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					    MDP Session on eProcurement
      * e-Procurement Concepts
      * e-Payments Integration
      * NIC’s Pilot Implementation of e-Procurement
      * Govt. e-Procurement solution (GeP) by NIC
      * eGP Mission Mode Project and NIC
      * Issues in e-Procurement

      =====================
         Monday, the 8th September 2008



      R K Singh (rk.singh@nic.in)
      Senior Technical Director, NIC


MDP session on eProcurement, NIC
    e-Procurement Concepts …….




MDP session on eProcurement, NIC
 e-Procurement Concepts


     Procurement Process and it’s Constraints
     Introduction to e-Procurement
     Features & Benefits
     Approach to a solution/ Critical Determinants
     Implementation - Approach & Success Factors
     Reverse Auctions – What, How & When?
     e-Catalogue based Buying




MDP session on eProcurement, NIC
Procurement Process – A Bird’s Eye View




MDP session on eProcurement, NIC
   Procurement cycle

  Procurement cycle starts from Raising of the
  requirements for an item or a service and ends only
  after settlement of supplier payments.




     Request         Source         Order      Receive   Pay



                                   Analytics




MDP session on eProcurement, NIC
Constraints of Traditional Procurement

 Large time and effort wasted in disseminating &
  seeking procurement informations
 Physical Access barriers
 Slow and laborious manual processes, activity-flow
 Human interface at every stage - Low Value
  Addition
 Several processes not transparent to suppliers
 Scope for compromises in bid-security &
  confidentiality
 Cartel formation suppresses competition and
  artificially hikes bids
 Possibility of data tampering and loss of records


MDP session on eProcurement, NIC
 e-Procurement - The Solution

  e-Procurement means procurement of goods and services
   online using the internet. Ideally, it covers the full ‘life cycle
   of procurement’.

  The intention is to automate, possibly, the entire
   procurement process, along with tender bid submission and
   payments by suppliers, in an online web-based real-time
   environment.

  e-Procurement could resolve many of the constraints/
  delays of traditional procurement.


MDP session on eProcurement, NIC
Modes of e-Procurement
   Electronic procurement activities could be effected using one
   of the several ways or modes given below, or a combination
   of these could also be used as per need: -
          e-Tendering
          e-Auctioning – Reverse Auctions
          e-Catalogue based buying/ e-Ordering


   In common parlance however, a basic e-Procurement
   application essentially consists of an ‘e-Tendering system’
   and often also includes an ‘e-Auctioning system’. It could
   also encompass e-catalogue based buying as well.




MDP session on eProcurement, NIC
Objectives of e-Procurement
     Objectives of automating                      procurement
     processes are to:-
    Reduce cycle times of procurement
    Increase supplier access to ensure wider participation
    Reduce costs of procurement through competitive bidding
     and Reverse Auctioning
    Remove cartelisation          by   supplier   groups   (Reverse
     Auctioning)
    Increase visibility of procurement spend, for effective
     decision making
    Increase transparency in the procurement process
    Almost complete elimination of paperwork, for speedy and
     efficient functioning

MDP session on eProcurement, NIC
 Electronic Tendering Solution
   An e-Tendering solution primarily facilitates   the
   ‘Tendering Process’ and may cover from Indenting of
   Requirements to the placing of contract/PO


     Indent
                  Tender       Tender       Bidder      Bid        Contract
   To Tender
                Preparation   Publishing   Response   Evaluation    Award
    Request



                              e-Tendering Solution




MDP session on eProcurement, NIC
e-Tendering solution - Functionalities

 Tender Creation/ configuration, with Response Forms
 Pre-NIT Approvals and Floating/ Publishing of
 Tender
 Tender Clarifications, Pre-Bid Conference
 Online Secure Bid Submission, e-Payment of Fees
 Online Bid Opening/ Decryption, Evaluation/
 Negotiation
 Award of Contract, Empanelment etc.


