e-GP : India Experience

Fiduciary Forum (1st – 5th March 2010)

e-GP India Landscape

Union level– Mission mode project of eGP (under National eGovernance

Plan)– Agency specific systems – DGS&D, Railways, NIC

State level– Roll out: AP, Karnataka, Orissa, UP, TN– Pilots: Gujarat, MP, Chattisgarh, Delhi– Plans: HP, Kerala, Assam, Punjab

Department/ PSE level– Several examples with different models of implementation

e – GP India Landscape

STATES using e-GP

CENTRAL PSUs using e-GP

LINE MINISTRIES using e-GP

E-GP system assessment done by World Bank

Andhra Pradesh ONGC Ministry of Railways

GoAP e-GP System (Jan-Feb’2008)

Karnataka SAIL DGS&D BWSSB, Karnataka (July’2008)

Uttar Pradesh BHEL GoK e-GP System (e-proc) (May’2009)

Madhya Pradesh HPCL GoMP e-GP System (July 2009)

Tamil Nadu GAIL SJVN, HP (October 2009)

Orissa

Our e-GP Strategy

NationalDialogue on e-GP

Research and knowledge sharing

Leadership, management and oversight structures

StateState specific strategies, with management structures

Implementation plans in sync with national standards

Building capacity

Framework to monitor progress/improvement

Linking to PFM dialogue/systems

Our e-GP Strategy

ProjectAssessment of existing systems

Guidance on ways to improve

Conducting e-GP pilots

Exploring pathways to integrate project-department implementations to the State strategy

Andhra Pradesh example

Salient features (AP)

Started in Yr 2000 as one of the several IT initiatives led by the Chief Minister

First state-wide e-GP system in India

PPP model:– Pilot = 4 departments– In 9 months, developed templates for various

prevalent procurement practices– Executive orders issued mandating use in the pilot

departments (value > $250,000)– Limit lowered to $125,000– All remaining departments (value > $25,000)– In 30 months, 8 GoAP depts, 13 PSUs, 51

Municipalities & 5 Univs ($ 8.5 billion from 12,441 transactions)

Salient features (AP)

Benefits as documented

Tender cycle time – 90-135 days to 42 days

Transparency– Suppliers– Public at large

Cost savings– 20% in 2003-04 and 12% in 2004-05– Cost of advertising– Cost of MIS

Supplier participation– 3 to 4.5

Key learnings (AP)

Reform initiative was largely IT driven, at the cost of improving outcomes

Gains largely in efficiencies, which have plateaued

Risks related to service provider

Could not develop into an end to end integrated e GP system

Karnataka example

Overall architecture (GoK)

Supplier/ Contractors

Government Departments

e-Procurement Operation center

State DatacenterHosting the e-Procurement

Infrastructure

Public and Private Network

Salient features (Karnataka)

Second state wide system - PPP model HP as the service provider

Led by Center of e-Governance (separate department headed by a Principal Secretary)

Learnt lessons from AP experience

Preparation time = 3-4 years

Salient features (Karnataka)

Integrated systems:– Supplier registration & Indent management (goods , works)– e-Tendering (Creation, Bid submission, evaluation)– e-Auctions– Contract mgmt– Catalogue mgmt– MIS– Accounting– ePayment

Suppliers and Buyers Master Data

e-Payment, Accounting and MIS

IndentManagement

e-TenderingContract

Management

e-AuctionsCatalogue

Management

Dept. 1 Dept. 2 Supplier 1Dept. n… Supplier 2 Supplier n

Pilot statistics (GoK) – May’ 09

3000 users (1000 GoK & 2000 contractors)

75 users per week being added

Over 1200 tenders in the system

A set of 150 estimates/indents

25 departments using the system

Training program for buyers and suppliers

e-Procurement cell (GoK)

Organization Structure for e-Procurement Cell

External stakeholders

Bank

Government users

Contractors

NIC

ASP

PIC/ COO

Project Director, e-Procurement

Acc team

e-Proc admin

DSC officer

Registrar

Office Assistant

Functional delivery team Nodal officer

Tech. support

Key learnings (Karnataka)

Pilot strategy well thought through covering IT, BPR & change management

Scale up is challenging – Procurement law being modified;

State procurement capacity is low

Status of e-GP Assessment in India by Bank

STATE PROJECT SERVICE PROVIDER

STATUS

Karnataka KMRP (BWSSB)

Antares Under pilot

Karnataka KSHIP-II HP Sales India

Assessment has been done. Final report has been shared with the Client. Client confirmation awaited on 4 critical gaps.

Madhya Pradesh

MPWSRP Wipro-NexTenders

Assessment has been done and first draft report has been shared with the Client.

Himachal Pradesh

SJVN ITI Assessment completed in October 2009. First draft report has been shared with Client.

e – GP initiatives :

Developed a Role Matrix in line with guidance note from OPCS

Checklist for review of procurement documents for Clients using e-GP

Web-page on e-GP progress in India

BBL on e-GP

Key Issues observed in GoK assessment

Virus Scanning of documents by the bidders before uploading into the system

Option of manual mode of bid submission for ICB

Conflict of Interest: HPs participation in GoK tenders

Time difference between bid submission and bid opening

Third party audit report

Bidder is required to withdraw the bid in case he wishes to modify the same before deadline for bid submission.

Key Issues observed in GoMP assessment

Standardization of processes

Registration fee

Option of manual mode of bid submission for ICB

Bid modification before deadline for bid submission

Time difference between bid submission and bid opening

Contract award publication.

Key Issues observed in SJVN e-GP assessment

Registration fee

Option of manual mode of bid submission for ICB

Time difference between bid submission and bid opening

Contract award publication.

Challenges we faceSeveral implementing agencies, each proposing it’s own e-procurement process to be used in Bank Projects

Demand for exclusive use of e-procurement system irrespective of method of procurement

Efforts required to convince implementing agencies of the MDB assessment needs of Bank before it’s use for Bank funded Project

Registration fee (systems developed using PPP model)

Links to e-GP websites :

Karnataka :https://eproc.karnataka.gov.in/eportal/index.seam

 Andhra Pradesh : https://tender.eprocurement.gov.in/

 Uttar Pradesh : http://etender.up.nic.in/nicgep/app

 Orissa : https://tenders.ori.nic.in/nicgep/app

 Madhya Pradesh : http://mpeprocurement.gov.in/Home/index.asp

 Chhattisgarh : http://cgeprocurement.etenders.in/cg/index.asp

 Tamil Nadu : http://tenders.tn.gov.in/

 Rajasthan : http://eproc.rajasthan.gov.in/Home.do

Line Ministries

Ministry of Railways : http://www.ireps.gov.in/cgi-bin/ireps/ireps/home.do

 DGS&D : https://dgsnd.govtprocurement.com/

Q&A