Transcript Unified e-Procurement Platform - CSI

Unified e-Procurement Platform
of the State Govt. of Karnataka
Presentation Overview

Rationale for unified end-to-end e-Procurement platform
 Project Development
− Project Objectives
− Business model

Architecture
− Functional
− Technology
− Institutional



Roll-out status
Process Reforms
Implementation experiences
− Perceived impact
− Key challenges
− Learning’s
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Rationale
Rationale for Unified End-to-End System
Unified: A single system meant to be used as a
shared infrastructure by all agencies in the State
End-to-End: Entire procurement process from
estimate/ indent preparation, tendering, contract /
catalogue management until e-Payment will be
handled
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Rationale for Unified End-to-End System
Rationale

An effective mechanism to enforce procurement
policy decisions consistently across all
government agencies in the State

Worth the heavy investments
− Establishment of PMU
− Investments in audit by 3rd party audit agency
− Selection of principal bank
− Establishment of training centers
− Robustness of hardware and software to ensure high
Quality of Service (QoS)
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Rationale for Unified End-to-End System
Rationale
 Single point integration with external systems such as
treasury and payment gateways
 Generation of State-level MIS

Contractors view the State as a single procurement entity
− Register once, participate on all tenders in the State
− Get automated notifications about all tenders published in the
State

Government officers get accustomed to a single software
− Inter-department transfer of govt. employees
Implementation of unified end-to-end e-Procurement is a
Vision, Policy and Architectural decision.
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Project Development
Project Objectives

Infrastructure for effective implementation of procurement
policy of the State

Enhanced transparency
Ease of access to contractor community
Availability of advanced procurement software to big,
medium and small procurement entities alike



Software to handle entire end-to-end procurement
processes and not just tendering
 Consistent and sustainable contractor development
 Less paper; environment friendly
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Key Decisions Taken

Scope definition
• Start point: Estimate preparation by AEE
• End point: Payment to contractor

Detailing the processes
• Definition of Functional Requirements Specification (FRS)

Additional definitions
• Technology requirement specifications
• Security requirement specifications
• Operational requirement specifications
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Key Decisions Taken

Service Level Agreement (SLA) Definitions
• Operational SLA
• Deployment SLA

Business model
• Public-Private-Partnership (PPP) model
• Transaction based model; “Pay per use”
• Contract pays transaction charges
• Slab-based payment
• Module specific pricing
• Separate payments for goods and works procurement
• PPP modeling

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Bid Process Management
Defining Characteristics of GoK’s
e-Procurement System
•
Envisioned as an end-to-end platform (i.e.) all stages of procurement
from indenting until payment will be handled electronically
•
A single platform will be shared by all government agencies in the
State
•
Fully PKI-enabled system
•
Contractors will not be required to visit government offices to
participate in tenders and also for bid submission
•
Payment due to contractors will be paid electronically using NEFT
•
Implemented on Private-Public-Partnership (PPP) basis; the private
partner is paid on a transaction basis
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Architecture
Functional Architecture
e-Tendering
Indent
Management
e-Auctions
Contract
Management
Catalogue
Management
Suppliers and Buyers Master Data
e-Payment, Accounting and MIS
Dept. 1
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Dept. 2
Dept. n…
Supplier 1
Supplier 2
Supplier n
Technology Architecture

Flexible design
- A single instance of software
- Workflow configured as per dept specific requirements
- Driven by parameterized understanding of public procurement
processes


