Welcome. to Presentation on. e-gp: Govt of AP Experience. K.Bikshapathi, Project Manager

Transcription

1 Welcome to Presentation on e-gp: Govt of AP Experience K.Bikshapathi, Project Manager Information Technology & Communications Dept Government of Andhra Pradesh

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3 Agenda for Presentation eprocurement Situation before eprocurement Situation after eprocurement Impact Challenges Learnings Critical Success Factors

4 e-procurement :The Government Government Probably the single largest buyer e-procurement, a killer opportunity, of E- Government Important Value Drivers Potential savings aggregated demand Process efficiency Institutional compliance Institutional Memory Transparency

5 What is eprocurement Request Source Receive Pay eprocurement Doing procurement activities electronically over Internet with vendors/ suppliers. etenders eforward/reverse auctions erate contracts ecatalogues

6 eprocurement A Global practice California UK Virginia District of Columbia Brazil Governement North Carolina Governments are aiming to manage 100% of their procurement electronically to cut lead times by 50-60% and cost savings 10-25% Florida

7 3 Situation before eprocurement TIP OF THE ICEBERG Tender scam busted in MCD office Tribune News Service New Delhi, August 19 The Crime Branch of the Delhi Police today claimed to have unearthed a tender mafia racket in the Municipal Corporation of Delhi with the arrest of eight contractors and an employee of the corporation.

8 Situation before eprocurement Discrimination in issue of tender schedules Cartel formation - suppresses competition Physical threats to bidders Manual movement of tender files Cause of delay Human interface Manipulations, tampering or loss of records Lack of adequate transparency Adverse Press coverage on Tender fracas

9 GoAP eprocurement Calender Cabinet sub committee recommended eprocurement in 2000 eprocurement identified as a core egovernance in project with relevance across the government First among governments to implement eprocurement Appointment of consultants in 2001 Pilot launched in January 2003 Scale up in July 2004

10 eprocurement Roll out 12 Govt Departments Irrigation, Roads&Buildings, Panchayat Raj Engg, Public Health Engg, Animal Husbandry, Horticulture,Tribal Welfare,Fire Dept, Education 18 Public sector Units APTS, AP Police Housing, APSRTC, APHMHIDC, APSTC,HUDA, HMWS&SB, APGenco, Singareni Collieries,APHB, APSHC, APSIDC,AP Beverages,APIIC, APCSCL, APTransco,AP Tourism 62 Municipalities 4 Universities, IEG, TTD Turn over : Rs.1,982 Cr (564 Nos) : Rs 15,600 Cr(2215 Nos) : Rs 15,808 Cr (9981Nos) : Rs 3722 Cr ( 5496 Nos) Tenders Rs37112 Crores Or US$8 Billions

11 eprocurement Roll out trend Year No of Depts Value Transacted in US$ No of transactio ns % of eprocurement out of total govt spend % Depts 9 PSUs 17 ULBs Depts 13 PSUs 51 ULBs 5 Univ % %

12 Range of procurements Hardware, software, Office automation Drugs, Medical equipment, Furniture Veterinary drugs, Pesticides Paper, Office stationary Cow ghee, Sugar, gingelley oil Electricity Sub-stations, Transmission equipment Auto spares, Transformers, Pumps Works contracts EPC - Turnkey contracts

13 Situation After eprocurement

14 A Supplier submitting Bids from Internet Kiosk

15 Department officials opening tenders in Computer

16 Contractors seeing the bids on Plasma screen connected to computer

17 Tender opening projected on Plasma screens

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19 IMPACT

20 Impact Transparency brought improved image Contractors cartels dismantled Cost savings Rs 2400 Cr on account of competitive bids Advertisement costs in Print media reduced Bidder Participation increased by 25% Reduction in transaction time 120 days to 35 days Empowerment of bidders MIS for decision supporting system

21 Cost savings- Analysis Case 1:COT Year No. of tenders ECV(Cr) TCV (Cr) % (-) (-) (-) (-) Type No. of tenders Estimated/ Tender Contract Value Comparison between two systems ECV (Cr) TCV (Cr) % eprocurement( ) (-)25 Conventional( ) (-) 9 eprocurement( ) (-)12.02% Conventional( ) (-) 4.12% COT derived Additional savings due to eprocurement

22 Cost savings- in Municipalities source- MA&UD Department Comparison of two systems in (up to Oct 05) Type eprocurement for State Govt funded schemes Conventional for World Bank Schemes No. of ULBs No of Procureme nts ECV (Cr) % (-) (+) 7.4 Effective cost savings due to eprocurement is 17.71%

