MDP sessi on on ePr ocur ement , NI C

MDP Sessi on on ePr ocur ement

* e- Procurement Concept s
* e- Payment s I nt egrat ion
* NI Cs Pilot I mplement at ion of e- Procurement
* Govt . e- Procurement solut ion ( GeP) by NI C
* eGP Mission Mode Proj ect and NI C
* I ssues in e- Procurement
= = = = = = = = = = = = = = = = = = = = =
Monday , t he 8
t h
Sept ember 2008
R K Si ngh ( r k .si ngh@ni c.i n)
Seni or Techni cal Di r ect or , NI C
MDP sessi on on ePr ocur ement , NI C
e- Procurement Concept s .
MDP sessi on on ePr ocur ement , NI C
e- Procurement Concept s
Procurement Process and it s Const raint s
I nt roduct ion t o e- Procurement
Feat ures & Benefit s
Approach t o a solut ion/ Crit ical Det erminant s
I mplement at ion - Approach & Success Fact ors
Reverse Auct ions What , How & When?
e- Cat alogue based Buying
MDP sessi on on ePr ocur ement , NI C
Procurement Process A Birds Eye View
MDP sessi on on ePr ocur ement , NI C
Procurement cycle
Procurement cycle starts from Raising of the
requirements for an item or a service and ends only
after settlement of supplier payments.
Request Source Order Receive
Pay
Analytics
MDP sessi on on ePr ocur ement , NI C
Const raint s of Tradit ional Procurement
- Large t ime and effort wast ed in disseminat ing &
seeking procurement informat ions
- Physical Access barriers
- Slow and laborious manual processes, act ivit y- flow
- Human int erface at every st age - Low Value
Addit ion
- Several processes not t ransparent t o suppliers
- Scope for compromises in bid- securit y &
confident ialit y
- Cart el format ion suppresses compet it ion and
art ificially hikes bids
- Possibilit y of dat a t ampering and loss of records
MDP sessi on on ePr ocur ement , NI C
e-Procurement means procurement of goods and services
online using the internet. Ideally, it covers the full life cycle
of procurement.
The intention is to automate, possibly, the entire
procurement process, along with tender bid submission and
payments by suppliers, in an online web-based real-time
environment.
e-Procurement could resolve many of the constraints/
delays of traditional procurement.
e- Procurement - The Solut ion
MDP sessi on on ePr ocur ement , NI C
Modes of e- Procurement
Elect ronic procurement act ivit ies could be effect ed using one
of t he several ways or modes given below, or a combinat ion
of t hese could also be used as per need: -
e- Tendering
e- Auct ioning Reverse Auct ions
e- Cat alogue based buying/ e- Ordering
I n common parlance however, a basic e- Procurement
applicat ion essent ially consist s of an e- Tendering syst em
and oft en also includes an e- Auct ioning syst em. I t could
also encompass e- cat alogue based buying as well.
MDP sessi on on ePr ocur ement , NI C
Obj ect ives of e- Procurement
Obj ect i ves of aut omat i ng pr ocur ement
pr ocesses ar e t o: -
Reduce cycle t imes of procurement
I ncrease supplier access t o ensure wider part icipat ion
Reduce cost s of procurement t hrough compet it ive bidding
and Reverse Auct ioning
Remove cart elisat ion by supplier groups ( Reverse
Auct ioning)
I ncrease visibilit y of procurement spend, for effect ive
decision making
I ncrease t ransparency in t he procurement process
Almost complet e eliminat ion of paperwork, for speedy and
efficient funct ioning
MDP sessi on on ePr ocur ement , NI C
Elect ronic Tendering Solut ion
An e-Tendering solution primarily facilitates the
Tendering Process and may cover from Indenting of
Requirements to the placing of contract/ PO
Tender
Preparation
Tender
Publishing
Bidder
Response
Bid
Evaluation
Contract
Award
Indent
To Tender
Request
e-Tendering Solution
MDP sessi on on ePr ocur ement , NI C
e- Tendering solut ion - Funct ionalit ies
-Tender Creation/ configuration, with Response Forms
- Pre-NIT Approvals and Floating/ Publishing of
Tender
- Tender Clarifications, Pre-Bid Conference
- Online Secure Bid Submission, e-Payment of Fees
- Online Bid Opening/ Decryption, Evaluation/
Negotiation
- Award of Contract, Empanelment etc.
