e-Procurement Services – Information Technology, Electronics and Communications Department

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Case Study

Introduction:

The eProcurement Project is a core eGovernance initiative by the Information Technology, Electronics, and Communications Department of Telangana. The platform is being used by all Government Departments, Public Sector Undertakings, Urban Local Bodies, and Universities in the State. The main priority of the Government is to deliver the eProcurement Services very efficiently and fast processing the Tender and eAuction Services. 

Problem:

The old version of the e-Procurement application was only compatible with the internet explorer browser. Furthermore, the MIS reports were manually tallied and the data was not consolidated. Delay in the tender processing cycle caused the procurement process cycle to overrun and escalated the cost. No tools or system was available to generate the tender evaluation and comparison reports. Likewise, the process of tendering was very tedious and the department was dependent on various manual bodies to consolidate the state procurement expenditure and budgeting.

Solution:

The department developed a state-wide e-Procurement solution to enable tracking of all the activities performed by department officials including approval and comments. Additionally, it implemented the reverse tendering feature for the SCCL department in accordance with the coalfield conditions. Apart from implementing the Client-Side Encryption for full security it also launched an e-Auction application for the sale of scrap and procurement activities of the government of Telangana. 

Outcomes:

Automated workflows significantly reduced bidding periods from 3 months to 4 months to 35 days which reduced the cost of print media and advertising cost. The project eliminated the supplier cartels (syndicates) by remote (online) bidding and empowered the small and medium-sized bidders. Also, the project improved institutional memory by preserving electronic records.

Challenges:

It was difficult for contractors and department staff to understand the time-consuming Emsigner process. According to STQC guidelines, the e-procurement solution was implemented with 2 bid openers and supported up to 32. Also, the department staff took the time to identify the 2-bid opener at the initial stage.

Innovation:

The eProcurement System was customized according to the World Bank requirements. Also, innovations such as EMD collections, transfer, and refund processes are implemented.

Opportunities:

The department plans to integrate Aadhaar based eKYC for suppliers as well as department users across the platform and to enable Blockchain technologies in e-Procurement solutions. Along with Geo Tagging of work and Geo fencing of measurement records online in Works Management. It also plans to implement eBG Verification for Supplier Bank Guarantees using RBI’s SFMS (Structured Financial Management system).

Summary:

The e-Procurement Services have proven to be extremely efficient and transparent in the procurement process. There are also demonstrable benefits, such as cost savings for user departments and significant reductions in bidding process time.

For more information, please contact:
Mr Subrahmanyam B.V, Assistant Director at asstdir-itc@telangana.gov.in

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