1 Presented by June-2013, IIM Indore

2 PPT downloaded from

3  The basic functions of Government are-  Law/Policy Formulation and Implementation.  Regulation.  Services to Citizen.  ICT has not only transformed the way of doing business, but it is now enabling the transformation of government through e- Governance Projects. PPT downloaded from

4 (1) Vision & Strategy Development (2) Current State Assessmen t (3) Future State Definition (4) Implementation Approach & Sourcing (5) Develop & Implement IT system (6) Operate & Sustain Project Management Office/UnitChange Management and Communications PPT downloaded from

5 Need Recognition Project Definition Project Approval Detailing – RFP Preparation Bid Process Management Award of Contract Work Execution Contract Administration Payment Management Exit Management PPT downloaded from

6 1) Cost Based Selection (CBS) 2) Quality & Cost Based Selection (QCBS) 3) Value for Procurement (VFP) PPT downloaded from

7 1) Cost Based Selection (CBS)  Used for projects which are easy to implement.  High level of Clarity regarding project PPT downloaded from

8 2) Quality & Cost Based Selection (QCBS)  Weightage is given to Technical & Financial Scores.  Low clarity regarding project PPT downloaded from

9 3) Value for Procurement (VFP)  Focus on Total Cost & Benefits  Used for Very complicated projects  Technical & Financial Evaluation is done simultaneously. PPT downloaded from

10 PPT downloaded from

11  Time for preparation of bid is limited, hence bidder has less scope for in depth study.  Time constraints may lead to infeasible innovations.  As a result, innovative solutions & combination of new technologies submitted by bidder may not be realistic.  Such bids will create technological problems initially, and commercial & legal problems later.  As bidders model is not tested before implementation, there is a risk involved. PPT downloaded from

12  Prototype:- “An approximation of the product along one or more dimensions of interest”  Prototyping:- “the process of developing such an approximation of the product” PPT downloaded from

13  The limitations mentioned above may be overcome by adopting innovative 3 stage approach involving Prototype as a middle stage. 1) Evaluation of Only Technical Bid 2) Evaluation of ‘Prototype’ of shortlisted bidders 3) Evaluation of Financial Bid of shortlisted bidders PPT downloaded from

14  Stage 1:- Technical Evaluation  Only Technical bids accompanied by ‘high level solution’ are invited and evaluated. There are no commercial bids at this stage.  Stage 2:- Prototype Evaluation  Technically shortlisted bidders are requested to design & develop prototype that captures and demonstrate the salient features of solution offered.  Bidders are allowed to study enterprise in sufficient details, to enable their prototype more representative of existing system.  Then bidders are asked to submit the ‘Prototype’ and ‘Financial Bid’ for main project.  The prototypes of bidders are evaluated and scores are assigned. PPT downloaded from

15  Stage 3:- Financial Evaluation  Financial bid of the Stage 2 bidders are open & evaluated.  Award is made on the basis of (Should be mentioned in RFP)- Combined score of three stages Combined scores of Stage II & III  Cost of preparation of prototype may be compensated at a fixed rate to unsuccessful bidder of 3 rd Stage. PPT downloaded from

16  The 3-Stage Procurement procedure may be lengthier, it has following advantages-  It results in ‘real’ competition between rival technologies & brings out best.  Shortlisted bidders gets opportunity for in-depth analysis of enterprise.  There is minimum information asymmetry between owner and bidders.  The shortcoming in drafting the system requirements may be overcome, which will avoid future complications.  Bidders are well informed to quote their financial bid more accurate manner. PPT downloaded from

17  ‘Vendor Evaluation & Selection’ is one of the crucial step in e- Governance Project Life Cycle.  CBS, QCBS & VFP are strategies for award of bid by shortlisting bidder based on Technical & Financial Scores.  Solution proposed by bidder, may be unrealistic due to lack & clarity of enterprise & system, which might lead to technological, financial & legal complexity.  To avoid this, 3 stage approach involving ‘Prototype’ as a middle stage is suggested & explained in detail.  This approach minimizes information asymmetry, which leads to win-win situation for bidder and owner. PPT downloaded from

18  “E-Government: The Science of Possible” book by J. Satyanarayana.  Lecture notes of course on ‘Procurement for e-Governance Projects’, of EPGP-EG of IIM Indore by Dr. Ramanathan Somasundaram.  accessed on 02/06/2013, 13:00.  “RFP STANDARDIZATION: Model Requests for Proposals (RFPs) and Guidance Notes for preparation of actual RFPs for E– Governance Projects” standardization-model-rfps-and-guidance-notes accessed on 02/06/2013, 14:00. standardization-model-rfps-and-guidance-notes  DeitY Approach Paper on “Preparation of Model Requests for Proposals (RFPs), Toolkit & Guidance Notes for preparation of RFPs for E–Governance Projects”, Sept PPT downloaded from

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20 PPT downloaded from