MDP sessi on on ePr ocur ement , NI C
e- Tendering solut ion - Feat ures
- Different Types of Tenders Open, Limit ed &
Propriet ary
- Configurable Approval Work flow, Re- use of old
t enders
- Supplier Enablement Online Regist rat ion,
Cust om dashboard, Repet it ive document
st orage, Alert s, Search et c
- St rong Audit - t rail and Archival/ Ret rieval
- Securit y/ Aut hent icit y/ Secrecy of Transact ions
- Online Payment s Tender Fee, EMD & Payment
t o Suppliers
MDP sessi on on ePr ocur ement , NI C
Benefit s of e- Procurement / e- Tendering
Benefits to Buyers
- Reduction in Procurement & Contracts cycle time
- Cost Reduction
- Efficient & streamlined Procurement Processes
- New Supplier Discovery
- Close Monitoring of Activities/ Vendor Performance
- Rich MIS and Analytics
- New Improved Image
- Standardized formats and Uniform tendering practices
Benefits to Suppliers
- Increased visibility/ Less artificial barriers
- Increased business opportunities,
- Greater degree of transparency
- Cycle time reduction in participation and award of Contract
- Supplier Enablement and Ease of Participation
MDP sessi on on ePr ocur ement , NI C
Approach To A Solution
Before looking for an e-Procurement solution, a relook
on existing procurement procedures/ practices is
essential: -
- As Is Analysis, Re-engineering for optimized
processes
- Optimization/ reduction in process-flow steps
- Uniformity/ standardization in formats/ practices/
procedures
- Organization wide use of unified item-codification
structure
- Automation of Processes
MDP sessi on on ePr ocur ement , NI C
Crit ical Det erminant s - of a Good Solut ion
- Good aut hent icat ion Role based access
- Securit y, Secrecy ( of bids) - Signing, Encrypt ion
- Ease of Use, Tender Templat es, e- Payment
int egrat ion et c.
- I nt egrat ed Document Management feat ures,
Good Analyt ics
- Good Audit t rail/ t raceabilit y feat ures Access
for Financial Audit , Legal and RTI needs
- Good Archival & Ret rieval feat ures/ policy - Safe
and secure
MDP sessi on on ePr ocur ement , NI C
I mplement at ion - Approach
- Business Process Analysis for I mprovement : Re-
engineering, Codificat ion, Back- end applicat ion linkages et c.
- Defining scope of I mplement at ion: funct ionalit ies
covered
- Sourcing e- Proc. Appln. S/ w: Gap Analysis and
Cust omizat ion
- Set t ing up a Fail- safe & Secure 24x7 I nfrast ruct ure
- I nt egrat ing Payment Gat eways, PKI s, Mail et c.
- Change Management : Training, 24 Hr. Help- desk
- Execut ion Framework Management of Rollout & Risks
MDP sessi on on ePr ocur ement , NI C
I mplement at ion - Success Fact ors
Major factors which could be crucial to transformation from simple
traditional procurement to e-Procurement are: -
- Strong will and focused thrust from the top management
- Building in-house champions/ enthusiasts for adoption of e-Procurement
- Buyers dedicated project team to drive the Mission
- Aiming for realistic implementable goals/ objectives and time lines
- Well defined/ standardized procurement processes and forms
- Extreme care to aspects like Tender-security, Supplier-enablement/
Training & Ease of use
- Well integrated back end systems, standards, policies & practices to link
and leverage upon
It must be remembered that implementing e-Procurement is most often a
continuous evolving process with shifting goals, spread over a longer
period, targeting end to end procurement supply chain; rather than a one
shot solution for all procurement problems.
MDP sessi on on ePr ocur ement , NI C
Reverse Auct ion and
e- Cat alogue based Buying
MDP sessi on on ePr ocur ement , NI C
What is A Reverse Auct ion?
The t radit ional auct ion is a Forward Auct ion
I t normally involves a seller offering an it em
for sale, while pot ent ial buyers compet e wit h
each ot her for purchase. Thus price is driven
up, unt il no buyer is willing t o go up furt her.
I n a Reverse Auct ion, MULTI PLE SELLERS OF A
PRODUCT VI E FOR THE BUSI NESS OF A SI NGLE BUYER.
Therefore t he price is driven down.
There are 3- 4 flavours of reverse auct ion,
called as: English Auct ion, Dut ch Auct ion,
Sealed Bid Auct ion et c.
MDP sessi on on ePr ocur ement , NI C
How does a Reverse Auct ion work?
E Pre- screening/ Pre- qualificat ion of suppliers is
essent ial t o have t echnically compet ent
vendors, ready t o offer product s of desired
specs/ qualit y.
E Complet e requirement specificat ions are pre-
known/ agreed and frozen for all before auct ion.
E Usually services of an online Auct ion Service
Provider is ut ilized t o conduct s t he process on
his auct ioning websit e.
E Suppliers are required t o be pre- regist ered wit h
t he auct ion service provider and expect ed t o
have received t raining on how t o part icipat e .
MDP sessi on on ePr ocur ement , NI C
How does a Reverse Auct ion work?
