Professional Documents
Culture Documents
E-Procurement and Tendering Peocess: School of Civil Engineering
E-Procurement and Tendering Peocess: School of Civil Engineering
E-Procurement and Tendering Peocess: School of Civil Engineering
Internship Report
On
Submitted by
M V Sai kumar Reddy
R18MTE07
OCTOBER- 2019
TABLE OF CONTENTS
INTRODUCTION
1. INTRODUCTION
E-PROCUREMENT
e-Procurement is the procurement of works, goods and services where procedures from initial
estimation of qualities till finalization of work order are done online. Karnataka is one of the few
states in India which have implemented e-Procurement successfully. e-Procurement has been
implemented in Karnataka since 2007 in stages. It is based on PPP model with private contractor,
Hewlett Packard (HP). The revenue sharing model is 95% to HP and 5% to GoK out of tender
processing and supplier registration and renewal fees. The e-Procurement system supports
national and international biding wherein suppliers/contractors can bid from any corner of the
world. As per RFP floated for section of Private Partner was completed only in December 2006.
The project was formally formally launced by His Excellency, the Governer of Karnataka 2007.
The first live transaction of e-Procurement happened in December 2007.
GoK e-Procurement initiative has been well appreciated by many agencies such as Ministry of
Information Technology, Government of India, World bank, etc.,
Organisation Set-up
e-Procurement cell has been set up in Bangalore under the Department of e-Governance. Project
Director, e-Procurement is heading this cell. He assisted by Programme Officer and Technical
Director, e-Procurement. The support staff e-Procurement cell has been outsourced, Key officials
from impoertant departments such as PWD, Minor Irrigation, etc., are appointed in this cell.
Types of Tenders
NEFT/RTGS
Electronic transfer from any Nationalized Bank using RBI system.
Credit Card
Online payment using any Visa or MasterCard.
Direct Debit
Online Direct debit from A/c in designated bank.
Deferred Payment
Supplier takes challan from e-procurement system– makes payment, comes back and
enters Unique Transaction Reference No. in e-procurement system.
e-Procurement system matches supplier inputs with scroll received from bank and
confirms matching payments.
Partial match cases verified by matched by accounts officer, e-procurement cell
Once matched system sends confirmation to supplier.
Payments could take up to 2 days for matching –Mandatory 2 day latency between bid
closing and opening as decided by Steering Committee.
Rollout Support
− Handholding support for Govt. departments that come onboard for one year
E-Procurement Login
ii) Indent Management: This module facilitates internal preparation work for estimates/indents.
iii) e-Tendering: This module handles the upload of bid documents by bidders, encryption /
decryption of bids, opening of tenders, evaluation, negotiation bidders and completion of
financial evaluation.
iv) Contract Management: Involves issue of Letter of Intent (LoI), work order, defining
milestones and activities, measurement book, generation of bills, verification and measurement
reports and quality reports, approval of bills and payment to contractors.
vi) e-Auction: The module enables suppliers/contractors to submit quotes in a ‘virtual auction
environment’ based on the bids of other bidders.
vii) e-Payments: This module handles the online transfer of funds (inflow and outflow) through
credit card or using internet banking systems.
ix) Accounting: The module maintains a statement of inflow and outflow of payments on
various fees collected from suppliers/contractors, tender payments, auction payments and refund
of Earnest Money Deposit (EMD).
Growth in the number of users and transactions is the primary objective where the private partner
has to recover the project costs and his profits from transaction-based fees. In traditional
procurement approach, the capital and operational costs are incurred through budget resources,
and there is no pressure or incentive for the IT supplier to push for growth. Similarly, the GoK
Project Team may have their growth targets but their funding is not dependent on the growth
achieved in terms of number of departments, users or transactions. A PPP approach, will
therefore by design promote growth and thereby higher level of adoption and mainstreaming of
the new e-governance systems. It was clear that the private partner had to modify and upgrade
the systems for each department to meet their requirements, provide extensive training, and
handholding support.
In a traditional approach, the private partner would have received his payments on delivery and
installation and would have little role in promoting the growth and adoption of the systems. In
this case, every new transaction results in increased revenue for the private partner. The number
of departments grew from initial 7, to 19, to 31 and the number of suppliers increased from
initial 130 to over 4,800 in the first three years. Figure 2 shows the growth in the number of
suppliers and government users.
In the GoK e-Procurement Project, the private partner used ‘virtualization’ for added flexibility,
ease of use, and scalability to the e-procurement solution in addition to containing costs. The
traditional design would have required at least four times the cost of the present systems and at
least 70 servers to get the same performance. The innovative project design used eight servers in
all, resulting in huge cost savings.
Constraints
1. Constraints for not using e-Procurement
Food and Civil supplies department was planning to introduce e-Procurement since 2010.
But due to pressure from various stakeholders, particularly transporters the
implementation was derailed.
Transporters are apprehensive about the security mechanism in e-Procurement platform.
Transporters are of opinion that with this system, their bids will be seen by other co-
bidders.
Lack of strong decision making level will-power is a major constraint in the department.
Department of public instruction is not into major constraint in this department.
2. Constraints during Actual Implementation
Ease of use: When a submitted tender document has more attachments and two
attachments arc to be compared, each attachment is to be opened separately. No provision
has been made to view two documents simultaneously for comparison.
Reliability: Officers found the system to be unreliable. Server breakdown happens
several times. Especially during eleventh hour, if server is down then officers find it
difficult to handle the work. In such cases the work gets delayed.
Capacity Building: In family Welfare Dept. only 1 or 2 officers are trained for e-
procurement system and are well versed with e-procurement system. These officers only
have digital signatures certificates, if these officers are on leave or gone out for official
work then work gets affected.
Efficiency: Even after introduction of e-Procurement hard files are maintained for each
work.(This is done to keep back up of documents in case of system failure). After getting
approval on paper, concerned officer makes the entry into the e-Procurement system.
Officers and Clerks found it cumbersome and repetitive. Due to this e-Procurement is not
adding value in reducing cycle time as desired.
Example for e-Procurement Tender:
NAME OF PROJECT:
CONSTRUCTION OF STAFF QUARTRES BUILDING AT CFP PREMISES GUBBI,
TUMKUR DISTRICT.
DOCUMENTS
TENDERS
CHECK LIST - Following listed documents have to be furnished to claim the eligibility.
To qualify for award of this contract, each tenderer in its name should have in the last five years. 20013-14
to 2017-18 the following criteria
Status
SL No Particulars
a)Credit Card,
b)Debit Card