MDP session on eProcurement, NIC
e-Tendering solution - Features
   Different Types of Tenders – Open, Limited &
    Proprietary
   Configurable Approval Work flow, Re-use of old
    tenders
   Supplier Enablement – Online Registration,
    Custom dashboard, Repetitive document
    storage, Alerts, Search etc
   Strong Audit-trail and Archival/ Retrieval
   Security/ Authenticity/ Secrecy of Transactions
   Online Payments – Tender Fee, EMD & Payment
    to Suppliers


MDP session on eProcurement, NIC
Benefits of e-Procurement/ e-Tendering
    Benefits to Buyers
       Reduction in Procurement & Contracts cycle time
       Cost Reduction
       Efficient & streamlined Procurement Processes
       New Supplier Discovery
       Close Monitoring of Activities/ Vendor Performance
       Rich MIS and Analytics
       New Improved Image
       Standardized formats and Uniform tendering practices

                   Benefits to Suppliers
                    Increased visibility/ Less artificial barriers
                        Increased business opportunities,
                        Greater degree of transparency
                        Cycle time reduction in participation and award of Contract

                        Supplier Enablement and Ease of Participation

MDP session on eProcurement, NIC
 Approach To A Solution
     Before looking for an e-Procurement solution, a relook
     on existing procurement procedures/ practices is
     essential: -
  ‘As Is’ Analysis, Re-engineering for optimized
   processes
  Optimization/ reduction in process-flow steps
  Uniformity/ standardization in formats/ practices/
   procedures
  Organization wide use of ‘unified item-codification
   structure’
  Automation of Processes
MDP session on eProcurement, NIC
Critical Determinants - of a Good Solution

   Good authentication – Role based access
   Security, Secrecy (of bids) - Signing, Encryption
   Ease of Use, Tender Templates, e-Payment
    integration etc.
   Integrated Document Management features,
    Good Analytics
   Good Audit trail/ traceability features – Access
    for Financial Audit, Legal and RTI needs
   Good Archival & Retrieval features/ policy - Safe
    and secure



MDP session on eProcurement, NIC
Implementation - Approach
   Business Process Analysis for Improvement: Re-
     engineering, Codification, Back-end application linkages etc.

   Defining scope of Implementation: functionalities
     covered

   Sourcing e-Proc. Appln. S/w: Gap Analysis and
     Customization

   Setting up a Fail-safe & Secure 24x7 Infrastructure
   Integrating Payment Gateways, PKIs, Mail etc.
   Change Management: Training, 24 Hr. Help-desk
   Execution Framework – Management of Rollout & Risks



MDP session on eProcurement, NIC
Implementation - Success Factors
   Major factors which could be crucial to transformation from simple
   traditional procurement to e-Procurement are: -
  Strong will and focused thrust from the top management
  Building in-house champions/ enthusiasts for adoption of e-Procurement
  Buyer’s dedicated project team to drive the Mission
  Aiming for realistic implementable goals/ objectives and time lines
  Well defined/ standardized procurement processes and forms
  Extreme care to aspects like Tender-security, Supplier-enablement/
   Training & Ease of use
  Well integrated back end systems, standards, policies & practices to link
   and leverage upon
   It must be remembered that implementing e-Procurement is most often a
   continuous evolving process with shifting goals, spread over a longer
   period, targeting end to end procurement supply chain; rather than a one
   shot solution for all procurement problems.

MDP session on eProcurement, NIC
  Reverse Auction and
  e-Catalogue based Buying




MDP session on eProcurement, NIC
What is A Reverse Auction?
  • The traditional auction is a Forward Auction
    It normally involves a seller offering an item
    for sale, while potential buyers compete with
    each other for purchase. Thus price is driven
    up, until no buyer is willing to go up further.
  • In a Reverse Auction, MULTIPLE SELLERS OF A
       PRODUCT VIE FOR THE BUSINESS OF A SINGLE BUYER.
    Therefore the price is driven down.
  • There are 3-4 flavours of reverse auction,
    called as: English Auction, Dutch Auction,
    Sealed Bid Auction etc.


MDP session on eProcurement, NIC
How does a Reverse Auction work?
   Pre-screening/ Pre-qualification of suppliers is
    essential   to    have   technically  competent
    vendors, ready to offer products of desired
    specs/ quality.
   Complete requirement specifications are pre-
    known/ agreed and frozen for all before auction.
   Usually services of an online Auction Service
    Provider is utilized to conducts the process on
    his auctioning website.
   Suppliers are required to be pre-registered with
    the auction service provider and expected to
    have received training on how to participate .