Programming language: Java
Application server: JBOSS
 Database: MySQL
 Workflow engine: JBPM
 Entirely built upon open source technologies
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Institutional Architecture
Steering Committee
Project Monitoring Committee
Chaired by Principal Secretary,
e-Governance
Centre for e-Governance
Headed by CEO
e-Procurement Cell
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Chaired by Additional Chief
Secretary, Govt. of Karnataka
Headed by Project Director
Sample Workflow
Asst Exec Engr
(AEE)
As per delegation
of powers
AEE
As per delegation of
powers
Create abstract
estimate
Approve abstract
estimate
Create detailed
Estimate & do rate
analysis
Approve detailed
estimate
As per delegation
of powers
EE (TIA)
Approve Draft
Tender Schedule
Publish Tender
Prepare Draft
Tender Schedule
Contractors
EE as Tender
opening official
EE as Tender Acceptance
Authority (TAA)
As per delegation
of powers
Bid submission
Unlock tenders &
Verify EMD
Evaluate technical
Bid Documents
Approval of technical
Bid evaluation
Contract
Management
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EE as Tender Inviting
Authority (TIA)
EE as TAA
As per delegation
of powers
Award of contract
Approval of commercial
Bid evaluation
EE as TAA
Decrypt commercial
Proposals of technically
Qualified bidders
Roll-Out Status
Project Statistics
Training
Users
Government
1100
Govt. Officials
1827
Suppliers
2015
Contractors
258
Train-theTrainer
92
Tenders
Published
1410 (Rs. 30,000 Cr.
Approx.)
Rs. 3500 cr. excluding
tenders in KRDCL
Tenders Closed on a
single day
82 tenders
Bid Submissions for a 174 Items – 85 bidders
single tender
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Suppliers Registered
Number of Suppliers Registered
No. of Suppliers (Cumulative)
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Value of Tenders
Value of Tenders Published
Value of Tenders (Cumulative) in Rs. Cr.
35000
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25000
20000
15000
10000
5000
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Month
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Cumulative No. of Tenders
Number of Tenders Published
Tenders Published
1400
1200
1000
800
600
400
200
0
Months (May '08 - Apr '09)
List of Notified Government
Agencies as on May 2009
S.no.
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Department name
S.no.
Department name
1
SSA (Sarva Shiksha Abhiyan)
14
BESCOM
2
KDLWS (Drug Logistics)
15
Dept of Youth Services
3
KPTCL
16
IGR
4
KBJNL
17
KSSCL (Seeds Corporation)
5
KREIS (Residential education)
18
KLAC (Land Army)
6
KRDCL (Road Development)
19
Dept. of Treasuries
7
PWD
20
IDD
8
e-Governance
21
Minor Irrigation
9
CEG
22
Mysore City Corporation
10
APMC (Agriculture Produce)
23
KSRTC (Road Transport)
11
K-SHIP
24
BDA
12
KSWC (State Warehouse)
25
KSRTC
13
KSDL (Soaps & Detergents)
Process Reforms
Process Reforms
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Karnataka Transparency in Public Procurement (KTPP)
Act amended to provide legal backing to the initiative
Centralized Supplier Registration; register once and
participate in all tenders floated in e-Procurement platform
Receipt of EMD and tender processing fees using ePayment
− Credit Card, Direct Debit, NEFT and Over the Counter

Administration of software done by Govt.
− Workflow management
− Implementation of transfers and delegation of powers

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Establishment of e-Procurement cell
Extract from KTTP Act
Section 18-A. E-Procurement
(1) There shall be a single unified e-procurement platform for all procurement
entity which may be notified under sub-section (2)
(2) With effect from such date, as may be specified by the Government, by
notification, a procurement entity in respect of a class of procurement, if any,
as may be notified shall procure its procurements through the e-Procurement
platform.
(3) Notwithstanding anything contained in this Act, the Government may
make rules, for specifying a separate procedure to be followed by
procurement entities notified under sub-section (2) for e-procurement through
e-procurement platform, and for non-application of other procedure of
procurement to e-procurement.
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Implementation Experiences
Perceived Impact (Business Community)


Enhanced transparency in tendering and procurement
Free download of bid documents
 Reduction in travel and other miscellaneous expenditure
 Electronic submission of bids
 Ease of access
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Perceived Impact (Government)
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Tender opportunities effectively publicized
Development of track-record on contractor’s performance
Rich MIS data on various aspects of procurement at the
State government level (both as-on-date and
accumulated MIS)
Faster file movements and integrated file monitoring
system
Enhanced efficiency measured through faster completion
of procure-to-pay cycle
Standardization of procurement procedures
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Perceived Impact (Citizens)

Better utilization of tax-payers money

Real-time access to the status of works, goods
and services procured by the State (to be made
available soon)
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Key Challenges
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User readiness
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Attitude and mindset
Availability of IT infrastructure
Skilled personnel
Network connectivity in user agencies
Change management
Standardization of procurement processes required for
development of a single instance software
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Learnings

Successful deployment of software in Public Works
Department (PWD) in the pilot stage

Amendment to KTPP Act has been very helpful in rolling
out the system
Dedicated training centers and facilitation centers
Extensive handholding support requirements
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Equitable sharing of risks and responsibilities with private
partner in PPP model
 System administration by Government is good
 Establishment of good robust e-Procurement cell is
essential
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Future Roadmap…
•
Framing e-Procurement Rules
•
Organizing seminars and training workshops
•
Rolling out Contract Management, Catalogue
Management and e-Auctions
•
Implementation in all government departments /
organizations by the end of 2010
•
Be a Role-Model on e-Procurement implementation
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Thank You