Providing Value to Industry through EGovernance

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Providing Value to Industry through E-Governance

• Rekha Jain
• Indian Institute of Management, Ahmedabad
• rekha_at_iimahd.ernet.in

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Why Government Procurement?

• Value of government purchases and services is
  huge 10-15 of GDP in developed countries.
  Could be more in developing countries (since
  government is involved in more spheres)
• Efficiency and effectiveness in procurement of
  governments goods and services can lead to faster
  growth through better functioning and project
  implementation
• Public funds are involved and hence issue of
  public accountability
• Government procurement is a market that attracts
  private businesses and MNCs
• Government procurement is not seen as efficient.
  They could save as much as 20. Issues of graft,
  corruption, delay, judicial intentions.
• WTO Government Procurement

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Legal and Regulatory Environment

• Legal and Regulatory Framework

Tender Process
Industry
Agents
(Federal, State and PSU)
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• E-procurement system of GOAP

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Starting the Initiative

• E-procurement identified as a core initiative
• A tender subcommittee on tender reform to
  recommend the creation of e-procurement market
  place
• A Steering group with Chief Secretary as the head

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Key Features of an E-Procurement System

• Hosting of tender documents
• Anonymous submission of bids
• Evaluation of bids on pre defined criteria
• Award of bids
• No human interaction between the supplier and
  buyer during the process

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Implementation Challenges

• Standardize processes across departments
• Choice of business models
• Buy in

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Business Model

• PPP model is BOO
• Ms C1 India owns the system
• GOAP registered the domain name and owns the data
• GOAP reserves the right to buyout the software
  and hardware at a pre-specified written down
  value at the end of the present contract period
  i.e., March 31, 2007
• The GOAP has not guaranteed any specific revenues
  on this model but has assured that all
  procurements costing above Rupees one million by
  government departments, PSUs and local Government
  bodies will be done exclusively through this
  Portal
• 0.28 transaction ? 0.04

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Implementation Model

• Phased 4 selected departments
• Flesh out details of the tendering process
• Mandated high valued transactions through the
  system (250,000)
• Limit lowered to 125,000
• Roll out to all departments (gt25,000)
• Within 30 months 8 government departments, 13
  PSU, 51 municipalities, 5 universities (8.5
  billion transactions, gt12, 440 transaction)

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Interdepartmental Coordination

• Steering Committee chaired by chief secretary
• Change Management
• Quick redressal of issues
• Meetings with CM
• Project champions, CIO training
• Involvement of stakeholders
• Training for departments suppliers
• Call centre help desk

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Security and Authentication

• Digital signatures, two factor authentication,
  bid encryption, time stamping access control
  system
• Disaster recovery
• Back ups
• Audit review by third parties

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Phased Implementation
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Benefits

• Reduction in tender cycle time
• 90 -135 ? 42. 42 ? 35
• Cost Savings

(Source Commissionerate of Tenders, GOAP)
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Benefits (cont.)

• No of bids / tender 3 ? 4.5
• Reduction in corrupt practices

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Costs
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The Way Forward

• Plan for the next stage
• Infrastructure
• Application
• Analysis?
• Who drives?
• Largely the government?
• How about an Activist Agenda?