MDP session on eProcurement, NIC
 How does a Reverse Auction work?

   All bidding vendors must have agreed to abide
    by the terms & conditions of the auction/
    service.
   The Reverse auction is configured and all
    participating vendors are pre-notified about the
    start time & closing time of auction.
   Bidders submit their price bids by remotely
    logging-in from their offices.
   Bidders identities are masked, but they can see
    the competing prices and rankings in real time
    and could revise their bids as desired.

MDP session on eProcurement, NIC
How does a Reverse Auction work?
 There is no communication or negotiation
  with the bidders during the auction.
 Buyer also watches the progress of bidding
  from his office. Identities of bidders are
  available to him.
 In reverse auction competition is high,
  bidders get tempted to bid lower and lower to
  clinch the deal, until they are unwilling to go
  any further.
 At the conclusion the lowest bidder emerges
  as winner of the auction.

MDP session on eProcurement, NIC
Potential Benefits from Reverse Auction
   To Buyers:
        Significant reduction in cost due to Dynamic
         Bidding process. Inefficiencies in the supply chain
         reduce.
        With real time competition, suppliers are on their
         toes
        A tool for efficient price discovery, complementing
         direct negotiation process. Often used along with
         Tendering.
   To Vendors:
        Ensures Savings in marketing cost / distributor
         margins
        Facilitates flexibility in pricing decision.
        Transparency increases
        Allows vendors to assess their pricing power from
         close quarters of competition.
MDP session on eProcurement, NIC
Tender Cycle with Reverse Auction                     (Dynamic Pricing)




                       Create and      Purchase/           Preparation/
     Online                            Download             Encryption
                         Publish
   Registration                         Tender                of Bids
                      Tender/ NIT




   PQ/ Tech.
                      Bid-Opening         Online           Creating Bid
    Opening,
                          and         Submission of       Seals (Hashes
  Evaluation &
                      Verification     Bid/ Hashes        & Super Hash)
  Short listing




 Competitive          Commercial                               Award of
                                         Generation
Bidding using           Opening                                Contract
                                             of
   Dynamic                and                               (lowest of the
                                        Comparative
Pricing Engine        Short listing                          two rounds)
                                         Statement


MDP session on eProcurement, NIC
Applicability of Online Reverse Auctions
   Reverse auction works best when:
        Items have well defined specifications and
         universally accepted standards.
        Established qualified base of vendors (at least
         three)
   Suitable for High value, large volume goods,
    Capital goods, Direct Materials / MRO items.
   Periodic rate contracts for above item types.
   Often used along with Tendering for efficient
    price discovery
   Applicable for Technically Pre-qualified/ short
    listed vendors only

MDP session on eProcurement, NIC
e-Catalogue based Buying
 e-Catalogue   based Buying or e-Ordering is the
  obvious prevalent mode for small procurements by
  individuals. But for corporate or government
  agencies, this is yet not a real option.
 But this mode of procurement has many obvious
  advantages,     particularly   if   such an ‘Online
  Procurement Hub’ (Portal) is created for use of
  government agencies.
 Such a Hub would hold (and manage) electronic
  supplier-catalogues (with specs/ quality details) of
  goods & services, with minimum possible prices
  affordable by them, for buying agencies to access
  and use for off-the-shelf buying.

MDP session on eProcurement, NIC
  e-Catalogue based Buying                          (…Contd)

    Secure transactions (such as: Purchase orders, Invoices, e-
     Payments etc.) would be enabled by the Hub and
     exchanged electronically between buying agencies and
     suppliers.
    Though success of such a venture mainly depends upon a
     large enough size of participants, but the approach has
     many advantages, like: -
      It is superior to buyer & suppliers establishing direct link
      Suppliers need to maintain/ update only one catalogue on
         the Hub and establish only one interface to sell to many
         (govt.) buyers
      It could be highly useful for all the routine small item
         purchase of government agencies and even be used for
         bigger items/ volume purchases, where item/ service
         specs are quite standard.


