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MDP session on eProcurement, NIC
MDP Session on eProcurement
* e-Procurement Concepts* e-Payments Integration* NIC’s Pilot Implementation of e-Procurement* Govt. e-Procurement solution (GeP) by NIC* eGP Mission Mode Project and NIC* Issues in e-Procurement
=====================Monday, the 8th September 2008
R K Singh ([email protected])Senior Technical Director, NIC
MDP session on eProcurement, NIC
e-Procurement Concepts …….
MDP session on eProcurement, NIC
e-Procurement Concepts
Procurement Process and it’s Constraints Introduction to e-Procurement Features & Benefits Approach to a solution/ Critical Determinants Implementation - Approach & Success Factors Reverse Auctions – What, How & When? e-Catalogue based Buying
MDP session on eProcurement, NIC
Procurement Process – A Bird’s Eye View
MDP session on eProcurement, NIC
Procurement cycle
Procurement cycle starts from Raising of therequirements for an item or a service and ends onlyafter settlement of supplier payments.
Request Source Order Receive Pay
Analytics
MDP session on eProcurement, NIC
Constraints of Traditional Procurement
Large time and effort wasted in disseminating & seeking procurement informations
Physical Access barriers Slow and laborious manual processes, activity-flow Human interface at every stage - Low Value
Addition Several processes not transparent to suppliers Scope for compromises in bid-security &
confidentiality Cartel formation suppresses competition and
artificially hikes bids Possibility of data tampering and loss of records
MDP session on eProcurement, NIC
e-Procurement means procurement of goods and servicesonline using the internet. Ideally, it covers the full ‘life cycleof procurement’.
The intention is to automate, possibly, the entireprocurement process, along with tender bid submission andpayments by suppliers, in an online web-based real-timeenvironment.
e-Procurement could resolve many of the constraints/delays of traditional procurement.
e-Procurement - The Solution
MDP session on eProcurement, NIC
Modes of e-Procurement
Electronic procurement activities could be effected using oneof the several ways or modes given below, or a combinationof these could also be used as per need: -
e-Tendering
e-Auctioning – Reverse Auctions
e-Catalogue based buying/ e-Ordering
In common parlance however, a basic e-Procurementapplication essentially consists of an ‘e-Tendering system’and often also includes an ‘e-Auctioning system’. It couldalso encompass e-catalogue based buying as well.
MDP session on eProcurement, NIC
Objectives of e-Procurement
Objectives of automating procurementprocesses are to:-
Reduce cycle times of procurement
Increase supplier access to ensure wider participation
Reduce costs of procurement through competitive biddingand Reverse Auctioning
Remove cartelisation by supplier groups (ReverseAuctioning)
Increase visibility of procurement spend, for effectivedecision making
Increase transparency in the procurement process
Almost complete elimination of paperwork, for speedy andefficient functioning
MDP session on eProcurement, NIC
Electronic Tendering Solution
An e-Tendering solution primarily facilitates the‘Tendering Process’ and may cover from Indenting ofRequirements to the placing of contract/PO
TenderPreparation
TenderPublishing
BidderResponse
BidEvaluation
ContractAward
IndentTo TenderRequest
e-Tendering Solution
MDP session on eProcurement, NIC
e-Tendering solution - Functionalities
Tender Creation/ configuration, with Response Forms
Pre-NIT Approvals and Floating/ Publishing of Tender
Tender Clarifications, Pre-Bid Conference
Online Secure Bid Submission, e-Payment of Fees
Online Bid Opening/ Decryption, Evaluation/ Negotiation
Award of Contract, Empanelment etc.