E All bidding vendors must have agreed t o abide
by t he t erms & condit ions of t he auct ion/
service.
E The Reverse auct ion is configured and all
part icipat ing vendors are pre- not ified about t he
st art t ime & closing t ime of auct ion.
E Bidders submit t heir price bids by remot ely
logging- in from t heir offices.
E Bidders ident it ies are masked, but t hey can see
t he compet ing prices and rankings in real t ime
and could revise t heir bids as desired.
MDP sessi on on ePr ocur ement , NI C
How does a Reverse Auct ion work?
E There is no communicat ion or negot iat ion
wit h t he bidders during t he auct ion.
E Buyer also wat ches t he progress of bidding
from his office. I dent it ies of bidders are
available t o him.
E I n reverse auct ion compet it ion is high,
bidders get t empt ed t o bid lower and lower t o
clinch t he deal, unt il t hey are unwilling t o go
any furt her.
E At t he conclusion t he lowest bidder emerges
as winner of t he auct ion.
MDP sessi on on ePr ocur ement , NI C
Pot ent ial Benefit s from Reverse Auct ion
+ To Buyers:
- Significant reduct ion in cost due t o Dynamic
Bidding process. I nefficiencies in t he supply chain
reduce.
- Wit h real t ime compet it ion, suppliers are on t heir
t oes
- A t ool for efficient price discovery, complement ing
direct negot iat ion process. Oft en used along wit h
Tendering.
+ To Vendors:
- Ensures Savings in market ing cost / dist ribut or
margins
- Facilit at es flexibilit y in pricing decision.
- Transparency increases
- Allows vendors t o assess t heir pricing power from
close quart ers of compet it ion.
MDP sessi on on ePr ocur ement , NI C
Tender Cycle wit h Reverse Auct ion ( Dynamic Pricing)
Onl i ne
Regi st r at i on
Cr eat e and
Publ i sh
Tender / NI T
Pur chase/
Dow nl oad
Tender
Pr epar at i on/
Encr y pt i on
of Bi ds
PQ/ Tech.
Openi ng,
Eval uat i on &
Shor t l i st i ng
Bi d- Openi ng
and
Ver i f i cat i on
Onl i ne
Submi ssi on of
Bi d/ Hashes
Cr eat i ng Bi d
Seal s ( Hashes
& Super Hash)
Commer ci al
Openi ng
and
Shor t l i st i ng
Gener at i on
of
Compar at i ve
St at ement
Aw ar d of
Cont r act
( l ow est of t he
t w o r ounds)
Compet i t i ve
Bi ddi ng usi ng
Dy nami c
Pr i ci ng Engi ne
MDP sessi on on ePr ocur ement , NI C
Applicabilit y of Online Reverse Auct ions
Reverse auct ion works best when:
I t ems have well defined specificat ions and
universally accept ed st andards.
Est ablished qualified base of vendors ( at least
t hree)
Suit able for High value, large volume goods,
Capit al goods, Direct Mat erials / MRO it ems.
Periodic rat e cont ract s for above it em t ypes.
Oft en used along wit h Tendering for efficient
price discovery
Applicable for Technically Pre- qualified/ short
list ed vendors only
MDP sessi on on ePr ocur ement , NI C
e- Cat alogue based Buying
e- Cat alogue based Buying or e- Ordering is t he
obvious prevalent mode for small procurement s by
individuals. But for corporat e or government
agencies, t his is yet not a real opt ion.
But t his mode of procurement has many obvious
advant ages, part icularly if such an Online
Procurement Hub ( Port al) is creat ed for use of
government agencies.
Such a Hub would hold ( and manage) elect ronic
supplier- cat alogues ( wit h specs/ qualit y det ails) of
goods & services, wit h minimum possible prices
affordable by t hem, for buying agencies t o access
and use for off- t he- shelf buying.
MDP sessi on on ePr ocur ement , NI C
e- Cat alogue based Buying ( Cont d)
Secure t ransact ions ( such as: Purchase orders, I nvoices, e-
Payment s et c. ) would be enabled by t he Hub and
exchanged elect ronically bet ween buying agencies and
suppliers.
Though success of such a vent ure mainly depends upon a
large enough size of part icipant s, but t he approach has
many advant ages, like: -
C I t is superior t o buyer & suppliers est ablishing direct link
C Suppliers need t o maint ain/ updat e only one cat alogue on
t he Hub and est ablish only one int erface t o sell t o many
( govt . ) buyers
C I t could be highly useful for all t he rout ine small it em
purchase of government agencies and even be used for
bigger it ems/ volume purchases, where it em/ service
specs are quit e st andard.