MDP session on eProcurement, NIC
   End of session on




                   e-Procurement Concepts




MDP session on eProcurement, NIC
    e-Payment and it’s Integration




MDP session on eProcurement, NIC
e-Payment and it’s Integration

 Commonly available modes for effecting EMD/ Fee/ other
  payments electronically, from within a software Application,
  are: -
     Online payment through Credit cards/ Debit cards or
     Direct Account Debit (using Gateway for Internet
        Banking)
 Depending on the actual need and usage constraints, the
  appropriate mode could be chosen and integrated into the
  s/w application.
 Credit cards could conveniently be integrated for use if the
  payment amounts involved are not substantial.
 For all other cases where payment amounts could be heavy,
  payments through Direct Debits from concerned accounts,
  using Internet Banking is the only alternative.


MDP session on eProcurement, NIC
e-Payment and it’s Integration (…contd.)
   For integrating e-Payment features into the
      Application, one needs to talk to concerned
      banks, who manage their own Payment Gateway
      Interfaces for this purpose.

   If credit card based payments are to be
      integrated, then integrating the ‘Credit Card
      Payment Gateway’ of any one of the providing
      banks is sufficient.

   But for integrating e-Payments through direct
      debit from concerned accounts, it is essential that
      the exercise for integrating such Payment
      Gateways is undertaken with every bank
      concerned.


MDP session on eProcurement, NIC
e-Payment and it’s Integration (…contd.)
  The exercise of a Payment Gateway integration involves: -
   Deciding on details like:
      Parameters to be exchanged between the Application
        and the Bank Gateway
      Handshaking between the two
      Modes of Access (Transaction/ Verify)
         Periodic Reconciliation of payments etc.
   Modifying the Application to actually integrate above.
   Functional testing rounds with each integrated gateway.
   Signing a Document of Understanding between parties.
   Opening Merchant Account(s) in the integrated bank for
    the purpose of collecting payments and giving any
    standing fund transfer instructions, if so.

MDP session on eProcurement, NIC
e-Payment Integration Parameters
   Sample set of Parameters passed (Application to
    Payment Gateway)
     Mode (payment/verification)
     Merchant ID
     Transaction Reference No.
     Amount
     Currency
     Time Stamp
     Return URL etc

   Sample set of Parameters passed (Payment
    Gateway to Application)
     Bank Reference No.
     Transaction Reference No.
     Amount
     Status (Paid)
     Time Stamp

MDP session on eProcurement, NIC
  e-Payment Process - Steps
  1.   The User initiates payment through interface in Application system for a
       particular transaction
  2.   The User selects the mode of payment (i.e. direct debit) and the bank.
  3.   The Application System generates a unique reference number (PRN) for this
       transaction.
  4.   The Application System invokes the appropriate payment gateway based
       on the selection of the User and passes a set of identified parameters to
       the payment gateway.
  5.   The payment gateway receives the parameters and the payment screen is
       displayed to the User.
  6.   The User logs in to his bank account and authenticates the payment.
  7.   The payment gateway processes the transaction and returns a set of
       parameters (including a unique bank reference number/BID) to the Application
       System.
  8.   The Application System captures and records these details against the
       transaction and displays the status to the User.


MDP session on eProcurement, NIC
e-Payment Process (Direct Debit)




MDP session on eProcurement, NIC
   End of session on




               e-Payment and it’s Integration




MDP session on eProcurement, NIC
    Pilot Implementation of
    e-Procurement solution
    at NIC Hqr.


                      https://eprocure.gov.in


MDP session on eProcurement, NIC
e-Procurement Pilot at NIC Hqr
   NIC implemented a project for e-Procurement on pilot basis,
    with an e-tendering solution provided by an outside vendor at
    zero cost.
   The solution essentially involved creating all the requirement
    details/ specs, of a tender to be floated electronically, in
    parameterized form; so that subsequent evaluation &
    comparative chart preparation exercises could be automated
    to a large extent.
   It was implemented with good security features, after having
    three rounds of security audit and addressing it’s
    observations.
   A total of four NIC tenders were processes electronically
    through the solution from May ’06 till Feb. ’07.