MDP session on eProcurement, NIC
e-Tendering solution - Features
Different Types of Tenders – Open, Limited & Proprietary
Configurable Approval Work flow, Re-use of old tenders
Supplier Enablement – Online Registration, Custom dashboard, Repetitive document storage, Alerts, Search etc
Strong Audit-trail and Archival/ Retrieval
Security/ Authenticity/ Secrecy of Transactions
Online Payments – Tender Fee, EMD & Payment to Suppliers
MDP session on eProcurement, NIC
Benefits of e-Procurement/ e-TenderingBenefits to Buyers Reduction in Procurement & Contracts cycle time
Cost Reduction
Efficient & streamlined Procurement Processes
New Supplier Discovery
Close Monitoring of Activities/ Vendor Performance
Rich MIS and Analytics
New Improved Image
Standardized formats and Uniform tendering practices
Benefits to Suppliers Increased visibility/ Less artificial barriers
Increased business opportunities,
Greater degree of transparency
Cycle time reduction in participation and award of Contract
Supplier Enablement and Ease of Participation
MDP session on eProcurement, NIC
Approach To A SolutionBefore looking for an e-Procurement solution, a relook on existing procurement procedures/ practices is essential: -
‘As Is’ Analysis, Re-engineering for optimized processes
Optimization/ reduction in process-flow steps
Uniformity/ standardization in formats/ practices/ procedures
Organization wide use of ‘unified item-codification structure’
Automation of Processes
MDP session on eProcurement, NIC
Critical Determinants - of a Good Solution
Good authentication – Role based access
Security, Secrecy (of bids) - Signing, Encryption
Ease of Use, Tender Templates, e-Payment integration etc.
Integrated Document Management features, Good Analytics
Good Audit trail/ traceability features – Access for Financial Audit, Legal and RTI needs
Good Archival & Retrieval features/ policy - Safe and secure
MDP session on eProcurement, NIC
Implementation - Approach
Business Process Analysis for Improvement: Re-engineering, Codification, Back-end application linkages etc.
Defining scope of Implementation: functionalities covered
Sourcing e-Proc. Appln. S/w: Gap Analysis and Customization
Setting up a Fail-safe & Secure 24x7 Infrastructure
Integrating Payment Gateways, PKIs, Mail etc.
Change Management: Training, 24 Hr. Help-desk
Execution Framework – Management of Rollout & Risks
MDP session on eProcurement, NIC
Implementation - Success Factors
Major factors which could be crucial to transformation from simple traditional procurement to e-Procurement are: -
Strong will and focused thrust from the top management
Building in-house champions/ enthusiasts for adoption of e-Procurement
Buyer’s dedicated project team to drive the Mission
Aiming for realistic implementable goals/ objectives and time lines
Well defined/ standardized procurement processes and forms
Extreme care to aspects like Tender-security, Supplier-enablement/ Training & Ease of use
Well integrated back end systems, standards, policies & practices to link and leverage upon It must be remembered that implementing e-Procurement is most often a continuous evolving process with shifting goals, spread over a longer period, targeting end to end procurement supply chain; rather than a one shot solution for all procurement problems.
MDP session on eProcurement, NIC
Reverse Auction and e-Catalogue based Buying
MDP session on eProcurement, NIC
What is A Reverse Auction?
• The traditional auction is a Forward AuctionIt normally involves a seller offering an item for sale, while potential buyers compete with each other for purchase. Thus price is driven up, until no buyer is willing to go up further.
• In a Reverse Auction, MULTIPLE SELLERS OF A
PRODUCT VIE FOR THE BUSINESS OF A SINGLE BUYER.Therefore the price is driven down.
• There are 3-4 flavours of reverse auction, called as: English Auction, Dutch Auction, Sealed Bid Auction etc.
MDP session on eProcurement, NIC
How does a Reverse Auction work?
Pre-screening/ Pre-qualification of suppliers isessential to have technically competentvendors, ready to offer products of desiredspecs/ quality.
Complete requirement specifications are pre-known/ agreed and frozen for all before auction.
Usually services of an online Auction ServiceProvider is utilized to conducts the process onhis auctioning website.
Suppliers are required to be pre-registered withthe auction service provider and expected tohave received training on how to participate .
MDP session on eProcurement, NIC
How does a Reverse Auction work?
All bidding vendors must have agreed to abideby the terms & conditions of the auction/service.
The Reverse auction is configured and allparticipating vendors are pre-notified about thestart time & closing time of auction.
Bidders submit their price bids by remotelylogging-in from their offices.
Bidders identities are masked, but they can seethe competing prices and rankings in real timeand could revise their bids as desired.
MDP session on eProcurement, NIC
How does a Reverse Auction work?
There is no communication or negotiationwith the bidders during the auction.
Buyer also watches the progress of biddingfrom his office. Identities of bidders areavailable to him.
In reverse auction competition is high,bidders get tempted to bid lower and lower toclinch the deal, until they are unwilling to goany further.
