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e - Procurement. By: Ashutosh Mishra , IFS ACEO, CHiPS Chhattisgarh. Presentation Agenda. Vision Business Model . Modules Workflow of eProcurement system Confidentiality & Security

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e procurement



Ashutosh Mishra, IFS



presentation agenda
Presentation Agenda
  • Vision
  • Business Model

. Modules

  • Workflow of eProcurement system
  • Confidentiality & Security
  • Project Management Organization
  • Process Re-engineering
  • Current State
  • Challenges & Issues
  • Road Ahead
  • 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.
  • 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



(URL : http://cgeprocurement.etenders.in)

business model
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
  • Centralized Registration of Suppliers/ Contractors
  • Indent Management
  • e-Tendering and e-auction
  • Contract Management
  • Catalogue Management
  • e-Payments
  • Accounting
  • Management Information System (MIS)
module details
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
module contd
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


Proposal Preparation

Online Payment


Online Approval

Online Update of work / inspection of goods

Online Preparation & Approval of NIT

Online Signing of Agreement / Issue of Rate Contract

Online Supplier / Contractor Registration

Online Bid Evaluation

Online Issue of Tender

Online Bid Submission

confidentiality security
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
project management organization
Project Management Organization

Empowered Committee

State Nodal Officer (Secretary, PWD)


Task Force Committee


project management organization1
Project Management Organization


Members & Role of EC

  • Headed by the Chief Secretary of the State and 10 Department Secretaries as its members, EC was constituted on 24th 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
project management organization2
Project Management Organization


Role of Task Force

  • Headed by the Secretary, PWD and Department Heads as its members, Task Force was constituted on 04th 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
project management organization3
Project Management Organization


Role of CHiPS

  • CHiPS appointed as the Nodal Agency on 17th 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
process re engineering
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 ofRate Contracts
  • Nodal Officers and Administrative Users appointed for increasing operational efficiency within departments
  • Provision for e-Payments



current status
Current Status
  • eProcurement system inaugurated on 14th August 2007 by the Hon’ble Chief Minister of the Stat
  • 1765 suppliers registered as on 22nd May 2009

Adoption Status (As in May 2009)

Total in all Departments:- 2259 tenders- Rs. 3343.59 Carores

** RC – Rate Contract Tenders

challenges issues
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)
road ahead
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
road ahead contd it infrastructure
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
project uniqueness
Project Uniqueness
  • 2nd 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 3rd level domain and department sub-portals hosted on 4th 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