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E-GP Vision by panniuniu


									            e-GP Vision

  National Seminar on “National e-Procurement
    Strategy: Challenges in Implementation”

Co-sponsors: The DG(S&D) and the World Bank
      New Delhi, November 28-29, 2006

                 Dr S C Pandey
Officer on Special Duty (Policy and Coordination)
          D/o Expenditure, M/o Finance
         Mission Objective
 Mandatory publication of tenders on website
  is already in force.
 Mandatory e-procurement w.e.f. January 1,
  2007, based on Ministry-specific thresholds.
 Assessment of e-GP readiness is going on.
 A likely scenario is that e-procurement
  becomes mandatory for all items covered by
  Rate Contracts. The DDOs should be able to
  place supply order on DGS&D’s website.
         Manual on Goods
      Procurement (Para 6.23)
   Purchase of goods through electronic mode
    of interface with tenderers and IT enabled
    management of the entire procurement
    process (notice inviting tenders, supply of
    tender documents, receipt of bids, evaluation
    of bids, award of contract, and execution of
    contract through systematic enforcement of
    its various clauses and tracking of claims,
    counter-claims and payments) is gradually
    gaining popularity.
    Manual on Goods Procurement
             (Para 6.23)
   In order to cut down transaction costs and
    improve efficiency and transparency, the
    Government aims to make it mandatory for all
    the Ministries/Departments including the
    Central Public Sector Undertakings under
    their administrative control to conduct all their
    procurements electronically beyond 31st
    December, 2006. The Ministries/Departments
    have been advised to fix appropriate cut-off
    points in terms of the size of procurement to
    switch over to e-procurement.
    Manual on Goods Procurement
             (Para 6.23)
   The Director General (Supplies & Disposal)
    has made significant progress in this direction
    and the National Informatics Centre is
    engaged in pilot projects to design a secure IT
    solution addressing concerns like encryption /
    decryption of bids, digital signatures, secure
    payment gateways, date/time stamp for
    activities, access control etc. The
    Ministries/Departments have already been
    directed to publicize all their tenders on their
    websites as the first step towards full-fledged
    Manual on Goods Procurement
             (Para 6.23)
   The Ministries/Departments are advised to
    proactively engage themselves in articulating
    user needs in the development of IT systems
    for e-procurement. The system should be
    secure, capable of maintaining complete
    confidentiality at appropriate stages of the
    bidding process, so that the tenderers feel
    confidence in electronically transmitting their
    queries and bids.
    Normal modes of Procurement
 Direct procurement of goods and services
  being replaced by works and services
  contracts, turnkey projects
 Items of bulk supplies having a wide and
  deep market: (a) Long term supply
  contracts/MFPA with manufacturers and retail
  chains (b) Spot purchases
 High value office equipment, vehicles: Rate
 Proprietary items and specialized equipment:
  direct tender inquiry
       Unbundling the problem
   Defence (a) Food & Beverages (b) Common
    engineering stores (c) Common user vehicles (d)
    Special equipment and high value systems
   Railway stores (a) Common user items (b) Special
   Special equipment – Hospitals, scientific departments
   Office equipment
   Hospital supplies of medicines and consumables,
    hospital equipment
   Stationery and other consumables; Pre-printed and
    security printing
   Vehicles
Concerns to be addressed
 Regulatory risks in a system of centralized
  regulatory framework but decentralized actual
 As Government moves to e-procurement,
  businesses too would have to get ready for
  the transition. This process should not end
  up eliminating the e-illiterates, and thereby
  stifling competition.
 The transition process should be user-friendly
  for staff.
    CPO-led model of e-procurement

 Exact model to be prescribed is still being
 The Manual on Goods lays down the basic
  approach: Bring as many common user items
  under rate contracts as feasible.
 Civil Ministries with smaller procurement
  budgets and inadequate capacity and
  resources need the support of CPOs.
 So one model could be where CPOs lead the
Re-engineering Central Purchase Organizations

   Rate Contracts / MFPAs
   Vendor database and rating services
   Order Placement Services
   Contract Management services
   Payment Gateway Services
   Follow up on complaints
   On-line tracking of consignments
   Consumer information on new products and
    comparison of features/specifications
    CPO portals need substantial
refinement to be really user-friendly
     Indenters should be able to query/access

 Wild card search for goods with rate contract /
  MFPA in force.
 List of dealers for particular goods at
  particular station.
 Electronic mailing lists for particular goods at
  particular station.
 Comparison of features/specifications
            Other models
 Another   model that can possibly work
  for items of bulk consumption could be
  thrown up by the new age retailers
  offering web-based services to their
  clients, with preferred treatment to bulk
  consumers like Government agencies.
 This appears cost-effective but it will
  take time to materialize.
Transparency and other gains
 e-procurement   will facilitate
 Disclosures of what is purchased by
  whom, from whom, at what rates and
  when would be easier to administer.
 Specifications could be researched and
  requirements may be altered.
      Thank you
for your kind attention

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