At the conclusion the lowest bidder emergesas winner of the auction.
MDP session on eProcurement, NIC
Potential Benefits from Reverse Auction To Buyers: Significant reduction in cost due to Dynamic
Bidding process. Inefficiencies in the supply chain reduce.
With real time competition, suppliers are on their toes
A tool for efficient price discovery, complementing direct negotiation process. Often used along with Tendering.
To Vendors: Ensures Savings in marketing cost / distributor
margins Facilitates flexibility in pricing decision. Transparency increases Allows vendors to assess their pricing power from
close quarters of competition.
MDP session on eProcurement, NIC
Tender Cycle with Reverse Auction (Dynamic Pricing)
OnlineRegistration
Create andPublish
Tender/ NIT
Purchase/ Download
Tender
Preparation/ Encryption
of Bids
PQ/ Tech. Opening,
Evaluation & Short listing
Bid-Opening and
Verification
OnlineSubmission of Bid/ Hashes
Creating Bid Seals (Hashes & Super Hash)
Commercial Opening
and Short listing
Generation of
Comparative Statement
Award of Contract
(lowest of the two rounds)
Competitive Bidding using
Dynamic Pricing Engine
MDP session on eProcurement, NIC
Applicability of Online Reverse Auctions
Reverse auction works best when: Items have well defined specifications and
universally accepted standards. Established qualified base of vendors (at least
three)
Suitable for High value, large volume goods, Capital goods, Direct Materials / MRO items.
Periodic rate contracts for above item types. Often used along with Tendering for efficient
price discovery Applicable for Technically Pre-qualified/ short
listed vendors only
MDP session on eProcurement, NIC
e-Catalogue based Buying
e-Catalogue based Buying or e-Ordering is theobvious prevalent mode for small procurements byindividuals. But for corporate or governmentagencies, this is yet not a real option.
But this mode of procurement has many obviousadvantages, particularly if such an ‘OnlineProcurement Hub’ (Portal) is created for use ofgovernment agencies.
Such a Hub would hold (and manage) electronicsupplier-catalogues (with specs/ quality details) ofgoods & services, with minimum possible pricesaffordable by them, for buying agencies to accessand use for off-the-shelf buying.
MDP session on eProcurement, NIC
e-Catalogue based Buying (…Contd)
Secure transactions (such as: Purchase orders, Invoices, e-Payments etc.) would be enabled by the Hub and exchanged electronically between buying agencies and suppliers.
Though success of such a venture mainly depends upon a large enough size of participants, but the approach has many advantages, like: - It is superior to buyer & suppliers establishing direct link Suppliers need to maintain/ update only one catalogue on
the Hub and establish only one interface to sell to many(govt.) buyers
It could be highly useful for all the routine small itempurchase of government agencies and even be used forbigger items/ volume purchases, where item/ servicespecs are quite standard.
MDP session on eProcurement, NIC
End of session on
e-Procurement Concepts
MDP session on eProcurement, NIC
e-Payment and it’s Integration
MDP session on eProcurement, NIC
e-Payment and it’s Integration
Commonly available modes for effecting EMD/ Fee/ otherpayments electronically, from within a software Application,are: - Online payment through Credit cards/ Debit cards or Direct Account Debit (using Gateway for Internet
Banking) Depending on the actual need and usage constraints, the
appropriate mode could be chosen and integrated into thes/w application.
Credit cards could conveniently be integrated for use if thepayment amounts involved are not substantial.
For all other cases where payment amounts could be heavy,payments through Direct Debits from concerned accounts,using Internet Banking is the only alternative.
MDP session on eProcurement, NIC
e-Payment and it’s Integration (…contd.)
For integrating e-Payment features into theApplication, one needs to talk to concernedbanks, who manage their own Payment GatewayInterfaces for this purpose.
If credit card based payments are to beintegrated, then integrating the ‘Credit CardPayment Gateway’ of any one of the providingbanks is sufficient.
But for integrating e-Payments through directdebit from concerned accounts, it is essential thatthe exercise for integrating such PaymentGateways is undertaken with every bankconcerned.
MDP session on eProcurement, NIC
e-Payment and it’s Integration (…contd.)