MDP sessi on on ePr ocur ement , NI C
End of session on
e- Procurement Concept s
MDP sessi on on ePr ocur ement , NI C
e- Payment and it s I nt egrat ion
MDP sessi on on ePr ocur ement , NI C
e- Payment and it s I nt egrat ion
Commonly available modes for effect ing EMD/ Fee/ ot her
payment s elect ronically, from wit hin a soft ware Applicat ion,
are: -
Online payment t hrough Credit cards/ Debit cards or
Direct Account Debit ( using Gat eway for I nt ernet
Banking)
Depending on t he act ual need and usage const raint s, t he
appropriat e mode could be chosen and int egrat ed int o t he
s/ w applicat ion.
Credit cards could convenient ly be int egrat ed for use if t he
payment amount s involved are not subst ant ial.
For all ot her cases where payment amount s could be heavy,
payment s t hrough Direct Debit s from concerned account s,
using I nt ernet Banking is t he only alt ernat ive.
MDP sessi on on ePr ocur ement , NI C
e- Payment and it s I nt egrat ion ( cont d. )
For int egrat ing e- Payment feat ures int o t he
Applicat ion, one needs t o t alk t o concerned
banks, who manage t heir own Payment Gat eway
I nt erfaces for t his purpose.
I f credit card based payment s are t o be
int egrat ed, t hen int egrat ing t he Credit Card
Payment Gat eway of any one of t he providing
banks is sufficient .
But for int egrat ing e- Payment s t hrough direct
debit from concerned account s, it is essent ial t hat
t he exercise for int egrat ing such Payment
Gat eways is undert aken wit h every bank
concerned.
MDP sessi on on ePr ocur ement , NI C
e- Payment and it s I nt egrat ion ( cont d. )
The exercise of a Payment Gat eway int egrat ion involves: -
Deciding on det ails like:
Paramet ers t o be exchanged bet ween t he Applicat ion
and t he Bank Gat eway
Handshaking bet ween t he t wo
Modes of Access ( Transact ion/ Verify)
Periodic Reconciliat ion of payment s et c.
Modifying t he Applicat ion t o act ually int egrat e above.
Funct ional t est ing rounds wit h each int egrat ed gat eway.
Signing a Document of Underst anding bet ween part ies.
Opening Merchant Account ( s) in t he int egrat ed bank for
t he purpose of collect ing payment s and giving any
st anding fund t ransfer inst ruct ions, if so.
MDP sessi on on ePr ocur ement , NI C
e- Payment I nt egrat ion Paramet ers
E Sampl e set of Par amet er s passed ( Appl i cat i on t o
Pay ment Gat ew ay )
Mode ( payment / verificat ion)
Merchant I D
Transact ion Reference No.
Amount
Currency
Time St amp
Ret urn URL et c
E Sampl e set of Par amet er s passed ( Pay ment
Gat ew ay t o Appl i cat i on)
Bank Reference No.
Transact ion Reference No.
Amount
St at us ( Paid)
Time St amp
MDP sessi on on ePr ocur ement , NI C
e- Payment Process - St eps
1. The User i ni t i at es pay ment t hrough int erface in Applicat ion syst em for a
part icular t ransact ion
2. The User sel ect s t he mode of payment ( i.e. direct debit ) and t he bank .
3. The Applicat ion Syst em generat es a uni que r ef er ence number ( PRN) for t his
t ransact ion.
4. The Applicat ion Syst em i nvok es t he appr opr i at e pay ment gat ew ay based
on t he select ion of t he User and passes a set of i dent i f i ed par amet er s t o
t he payment gat eway.
5. The payment gat eway r ecei ves t he par amet er s and t he payment screen is
displayed t o t he User.
6. The User l ogs i n t o hi s bank account and aut hent icat es t he payment .
7. The payment gat eway pr ocesses t he t r ansact i on and r et ur ns a set of
paramet ers ( including a unique bank reference number/ BI D) t o t he Applicat ion
Syst em.
8. The Applicat ion Syst em capt ur es and r ecor ds t hese det ai l s against t he
t ransact ion and displays t he st at us t o t he User.
MDP sessi on on ePr ocur ement , NI C
e- Payment Process ( Direct Debit )
MDP sessi on on ePr ocur ement , NI C
End of session on
e- Payment and it s I nt egrat ion
MDP sessi on on ePr ocur ement , NI C
Pilot I mplement at ion of
e- Procurement solut ion
at NI C Hqr.
https:/ / eprocure.gov.in
MDP sessi on on ePr ocur ement , NI C
e- Procurement Pilot at NI C Hqr
E NI C implement ed a proj ect for e- Procurement on pilot basis,
wit h an e- t endering solut ion provided by an out side vendor at
zero cost .
