DIRECTORATE GENERAL DIRECTORATE GENERAL OF OF

SUPPLIES & DISPOSALSSUPPLIES & DISPOSALS

E-PROCUREMENT EXPERIENCEE-PROCUREMENT EXPERIENCE

Background - OrganizationBackground - Organization

DGS&D - Central Purchase Organization of Govt of India Headquartered at New Delhi with three regional purchase

offices in Metros and 27 QA offices in major industrial towns

Purchase directorates organized commodity wise to facilitate maintenance of data, market intelligence, technological advancement in products and processes

Quality Assurance offices located near users and industry to facilitate quick response

Technical and multi-disciplinary workforce including two Group “A” engineering services recruited thru UPSC

ISS (purchase) officers posted in other ministries to assist in procurement of exclusive items

Background – RoleBackground – Role

DGS&D is engaged in diversified activities like - Conclusion of Rate Contracts for over 350 product categories involving

20000 items besides spares etc. 6000 GoI users spread across the country Serves / facilitates over 10000 tenderers including 2600 DGS&D

registered suppliers, Pre-despatch inspection against DGS&D contracts and direct orders on

request Formulate procurement policies and procedures Cargo clearance at major ports Provide consultancy in the procurement management

Goods procured worth Rs 40 bn during 2005-06.

Estimated procurement by State Govt, PSUs & other Organizations based on R/Cs – Rs. 60 bn.

DGS&D provides single point contact for Govt users and vendors/suppliers for procurement of commonly used goods

TransparencyTransparency

DGS&D manual prescribes procurement procedures, forms, delegation to different functionaries and guides decision making. It is a priced document & also available on DGS&D website.

All Products categories, specifications, bidding terms and conditions finalised through extensive consultative process with suppliers and users

DGS&D website (dgsnd.gov.in) contains details of products/ procurement specifications, tender enquiries, rate contracts, registered firms, policies & procedures, forms etc.

On-line tendering made compulsory from 1st April 2006. Well defined delegation of powers and channel of submission. All R/C proposals scrutinized by Finance. Additionally CCA exercises checks at

post-contract stage. Regular rotational transfers of officers. Works under a focused attention of Industry and vigorously interacts with

industry, users and other connected with Purchase management. Full fledged vigilance set-up at DGS&D and Department of Commerce. All contractual and other documents are regularly audited by a dedicated wing of

CAG.

Increased Transparency & Wider Competition

Simplify & Speed Up Tendering Processes

Real Time Generation Of Detailed & Accurate Data –

Elimination Of Human Error

Seamless Sharing Of Information

Ease Of Operation & Quicker Decision

Comprehensive Website To Facilitate Tendering, Contracting,

Ordering And Retrieval Of Information To Authorized

Functionaries - Online Interaction Avoiding Physical Visits

Facilitating Pre And Post Contract Management

Reduction In Cost Of Government Purchases

E-Procurement - Benefits

E-Procurement - Components

E-Purchase Registration Store coding Technical Particulars Evaluation of Bids Award of Rate Contract

E-Inspection / Supply Supply Order Inspection Dispatch Details Receipt Details

E-Tendering Tender Notice Tender enquiry Bid submission Bid opening

E-Payments Bill submission Processing Payments Debit Adjustments Status Complaints

DGS&D Website –(http://www.dgsnd.gov.in)

A comprehensive DGS&D website facilitates – A single access point for DGS&D officers, suppliers and

customers Downloading of DGS&D Manual, forms, conditions of

contract, circulars Notices, agenda and minutes of the Consultative

Meetings Suppliers registration Download of summary and full text of Parallel Rate

Contracts Creation and Hosting of

Tender enquiries & tender notices and corrigenda Rate contracts, Technical specifications.

