eprocurement- dgs&d

8/4/2019 EProcurement- DGS&D

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E-PROCUREMENT IN

DGS&D



Directorate General of Supplies & Disposals

(DGS&D)• Established ‘India Stores Department’ in London in 1860• Commenced operations in India in 1921• Established DGS&D as ‘Central Procurement Organization’ in 1951,

presently under Ministry of Commerce & Industry, Govt. of India• Inducted engineers through UPSC in Group-A cadres of ‘Indian

Supply Service (ISS)’ and ‘Indian Inspection Service (IIS)’ in 1961

• Headquartered at New Delhi with 3 regional purchase offices inmetros and 27 QA offices in major industrial towns• Purchase directorates (14) organized commodity wise to facilitate

maintenance of data, market intelligence, technologicaladvancement in product and processes

• Quality Assurance offices located near users and industry to

facilitate quick response and interaction• Technical and multi-disciplinary workforce expert professional in the

field of Public Procurement• Consequent to decentralization in 1992, ISS (purchase) officers

posted in other Ministries to assist in their in-house procurement of exclusive items



DGS&D- ROLE

DGS&D is presently engaged in diversified activities like-

• Conclusion of annual rate contracts for over 350 product categoriesinvolving 20000 items besides spares etc. catering 6000 G.O.I. usersspreaded across the country following e-procurement

• Facilitates over 10,000 bidders including 2600 DGS&D registered suppliers• Pre-despatch inspection against DGS&D contracts and direct orders on

request• Formulate procurement policies and procedures• Cargo clearance at major ports• Provide consultancy in the procurement management

• Nodal agency to provide and implement e-procurement platform under Mission Mode Project of e-Governance of Govt. of India

• Provides single point contact for vendors and Govt users for procurement of commonly used Goods,eg. worth over Rs 4000 crores procured during 2005 - 06



POTENTIAL LIST OF SERVICES BYDGS&D

• Registration of firms• Pre-bid conference/CCM• Framing technical particulars• Tendering/Bidding and bid evaluation

• Award of Contracts/ Rate Contracts/Supply Orders• Inspection, delivery and receipts of Goods• Payments• Quality audit• MIS reporting

• Vigilance• complaint redressal mechanism• Procurement consultancy and e-procurement platform



PROCUREMENT

• TIMELY DELIVERY OF REQUIRED QUALITY GOODS AND/ORSERVICES TO THE USERS AT MOST ECONOMICAL PRICES

Salient features as essence of procurement are:

Quality and quantity

Delivery in time

Economy in price as best value for the money spent

• TECHNO- COMMERCIAL-LEGAL ACTIVITY

Technical- Goods/Works to be procured have to be identified anddefined qualitatively by specifications/ requirements

Commercial – It has the element of price and other terms havingbearing on price

Legal – It has at least a buyer and a sellor who make agreementenforceable in Law



Salient features of Public

Procurement• It relates to the expenditure of public money• To adhere to the principles of equity, fairness and natural justice• To adhere to the Law/Statute viz. Indian Contract Act 1872 & Sales

of Goods Act 1930• To adhere to the prescribed rules including GFR and procedures

issued by Government from time to time• Well defined authority with delegation of powers & responsibility with

accountability to Public/state• To discharge all functions in most efficient, fair, just, economic and

transparent manner following all prescribed law, rules, norms andprocedures within jurisdiction

• 100% Audit including concurrent audit on regular basis• Vigilance in-house through CVO/CVC as well as by other

investigating agencies• Answerable to Public/State, Parliament/Legislature & Court of Law



E-Procurement Framework inE-Procurement Framework in

DGS&D- Web based & InteractiveDGS&D- Web based & Interactive

CCM, TP,CCM, TP,

Tender publishingTender publishing E-BiddingE-Bidding

E-evaluation,Contract/ RC,E-evaluation,Contract/ RC,

Inspection & PaymentsInspection & Payments

E-Procurement in DGS&D-Procurement in DGS&D



E-INVITATION E-BIDDING E-EVALUATIONE-INVITATION E-BIDDING E-EVALUATION E- PAYMENTSE- PAYMENTS

TENDER

DOWNLOAD

ON LINE

TENDER/BID

SUBMISSION

ON LINE BID

OPENING

TENDER/BID

EVALUATION

APPROVAL

SPECIFICATION

TENDER

PLANNING

TENDER

NOTICE AND

ENQUIRY

CORRIGENDA

ON LINE

TENDER

FILLING

E-PROCUREMENT WEB BASED FRAMEWORK INE-PROCUREMENT WEB BASED FRAMEWORK INDGS&DDGS&D

CONTRACT/

RATE

CONTRACT

CCM / INDENT DIGITAL

SIGNATURE

REGISTRATION

ON LINE

SUPPLYORDER

ON LINE

INSPECTION

CALL

ON LINE

INSPECTION

NOTES

ON LINE

DISPATCH &

RECEIPT DATA

ON LINE BILLING

ON LINE

PAYMENTS



E-PROCUREMENT – COMPONENTS(USE OF ELCTRONIC MEDIA IN ALL

PROCUREMENT ACTIVITIES)