MDP session on eProcurement, NIC
Pilot Implementation at NIC Hqr
  Functionalities/ Features
      • Online creation of Indent and Tender documents/ specs
        with General/ Specific Terms & Conditions, Vendor
        Eligibility, Configuration of Tender/ NIT details & events
      • Electronic publishing of NIT & Tender document
      • Bidder Registration, Login, Bid preparation, document
        upload, Bid encryption/ enveloping & secure submission
      • Online payment of Tender Fee/ EMD
      • Bid Opening and Decryption, visible to all bidders
      • Simultaneous Bid Evaluation of an open tender -
        Technical/Financial.
      • Matching & Negotiation facilities

MDP session on eProcurement, NIC
Pilot Implementation at NIC Hqr
  Functionalities/ Features (…contd)
  • Rate Contract / Empanelment, Generation of Purchase
     Orders
  • Integration of three payment gateways (Bank of India, PNB
     & ICICI Bank)
   •   Integration of DSCs of three CAs (NIC, TCS and nCode
       Solutions)
   •   Enabling exchange of electronic payment (EMD/ T. Fee)
       info. with PAO’s software, to enable later refunds
   •   Server side validation
   •   Automatic mail alerts to vendors/approvers/bid openers
   •   Provision for asking Revised Financial Bid, as per need
   •   Provision for tender copy facility - view & use old tender
       documents/corrigendum
MDP session on eProcurement, NIC
Implementation Platform -                                          H/W and S/W

      Servers H/w: Rack Mount Dual CPU Servers
                         (Intel Xeon MP 2.8Ghz Processors, with 512 KB L2 cache, 2 MB
                             L3 cache per processor)

      Others :    SAN Back Agent S/W For Linux(Net vault),
                 Online Line back up Agent for DB2 under Linux (Net vault)

      Application Server :       -   IBM Web Sphere Application Server 6.0 ND,
                                  - IBM Web Sphere Application Server 6.0 with
                                  - Red Hat Advanced Server3.0 (update 5)

      Database :      IBM DB2 UDB V8.2 (Enterprise Server Edition)

      Others      :   Server Protect Trend micro for Application Servers.

      Front End :     IE 5.0 and above browser.

      Development Environment :                 J2EE Development Environment.

                      Client users needed only to have a browser

MDP session on eProcurement, NIC
Implementation Platform-Deployment Architecture




MDP session on eProcurement, NIC
 Implementation Platform - Application Architecture




                                                                                        Role Based User Access
                                         Identity Based Authentication
                                                                                                                    Document
                        PKI (Dig Sign)


                                                                                                                    Versioning
        Internal                                                         Web Server

                                                                                                                                   DATABASE
          Firewall                                                                                                                   Server
                                                                                                                  Reports Engine




                                                                                                                 Application
        Suppliers /
        External
                                                                                                                  Server
                                                                                                                                   e-payment
                                                                                                                                     Server


                   Presentation Layer                                                 Business Logic Layer


MDP session on eProcurement, NIC
Pilot at NIC Hqr - Experiences
       Attempts at BPR/Automation of Processes:
           Attempts at Organization wide Unified Item-codification structure
           Collaborative way of evaluation to minimize evaluation cycle time
           Parameterization of tender specifications to enable automated evaluation
       User Authentication:
           PKI enablement - The application supported two factor authentication - one
            based on credentials maintained by the application and the other based on
            the credentials provided through use of PKI digital certificates Issues
       Bid security & secrecy - Signing, Encryption:
           The application supported the industry standard for bid security through
            PKI based signing & encryption of bid forms/ documents, as well, as the
            time stamping of bids at the time of submission by vendors Issues
       Submission of Bids and payment of Bid fees:
           Last minute submission of bids by Vendors
           Unsuccessful e-Payments - Issues, Option for conventional payment
           e-Payment Reconciliation
MDP session on eProcurement, NIC
Unified Item-codification Structure
       Category Category                       Sub      Sub      Type           Type        Item        Item
       Code                                    Category Category Code           Description Code        Description
                                               Code                                                     (Tender)

