Contract Tendering Training by xvi15568

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									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

2
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




8
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




9
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
    Bid Process Management



10
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

                                                 Contract
                          e-Tendering
       Indent                                   Management
     Management
                                                 Catalogue
                           e-Auctions
                                                Management

                     Suppliers and Buyers Master Data

                     e-Payment, Accounting and MIS




 Dept. 1   Dept. 2     Dept. n…          Supplier 1     Supplier 2   Supplier n
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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
                                      Chaired by Additional Chief
         Steering Committee
                                     Secretary, Govt. of Karnataka



     Project Monitoring Committee   Chaired by Principal Secretary,
                                            e-Governance



       Centre for e-Governance             Headed by CEO



          e-Procurement Cell          Headed by Project Director




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Sample Workflow
     Asst Exec Engr            As per delegation                                As per delegation of
         (AEE)                    of powers                    AEE                    powers
                                                          Create detailed
     Create abstract           Approve abstract                                   Approve detailed
                                                         Estimate & do rate
        estimate                  estimate                                            estimate
                                                              analysis

                                                       As per delegation          EE as Tender Inviting
                           EE (TIA)                       of powers                  Authority (TIA)
                                                     Approve Draft                     Prepare Draft
                       Publish Tender
                                                    Tender Schedule                   Tender Schedule


                                            EE as Tender         EE as Tender Acceptance       As per delegation
                  Contractors              opening official          Authority (TAA)              of powers

                                           Unlock tenders &          Evaluate technical       Approval of technical
                 Bid submission                                        Bid Documents
                                              Verify EMD                                        Bid evaluation


                                                                  As per delegation                    EE as TAA
                                        EE as TAA                    of powers
                                                                                               Decrypt commercial
         Contract                                              Approval of commercial        Proposals of technically
                                   Award of contract
        Management                                                 Bid evaluation               Qualified bidders




16
Roll-Out Status
Project Statistics
         Users                                           Training
     Government       1100                            Govt. Officials   1827
     Suppliers        2015                            Contractors       258
                                                      Train-the-         92
                                                      Trainer


        Tenders
                             1410 (Rs. 30,000 Cr.
          Published          Approx.)
                             Rs. 3500 cr. excluding
                             tenders in KRDCL
     Tenders Closed on a     82 tenders
     single day
     Bid Submissions for a 174 Items – 85 bidders
     single tender



18
19
                                 Suppliers Registered

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20
                                    Value of Tenders




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                          8
                                                       Value of Tenders (Cumulative) in Rs. Cr.




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21
                                              Cumulative No. of Tenders




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                                                     1000
                                                     1200
                                                     1400




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                                    No 8
                                       v.,
                                              '
     Months (May '08 - Apr '09)

                                   De 08
                                       c.,
                                             ' 08
                                                                                              Number of Tenders Published




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             List of Notified Government
              Agencies as on May 2009
     S.no.           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)

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Process Reforms
Process Reforms
    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 e-
     Payment
     − Credit Card, Direct Debit, NEFT and Over the Counter
    Administration of software done by Govt.
     − Workflow management
     − Implementation of transfers and delegation of powers
    Establishment of e-Procurement cell




24
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)

   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)




29
Key Challenges

   User readiness
        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




30
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
 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




32
Thank You

								
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