The exercise of a Payment Gateway integration involves: - Deciding on details like: Parameters to be exchanged between the Application
and the Bank Gateway Handshaking between the two Modes of Access (Transaction/ Verify)
Periodic Reconciliation of payments etc. Modifying the Application to actually integrate above. Functional testing rounds with each integrated gateway. Signing a Document of Understanding between parties. Opening Merchant Account(s) in the integrated bank for
the purpose of collecting payments and giving any standing fund transfer instructions, if so.
MDP session on eProcurement, NIC
e-Payment Integration Parameters
Sample set of Parameters passed (Application to Payment Gateway) Mode (payment/verification) Merchant ID Transaction Reference No. Amount Currency Time Stamp Return URL etc
Sample set of Parameters passed (Payment Gateway to Application) Bank Reference No. Transaction Reference No. Amount Status (Paid) Time Stamp
MDP session on eProcurement, NIC
e-Payment Process - Steps1. The User initiates payment through interface in Application system for a
particular transaction
2. The User selects the mode of payment (i.e. direct debit) and the bank.
3. The Application System generates a unique reference number (PRN) for this transaction.
4. The Application System invokes the appropriate payment gateway based on the selection of the User and passes a set of identified parameters to the payment gateway.
5. The payment gateway receives the parameters and the payment screen is displayed to the User.
6. The User logs in to his bank account and authenticates the payment.
7. The payment gateway processes the transaction and returns a set of parameters (including a unique bank reference number/BID) to the Application System.
8. The Application System captures and records these details against the transaction and displays the status to the User.
MDP session on eProcurement, NIC
e-Payment Process (Direct Debit)
MDP session on eProcurement, NIC
End of session on
e-Payment and it’s Integration
MDP session on eProcurement, NIC
Pilot Implementation of e-Procurement solution at NIC Hqr.
https://eprocure.gov.in
MDP session on eProcurement, NIC
e-Procurement Pilot at NIC Hqr
NIC implemented a project for e-Procurement on pilot basis,with an e-tendering solution provided by an outside vendor atzero cost.
The solution essentially involved creating all the requirementdetails/ specs, of a tender to be floated electronically, inparameterized form; so that subsequent evaluation &comparative chart preparation exercises could be automatedto a large extent.
It was implemented with good security features, after havingthree rounds of security audit and addressing it’sobservations.
A total of four NIC tenders were processes electronicallythrough the solution from May ’06 till Feb. ’07.
MDP session on eProcurement, NIC
Pilot Implementation at NIC Hqr
• Online creation of Indent and Tender documents/ specs with General/ Specific Terms & Conditions, Vendor Eligibility, Configuration of Tender/ NIT details & events
• Electronic publishing of NIT & Tender document
• Bidder Registration, Login, Bid preparation, document upload, Bid encryption/ enveloping & secure submission
• Online payment of Tender Fee/ EMD• Bid Opening and Decryption, visible to all bidders• Simultaneous Bid Evaluation of an open tender -
Technical/Financial.• Matching & Negotiation facilities
Functionalities/ Features
MDP session on eProcurement, NIC
Pilot Implementation at NIC Hqr
• Rate Contract / Empanelment, Generation of Purchase Orders
• Integration of three payment gateways (Bank of India, PNB & ICICI Bank)
• Integration of DSCs of three CAs (NIC, TCS and nCode Solutions)
• Enabling exchange of electronic payment (EMD/ T. Fee) info. with PAO’s software, to enable later refunds
• Server side validation• Automatic mail alerts to vendors/approvers/bid openers• Provision for asking Revised Financial Bid, as per need• Provision for tender copy facility - view & use old tender
documents/corrigendum
Functionalities/ Features (…contd)
MDP session on eProcurement, NIC
Implementation Platform - H/W and S/W
Servers H/w: Rack Mount Dual CPU Servers
(Intel Xeon MP 2.8Ghz Processors, with 512 KB L2 cache, 2 MB L3 cache per processor)
Others : SAN Back Agent S/W For Linux(Net vault),
Online Line back up Agent for DB2 under Linux (Net vault)
Application Server : - IBM Web Sphere Application Server 6.0 ND,
- IBM Web Sphere Application Server 6.0 with
- Red Hat Advanced Server3.0 (update 5)
Database : IBM DB2 UDB V8.2 (Enterprise Server Edition)
Others : Server Protect Trend micro for Application Servers.
Front End : IE 5.0 and above browser.
