E-PROCUREMENT IN DGS&D

Directorate General of Supplies & Disposals (DGS&D)

Established India Stores Department in London in 1860 Commenced operations in India in 1921 Established DGS&D as Central Procurement Organization in 1951, presently under Ministry of Commerce & Industry, Govt. of India Inducted engineers through UPSC in Group-A cadres of Indian Supply Service (ISS) and Indian Inspection Service (IIS) in 1961 Headquartered at New Delhi with 3 regional purchase offices in metros and 27 QA offices in major industrial towns Purchase directorates (14) organized commodity wise to facilitate maintenance of data, market intelligence, technological advancement in product and processes Quality Assurance offices located near users and industry to facilitate quick response and interaction Technical and multi-disciplinary workforce expert professional in the field of Public Procurement Consequent to decentralization in 1992, ISS (purchase) officers posted in other Ministries to assist in their in-house procurement of exclusive items

DGS&D- ROLE
DGS&D is presently engaged in diversified activities like-

Conclusion of annual rate contracts for over 350 product categories involving 20000 items besides spares etc. catering 6000 G.O.I. users spreaded across the country following e-procurement Facilitates over 10,000 bidders 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 Nodal agency to provide and implement e-procurement platform under Mission Mode Project of e-Governance of Govt. of India
Provides single point contact for vendors and Govt users for procurement of commonly used Goods,eg. worth over Rs 4000 crores procured during 2005 - 06

POTENTIAL LIST OF SERVICES BY DGS&D

Registration of firms Pre-bid conference/CCM Framing technical particulars Tendering/Bidding and bid evaluation Award of Contracts/ Rate Contracts/Supply Orders Inspection, delivery and receipts of Goods Payments Quality audit MIS reporting Vigilance complaint redressal mechanism Procurement consultancy and e-procurement platform

STAKE HOLDERS
SUPPLY SIDE Suppliers of goods & services Manufacturers Industry Associations DEMAND SIDE Direct demanding officers Central & State governments and PSUs Academic institutions and Statutory bodies PROCUREMENT DEPARTMENT Department of Commerce Purchase wings at central, state and local levels Quality Assurance wing OTHERS Chief Controller of Accounts Banks/finance departments Bureau of Indian Standards DGQA/NSIC NTH and other testing laboratories Service providers/railways/transporters Apex body and advisory committees

PROCUREMENT
TIMELY DELIVERY OF REQUIRED QUALITY GOODS AND/OR SERVICES TO THE USERS AT MOST ECONOMICAL PRICES Salient features as essence of procurement are: Quality and quantity Delivery in time Economy in price as best value for the money spent TECHNO- COMMERCIAL-LEGAL ACTIVITY Technical- Goods/Works to be procured have to be identified and defined qualitatively by specifications/ requirements Commercial It has the element of price and other terms having bearing on price Legal It has at least a buyer and a sellor who make agreement enforceable in Law

Salient features of Public Procurement

It relates to the expenditure of public money To adhere to the principles of equity, fairness and natural justice To adhere to the Law/Statute viz. Indian Contract Act 1872 & Sales of Goods Act 1930 To adhere to the prescribed rules including GFR and procedures issued by Government from time to time Well defined authority with delegation of powers & responsibility with accountability to Public/state To discharge all functions in most efficient, fair, just, economic and transparent manner following all prescribed law, rules, norms and procedures within jurisdiction 100% Audit including concurrent audit on regular basis Vigilance in-house through CVO/CVC as well as by other investigating agencies Answerable to Public/State, Parliament/Legislature & Court of Law

E-Procurement Framework in DGS&D- Web based & Interactive

E-evaluation,Contract/ RC, Inspection & Payments

CCM, TP, Tender publishing

E-Bidding

E-Procurement in DGS&D

E-PROCUREMENT WEB BASED FRAMEWORK IN DGS&D

E-INVITATION
CCM / INDENT

E-BIDDING
DIGITAL SIGNATURE

E-EVALUATION
ON LINE BID OPENING

E- PAYMENTS

ON LINE INSPECTION CALL

SPECIFICATION

REGISTRATION

TENDER/BID EVALUATION

ON LINE INSPECTION NOTES

TENDER PLANNING

TENDER DOWNLOAD

APPROVAL ON LINE DISPATCH & RECEIPT DATA CONTRACT/ RATE CONTRACT

TENDER NOTICE AND ENQUIRY

ON LINE TENDER FILLING

ON LINE BILLING

CORRIGENDA

ON LINE TENDER/BID SUBMISSION

ON LINE SUPPLY ORDER

ON LINE PAYMENTS

E-PROCUREMENT COMPONENTS (USE OF ELCTRONIC MEDIA IN ALL PROCUREMENT ACTIVITIES)