DGS&D Website –(http://www.dgsnd.gov.in)

Provides access to Indentor's page and Vendor’s page for the following activities –

Indentors Page-Online placement of supply orders

Entering Receipt Particulars of stores

Intimation regarding shortages/quality

Suggestions for bringing new items on RC Vendors page

Online submission of Registration application

Online inspection call

Entering dispatch particulars

Online submission of Bills

Suggestions for bringing new items on RC

ALLOCATION OF FUNDS

YEAR PLAN ALLOCATION

ACTUAL ALLOCATION

FUNDS UTILIZED

2001-2002 65.00 35.00 18.00

2002-2003 211.39 200.00 155.78

2003-2004 190.95 191.00 168.80

2004-2005 224.23 126.00 126.00

2005-2006 61.47 130.00 130.00

TOTAL 753.04Note: All amounts are in Rupees in lakhs

Challenges (1)

Integration of Nation wide spread of DGS&D Purchase and QA offices

Multiple Matrices of Rate Contract as against Single/Limited Matrix of Fixed Quantity (Ad-hoc) Contracts

Integration of large Govt user base including those in far flung

areas (over 6000) Tenderers spread across the country (over 10000) Registration of vendors (over 2600)

Management of over 2500 Contracts and 60,000 supply orders

Different Purchase Directorates have different requirements

Challenges (2)

Adherence to GFR, DGS&D Manual, CVC Guidelines and other Instructions issued by Government

Interface With External Agencies like NSIC, DGQA (Defence), BIS etc.

People and Process Change management Technical challenges like IT Infrastructure,

Data Security, backups, etc.

e-Procurement Solution – Interactive Modules - Current Status

Store Directory – Coding of All RC items Complete Registration module – Database of all registrations (over 2600) Tender module –

Tender Notices & Tender Enquiries – 250+ RC cases since Jul’05 Rate Contract Module – 240 RC cases since Jul’05 involving over 1400 parallel RCs.

Other Parallel Rate Contracts not due for renewal placed ondatabase

Inspection Module Supply order module- Lateral entry of over 6000 supply

orders Inspection note module – over 7500 inspection notes

e-Tendering

E-Tendering System (https://dgsnd.govtprocurement.com) – Online Publishing & download of tender enquiries Supplier registration Online bid submission by suppliers Online bid opening & witness by suppliers Spot Price Comparative Chart Security Audit by STQC

102 RC tenders opened online Over 1000 bids submitted through e-tendering

The e-Tendering system is implemented and maintained by M/s. C1 India Pvt. Ltd., New Delhi

SECURITY & AUTHENTICATION

SECURED HOSTING FACILITY WEB SECURITY – SSL TECHNOLOGY TWO FACTOR AUTHENTICATION WITH DIGITAL

SIGNATURES – PKI BID ENCRYPTION AT DATA BASE AUDIT TRAIL OF EACH ACTIVITY GOOD BACKUP POLICY SECURITY AUDIT BY INDEPENDENT THIRD

PARTY TIME STAMPING ACCESS CONTROL SYSTEMS

e-Tendering - Benefits

To DGS&D - Greater Transparency Reduced process cycle time Reduced costs Improved image Instant availability of real time information Cartel Breaking

To Suppliers- Reduced costs Convenience of transacting online with DGS&D No physical visits to DGS&D No pressure of cartel Increased opportunities

Training

All the staff in DGS&D trained in Computer usage Concerned Officers and staff trained on

application software modules Few officers trained in system and database

administration Over 120 Govt. DDOs trained at HQ and regional

offices 700 suppliers trained on e-tendering module

PROJECT OBJECTIVES

TRANSFORMATION OF EXISTING PAPER BASED ACTIVITIES INTO COMPUTER BASED ENVIRONMENT

PROCUREMENT OF NECESSARY HARDWARE AND SOFTWARE SETTING UP OF WEB/MAIL SERVER NETWORKING OF DGS&D (HEADQUARTERS) WITH REGIONAL SU

PPLY OFFICES AND REGIONAL AND FIELD QUALITY ASSURANCE OFFICES AND ALSO PAY AND ACCOUNTS OFFICES

ON-LINE TENDERING PROCESS ENCRYPTION AND SECURITY OF DATA

INTERACTIVE – OPERATIONAL MODULESSUGGESTION SYSTEM

REGISTRATION SYSTEM

PURCHASE SYSTEM

INSPECTION SYSTEM

E-TENDERING

STORE DIRECTORY

MIS

PAYMENT SYSTEM

Recognition by GoI

This initiative of DGS&D has been recognized by Department of IT & C, Govt of India.