Development Environment : J2EE Development Environment.
Client users needed only to have a browser
MDP session on eProcurement, NIC
Implementation Platform-Deployment Architecture
MDP session on eProcurement, NIC
Implementation Platform - Application Architecture
Iden
tity
Bas
ed A
uthe
ntic
atio
n
Web
Ser
ver
Rol
e B
ased
Use
r Acc
ess
ApplicationServer
DATABASEServer Firewall
Suppliers / External
Presentation Layer Business Logic Layer
Document Versioning
Reports Engine
Internal
PKI (
Dig
Sig
n)
e-payment Server
MDP session on eProcurement, NIC
Pilot at NIC Hqr - Experiences Attempts at BPR/Automation of Processes:
Attempts at Organization wide Unified Item-codification structure Collaborative way of evaluation to minimize evaluation cycle time Parameterization of tender specifications to enable automated evaluation
User Authentication: PKI enablement - The application supported two factor authentication - one
based on credentials maintained by the application and the other based on the credentials provided through use of PKI digital certificates Issues
Bid security & secrecy - Signing, Encryption: The application supported the industry standard for bid security through
PKI based signing & encryption of bid forms/ documents, as well, as the time stamping of bids at the time of submission by vendors Issues
Submission of Bids and payment of Bid fees: Last minute submission of bids by Vendors Unsuccessful e-Payments - Issues, Option for conventional payment e-Payment Reconciliation
MDP session on eProcurement, NIC
Unified Item-codification Structure
Example :101 Servers 101005 Rackmount
Servers101005001 Rackmount Server RS-1U 101005001001 Intel-One Processor Server 1U
Category Code
Category Sub Category Code
Sub Category
Type Code
Type Description
Item Code
Item Description (Tender)
100 COMPUTING DEVICES
200 Communication & Network Equipments
300 Softwares(300-399)
400 Infra-strcuture Equipments(400-499)
600 Office Items, Office Equipment & Equipment
800 Services(800-899)
900 Books Publications & Library Related
316 Image editing Softwares
316004 Remote Sensing Satallite Data Processing softwares
316004001 Image Processing Software
316004001001 Image Processing Software For Remote Sensing Satellite Data Processing For Ms Windows
MDP session on eProcurement, NIC
Log-in Process- Home Pagehttps://eprocure.gov.in
MDP session on eProcurement, NIC
End of session on
Pilot Implementation of e-Procurement solution
at NIC Hqr
MDP session on eProcurement, NIC
Government e-Procurement (GeP)Solution by NIC
MDP session on eProcurement, NIC
GeP Solution - Outline
Background & Evolution of GeP Envisaged Scope of GeP
Functionality/Features Security/ Authentication
NIC GeP System Development & Status Different Modules Security & Authentication
MDP session on eProcurement, NIC
Background of GeP – Why & How? As expected from an organization like NIC, an important
purpose of the pilot e-Procurement project at NIC Hqr wasalso - to evolve/ crystallize a workable approach for wideadoption and Rollout of e-Procurement/ e-Tendering solutionin government – at Central/ State levels – to meet theirimpending requirements in this regard.
But after pursuing with the pilot implementation for asignificant period, the following became obvious: - Procurement procedures/ norms as well as formats and
activity-flows differ widely across govt. offices and theyalso significantly vary depending on nature ofprocurement – viz: Bulk goods, Std. items, Specificationbased items, Works or Services etc.
As such, there could not be a single Application whichcould fit all kinds of procurement requirements and berolled out.
MDP session on eProcurement, NIC
Background of GeP – Why & How?(Contd.)
It is much more difficult to attempt rollout of an e-tendering solution with ‘strict parametric pre-defined form based’ approach in creating online tender specifications and also in evaluation of bids. The problem is more because of lack of standard practices and formats/ documents in organizing backend procurement activities.
It is difficult to evolve a reasonable & acceptable rollout model for government departments, if the solution’s ownership belongs to a third party.
As such, NIC decided to attempt evolving/ developing an e-procurement solution where the ownership would be of NIC itself and the solution could be of a more general nature, rather than specific for wider implementation.
MDP session on eProcurement, NIC
Evolution of GeP System
Basic framework of Gep was decided to be a genericsolution, usable for all kind of Tenders by all users.
