e-GP : India Experience

Fiduciary Forum (1st – 5th March 2010)

e-GP India LandscapeUnion 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 LandscapeSTATES 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-GPResearch and knowledge sharingLeadership, management and oversight structures

StateState specific strategies, with management structuresImplementation plans in sync with national standardsBuilding capacityFramework to monitor progress/improvementLinking to PFM dialogue/systems

Our e-GP Strategy

ProjectAssessment of existing systemsGuidance on ways to improveConducting e-GP pilotsExploring 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 MinisterFirst state-wide e-GP system in IndiaPPP 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 documentedTender 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 outcomesGains largely in efficiencies, which have plateauedRisks related to service providerCould 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 providerLed by Center of e-Governance (separate department headed by a Principal Secretary)Learnt lessons from AP experiencePreparation 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-Tendering ContractManagement

e-Auctions CatalogueManagement

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 addedOver 1200 tenders in the systemA set of 150 estimates/indents25 departments using the systemTraining 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 managementScale 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 OPCSChecklist for review of procurement documents for Clients using e-GPWeb-page on e-GP progress in IndiaBBL on e-GP

Key Issues observed in GoK assessment

Virus Scanning of documents by the bidders before uploading into the systemOption of manual mode of bid submission for ICBConflict of Interest: HPs participation in GoK tendersTime difference between bid submission and bid openingThird party audit reportBidder 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 feeOption of manual mode of bid submission for ICBBid modification before deadline for bid submissionTime difference between bid submission and bid openingContract award publication.

Key Issues observed in SJVN e-GP assessment

Registration feeOption of manual mode of bid submission for ICBTime difference between bid submission and bid openingContract award publication.

Challenges we faceSeveral implementing agencies, each proposing it’s own e-procurement process to be used in Bank ProjectsDemand for exclusive use of e-procurement system irrespective of method of procurementEfforts required to convince implementing agencies of the MDB assessment needs of Bank before it’s use for Bank funded ProjectRegistration 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