Few organizations have already approached DGS&D to use its e-Procurement platform

Future Roadmap Redesigning of website Integration with DGQA, Min. of Defence, NSIC, BIS Business Process Re-engineering Development of software for

Specialized products Fixed quantity products Administration Shipping Litigation

Integration of Govt DDOs and suppliers Advance Training on computers, System & Data

Administration to DGS&D officers

Requirement Improving the capacity of the system Creating backup and security Professional assistance in software

development Improving computer-Officials Ratio from

present 1:4 to1:2 in next three year Training of users and suppliers on

application software

Future Roadmap

HINDSIGHT – A BETTER APPROACH

E-PROCUREMENT INITIALLY NOT VISUALISED – THOUGHT OF AS COMPUTERISATION OF HQ ONLY

INCLUSION OF THE STAKEHOLDERS – FOR INPUTS & FEEDBACK

CLEAR TARGETS & GOALS – NOT DEFINED – WHAT TO DELIVER SOFTWARE DEVELOPMENT – INCLUSION OF OUTSIDE EXPERTS DEDICATED TEAM OF OFFICERS BEFORE ATTEMPT CONNECTIVITY PLANNING – SHOULD HAVE BEEN AS PER THE

REQUIREMENT SYSTEMATIC APPROACH TO WEB DESIGN PROCESS RE-ENGINEERING BEFORE ATTEMPTING

COMPUTERISATION

TRANSFORMATION

PROPOSALS FOR NEW ITEMS TO BE BROUGHT ON R/C, STORE CODING, TECHNICAL PARTICULARS, PLANNING NOTE, BID PROCESSING, COMPARATIVE/RANKING STATEMENTS, REFERENCES, ETC. IS PROCESSED THROUGH COMPUTERS.ALL TENDER NOTICES, TENDER ENQUIRIES, RATE CONTRACTS, AMENDMENTS, TERMS AND CONDITIONS, TENDER FORMS/DOCUMENTS, POLICY & PROCEDURES, CIRCULARS, ETC. ARE AVAILABLE ON WEB AND ARE DOWNLOADABLE.

HARDWARE & SOFTWARE

457 COMPUTER SYSTEMS ARE IN POSITION AT HEADQUARTERS AS WELL AS REGIONAL SUPPLY AND REGIONAL/FIELD QUALITY ASSURANCE OFFICES.

PURCHASE OF 176 COMPUTER SYSTEMS IN PROCESS PROPOSE TO PURCHASE COMPUTER SYSTEMS TO ENABLE

EVERY OFFICER OF THE LEVEL OF LOWER DIVISION CLERK AND ABOVE TO HAVE A COMPUTER SYSTEM.

ALL COMPUTER SYSTEMS ARE PRELOADED WITH WINDOWS OPERATING SYSTEM AND MICROSOFT OFFICE.

ALL COMPUTER SYSTEMS ARE ALSO INSTALLED WITH ANTI VIRUS SOFTWARE.

WEB AND MAIL SERVER

DGS&D WEBSITE http://dgsnd.gov.in IS OPERATIONAL. TENDER NOTICES AND TENDER ENQUIRIES WITH CORRIGENDA,

DIRECTORATE-WISE LIST OF RATE CONTRACT DETAILS, AND ZONE-WISE LIST OF REGISTERED VENDORS CAN BE SEEN AND DOWNLOADED.

CONDITIONS OF CONTRACT, INSTRUCTION TO BIDDERS, VARIOUS FORMS FOR REGISTRATION, BILLS, REFUND OF SECURITY DEPOSIT, ETC. CAN ALSO BE DOWNLOADED.