23 Economy in Advertising!

24 Awards 2006: Topped the independent assessment study conducted by MIT, GOI- Score : A case study hosted in World Bank website 2005: Recognised as best practice by GOI, All GOI, States asked to migrate by 4/ : Best egov project in country by PCQUEST for creating Social Impact 2003: Golden Icon award by GOI

25 Awards Golden Icon Award-2003 from Ministry of Administrative Reforms, GOI Best IT Implementation-2005 for Maximum Social Impact from PCQuest

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27 Ministry of Information Technology, GoI 39 Summary Assessment Projects Details E-PROCUREMENT

28 Implementations in India S.No State / Department Level of eprocurement Service Provider URL 1 Andhra Pradesh Indent - Award of Contract C1 India Pvt Ltd 2 Punjab, DoIT Indent - Award of Contract C1 India Pvt Ltd 3 Gujrat Tender publishing - Award (n) Code Solutions of GNFC 4 Karnataka Tender publishing - Award / Auctions Wipro / Antres 5 Assam Tender publishing - Award Wipro / Nextenders 6 Chattisgarh Tender publishing - Award Wipro / Nextenders 7 Rajasthan Tender publishing - Award Tender City-eNucleus 8 DGSND Indent - Award of Contract C1 India Pvt Ltd 9 Northern Railways Tender publishing - Award Broadvision/HCl 10 South Central Railways Tender - Contract Management C1 India Pvt Ltd 11 Hindustan Shipyard Ltd Indent - Award of Contract C1 India Pvt Ltd 12 Neyvelli Lignite Corpn Tender publishing - Award Tender City 13 NTPC, Mumbai Tender publishing - Award Nex Tenders 14 Municipal Corpn of Delhi Tender publishing - Award Wipro / Nextenders 15 Kerala State Civil Supplies corpn ltd Pilot phase Antares Systems 16 ASRTU, Delhi Tender publishing - Award Antares Systems 17 NIC, Delhi Tender publishing - Award C1 India Pvt Ltd

29 Implementation Challenges

30 Challenges in Implementation Sustainable Business Model Change Management Security & Authentication issues Setting up an eprocurement Exchange is not mere Technology but a Major Reform

31 PPP Business Model No Capital cost to the Government State of the art technology High quality resources Low Risk Combining accountability with efficiency Services are governed by SLAs

32 Role of Private Partner/ Service Provider Implementation of the E-Procurement functionality across all departments Customizing software Setup and management of hardware and software for the Portal Trainings Helpdesk services Operation & Maintenance

33 GOAP e-procurement Architecture Diagram

34 Change Management E- Govt Procurement is not an off the shelf software Implementation involves cultural change, attitudes, perceptions, Processes It is not mere IT but more of Reform

35 Change Management Steering committee chaired by the Chief Secretary- Inter Departmental coordination Capacity Building in Depts Involvement of stake holders right from conceptual stage Trainings to suppliers Post implementation support- Help Desk Security & authentication

36 Security & Authentication Secured Hosting facility Web security SSL technology Firewalls, Anti Virus, IDS Two factor authentication Password Digital Certificates: IT Act 2000 Bid encryption at data base- Asymmetric public key Cryptographic method. Audit trail of each activity Good backup policy Security audit by independent third party Time stamping. Access control systems

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39 Business Process Reengineering

40 BPR- Standardisation Cut down non-value processes Redesign bid forms Standardisation of processes Sub-committee Secretary(Projects) Universal item codes Auto Bid Evaluation Contractors Database Estimations modules Standardisation reduces customisation- facilitates quick scale up

41 Online MIS

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46 Learnings Reforms/ BPR in Procurement processes and eprocurement to synchronise to derive full potential of eprocurement Statewide eprocurement portal beneficial Suppliers adaptability to change is better Stakeholders are demanding for complete automation- Auto Bid Evaluation Desirable to Develop a Monolithic platform with all modules, but implement incrementally HoD support is critical PPP Model useful for rapid Scale up

47 Critical Success Factors Top Political leadership support High level Project Implementation Committee Right policies, Objectives Significant Process Re-engineering Active involvement of Stakeholders Workshops/trainings Public Private Partnership Model CIOs from domain are project leaders Active Helpdesk

48 Thank You Question & Answers For more details Visit Project manager, eprocurement, IT&C Department, 217, A- Block, Secretariat, Hyderabad, Andhra Pradesh. Phone , mobile