e-procurement in Karnataka Presentation for Euro-African Delegation 2 nd December 2009

Transcription

1 e-procurement in Karnataka Presentation for Euro-African Delegation 2 nd December 2009

2 Karnataka a snap shot

3 Karnataka No. of Districts: 29 No. of Talukas: 177 No. of Departments: 48 No. of Tier-1 Cities 10 No. of Tier-2 Cities 18 IT Exports: Rs. 75,000 Crore

4 Vision & Objectives

5 Vision: To ensure a transparent, reliable and accountable procurement process with ease and convenience to government, suppliers and citizens Mission: To Implement a Unified End-to-End e-procurement Platform across all Government Departments / Agencies

6 Project Objectives To enhance transparency and accountability To enable ease of access to contractor community To provide a common environment for all types of tenders To handle entire procurement process (end-to-end) and not just tendering process To create infrastructure for effective implementation of procurement policy of the State To involve less paper, thereby, adopting green working

7 Target Area / Population Covered

8 Target Area Government Departments in Karnataka Government Agencies / Organisations in Karnataka PSUs and other Government bodies in the country Target Population Government Officials Suppliers / Contractors Citizens

9 Methodology / Processes adopted

10 Unified End-to-End e-procurement System Why Unified? To have a single system meant to be used as a shared infrastructure by all agencies in the State of Karnataka Why End-to-End? To handle to entire procurement process from estimate/ indent preparation, tendering, contract / catalogue management until payment to supplier / contractor

11 Payment Estimate Creation Measurement / Inspection Contract Management / Catalogue Management Issue of Order Estimate Approval Indent Management Preparation of Tender Document Tender Finalization Draft Tender Schedule Tender Evaluation Tender Opening Submission of Bid E-Tendering Approval of Tender Schedule Publish of Tender Supplier Registration

12 Indent Management e-tendering e-auctions Contract Management Catalogue Management Suppliers and Buyers Master Data e-payment, Accounting and MIS Dept. 1 Dept. 2 Dept. n Supplier 1 Supplier 2 Supplier n

13 Technology Developed using Open Source Technologies Programming language: Java Application server: JBOSS Database: MySQL Workflow engine: JBPM

14 Encryption Bid Public Key Supplier Encrypted Form State Data Centre Encrypted Bid Department Decrypted Private Key Decrypted Bid

15 Business Model Implemented on Public-Private Partnership Transactional Revenue to Private Partner (ASP) Supplier Registration Indent Management & e-tendering Contract Management & Catalogue Management Payment to Private Partner based on Operational and Deployment SLAs Five-Year Implementation and Maintenance Contract

16 Institutional Set-up Steering Committee Chaired by Additional Chief 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

17 Major Outputs

18 Jan '08 Feb '08 Mar '08 Apr '08 May '08 June '08 July '08 August '08 Sept., '08 Oct., '08 Nov., '08 Dec., '08 Jan., '09 Feb., '09 Mar., '09 Apr., '09 May '09 June '09 July '09 August '09 Sept., '09 Oct., '09 Nov., '09 Govt. Users Number of Government Users No. of Government Users (Cumulative) Month

19 Suppliers Registered Number of Suppliers Registered No. of Suppliers (Cumulative) Jan '08 Mar '08 May '08 July '08 Sept., '08 Nov., '08 Jan., '09 Mar., '09 May '09 July '09 Sept., '09 Nov., '09 Month

20 Users Government > 1818 Suppliers > 4456 Training Govt. Officials 2730 Contractors 703 Train-the-Trainer 92 Tenders Published Tenders Closed on a single day Bid Submissions for a single tender 3048 $ 3 billion approx. (excluding tenders in KRDCL) 82 tenders 174 Items 85 bidders

21 : No. of Departments / Agencies: 07 No. of Tenders: 15 Value: $ 4 million : No. of Departments / Agencies: 19 No. of Tenders: 1262 Value: $ 1.5 billion : No. of Departments / Agencies: 18 No. of Tenders: 1614 Value: $ 1.2 billion

22 Major Outcomes

23 Major Outcomes Competitive Bidding Environment Reduction in Bid Value (10% premium) Increase in Bidder Participation (2-3 fold increase) Elimination of Bidder Cartels Reduction in Tender Publishing and Tender processing time (70-80% reduction in cycle time) Direct credit of EMD refunds to Supplier Account (2 days after online initiation) Better Decisions due to instant MIS on procurement and supplier related information (planning and execution)

24 Response / Uptake of the Community

25 Impact (Business Community) Enhanced transparency in tendering and procurement Free download of bid documents Reduction in travel and other miscellaneous expenditure Convenience in electronic submission of bids Ease of access anytime-anywhere Global participation

26 Impact (Government) Tender opportunities effectively publicized Instant retrieval of track-record on contractor s performance Rich MIS data on various aspects of procurement at the State government level Faster file movements with integrated file monitoring system Shortened Procurement Cycle Time Standardization of procurement procedures

27 Impact (Citizens) Better utilization of tax-payers money Real-time access to the status of works, goods and services procured by the State Real-time access to live tenders and bid documents Access to various Acts, Rules, Policies and Procedures on subjects related to government procurement and information technology Bulletin providing the list of awarded tenders (to be implemented soon)

28 Initiatives taken for replication

29 Replication Initiatives Public Sectors and Central Government Organisations invited to join the e-procurement platform Implementing e-procurement in Hindustan Aeronautics Ltd. Meeting held with Cantonments Discussion with several States on adopting the Karnataka model of e- Procurement

30 Critical Success Factors

31 Critical Success Factors Implementation Methodology (Incremental Approach) Buy-in of Public Works Department PWD Official as Project Officer, e-procurement Ensuring sufficient comfort level during initial stages prior to take-off subsequently Integrated approach User Readiness Infrastructure Readiness Department Readiness Online workflows from the beginning Institutional structure steered by senior government officials Legal Readiness prior to launch of project (KTTP Act and its subsequent amendment)

32 Process Reforms Amendment of the Karnataka Transparency in Public Procurement (KTPP) Act amended to provide legal backing to the e-procurement initiative Centralized one-time Supplier Registration (enables contractors to register once and participate in all tenders floated in e-procurement platform) Receipt of payments using e-payment mechanism Credit Card Direct Debit National Electronic Fund Transfer (NEFT) / Real Time Gross Settlement (RTGS) Over the Counter Administration of software by Government Workflow management Implementation of transfers and delegation of powers Establishment of e-procurement cell Professionals hired from market Work in a professionally driven environment

33 Major Challenges Encountered

34 Major Challenges User readiness Attitude and mindset Availability of IT infrastructure Skilled personnel Network connectivity Change management Standardization of common processes for procurement activities in government departments / agencies

35 Success Stories

36 Success Stories $10 million tender of PWD finalised in 2 days (compared to 1 month in traditional manual mode) Pre-Bid Meeting attended by 90 delegates in BESCOM (compared to 5-10 bidder participation) 20 bidders for KSRTC lubricant tender (compared to 4-5 bidders) 10% premium in PWD tenders (compared to 30-40% premium) EMD refund in 2 days (compared to 3-4 weeks)

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