E The solut ion essent ially involved creat ing all t he requirement
det ails/ specs, of a t ender t o be float ed elect ronically, in
paramet erized form; so t hat subsequent evaluat ion &
comparat ive chart preparat ion exercises could be aut omat ed
t o a large ext ent .
E I t was implement ed wit h good securit y feat ures, aft er having
t hree rounds of securit y audit and addressing it s
observat ions.
E A t ot al of four NI C t enders were processes elect ronically
t hrough t he solut ion from May 06 t ill Feb. 07.
MDP sessi on on ePr ocur ement , NI C
Pilot I mplement at ion at NI C Hqr
Online creat ion of I ndent and Tender document s/ specs
wit h General/ Specific Terms & Condit ions, Vendor
Eligibilit y, Configurat ion of Tender/ NI T det ails & event s
Elect ronic publishing of NI T & Tender document
Bidder Regist rat ion, Login, Bid preparat ion, document
upload, Bid encrypt ion/ enveloping & secure submission
Online payment of Tender Fee/ EMD
Bid Opening and Decrypt ion, visible t o all bidders
Simult aneous Bid Evaluat ion of an open t ender -
Technical/ Financial.
Mat ching & Negot iat ion facilit ies
Funct ionalit ies/ Feat ures
MDP sessi on on ePr ocur ement , NI C
Pilot I mplement at ion at NI C Hqr
Rat e Cont ract / Empanelment , Generat ion of Purchase
Orders
I nt egrat ion of t hree payment gat eways (Bank of I ndia, PNB
& I CI CI Bank)
I nt egrat ion of DSCs of t hree CAs (NI C, TCS and nCode
Solut ions)
Enabling exchange of elect ronic payment (EMD/ T. Fee)
info. wit h PAOs soft ware, t o enable lat er refunds
Server side validat ion
Aut omat ic mail alert s t o vendors/ approvers/ bid openers
Provision for asking Revised Financial Bid, as per need
Provision for t ender copy facilit y - view & use old t ender
document s/ corrigendum
Funct ionalit ies/ Feat ures (cont d)
MDP sessi on on ePr ocur ement , NI C
I mplement at ion Plat form - H/ W and S/ W
Servers H/ w: Rack Mount Dual CPU Servers
(Intel Xeon MP 2.8Ghz Processors, with 512 KB L2 cache, 2 MB
L3 cache per processor)
Ot hers : SAN Back Agent S/ W For Linux(Net vault ),
Online Line back up Agent for DB2 under Linux (Net vault )
Appl i cat i on Server : - I BM Web Sphere Applicat ion Server 6.0 ND,
- I BM Web Sphere Applicat ion Server 6.0 wit h
- Red Hat Advanced Server3.0 (updat e 5)
Dat abase : I BM DB2 UDB V8.2 (Ent erprise Server Edit ion)
Ot hers : Server Prot ect Trend micro for Applicat ion Servers.
Front End : I E 5.0 and above browser.
Devel opment Envi ronment : J2EE Development Environment .
Client users needed only t o have a browser
MDP sessi on on ePr ocur ement , NI C
Implementation Platform-Deployment Architecture
MDP sessi on on ePr ocur ement , NI C
I mplement at ion Plat form - Applicat ion Archit ect ure
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Presentation Layer Business Logic Layer
Document
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MDP sessi on on ePr ocur ement , NI C
Pilot at NI C Hqr - Experiences
At t empt s at BPR/ Aut omat i on of Pr ocesses:
+ At t empt s at Organizat ion wide Unified I t em-codificat ion st ruct ure
+ Collaborat ive way of evaluat ion t o minimize evaluat ion cycle t ime
+ Paramet erizat ion of t ender specificat ions t o enable aut omat ed evaluat ion
User Aut hent i cat i on:
+ PKI enablement - The applicat ion support ed t wo fact or aut hent icat ion - one
based on credent ials maint ained by t he applicat ion and t he ot her based on
t he credent ials provided t hrough use of PKI digit al cert ificat es I ssues
Bi d secur i t y & secr ecy - Si gni ng, Encr ypt i on:
+ The applicat ion support ed t he indust ry st andard for bid securit y t hrough
PKI based signing & encrypt ion of bid forms/ document s, as well, as t he
t ime st amping of bids at t he t ime of submission by vendors I ssues
Submi ssi on of Bi ds and payment of Bi d f ees:
+ Last minut e submission of bids by Vendors