              100 COMPUTING DEVICES

              200 Communication &
                  Network Equipments
              300 Softwares(300-399)

              400 Infra-strcuture
                  Equipments(400-499)
              600 Office Items, Office
                  Equipment & Equipment
              800 Services(800-899)

              900 Books Publications &
                  Library Related
 Example :
      101 Servers           101005 Rackmount        101005001 Rackmount Server RS-1U 101005001001   Intel-One Processor Server 1U
                                   Servers

      316 Image editing     316004 Remote           316004001 Image Processing        316004001001 Image Processing Software
          Softwares                Sensing                    Software                             For Remote Sensing Satellite
                                   Satallite Data                                                  Data Processing For Ms
                                   Processing                                                      Windows
                                   softwares



MDP session on eProcurement, NIC
               Log-in Process- Home Page
                           https://eprocure.gov.in




MDP session on eProcurement, NIC
   End of session on



                    Pilot Implementation of
                     e-Procurement solution
                            at NIC Hqr




MDP session on eProcurement, NIC
    Government e-Procurement
    (GeP)
    Solution by NIC




MDP session on eProcurement, NIC
GeP Solution - Outline

   Background & Evolution of GeP
   Envisaged Scope of GeP
            Functionality/Features
            Security/ Authentication

   NIC GeP System
            Development & Status
            Different Modules
            Security & Authentication




MDP session on eProcurement, NIC
Background of GeP – Why & How?
   As expected from an organization like NIC, an important
    purpose of the pilot e-Procurement project at NIC Hqr was
    also - to evolve/ crystallize a workable approach for wide
    adoption and Rollout of e-Procurement/ e-Tendering solution
    in government – at Central/ State levels – to meet their
    impending requirements in this regard.
   But after pursuing with the pilot implementation for a
    significant period, the following became obvious: -
     Procurement procedures/ norms as well as formats and
       activity-flows differ widely across govt. offices and they
       also significantly vary depending on nature of
       procurement – viz: Bulk goods, Std. items, Specification
       based items, Works or Services etc.
     As such, there could not be a single Application which
       could fit all kinds of procurement requirements and be
       rolled out.

MDP session on eProcurement, NIC
Background of GeP – Why & How?(Contd.)
      It is much more difficult to attempt rollout of an e-tendering
       solution with ‘strict parametric pre-defined form based’
       approach in creating online tender specifications and also in
       evaluation of bids. The problem is more because of lack of
       standard practices and formats/ documents in organizing
       backend procurement activities.
      It is difficult to evolve a reasonable & acceptable rollout model
       for government departments, if the solution’s ownership
       belongs to a third party.


   As such, NIC decided to attempt evolving/ developing an e-
    procurement solution where the ownership would be of NIC itself
    and the solution could be of a more general nature, rather than
    specific for wider implementation.



MDP session on eProcurement, NIC
Evolution of GeP System
   Basic framework of Gep was decided to be a generic
    solution, usable for all kind of Tenders by all users.
   It was to be largely non-parametric, based mainly on
    the upload/ download and submission of Tender (RFP/
    RFQ document) & Bids as text based documents, with a
    few tables, which is normally used in most cases.
   The tabular Response Form(s) were to be dynamically
    definable (like EXCEL) for vendor responses in one
    column.
   It was targeted to be fully configurable for different
    tendering practices – 1/2/3 packet bid-systems, EOI
    etc.
   Full range of Access control & Security related features
    were to be built around the main basic functionality.



MDP session on eProcurement, NIC
 Envisaged Scope

  Procurement of Goods, Works and Services – all kinds
  Types of Tenders - Open, Limited, Expression of Interest
  Hybrid Mode of Operation
      Electronic and Paper Based Bid Submission (Initial
        Stages of Implementation)
      Mode of Payments (Tender Fee, EMD)
               e-Payment, as well as
               Conventional Payment Modes (DD etc.)