VENDORS CAN SUBMIT APPLICATION FOR REGISTRATION AND PLACE INSPECTION CALL ON-LINE.

INDENTORS CAN PLACE SUPPLY ORDERS ON-LINE. ALL DIRECTORATES/OFFICES/OFFICERS OF UNDER

SECRETARY LEVEL AND ABOVE AND ALL BASE LEVEL OFFICERS IN PURCHASE AND QUALITY ASSURANCE ARE PROVIDED WITH E-MAIL ID AND CAN ACCESS WEB MAIL.

NETWORKING

DGS&D WEB, MAIL, PROXY, ANTI VIRUS, IDS SERVERS ARE IN POSITION.

ALL DIRECTORATES/SECTIONS AT HEADQUARTERS INCLUDING QA (DELHI CIRCLE) ARE CONNECTED THROUGH LOCAL AREA NETWORK.

ALL REGIONAL/FIELD OFFICES ARE CONNECTED THROUGH INTERNET.

A 2 MBPS LEASED LINE WITH 2 MBPS BANDWIDTH IS IN POSITION WITH A 256 KBPS LEASED LINE WITH THE OFFICE OF CHIEF CONTROLLER OF ACCOUNTS.

ALL REGIONAL AND FIELD OFFICES HAVE BEEN PROVIDED WITH BROADBAND CONNECTIVITY OF 1 MBPS/512 KBPS/256 KBPS CAPACITY AS PER THE LEVEL OF CONNECTIVITY REQUIRED.

IMPROVED NETWORKING IS UNDER CONSIDERATION

ENCRYPTION & SECURITY OF DATA

DOCUMENTS GENERATED THROUGH WEB ARE IN PDF

345 OFFICERS IDENTIFIED TO RECEIVE DIGITAL SIGNATURE CERTIFICATES

250 OFFICERS ISSUED WITH DSC SMART CARD READERS PURCHASED DIGITAL SIGNATURE INTEGRATION BY

M/S SIFY COMMUNICATIONS PVT LTD (FORMERLY M/S SAFESCRYPT)

SUGGESTION SYSTEM

PRO MODULE

MENU FOR RCP DIRECTORATE

SRC / SUBCOMMITTEE MODULE

ON-LINE SUGGESTION

REGISTRATION SYSTEM

APPLICATION THROUGH

WEB

PROCESSING OF

APPLICATION

MONITORING

APPLICATION FROM MANUFACTURER

APPLICATION FROM AGENT

STATUS OF APPLICATION

GUIDELINES

PROCESSING OF APPLICATION

MISC/AMENDMENT

ALLOCATION/RECOMMENDATION

UTILITIES

REPORTS

DELETION

SUMMARY OF REGISTERED CASES

PROGRESS OF REGISTERED CASES

FIRM-WISE REGISTRATION

ITEM-WISE REGISTRATION

PURCHASE SYSTEM

TENDER MODULE

PROCESSING OF RC

ADMINISTRATIVE MODULEWORKING MODULEMISREPORTSQuery

TECHNICAL PARTICULARS/ELIGIBILITY CRITERIA

TENDER MODULE (NDP)

PROCESSING OF RC(NDP)

TENDER DECISION REVISED TENDER COUNTER OFFER SCRAPPING RC AWARD ADVANCE RC RC DOCUMENT

PURCHASE SYSTEM (Contd.-)

