e-Government Procurement in India

Asia-Pacific e-GP Conference J.S. Deepak, JS, MoC &

K. Srinivasa Raghavan, NIC
22nd Nov 2011 Denpasar Bali, Indonesia

• Government Procurement in India

• Public Procurement at a Glance
• Implementation Models of e-GP

• History and State of Play
• Lessons Learnt • Next Steps • Implementation Strategy • Way Forward in e-GP • Use of e-Auction

Government Procurement In India
• Govt. of India (GoI), State Governments and their agencies including DGS&D are principal procuring agencies. • Defined by the Principles of General Financial Rules (GFR) of the Govt. of India • Other Stake holders include

• Central Vigilance Commission (CVC),
• Comptroller & Auditor General (CAG), • Standards, Testing, Certification and Quality Control bodies. • Vendors & suppliers

Public Procurement at a Glance
Major Procuring Entities in India
Procurement Break-up in States State Government tenders:

• Central Government Departments,
• State Governments, Public Sector units, • Defence Establishments • Railways and Banks

85 % - Civil Works 10 % - Goods 5 % - Services Directorate General of Supplies Disposals (DGS&D) • A Central Procurement agency under Dept. of Commerce, has rate contracts with vendors.

e-Procurement Business Models
• Developed, implemented and owned by the Government (GePNIC) • Indigenously developed application • Public private partnership (PPP)

Government Owned System
• NIC under Dept of Information Technology has developed a generic, open source application which is being implemented in many State Governments and GoI Departments.
• Funded under Mission Mode Project • Implementation support agencies support from empanelled

• Most State Governments & DGS&D covered under this Model. • Central Government and PSUs progressively being covered. are also

GePNIC Status & Plans
• GoI to use eProcurement System of National Informatics Centre • More than 15 States and (GePNIC) as National many Central eProcurement Portal and for rollout in 23 states. Government departments have started implementing • Ten States would be GePNIC system. covered in 2011-12 and remaining thirteen States • More than 77,000 tenders in 2012-13. worth US$ 24 billion have been processed • Implementation carried out since Nov 2007

Indigenous Applications
• Indian Railways uses e-Tendering system since 2005, which was developed internally by Centre for Railway Information Systems (CRIS), an IT Arm of Indian Railways. The application is deployed throughout the country. Intellectual Property Rights (IPR) owned by Indian Railways More than 200,000 tenders have been processed using this system till date. Many other organizations are using self developed applications

• • • •


Third Party Managed Software
• Many organizations have deployed third party applications

• Include Governments of Andhra Pradesh, Karnataka etc.,
• The entire tendering module is implemented under PPP model. • Vision of making all systems inter operable

e-GP – History & State of Play

Lessons Learnt
• e-GP models being implemented in isolation on the basis of individual initiative • Issues of inter-operability not addressed. • Large share of procurement still outside the e-GP foot print • Most models provide for basic e-tendering and not an end to end solution • Many important aspects like use of e-GP as MIS and for grievance redressal neglected. • IT skills & mindsets in Government. • Universalization of e-GP requires top level commitment.

Next Steps
• Committee on Public Procurement (CoPP) has suggested far reaching reforms including • a national public procurement law, • review of GFRs and

• accelerating implementation of e-Proc.
• Recommendations of CoPP being implemented in a time-bound manner.

Implementation Strategy
• Expanding e-GP as part of overall procurement reforms. • e-GP an important component of proposed new national public procurement law. • Identified implementation of Mission Mode Project (MMP) eProcurement as

• MMP implementation is being monitored at the highest level by the Prime Minister.

Way Forward in e-GP
• All tenders above US$ 50,000 to be e-published on a central portal. • Government has mandated all departments to migrate to electronic bidding in a phased manner. • Procurement decentralized but websites to be linked to ensure easy availability of bid documents • Portal to be used for MIS, delay tracking, complaint registration and monitoring grievance redressal • Time bound switch over to an end to end e-Procurement solution • Central Procurement Portal to be commissioned in 2011 and end to end eProcurement by 2012

Use of e-Auctions
• Successful 3G spectrum auctions raised US$ 24.5 billion revenue in June, 2010

• Government has decided to encourage use of auctions for obtaining market determined price for sale of assets and reverse auctions for procurement of goods and projects
• Road map for implementation across government departments and public sector enterprises being rolled out





Building Blocks
• Establishment of State Data Centre (SDC) • National Data Centre (NDC)

• State Wide Area Network (SWAN)
• Mission Mode Project on eProcurement as part of National eGov Plan • Various service providers of e-GP • Readiness of Banks to provide Online Payment Integration

Standards Bodies
• General Financial Rules (GFR) • Central Vigilance Commission (CVC)

• Comptroller Auditor General of India (CAG)
• Standardization, Testing, Quality & Certification (STQC) • Controller of Certification Authority & Certification Authorities

DGS&D - Rate Contracts
• Implemented e-Tendering in • DGS&D was 2002-2003 to handle the established as process for concluding rate central procurement contracts. agency in 1951 under the • Developed an end to end Department of e-GP platform, wherein the Commerce, e-Tendering component was Government of implemented in PPP mode India. and the remaining components were developed by NIC. • Recently migrated to GePNIC

Government eProcurement System of National Informatics Centre (GePNIC)
• Government eProcurement System of NIC, a generic product of Government of India for adoption in various Government organizations. • Developed and implemented by Government of India under open source platform. • Servers hosted in the State / Central Govt. Data Centre ensuring safety of data. • Capacity building and hand-holding support through third parties