinkolhe.com

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CONTENT1)

• Introduction

3)

• Current Bids Evaluation Criteria & its Limitations

2)

• E-Governance Project Life Cycle

4)

• Prototype as a Bid Evaluation Criteria

5)

• Merits of Prototype as a Evaluation Criteria

6)

• Conclusion


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The basic functions of Government are- Law/Policy Formulation and Implementation. Regulation. Services to Citizen.

ICT has not only transformed the way of doing business, but it is now enabling the transformation of government through e-Governance Projects.

1. INTRODUCTION

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(1)

Vision & Strategy

Development

(2)

Current State

Assessment

(3)

Future State

Definition

(4) Implementation

Approach & Sourcing

(5)

Develop & Implement IT system

(6)

Operate & Sustain

2. E-GOVERNANCE PROJECT LIFE CYCLE

Project Management Office/Unit

Change Management and CommunicationsPPT downloaded from www.pravinkolhe.com


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3. PROCUREMENT LIFE CYCLE

Need Recognition

Project Definition

Project Approval

Detailing – RFP

Preparation

Bid Process Management

Award of Contract

Work Execution

Contract Administration

Payment Management

Exit Management


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5. EVALUATION STRATEGIES

1)

• Cost Based Selection (CBS)

2)

• Quality & Cost Based Selection (QCBS)

3)

• Value for Procurement (VFP)


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1)

• Cost Based Selection (CBS)

Used for projects which are easy to implement. High level of Clarity regarding project


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2)

• Quality & Cost Based Selection (QCBS)

Weightage is given to Technical & Financial Scores.

Low clarity regarding project

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3)

• Value for Procurement (VFP)

Focus on Total Cost & Benefits Used for Very complicated projects Technical & Financial Evaluation is done

simultaneously.PPT downloaded from www.pravinkolhe.com


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6. ‘QCBS’ EVALUATION

Technical & Financial scores secured by each bidder will be added using weightage to compute a Composite Bid Score (CBS).

Bidder securing highest CBS will be adjudicated as most responsive Bidder for award of the Project.

In case, CBS are ‘tied’, then bidder securing highest Technical score will be the Best Value Bidder for award of the Project.


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7. LIMITATIONS OF CBS & QCBS

Time for preparation of bid is limited, hence bidder has less scope for in depth study.

Time constraints may lead to infeasible innovations. As a result, innovative solutions & combination of new

technologies submitted by bidder may not be realistic. Such bids will create technological problems initially,

and commercial & legal problems later. As bidders model is not tested before implementation,

there is a risk involved.


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8. WHAT IS PROTOTYPE?

Prototype:- “An approximation of the product along one or more dimensions of interest”

Prototyping:- “the process of developing such an approximation of the product”


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9. PROTOTYPE AS A CRUCIAL TOOL

The limitations mentioned above may be overcome by adopting innovative 3 stage approach involving Prototype as a middle stage.1)

• Evaluation of Only Technical Bid

2)

• Evaluation of ‘Prototype’ of shortlisted bidders

3)

• Evaluation of Financial Bid of shortlisted bidders


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Stage 1:- Technical Evaluation Only Technical bids accompanied by ‘high level solution’ are invited

and evaluated. There are no commercial bids at this stage. Stage 2:- Prototype Evaluation

Technically shortlisted bidders are requested to design & develop prototype that captures and demonstrate the salient features of solution offered.

Bidders are allowed to study enterprise in sufficient details, to enable their prototype more representative of existing system.

Then bidders are asked to submit the ‘Prototype’ and ‘Financial Bid’ for main project.

The prototypes of bidders are evaluated and scores are assigned.

10. EVALUATION OF PROTOTYPE


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Stage 3:- Financial Evaluation Financial bid of the Stage 2 bidders are open &

evaluated. Award is made on the basis of (Should be mentioned

in RFP)- Combined score of three stages Combined scores of Stage II & III

Cost of preparation of prototype may be compensated at a fixed rate to unsuccessful bidder of 3rd Stage.

10. EVALUATION OF PROTOTYPE

CONTD…


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The 3-Stage Procurement procedure may be lengthier, it has following advantages-

It results in ‘real’ competition between rival technologies & brings out best.

Shortlisted bidders gets opportunity for in-depth analysis of enterprise. There is minimum information asymmetry between owner and bidders. The shortcoming in drafting the system requirements may be

overcome, which will avoid future complications. Bidders are well informed to quote their financial bid more accurate

manner.

11. MERITS OF PROTOTYPE APPROACH


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12. CONCLUSION1) ‘Vendor Evaluation & Selection’ is one of the crucial step in e-

Governance Project Life Cycle.2) CBS, QCBS & VFP are strategies for award of bid by shortlisting

bidder based on Technical & Financial Scores.3) Solution proposed by bidder, may be unrealistic due to lack &

clarity of enterprise & system, which might lead to technological, financial & legal complexity.

4) To avoid this, 3 stage approach involving ‘Prototype’ as a middle stage is suggested & explained in detail.

5) This approach minimizes information asymmetry, which leads to win-win situation for bidder and owner.


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13. REFERENCES1) “E-Government: The Science of Possible” book by J. Satyanarayana.2) Lecture notes of course on ‘Procurement for e-Governance Projects’,

of EPGP-EG of IIM Indore by Dr. Ramanathan Somasundaram.3) http://toolkit.pppinindia.com/ accessed on 02/06/2013, 13:00.4) “RFP STANDARDIZATION: Model Requests for Proposals (RFPs) and

Guidance Notes for preparation of actual RFPs for E–Governance Projects” http://deity.gov.in/content/rfp-standardization-model-rfps-and-guidance-notes accessed on 02/06/2013, 14:00.

5) DeitY Approach Paper on “Preparation of Model Requests for Proposals (RFPs), Toolkit & Guidance Notes for preparation of RFPs for E–Governance Projects”, Sept-2011.

http://toolkit.pppinindia.com/



http://deity.gov.in/content/rfp-standardization-model-rfps-and-guidance-notes

http://deity.gov.in/content/rfp-standardization-model-rfps-and-guidance-notes


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THANK YOU…!----------------------------------------------------------------------------

[email protected], EPGP-EG, IIM INDORE, 2013-14

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CONTACT: -

Pravin Kolhe, Executive Engineer

Water Resources Department, Government of Maharashtra

Email:- [email protected]


1 presented by june-2013, iim indore. 2 ppt downloaded from

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