RATE CONTRACT

PERFORMANCE DRAWAL

BANK GUARANTEE

SECURITY DEPOSIT

AMENDMENT

FALL CLAUSE

RC REPORT WITH ALL AMENDMENTS

REPORT ON PERFORMANCE DRAWLS

BANK GUARANTEE DETAILS

SECURITY DEPOSIT DETAILS

AMENDMENT DETAILS

FALL CLAUSE DETAILS

INSPECTION SYSTEM

DAK MODULE

SUPPLY ORDER MODULE

INSPECTION DETAILS

DAK ENTRY

INSPECTION CALLINSPECTION DETAILSRELEASE OF STORES

PROCESSINGALLOCATION/RELEASE/RECEIPT OF

STORES

SUPPLY ORDER ITEM ENTRYSUPPLY ORDER CONSIGNEE-WISE

ITEM ENTRY

DESPATCH DETAILSRECEIPT OF STORESCONSIGNEE REJECTION DETAILS

NON-DEPARTMENTAL PURCHASE ORDER

PRE-STOCK INSPECTION CALL

PAYMENT SYSTEM

DOCUMENTS RECEIPT

BILL SUBMISSION

PROCESSING

PAYMENTS

DEBIT ADJUSTMENTS

STORE DIRECTORY

ITEM ENTRY PARAMETER ENTRY MINOR ITEM

MANAGEMENT INFORMATION SYSTEM

BANNING OF FIRMS MAPPING OF STORE QUERY ON RC ISSUED TP PREPARED FOR MAJOR STORE MIS REPORTS (RELATED TO RC) TENDER DUE FOR OPENING TENDER NOTICES APPROVED TODAY TENDER NOTICES APPROVED TILL DATE TENDER NOTICES DUE FOR OPENING DURING A PERIOD TENDER ENQUIRIES FILE NAME LISTING FOR UPLOADING RC DOCUMENT ON

WEBSITE MONITORING FOR PURCHASE SYSTEM

WHAT IS A RATE CONTRACT?

A RATE CONTRACT IS AN AGREEMENT BETWEEN THE PURCHASER & SUPPLIER TO SUPPLY STORES AT A SPECIFIED PRICE DURING THE PERIOD MENTIONED IN THE RATE CONTRACT

NO QUANTITIES ARE MENTIONED NO MINIMAL DRAWAL GUARANTEES NATURE OF A STANDING OFFER FROM

SUPPLIER LEGAL CONTRACT ON PLACEMENT OF SUPPLY

ORDER BASED ON R C AKIN TO FRAMEWORK AGREEMENT OF EU

INDENTORS’ PAGE & VENDORS’ PAGE

WHO ARE INDENTORS – CENTRAL GOVT DEPTS, STATE GOVT DEPTS, PSUs – THOSE WHO USE DGS&D RATE CONTRACTS

DDOs NEED TO REGISTER THEMSELVES ON THE INDENTORS’ PAGE

USE DIGITAL SIGNATURE TO SIGN AND PLACE SUPPLY ORDERS FROM JUNE 2006 – INTEGRATION WITH DIGITAL SIGNATURES ALMOST COMPLETE, TESTING GOING ON – ALSO CHANGEOVER TO 10G AS

SIMILAR FACILITIES FOR VENDORS WRT THEIR AREA OF STAKEHOLDING WITH DGS&D

MATRIX OF EFDEF EB TENDERS OPENED ON 06-10-2005

PICTORIAL PRESENTATION ONLY IN RESPECT OF TWO FIRMS OUT OF 33 BIDDDERS

20 ITEMS 33 FIRMS 6 PARAMETERS

• Price

• Registration

• BIS Licence

• Technical compliance

• Compliance to Special &

General Terms & Conditions

• Excise Duty

• Sales Tax

• Past Performance – 3 yrs

• SSI Status

• Terms of Delivery

• Delivery Period

MATRIX OF XLPE (LT) TENDERS OPENED ON 29-09-2005

88 ITEMS 38 FIRMS 6 PARAMETERS

• Price

• Registration

• BIS Licence

• Technical compliance

• Compliance to Special &

General Terms & Conditions

• Excise Duty

• Sales Tax

• Past Performance – 3 yrs

• SSI Status

• Terms of Delivery

• Delivery Period

PICTORIAL PRESENTATION ONLY IN RESPECT OF TWO FIRMS OUT OF 38 BIDDDERS`