E-PURCHASE REGISTRATION STORE CODING TECHNICAL PARTICULARS EVALUATION OF BIDS AWARD OF CONTRACT/ RATE CONTRACT E-INSPECTION / SUPPLY SUPPLY ORDER INSPECTION DISPATCH DETAILS RECEIPT DETAILS E-PAYMENTS BILL SUBMISSION PROCESSING PAYMENTS DEBIT ADJUSTMENTS STATUS & COMPLAINTS E-TENDERING TENDER NOTICE TENDER ENQUIRY BID SUBMISSION BID OPENING

E-PROCUREMENT BENEFITS
Increased speed, accuracy and transparency with wider competition and economy in procurement Simplify, standardized & speed up tendering process & communication Real time generation of detailed & accurate data with seamless sharing of information Facilitate on-line pre/post contract Management including bidding, contracting, ordering and payments with on-line participation of all stakeholders effectively Reduction in cost of government purchases with reduced cycle time Elimination of delays arising out of processing tenders manually Reduced paper work and lower transaction cost Problem of Mafia & Cartel formation arrested Database on goods, services, works and contractors gets build up Economy of scale achieved by aggregation of requirements Quick and easy access to all information and audit trails Better monitoring of Tenders and Contract Reduced inventory costs Improved work culture in the departments and better vendor relationship Winning the trust of people and Good Governance.

Benefits to Buyers
Ne Im w Im pro ag ved e
Transparent system IT friendly and innovative Management Tight Monitonring Real Time information Improved response time Improved Accountability

e tim ring al Re nito Mo

ed lin nt eam me Str cure Pro cess Pro

Co s Red t uct ion

Smart Governance & Increased Profitability

New Supplier Discovery

Improved inventory mgmt Demand Aggregation Reduced transaction costs Elimination of Tender publishing costs Savings on Stationary

Process Efficiency

Participation of larger no of suppliers Discourages Cartel formation

Automated Work flows Automated status update Enforcement of Standard process

Elimination of non-value added steps

E-PROCUREMENT BENEFITS TO BIDDERS/SUPPLIERS

Web based end to end solutions on real time basis and interactive. Registration, tender notice & enquiry, rate contracts etc. generated from data base and updated on real time basis providing increased visibility & extended customer reach. All the information on all the tenders is available at one place so that they can decide, which tenders they need to participate Seamless interaction and bidding by suppliers Complete Bids and price comparative statements in public domain. Downloading of tender, bidding and witnessing of bid opening from the comforts of their office from any location without physical visit Instant submission and acknowledgement of receipt of tender/bid Reduced cycle time for participating in the tender which enables them to participate in more tenders leading to increased business Enhanced Opportunities with Tender Management solution, small and medium suppliers will get an opportunity to participate freely in tenders. Human errors are eliminated Simplified & ease of operations

DGS&D as leader in e-procurement

DGS&D started use of Computers in their procurement activities in 1992 With the IT Act 2000,DGS&D first time successfully achieved the e-bidding and placed in-house e-module in operation in 2002-03. With effect from 3.3.2006, DGS&D has switched over to e-procurement, dully announced by Honble State Minister of Commerce and Industry during seminar on National E-procurement Strategy organized in association with World Bank DGS&D has been nominated as nodal agency to cater to the implementation of e-procurement in all Central/State Governments, PSUs under Mission Mode Project (MMP) of E-Governance Programme of Govt. of India which is closely monitored by P.M.O. DGS&D has a fully functional and tested e-platform providing end to end solution for e-procurement DGS&D has already received many requests for e-procurement platform MOUs have been/being signed for using DGS&D e-procurement platform with NCT for Commonwealth games, Indian Navy, U.T. of Chandigarh, Ordnance Factory Board, Govt. of UP and many others

Security Features
Two Factor Authentication Digital Signatures to ensure non-repudiation Bid Encryption at the Database Online Antivirus Scanning Security Audit 128 bit SSL Encryption Audit Trail of each activity Done by STQC & PWC Privilege based User Access Access Control System

List of 7 Certifying authorities for Digital signatures Safescript Ltd, Chennai NIC, New Delhi Institute for Development and Research in Banking Technology, Hyderabad (IDRBT) TCS, Mumbai MTNL, Delhi Customs and Central Excise, New Delhi N Code Solutions (Division of Gujarat Narmada Valley Fertilizers), Ahmedabad

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

A single access point for DGS&D officers, suppliers and users Suppliers registration Notices, agenda and minutes of the CCMs Tender notices, tender enquiries, corrigenda, technical specifications and rate contracts Download of summary and full text of rate contracts Provides access to indentors page for on line placement of orders, entering receipt particulars and suggestions for bringing new items on Rate Contracts Provides access to vendors page for online submission of application form registration, online inspection call, On-line dispatch details, on-line bills and on-line payments Downloading of DGS&D Manual, forms, conditions of contract, circulars etc.