• E-PURCHASE• REGISTRATION

• STORE CODING

• TECHNICAL PARTICULARS

• EVALUATION OF BIDS

• AWARD OF CONTRACT/RATE CONTRACT

• E-INSPECTION / SUPPLY

• SUPPLY ORDER

• INSPECTION

• DISPATCH DETAILS

• RECEIPT DETAILS

• E-TENDERING• TENDER NOTICE

• TENDER ENQUIRY

• BID SUBMISSION

• BID OPENING

• E-PAYMENTS

• BILL SUBMISSION

• PROCESSING

• PAYMENTS

• DEBIT ADJUSTMENTS

• STATUS & COMPLAINTS



E-PROCUREMENT BENEFITS

• Increased speed, accuracy and transparency with wider competition andeconomy in procurement• Simplify, standardized & speed up tendering process & communication• Real time generation of detailed & accurate data with seamless sharing

of information• Facilitate on-line pre/post contract Management including bidding,

contracting, ordering and payments with on-line participation of all

stakeholders effectively• Reduction in cost of government purchases with reduced cycle time• Elimination of delays arising out of processing tenders manually• Reduced paper work and lower transaction cost• Problem of Mafia & Cartel formation arrested• Database on goods, services, works and contractors gets build up

• Economy of scale achieved by aggregation of requirements• Quick and easy access to all information and audit trails• Better monitoring of Tenders and Contract• Reduced inventory costs• Improved work culture in the departments and better vendor relationship• Winning the trust of people and Good Governance.



N e w

I m p r

o v e d

I m a g

e

R e a l t i m e

M o n i t o r i n g

S t r e a m

l i n e d

P r o c u r e m e n t

P r o c e s s

Process Efficiency

New Supplier

Discovery

C o s t

R e d

u c t i o

n

Smart Governance &Increased Profitability

Transparent systemTransparent system

IT friendly andIT friendly and

innovativeinnovativeManagementManagement

Tight MonitonringTight Monitonring

Real Time informationReal Time information

Improved response timeImproved response time

Improved AccountabilityImproved Accountability

Improved inventory mgmtImproved inventory mgmt

Demand AggregationDemand Aggregation

Reduced transaction costsReduced transaction costs

Elimination of Tender Elimination of Tender

publishing costspublishing costs

Savings on StationarySavings on StationaryParticipation of Participation of

larger no of larger no of

supplierssuppliers

Discourages CartelDiscourages Cartelformationformation

Automated WorkAutomated Work

flowsflows

Automated statusAutomated status

updateupdate

Enforcement of Enforcement of

Standard processStandard process

Elimination of Elimination of

non-valuenon-valueadded stepsadded steps

Benefits to BuyersBenefits to Buyers



E-PROCUREMENT BENEFITS TOBIDDERS/SUPPLIERS

• Web based end to end solutions on real time basis and interactive.• Registration, tender notice & enquiry, rate contracts etc. generated from

data base and updated on real time basis providing increased visibility &extended customer reach. All the information on all the tenders is availableAll the information on all the tenders is availableat one place so that they can decide, which tenders they need to participateat one place so that they can decide, which tenders they need to participate

• Seamless interaction and bidding by suppliers

• Complete Bids and price comparative statements in public domain.• Downloading of tender, bidding and witnessing of bid opening from the

comforts of their office from any location without physical visit• Instant submission and acknowledgement of receipt of tender/bid• Reduced cycle time for participating in the tender which enables them toReduced cycle time for participating in the tender which enables them to

participate in more tenders leading to increased businessparticipate in more tenders leading to increased business

• Enhanced Opportunities with Tender Management solution, small andith Tender Management solution, small andmedium suppliers will get an opportunity to participate freely in tenders.medium suppliers will get an opportunity to participate freely in tenders.• Human errors are eliminated• Simplified & ease of operations



DGS&D as leader in e-procurement

• DGS&D started use of Computers in their procurement activities in 1992• With the IT Act 2000,DGS&D first time successfully achieved the e-bidding

and placed in-house e-module in operation in 2002-03.• With effect from 3.3.2006, DGS&D has switched over to e-procurement,

dully announced by Hon’ble State Minister of Commerce and Industry duringseminar on ‘National E-procurement Strategy’ organized in association with

World Bank• DGS&D has been nominated as nodal agency to cater to the

implementation of e-procurement in all Central/State Governments, PSUsunder Mission Mode Project (MMP) of E-Governance Programme of Govt.of India which is closely monitored by P.M.O.

• DGS&D has a fully functional and tested e-platform providing end to endsolution for e-procurement

• DGS&D has already received many requests for e-procurement platform• MOUs have been/being signed for using DGS&D e-procurement platform

with NCT for Commonwealth games, Indian Navy, U.T. of Chandigarh,Ordnance Factory Board, Govt. of UP and many others



Security Features• Two Factor Authentication

• Digital Signatures to ensure non-repudiation• Bid Encryption at the Database• Online Antivirus Scanning• 128 bit SSL Encryption• Audit Trail of each activity• Privilege based User Access

• Access Control System

List of 7 Certifying authorities for Digital signatures• Safescript Ltd, Chennai• NIC, New Delhi• Institute for Development and Research in Banking Technology,

Hyderabad (IDRBT)• TCS, Mumbai• MTNL, Delhi• Customs and Central Excise, New Delhi• N Code Solutions (Division of Gujarat Narmada Valley Fertilizers),

Ahmedabad

Security AuditSecurity Audit

Done by STQC & PWCDone by STQC & PWC



DGS&D WEBSITE –(http://www.dgsnd.gov.in) A single access point for DGS&D officers, suppliers and users

• Suppliers registration• Notices, agenda and minutes of the CCMs• Tender notices, tender enquiries, corrigenda, technical

specifications and rate contracts• Download of summary and full text of rate contracts

• Provides access to indentors’ page for on line placement of orders, entering receipt particulars and suggestions for bringingnew items on Rate Contracts

• Provides access to vendors’ page for online submission of application form registration, online inspection call,

• On-line dispatch details, on-line bills and on-line payments

• Downloading of DGS&D Manual, forms, conditions of contract, circulars etc.

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