e-Procurement Implementationin Govt. of Karnataka

Presentation dated 20th of March 2008

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Presentation Overview

• e-Procurement system architecture

• Defining characteristics of GoK’s e-Procurement system

• Governance structure

• Key project related developments

• Directions sought

e-Procurement System Architecture

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Suppliers and Buyers Master Data

e-Payment, Accounting and MIS

Indent

Management

e-TenderingContract

Management

e-AuctionsCatalogue

Management

Dept. 1 Dept. 2 Supplier 1Dept. n… Supplier 2 Supplier n

e-Procurement System Architecture

Defining Characteristics of GoK’se-Procurement System

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Defining Characteristics of GoK’se-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

Governance Structure

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Governance Structure

Steering Committee

Project Implementation

Committee

Working Group

Centre for e-Governance

e-Procurement Cell HP Implementation team

Government side Private Partner Side

Project Director, Mr. C. Suresh

Director, Public Sector &

Government Business

Vice-President, HP Services,

India (Mr. Kapil Jain)

Managing Director, HP India

(Mr. Balu Doraisamy)

Key Project Related Developments

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Key Project Related DevelopmentsAmendment to the KTPP Act for Enabling e-Procurement

• An Ordinance was issued on the 25th of Nov. 2006 to enable the implementation of e-Procurement

• The KTPP Act was amended to enable e-Procurement on the 27th of April 2007

Selection of the Principal Bank

• Based on a tendering process, Axis Bank was chosen as the principal bank for implementation of e-Payment functionality and the Letter of Intent was issued on the 18th of June 2007

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Formal Approval of Modules• Supplier Registration

− Working Group was held on the 7th of March 2007

− PIC meeting was held on the 29th of March 2007

• Indent Management

− Working Group was held on the 28th of April 2007

− PIC meeting was held on the 7th of June 2007

• e-Tendering

− Working Group was held on the 7th and 27th of August 2007

− PIC meeting was held on the 1st and 3rd of Sep. 2007

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‘Go-live’ Notification Details

• Steering Committee headed by Additional Chief Secretary notified ‘Go-live’ of the following departments in its meetings dated 13th December 2007 and 1st Feb. 2008:

1st Feb. 08E-Governance & CEG7

1st April 08PWD9

1st April 08K-SHIP-210

1st March 08KSAMD & APMC8

1st Feb. 08KRDCL6

14th Dec. 07KDLWS2

13th Nov. 07SSA1

15th Jan. 08KPTCL5

15th Jan. 08

15th Jan. 08

Go live dateDept. nameS.no.

KREIS4

KBJNL3

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‘Go-live’ Status

No tenders floatedYes1st Feb. 08e-Governance8

Tenders floatedYes1st of Feb. 08CEG9

No tenders floatedYes1st March 08APMC10

No tenders floatedYes15th Jan. 08KRDCL6

Estimate createdYes15th Jan. 08PWD7

Tenders floatedYes14th Dec. 07KDLWS2

Tenders floatedYes13th Nov. 07SSA1

No tenders floatedYes15th Jan. 08KPTCL5

1st April 08

15th Jan. 08

15th Jan. 08

Set-date Go-live statusNotice issued

Yes

Yes

Yes

WB discussions held

No tenders floated

Estimate created

Go-Live StatusDept. nameS.no.

K-SHIP – 2 11

KREIS4

KBJNL3

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Statistics on e-Procurement usage

01020

3040506070

8090

100

Wk1

Wk2

Wk3

Wk4

Wk5

Wk6

Wk7

Wk8

Wk9

Wk1

0W

k11

Wk1

2

Number of suppliers registered (starting date 1st Jan. 08)

15

Statistics on e-Procurement usage

012

34567

89

10

Wk1

Wk2

Wk3

Wk4

Wk5

Wk6

Wk7

Wk8

Wk9

Wk1

0W

k11

Wk1

2

Number of tenders published (starting from 1st Jan. 08)

Directions Sought

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Agenda Item 1: Replacement of tender document fees with bid processing fees

• Tender documents can be downloaded for free from e-Procurement platform

• Only those bidding for tenders shall pay the following:

− Rs. 500 for goods and services tenders where there Estimated Cost Value was not calculated from Schedule of Rates and Published

− For works procurement, processing fee varies from Rs. 500 – Rs. 7500

• The bid processing fees collected from contractors/suppliers will be paid to HP for e-Procurement services rendered

• Decision Sought: A few of the departments notified to ‘Go-live’ in e-Procurement platform have sought to know if they could continue to collect the same amount collected traditionally for sale of tender documents.

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Agenda Item 2: Electronic Handling of EMD ( 1 of 2)

• A unique mechanism has been developed for electronic transfer of EMD; bidders can bid from anywhere in the country without having to physically visit govt. offices

• A principal bank was selected for pilot phase based on a tendering process

• Unified e-Procurement platform is tightly integrated with the principal bank’s software

• Refund of EMD will be made electronically as per the instructions of TAA

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Agenda Item 2: Electronic Handling of EMD (2 of 2)

Decision sought:

• Whether departments notified to ‘Go-live’ in e-Procurement platform could continue to collect the same amount collected traditionally for sale of tender documents

• Whether departments notified to ‘Go-live’ in e-Procurement platform could continue to collect EMD monies as they did in the manual system.

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Agenda Item 3: Go-live in KPTCL

• Steering Committee had notified KPTCL to ‘Go-live’ in e-Procurement platform from the 15th of Jan. 2008

• E-Procurement application has already been integrated with many legacy systems of KPTCL and configured to fit many KPTCL specific requirements

• KPTCL has sought further modifications in e-Procurement application

• Decision Sought

• ‘Go-live’ date in KPTCL

Thank You