MDP session on eProcurement, NIC
Envisaged scope - Functionalities

   User Registration and Database of Registered Contractors
   Creation/ Publishing of NIT, Tender docs., Addendum/
     Corrigendum
   Bidding: Search, download, Prepare bid, Pay, Prepare Bid-
     envelopes, Sign/Encrypt, Submit securely
   Secure Bid Opening and Decryption
   SOR based Financial Bid Evaluation for Works Tender
   Publishing of Contract Details (Rate Contract/ Work Order/ PO)
   Communication of Tender Award to respective Tenderers
   Interface with User’s existing Tender Portal/ website



MDP session on eProcurement, NIC
Envisaged Scope - Solution Features
 Capturing of important transaction data/meta data at Various
   Stages of Procurement Cycle
 Auto Notification/ Mail Alerts, Validation of Data (Client/ Server
   end)
 Time Stamping and confidentiality of Bid Documents
 MIS on e-Payment/ Reconciliation, Tendering, Bidding, Evaluation,
   Award of Contract, Tender Summary, User Activity, Audit Trail etc.
 Online User Help/ Manuals/ Documents, Help Desk
 Reliability – Failsafe Deployment, Archival of Electronic Records
 System Administration (by NIC) and Appl./ DB Admn (by User
   Dept)


MDP session on eProcurement, NIC
Envisaged Scope - Security/ PKI
 Secured Login and Authentication
 Role Based Access Control
 Audit Logging, History Tables, Firewalls
 Digital Signing/ Verification of Data & Documents
   Structured data as well as documents to be uploaded in the
    system would be signed using DSC (Class II and above) issued
    by any valid Certifying Authority in India
   While accepting digitally signed content, server side verification
    required, so as to ensure that the document is not tampered
 Encryption (/Decryption) of Sensitive Data & Documents
 Secured Communication between Client & Server (128 bit
   SSL)
 Security Audit of GeP software

MDP session on eProcurement, NIC
NIC GeP System – Development & Status

   After our Requirement Specifications, actual
    development was at Tamilnadu State Unit of NIC.
   The initial software version came out in Jan. 2008
   Platform used: Open Source/ open standard s/w
    tools, i.e. - Linux, Apache Tomcat, PostgreSQLs
    Database, JEE and Jasper Reports.
   First pilot implemented in Tamilnadu Government
   Pilot implementations also going on in select
    departments of Orissa, UP, Haryana Govt.
   Online payment gateways of SBI, ICICI & AXIS
    banks also implemented (optional).


MDP session on eProcurement, NIC
NIC GeP system - Modules

   Registration – Dept. Users and Suppliers
   Tender Management – Create, Publish,
      Corrigendum/ Addendum
   Bid Management – Download, Clarify, Prepare &
      Submit bids
   Bid Opening – Part-I (Technical/ Pre-Qual.)
    and Part-II (Financial)
   Bid evaluation – Technical & Financial
   Award of contract


MDP session on eProcurement, NIC
NIC GeP system - User Registration
   Departmental user
         Created by Administrator
         Roles like Tender Creator,Publisher, Bid Opener & Evaluator are
          defined as needed
         Password sent by mail, Later User registers his DSC
   Contractors/bidders
         Registers online by filling up a form
         DSC is attached if available else later
         Password sent by mail.
         Logs-in and Registers his DSC (eToken of Sify/nCode/ TCS)
   Digital Signature Certificates
         Class II or Class III –Required for log-in and enables signing &
          encryption
         Valid for one or two years
         Currently integrated - DSC’s from NIC-CA and e-Tokens from SIFY,
          nCode & TCS
         Registered DSC’s can be cancelled/ blacklisted


MDP session on eProcurement, NIC
NIC GeP system - Tender Management

   Tender Creation/ Preparation of documents:
         Description/ Tech. specs, Drawing (in Design Web Format)
         ITB, Contract Terms & Conditions (Genl/ Spcl/ Adnl)
         Qualification Criteria, Forms, Various Proforma/ Declaratn.
         Financial Bid, BOQ Form (Item-rate or % Rate based)
   Tender Configuration:
       Open/limited/EOI, Class of Tender/ Contractor, Validity etc
       No. of Packets, Tender fees/EMD - online/ offline/ exempt
       Dates of Events, Formation of committees
   Tender Publishing
   Pre-bid Clarifications/ meetings – Queries/ replies uploaded
   Creation/ Publishing of Tender Corrigendum