+ Unsuccessful e-Payment s - I ssues, Opt ion for convent ional payment
+ e-Payment Reconciliat ion
MDP sessi on on ePr ocur ement , NI C
Unified I t em- codificat ion St ruct ure
Example :
101 Servers 101005 Rackmount
Servers
101005001 Rackmount Server RS-1U 101005001001 Intel-One Processor Server 1U
Category
Code
Category Sub
Category
Code
Sub
Category
Type
Code
Type
Description
Item
Code
Item
Description
(Tender)
100 COMPUTING DEVICES
200 Communication &
Network Equipments
300 Softwares(300-399)
400 Infra-strcuture
Equipments(400-499)
600 Office Items, Office
Equipment & Equipment
800 Services(800-899)
900 Books Publications &
Library Related
316 Image editing
Softwares
316004 Remote
Sensing
Satallite Data
Processing
softwares
316004001 Image Processing
Software
316004001001 Image Processing Software
For Remote Sensing Satellite
Data Processing For Ms
Windows
MDP sessi on on ePr ocur ement , NI C
Log-in Process- Home Page
https://eprocure.gov.in
MDP sessi on on ePr ocur ement , NI C
End of session on
Pilot I mplement at ion of
e- Procurement solut ion
at NI C Hqr
MDP sessi on on ePr ocur ement , NI C
Gover nment e- Pr ocur ement
( GeP)
Sol ut i on by NI C
MDP sessi on on ePr ocur ement , NI C
GeP Solut ion - Out line
4 Background & Evolut ion of GeP
4 Envisaged Scope of GeP
4 Funct ionalit y/ Feat ures
4 Securit y/ Aut hent icat ion
4 NI C GeP Syst em
4 Development & St at us
4 Different Modules
4 Securit y & Aut hent icat ion
MDP sessi on on ePr ocur ement , NI C
Background of GeP Why & How?
E As expect ed from an organizat ion like NI C, an import ant
purpose of t he pilot e- Procurement proj ect at NI C Hqr was
also - t o evolve/ cryst allize a workable approach for wide
adopt ion and Rollout of e- Procurement / e- Tendering solut ion
in government at Cent ral/ St at e levels t o meet t heir
impending requirement s in t his regard.
E But aft er pursuing wit h t he pilot implement at ion for a
significant period, t he following became obvious: -
Procurement procedures/ norms as well as format s and
act ivit y- flows differ widely across govt . offices and t hey
also significant ly vary depending on nat ure of
procurement viz: Bulk goods, St d. it ems, Specificat ion
based it ems, Works or Services et c.
As such, t here could not be a single Applicat ion which
could fit all kinds of procurement requirement s and be
rolled out .
MDP sessi on on ePr ocur ement , NI C
Background of GeP Why & How?( Cont d. )
I t is much more difficult t o at t empt rollout of an e- t endering
solut ion wit h st rict paramet ric pre- defined form based
approach in creat ing online t ender specificat ions and also in
evaluat ion of bids. The problem is more because of lack of
st andard pract ices and format s/ document s in organizing
backend procurement act ivit ies.
I t is difficult t o evolve a reasonable & accept able rollout model
for government depart ment s, if t he solut ions ownership
belongs t o a t hird part y.
E As such, NI C decided t o at t empt evolving/ developing an e-
procurement solut ion where t he ownership would be of NI C it self
and t he solut ion could be of a more general nat ure, rat her t han
specific for wider implement at ion.
MDP sessi on on ePr ocur ement , NI C
Evolut ion of GeP Syst em
C Basic framework of Gep was decided t o be a generic
solut ion, usable for all kind of Tenders by all users.
C I t was t o be largely non- paramet ric, based mainly on
t he upload/ download and submission of Tender ( RFP/
RFQ document ) & Bids as t ext based document s, wit h a
few t ables, which is normally used in most cases.
C The t abular Response Form( s) were t o be dynamically
definable ( like EXCEL) for vendor responses in one
column.
C I t was t arget ed t o be fully configurable for different
t endering pract ices 1/ 2/ 3 packet bid- syst ems, EOI
et c.
C Full range of Access cont rol & Securit y relat ed feat ures
were t o be built around t he main basic funct ionalit y.