It was to be largely non-parametric, based mainly onthe upload/ download and submission of Tender (RFP/RFQ document) & Bids as text based documents, with afew tables, which is normally used in most cases.
The tabular Response Form(s) were to be dynamicallydefinable (like EXCEL) for vendor responses in onecolumn.
It was targeted to be fully configurable for differenttendering practices – 1/2/3 packet bid-systems, EOIetc.
Full range of Access control & Security related featureswere to be built around the main basic functionality.
MDP session on eProcurement, NIC
Envisaged Scope
Procurement of Goods, Works and Services – all kinds
Types of Tenders - Open, Limited, Expression of Interest
Hybrid Mode of Operation
Electronic and Paper Based Bid Submission (Initial
Stages of Implementation)
Mode of Payments (Tender Fee, EMD)
e-Payment, as well as
Conventional Payment Modes (DD etc.)
MDP session on eProcurement, NIC
Envisaged scope - Functionalities
User Registration and Database of Registered Contractors
Creation/ Publishing of NIT, Tender docs., Addendum/
Corrigendum
Bidding: Search, download, Prepare bid, Pay, Prepare Bid-
envelopes, Sign/Encrypt, Submit securely
Secure Bid Opening and Decryption
SOR based Financial Bid Evaluation for Works Tender
Publishing of Contract Details (Rate Contract/ Work Order/ PO)
Communication of Tender Award to respective Tenderers
Interface with User’s existing Tender Portal/ website
MDP session on eProcurement, NIC
Envisaged Scope - Solution Features
Capturing of important transaction data/meta data at Various
Stages of Procurement Cycle
Auto Notification/ Mail Alerts, Validation of Data (Client/ Server
end)
Time Stamping and confidentiality of Bid Documents
MIS on e-Payment/ Reconciliation, Tendering, Bidding, Evaluation,
Award of Contract, Tender Summary, User Activity, Audit Trail etc.
Online User Help/ Manuals/ Documents, Help Desk
Reliability – Failsafe Deployment, Archival of Electronic Records
System Administration (by NIC) and Appl./ DB Admn (by User
Dept)
MDP session on eProcurement, NIC
Envisaged Scope - Security/ PKI
Secured Login and Authentication
Role Based Access Control
Audit Logging, History Tables, Firewalls
Digital Signing/ Verification of Data & Documents Structured data as well as documents to be uploaded in the
system would be signed using DSC (Class II and above) issued by any valid Certifying Authority in India
While accepting digitally signed content, server side verification required, so as to ensure that the document is not tampered
Encryption (/Decryption) of Sensitive Data & Documents
Secured Communication between Client & Server (128 bit
SSL)
Security Audit of GeP software
MDP session on eProcurement, NIC
NIC GeP System – Development & Status
After our Requirement Specifications, actual development was at Tamilnadu State Unit of NIC.
The initial software version came out in Jan. 2008 Platform used: Open Source/ open standard s/w
tools, i.e. - Linux, Apache Tomcat, PostgreSQLs Database, JEE and Jasper Reports.
First pilot implemented in Tamilnadu Government Pilot implementations also going on in select
departments of Orissa, UP, Haryana Govt. Online payment gateways of SBI, ICICI & AXIS
banks also implemented (optional).
