1. e - Procurement By: Ashutosh Mishra, IFS ACEO, CHiPS Chhattisgarh

2. Presentation Agenda Vision Business Model. Modules Workflow of eProcurement system Confidentiality & Security Project Management Organization Process Re-engineering Current State Challenges & Issues Road Ahead

3. Introduction An e -infrastructure for G2B purchase and sale of supplies and services using the ICT tools A win-win approach towards buying and selling. An initiative to induce transparency, reduce cost of goods purchased and the administrative costs of purchasing them using a comprehensive procurement and web enabled system to control and streamline the purchasing process.

4. Vision Route the entire public procurement activity being undertaken by the Government through such system in a phased manner By enhancing the transparency & efficiency in public procurement Implement a comprehensive & end – to – end e-Procurement solution

5. e Procurement @ Chhattisgarh (URL : http://cgeprocurement.etenders.in)

6. Business Model (System Ownership & Revenue Model) Implementation through Public – Private – Partnership (PPP) Model Engage private partner on a Build-Own-Operate (BOO) basis with “Transfer” as an option to the Government at the end of 5 year term Selected Private partner to customize, deploy and maintain the eProcurement system & infrastructure No upfront financial burden on the State Government Application Service Provider (ASP) is remunerated for the services rendered on a “transaction fee” model

7. Modules Centralized Registration of Suppliers/ Contractors Indent Management e-Tendering and e-auction Contract Management Catalogue Management e-Payments Accounting Management Information System (MIS)

8. Module Details Centralized Supplier Registration  Single Window for Registration of Suppliers / Contractors Indent Management  Proposal Initiation and estimate preperation  Administrative Approval e-Tendering & e-Auctions  Preparation of NIT & Tender Document  Approval & Issue of Tender  Bid Submission & Evaluation  Provision of online Auctioning

9. Module contd. Contract Management  Signing of Agreement  Updation of Measurement Book Catalogue Management  Preparation of Rate Contract  Issue of Purchase Order Accounting & e-Payment  Processing of Bills / Invoices  Provision for online payment MIS  Generation of Tender wise / Dept. wise / Region wise etc., reports  Analysis on bid value and bid capacity

10. Workflow Proposal Preparation Online Approval Online Preparation & Approval of NIT Online Supplier / Contractor Registration Online Bid Submission Online Bid Evaluation Online Signing of Agreement / Issue of Rate Contract Online Update of work / inspection of goods Online Payment MIS Online Issue of Tender e-Procurement

11. Confidentiality & Security A secure bid process, patented by our ASP, is being used Two important stages introduced during bid submission stage for security:  Hash submission stage by bidders  Super hashing stage by the departments Tampering of bid(s) gets evident in case the hashes doesn’t match Data remains encrypted while in transit from client – server – client and remains stored in encrypted form on the server Mandatory use of PKI enabled tools, User-id and Password to access/ comment/ approve different tendering stages User-id(s) of department users created by an Administrative User nominated from their own department

12. Project Management Organization CHiPS Task Force Committee Departments Empowered Committee State Nodal Officer (Secretary, PWD)

13. Project Management Organization (Contd.) Members & Role of EC Headed by the Chief Secretary of the State and 10 Department Secretaries as its members, EC was constituted on 24 th May’05 and 6 Approval on the implementation of all IT projects worth more than 20 lakhs in the State Overall supervision of eProcurement project Provide guidance at strategic level Ensuring the availability of funds required for project implementation Implementation of legal & statutory changes required Co-opting subject matter experts to assist the EC in decision making as and when required

14. Project Management Organization ( Contd.) Role of Task Force Headed by the Secretary, PWD and Department Heads as its members, Task Force was constituted on 04 th July’07 Framing the parameters for supervision of the project Provide guidance at operational level Monitoring implementation progress on a fortnightly basis on a pre-approved format

15. Project Management Organization ( Contd.) Role of CHiPS CHiPS appointed as the Nodal Agency on 17 th May’05 for eProcurement implementatio Monitoring of the Implementation partner’s SLA Coordinate with the departments & agencies to ensure participation Act pro-actively to suggest & bring process reforms Recommend necessary development/ upgradation of IT infrastructure at departmental level

16. Process Re-engineering Constitution of Empowered Committee and Task Force Committee Single window Supplier registration Viewing/ downloading the tender is free for biddersTender document fees to be paid online only at the time of bid submission. Manual signatures replaced with Digital Signatures for online approvals/ comments Mandatory adoption of eProcurement system for Work Contracts worth above Rs. 20 lakhs CSIDC to adopt the system for all tenders and conclusion of Rate Contracts Nodal Officers and Administrative Users appointed for increasing operational efficiency within departments Provision for e-Payments more

17. Current Status eProcurement system inaugurated on 14 th August 2007 by the Hon’ble Chief Minister of the Stat 1765 suppliers registered as on 22 nd May 2009 Adoption Status (As in May 2009) Total in all Departments:- 2259 tenders- Rs. 3343.59 Carores ** RC – Rate Contract Tenders DepartmentTenders processedTotal value (in Cr.) PWD9621407.54 WRD9121650.93 PHED275251.07 Health3225.1 CSIDC76N.A. ** Directorate of Animal Husbandry16.04 Directorate of Social Welfare12.91 TOTAL22593343.59

18. Challenges & Issues Acceptance at User levels Resistance to Change Scattered and Large user community to be trained across the State Lack of skilled resources Provision of proper IT infrastructure Varying requirements of Multiple Departments Provisioning of online updation of Measurement Book (MB)

19. Road Ahead  Training One phase of comprehensive user/ vendor training completed based on geographical location More trainings being scheduled State-wide and department-wise Introduction of “train the trainer” method for wide spread reach  Payment Gateway setup Tie-up with Axis bank providing payment gateway service on the final stage  Tender Slab Slab of Rs. 20 Lakhs may be reviewed and lowered in consultation with departments

20. Road Ahead (Contd.) (IT Infrastructure)  Data Centre State of art Data Centre dedicated for eProcurement  Connectivity CG State Wide Area Network (CGSWAN) to provide backbone connectivity for eProcurement project by august 2009  eProcurement Bidding centres for Rural populace Common Services Centres (CSC) to act as bidding centres for bidders

21. Project Uniqueness 2 nd State in India to implement eProcurement Bagged the “CSI Nihilent’s Outstanding Project Award” for the year 2007-08. A Hybrid Revenue model comprising of % value with cap and Flat fee models was adopted by the State Consortium bidding was encouraged to reap the skill sets of more than one company ASP remunerated only up to a maximum of 10 bids per tender Constitution of Task Force Committee with Department Secretaries as its members and re-constituted with Heads of Department as its members The website hosted on 3 rd level domain and department sub-portals hosted on 4 th level domain thus increasing website robust GoC reserves the right for an out-right purchase of the solution from the ASP after the agreed term

22. Thank You