MDP sessi on on ePr ocur ement , NI C
Envisaged Scope
EProcurement of Goods, Works and Services all kinds
ETypes of Tenders - Open, Limit ed, Expression of I nt erest
EHybrid Mode of Operat ion
Elect ronic and Paper Based Bid Submission ( I nit ial
St ages of I mplement at ion)
Mode of Payment s ( Tender Fee, EMD)
e- Payment , as well as
Convent ional Payment Modes ( DD et c. )
MDP sessi on on ePr ocur ement , NI C
Envisaged scope - Funct ionalit ies
E User Regist rat ion and Dat abase of Regist ered Cont ract ors
E Creat ion/ Publishing of NI T, Tender docs. , Addendum/
Corrigendum
E Bidding: Search, download, Prepare bid, Pay, Prepare Bid-
envelopes, Sign/ Encrypt , Submit securely
E Secure Bid Opening and Decrypt ion
E SOR based Financial Bid Evaluat ion for Works Tender
E Publishing of Cont ract Det ails ( Rat e Cont ract / Work Order/ PO)
E Communicat ion of Tender Award t o respect ive Tenderers
E I nt erface wit h Users exist ing Tender Port al/ websit e
MDP sessi on on ePr ocur ement , NI C
Envisaged Scope - Solut ion Feat ures
E Capt uring of import ant t ransact ion dat a/ met a dat a at Various
St ages of Procurement Cycle
E Aut o Not ificat ion/ Mail Alert s, Validat ion of Dat a ( Client / Server
end)
E Time St amping and confident ialit y of Bid Document s
E MI S on e- Payment / Reconciliat ion, Tendering, Bidding, Evaluat ion,
Award of Cont ract , Tender Summary, User Act ivit y, Audit Trail et c.
E Online User Help/ Manuals/ Document s, Help Desk
E Reliabilit y Failsafe Deployment , Archival of Elect ronic Records
E Syst em Administ rat ion ( by NI C) and Appl. / DB Admn ( by User
Dept )
MDP sessi on on ePr ocur ement , NI C
Envisaged Scope - Securit y/ PKI
E Secur ed Logi n and Aut hent i cat i on
E Rol e Based Access Cont r ol
E Audi t Loggi ng, Hi st or y Tabl es, Fi r ew al l s
E Di gi t al Si gni ng/ Ver i f i cat i on of Dat a & Document s
St ruct ured dat a as well as document s t o be uploaded in t he
syst em would be signed using DSC ( Class I I and above) issued
by any valid Cert ifying Aut horit y in I ndia
While accept ing digit ally signed cont ent , server side verificat ion
required, so as t o ensure t hat t he document is not t ampered
E Encr y pt i on ( / Decr y pt i on) of Sensi t i v e Dat a & Document s
E Secur ed Communi cat i on bet w een Cl i ent & Ser v er ( 128 bi t
SSL)
E Secur i t y Audi t of GeP sof t w ar e
MDP sessi on on ePr ocur ement , NI C
NI C GeP Syst em Development & St at us
E Aft er our Requirement Specificat ions, act ual
development was at Tamilnadu St at e Unit of NI C.
E The init ial soft ware version came out in Jan. 2008
E Plat form used: Open Source/ open st andard s/ w
t ools, i. e. - Linux, Apache Tomcat , Post greSQLs
Dat abase, JEE and Jasper Report s.
E First pilot implement ed in Tamilnadu Government
E Pilot implement at ions also going on in select
depart ment s of Orissa, UP, Haryana Govt .
E Online payment gat eways of SBI , I CI CI & AXI S
banks also implement ed ( opt ional) .
MDP sessi on on ePr ocur ement , NI C
NI C GeP syst em - Modules
E Regist rat ion Dept . Users and Suppliers
E Tender Management Creat e, Publish,
Corrigendum/ Addendum
E Bid Management Download, Clarify, Prepare &
Submit bids
E Bid Opening Part - I ( Technical/ Pre- Qual. )
and Part - I I ( Financial)
E Bid evaluat ion Technical & Financial
E Award of cont ract
MDP sessi on on ePr ocur ement , NI C
NI C GeP syst em - User Regist rat ion
E Depart ment al user
Creat ed by Administ rat or
Roles like Tender Creat or, Publisher, Bid Opener & Evaluat or are
defined as needed
Password sent by mail, Lat er User regist ers his DSC
E Cont ract ors/ bidders
Regist ers online by filling up a form
DSC is at t ached if available else lat er
Password sent by mail.
Logs- in and Regist ers his DSC ( eToken of Sify/ nCode/ TCS)
E Digit al Signat ure Cert ificat es
Class I I or Class I I I Required for log- in and enables signing &
encrypt ion
Valid for one or t wo years
Current ly int egrat ed - DSCs from NI C- CA and e- Tokens from SI FY,
nCode & TCS
Regist ered DSCs can be cancelled/ blacklist ed
MDP sessi on on ePr ocur ement , NI C
NI C GeP syst em - Tender Management
E Tender Creat ion/ Preparat ion of document s:
Descript ion/ Tech. specs, Drawing ( in Design Web Format )
I TB, Cont ract Terms & Condit ions ( Genl/ Spcl/ Adnl)
Qualificat ion Crit eria, Forms, Various Proforma/ Declarat n.