MDP session on eProcurement, NIC
NIC GeP system - Modules
Registration – Dept. Users and Suppliers
Tender Management – Create, Publish, Corrigendum/ Addendum
Bid Management – Download, Clarify, Prepare & Submit bids
Bid Opening – Part-I (Technical/ Pre-Qual.) and Part-II (Financial)
Bid evaluation – Technical & Financial Award of contract
MDP session on eProcurement, NIC
NIC GeP system - User Registration
Departmental user Created by Administrator Roles like Tender Creator,Publisher, Bid Opener & Evaluator are
defined as needed Password sent by mail, Later User registers his DSC
Contractors/bidders Registers online by filling up a form DSC is attached if available else later Password sent by mail. Logs-in and Registers his DSC (eToken of Sify/nCode/ TCS)
Digital Signature Certificates Class II or Class III –Required for log-in and enables signing &
encryption Valid for one or two years Currently integrated - DSC’s from NIC-CA and e-Tokens from SIFY,
nCode & TCS Registered DSC’s can be cancelled/ blacklisted
MDP session on eProcurement, NIC
NIC GeP system - Tender Management
Tender Creation/ Preparation of documents: Description/ Tech. specs, Drawing (in Design Web Format) ITB, Contract Terms & Conditions (Genl/ Spcl/ Adnl) Qualification Criteria, Forms, Various Proforma/ Declaratn. Financial Bid, BOQ Form (Item-rate or % Rate based)
Tender Configuration: Open/limited/EOI, Class of Tender/ Contractor, Validity etc No. of Packets, Tender fees/EMD - online/ offline/ exempt Dates of Events, Formation of committees
Tender Publishing Pre-bid Clarifications/ meetings – Queries/ replies uploaded
Creation/ Publishing of Tender Corrigendum
MDP session on eProcurement, NIC
MDP session on eProcurement, NIC
MDP session on eProcurement, NIC
NIC GeP system - Bid Management
Tender document download Bid preparation Payment of Fees – Electronically or Traditional Modes
Bid submission Bidder must be prior registered with the site along with his DSC He Logs-in securely and Searches/ Selects the desired tender Selected Tender gets moved to ‘My Tender’ section, He downloads Gets clarifications, Prepares Bid documents/ Forms (in PDF) Starts Bid-submission by Accepting T&Cs, then Paying fees Online/
Offline (fills details/ uploads scans and sends physically) Fills BOQ form/ rates, Signs/ encrypts & uploads bid documents Submits securely, Gets a time-stamped Bid-summary/ Receipt. Bidder can withdraw an online bid and re-submit Bidder can also submit manual bids
MDP session on eProcurement, NIC
NIC GeP system - Bid Receipt & Opening
Receipt of bids:Remain encrypted till the opening of bids.
Opening of 1st Part/ Tech. Bid: Opened by designated officials, using their DSCs Bidders need not be physically present Each activity is time stamped (presently server time)
Bidders selected (as per criteria) for Tech. Evaluation Summary of proceedings updated. Metadata on offline/manual bids can also be
updated if received.
MDP session on eProcurement, NIC
NIC GeP system - Evaluation & Award
• Technical Bid Evaluation: • Bid documents are printed & evaluated manually• Tech. Evaluation Recommendations are updated • Selected bidders are informed of Financial bid
opening dates• Opening of 2nd Part/ Finl. Bid: Similar to Tech.• Financial Bid Evaluation:
• Fin. Bids are printed & evaluated manually• Fin. Evaluation Recommendations are updated • Bidders are informed of the results
• Award of Contract: Final award published on the web-site
MDP session on eProcurement, NIC
GeP system - Security & Authentication
• Secured Hosting facility• Web security – 128 bits SSL encryption • Two factor Authentication with DSCs• Confidentiality – Encryption of all Bids documents
using a mix of Sym./ Asymmetric (opener ’s Public Key) Approach, Sensitive fields also at DB level.
• Audit trail of each activity• Time stamping of all events.• Good backup policy• Security Audited by independent third party
MDP session on eProcurement, NIC
A live GeP e-Tendering website
of Tamilnadu Government
www.tntenders.gov.in
[also www.tenders.tn.gov.in&
demoetenders.tn.nic.in]
MDP session on eProcurement, NIC
End of session on
Govt. e-Procurement solution (GeP) by NIC
MDP session on eProcurement, NIC
Issues in e-Procurement
e-Payment Issues: Gateway Integration – Diverse Gateway Interfacing
Requirements, often dictated by the Banking s/w in use.
Adoption in Government – Issues in Wide scale and uniform adoption of e-Receipts/ e-Payments in government
Digital Certificates (DSCs) Issues: Relating to Integration
Change of CPS/ DSC fields Need for standard interface/ API from CAs for
integration into any Application
Usage - Handling Encryption Keys
MDP session on eProcurement, NIC
Issues in e-Procurement (..Contd)
(DSC Issues …Contd)
Adoption in Government - Repeated Fee, Transfers
Interoperability – Inter-usability of DSCs of CAs mandated by CCA of India and those of other countries, in case of global tender invitations/ participation.
Bid Secrecy/Time-stamping – Need of a common trusted ‘Third Party Repository’ till bid opening
Electronic Archival/ Retrieval – Need of a Secure Archiving Repository for Govt. organizations
MDP session on eProcurement, NIC