DIRECTORATE GENERAL OF SUPPLIES & DISPOSALS

1. DIRECTORATE GENERAL OF SUPPLIES & DISPOSALS E-PROCUREMENT EXPERIENCE

2. Background - 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

3. Background – 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

4. Transparency • 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.

5. E-Procurement - Benefits • 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

6. 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

7. 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.

8. 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

10. ALLOCATION OF FUNDS Note: All amounts are in Rupees in lakhs

11. 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

12. 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.

13. 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 on database • Inspection Module • Supply order module- Lateral entry of over 6000 supply orders • Inspection note module – over 7500 inspection notes

14. 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

15. 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

16. 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

17. 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

18. 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 SUPPLY OFFICES AND REGIONAL AND FIELD QUALITY ASSURANCE OFFICES AND ALSO PAY AND ACCOUNTS OFFICES • ON-LINE TENDERING PROCESS • ENCRYPTION AND SECURITY OF DATA

19. INTERACTIVE – OPERATIONAL MODULES • SUGGESTION SYSTEM • REGISTRATION SYSTEM • PURCHASE SYSTEM • INSPECTION SYSTEM • E-TENDERING • STORE DIRECTORY • MIS • PAYMENT SYSTEM

20. 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

21. 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

22. Future Roadmap 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

23. 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

24. THANK YOU

25. 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.

26. 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.

27. 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.

28. 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

29. 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)

30. SUGGESTION SYSTEM • PRO MODULE • MENU FOR RCP DIRECTORATE • SRC / SUBCOMMITTEE MODULE • ON-LINE SUGGESTION

31. 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

32. PURCHASE SYSTEM TENDER MODULE PROCESSING OF RC ADMINISTRATIVE MODULE WORKING MODULE MIS REPORTS Query • TECHNICAL PARTICULARS/ELIGIBILITY CRITERIA • TENDER DECISION • REVISED TENDER • COUNTER OFFER • SCRAPPING • RC AWARD • ADVANCE RC • RC DOCUMENT • TENDER MODULE (NDP) • PROCESSING OF RC(NDP)

33. 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

34. INSPECTION SYSTEM DAK MODULE SUPPLY ORDER MODULE INSPECTION DETAILS DAK ENTRY • SUPPLY ORDER ITEM ENTRY • SUPPLY ORDER CONSIGNEE-WISE ITEM ENTRY • INSPECTION CALL • INSPECTION DETAILS • RELEASE OF STORES • NON-DEPARTMENTAL PURCHASE ORDER • PRE-STOCK INSPECTION CALL • PROCESSING • ALLOCATION/RELEASE/RECEIPT OF STORES • DESPATCH DETAILS • RECEIPT OF STORES • CONSIGNEE REJECTION DETAILS

35. PAYMENT SYSTEM • DOCUMENTS RECEIPT • BILL SUBMISSION • PROCESSING • PAYMENTS • DEBIT ADJUSTMENTS

36. STORE DIRECTORY • ITEM ENTRY • PARAMETER ENTRY • MINOR ITEM

37. 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

38. 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

39. 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

47. MATRIX OF EFDEF EB TENDERS OPENED ON 06-10-2005 20 ITEMS33 FIRMS6 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 33 BIDDDERS

48. MATRIX OF XLPE (LT) TENDERS OPENED ON 29-09-2005 88 ITEMS38 FIRMS6 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`