Financial Bid, BOQ Form ( I t em- rat e or % Rat e based)
E Tender Configurat ion:
Open/ limit ed/ EOI , Class of Tender/ Cont ract or, Validit y et c
No. of Packet s, Tender fees/ EMD - online/ offline/ exempt
Dat es of Event s, Format ion of commit t ees
E Tender Publishing
E Pre- bid Clarificat ions/ meet ings Queries/ replies uploaded
E Creat ion/ Publishing of Tender Corrigendum
MDP sessi on on ePr ocur ement , NI C
MDP sessi on on ePr ocur ement , NI C
MDP sessi on on ePr ocur ement , NI C
NI C GeP syst em - Bid Management
E Tender document download
E Bid preparat ion
E Payment of Fees Elect ronically or Tradit ional Modes
E Bid submission
Bidder must be prior regist ered wit h t he sit e along wit h his DSC
He Logs- in securely and Searches/ Select s t he desired t ender
Select ed Tender get s moved t o My Tender sect ion, He downloads
Get s clarificat ions, Prepares Bid document s/ Forms ( in PDF)
St art s Bid- submission by Accept ing T&Cs, t hen Paying fees Online/
Offline ( fills det ails/ uploads scans and sends physically)
Fills BOQ form/ rat es, Signs/ encrypt s & uploads bid document s
Submit s securely, Get s a t ime- st amped Bid- summary/ Receipt .
Bidder can wit hdraw an online bid and re- submit
Bidder can also submit manual bids
MDP sessi on on ePr ocur ement , NI C
NI C GeP syst em - Bid Receipt & Opening
E Receipt of bids: Remain encrypt ed t ill t he opening of bids.
E Opening of 1
st
Part / Tech. Bid:
Opened by designat ed officials, using t heir DSCs
Bidders need not be physically present
Each act ivit y is t ime st amped ( present ly server t ime)
Bidders select ed ( as per crit eria) for Tech. Evaluat ion
Summary of proceedings updat ed.
Met adat a on offline/ manual bids can also be
updat ed if received.
MDP sessi on on ePr ocur ement , NI C
NI C GeP syst em - Evaluat ion & Award
Technical Bid Evaluat ion:
Bid document s are print ed & evaluat ed manually
Tech. Evaluat ion Recommendat ions are updat ed
Select ed bidders are informed of Financial bid
opening dat es
Opening of 2
nd
Part / Finl. Bid: Similar t o Tech.
Financial Bid Evaluat ion:
Fin. Bids are print ed & evaluat ed manually
Fin. Evaluat ion Recommendat ions are updat ed
Bidders are informed of t he result s
Award of Cont ract : Final award published on t he
web- sit e
MDP sessi on on ePr ocur ement , NI C
GeP syst em - Securit y & Aut hent icat ion
Secured Host ing facilit y
Web securit y 128 bit s SSL encrypt ion
Two fact or Aut hent icat ion wit h DSCs
Confident ialit y Encrypt ion of all Bids document s
using a mix of Sym. / Asymmet ric ( opener s Public
Key) Approach, Sensit ive fields also at DB level.
Audit t rail of each act ivit y
Time st amping of all event s.
Good backup policy
Securit y Audit ed by independent t hird part y
MDP sessi on on ePr ocur ement , NI C
A l i ve GeP e- Tender i ng w ebsi t e
of Tamilnadu Government
w w w .t nt ender s.gov .i n
[ al so w w w .t ender s.t n. gov .i n
&
demoet ender s.t n. ni c.i n]
MDP sessi on on ePr ocur ement , NI C
End of session on
Govt . e- Procurement solut ion ( GeP) by NI C
MDP sessi on on ePr ocur ement , NI C
I ssues in e- Procurement
- e- Payment I ssues:
- Gat eway I nt egrat ion Diverse Gat eway I nt erfacing
Requirement s, oft en dict at ed by t he Banking s/ w in use.
- Adopt ion in Government I ssues in Wide scale and
uniform adopt ion of e- Receipt s/ e- Payment s in government
- Digit al Cert ificat es ( DSCs) I ssues:
- Relat ing t o I nt egrat ion
- Change of CPS/ DSC fields
- Need for st andard int erface/ API from CAs for
int egrat ion int o any Applicat ion
- Usage - Handling Encrypt ion Keys
MDP sessi on on ePr ocur ement , NI C
I ssues in e- Procurement ( ..Cont d)
( DSC I ssues Cont d)
- Adopt ion in Government - Repeat ed Fee, Transfers
- I nt eroperabilit y I nt er- usabilit y of DSCs of CAs
mandat ed by CCA of I ndia and t hose of ot her count ries, in
case of global t ender invit at ions/ part icipat ion.
- Bid Secrecy/ Time- st amping Need of a
common t rust ed Third Part y Reposit ory t ill bid
opening
- Elect ronic Archival/ Ret rieval Need of a
Secure Archiving Reposit ory for Govt . organizat ions
MDP sessi on on ePr ocur ement , NI C