MDP session on eProcurement, NIC
MDP session on eProcurement, NIC
MDP session on eProcurement, NIC
NIC GeP system - Bid Management
     Tender document download
     Bid preparation
     Payment of Fees – Electronically or Traditional Modes
     Bid submission
         Bidder must be prior registered with the site along with his DSC
         He Logs-in securely and Searches/ Selects the desired tender
         Selected Tender gets moved to ‘My Tender’ section, He downloads
         Gets clarifications, Prepares Bid documents/ Forms (in PDF)
         Starts Bid-submission by Accepting T&Cs, then Paying fees Online/
          Offline (fills details/ uploads scans and sends physically)
         Fills BOQ form/ rates, Signs/ encrypts & uploads bid documents
         Submits securely, Gets a time-stamped Bid-summary/ Receipt.
         Bidder can withdraw an online bid and re-submit
         Bidder can also submit manual bids



MDP session on eProcurement, NIC
NIC GeP system - Bid Receipt & Opening

   Receipt of bids:Remain encrypted till the opening of bids.
   Opening of 1st Part/ Tech. Bid:
         Opened by designated officials, using their DSCs
         Bidders need not be physically present
         Each activity is time stamped (presently server time)
         Bidders selected (as per criteria) for Tech. Evaluation
         Summary of proceedings updated.
         Metadata on offline/manual bids can also be
          updated if received.



MDP session on eProcurement, NIC
NIC GeP system - Evaluation & Award
  • Technical Bid Evaluation:
      • Bid documents are printed & evaluated manually
      • Tech. Evaluation Recommendations are updated
      • Selected bidders are informed of Financial bid
        opening dates
  • Opening of 2nd Part/ Finl. Bid: Similar to Tech.
  • Financial Bid Evaluation:
      • Fin. Bids are printed & evaluated manually
      • Fin. Evaluation Recommendations are updated
      • Bidders are informed of the results
  • Award of Contract: Final award published on the
      web-site


MDP session on eProcurement, NIC
GeP system - Security & Authentication
  •   Secured Hosting facility
  •   Web security – 128 bits SSL encryption
  •   Two factor Authentication with DSCs
  •   Confidentiality – Encryption of all Bids documents
      using a mix of Sym./ Asymmetric (opener ’s Public
      Key) Approach, Sensitive fields also at DB level.
  •   Audit trail of each activity
  •   Time stamping of all events.
  •   Good backup policy
  •   Security Audited by independent third party


MDP session on eProcurement, NIC
            A live GeP e-Tendering website

                       of Tamilnadu Government

                     www.tntenders.gov.in

               [also www.tenders.tn.gov.in
                           &
                 demoetenders.tn.nic.in]




MDP session on eProcurement, NIC
   End of session on




   Govt. e-Procurement solution (GeP) by NIC




MDP session on eProcurement, NIC
Issues in e-Procurement
 e-Payment Issues:
       Gateway Integration – Diverse Gateway Interfacing
         Requirements, often dictated by the Banking s/w in use.
       Adoption in Government – Issues in Wide scale and
         uniform adoption of e-Receipts/ e-Payments in government


 Digital Certificates (DSCs) Issues:
       Relating to Integration
           Change of CPS/ DSC fields
           Need for standard interface/ API from CAs for
            integration into any Application
       Usage - Handling Encryption Keys


MDP session on eProcurement, NIC
Issues in e-Procurement                      (..Contd)


                                            (DSC Issues …Contd)
       Adoption in Government - Repeated Fee, Transfers
       Interoperability – Inter-usability of DSCs of CAs
          mandated by CCA of India and those of other countries, in
          case of global tender invitations/ participation.


   Bid Secrecy/Time-stamping – Need of a
      common trusted ‘Third Party Repository’ till bid
      opening


   Electronic Archival/ Retrieval – Need of a
      Secure Archiving Repository for Govt. organizations


MDP session on eProcurement, NIC
MDP session on eProcurement, NIC

				
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