Report on e procurement


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Report on e procurement

  1. 1. Government of Chhattisgarh eProcurement Project by CHiPS
  2. 2. Government of Chhattisgarh eProcurement in Chhattisgarh - A Report Prepared byChhattisgarh i nfotech & biotech Promotion Society 2
  3. 3. CONTENTS1. Introduction2. Vision3. Objectives4. Functional Features5. Technical Architecture6. Deployment Features7. Security Infrastructure8. Operational Features9. Implementation Methodology10.Business Model11.Institutional Structure12.Service Level Metrics13.Current Status of Project 3
  4. 4. 1. Introduction The Government of Chhattisgarh’s annual public procurement expenditure isabout Rs. 4000 Crores. The volume of expenditure is expected to increase in theforthcoming years since the state is undergoing a rapid development. Acknowledging theimportance of public procurement, the Government has undertaken efforts to reformprocurement practices in the last three years. The notable of the efforts are reform ofpublic works manual and issuance of a Government Order (G.O.) by the Chief Secretary– 196/CS/2004 – directing departments to implement e-Tendering. Through e-Tenderingthe Government expects to increase transparency and efficiency in public procurement.The Public Works Department (PWD) was the first department to implement e-Tenderingsystem. At this juncture, the Government has taken efforts to consolidate the existing e-Tendering solutions and implement an end-to-end e-Procurement solution across allagencies in the State. The Government has selected M/s Wipro Ltd. (in consortium withM/s NexTenders India Pvt. Ltd.) as the Implementation Partner to implement e-Procurement on Public Private Partnership (PPP) model and deploy the solution onBuild-Own-Operate (BOO) basis for a period of 5 years.2. Vision The Vision of the e-Procurement Project is to enhance the efficiency andtransparency in public procurement through the implementation of a comprehensive e-Procurement solution to be used by all Government organizations in the State, includingthe Public Sector Undertakings (PSUs).3. ObjectivesGoC aims to achieve the following objectives with the implementation of e-Procurement: i. Transparency: Introduce the maximum extent of transparency in the public procurement by making the required information available on the Internet. ii. Cost Savings through higher competition: A result of wider publicity to Government procurement opportunities 4
  5. 5. iii. Cost Savings through demand aggregation: The ability to aggregate Government departments’ demand to leverage buying power with the supply market. iv. Reduced inventory costs: Improved planning and management of inventory leading to lower levels of inventory v. Internal arbitrage: Ensuring consistency in goods and services costs at the best price across all Departments at item level. vi. Consistent and sustainable contractor development: Enabling pre-qualified vendors the opportunity to access of other government departments. vii. Transactional effectiveness: Eliminating or automating non-value adding steps within the procurement to enable efficient and effective processes.viii. Reduced Total cost of ownership: Understanding the supply chain and life cycle costs in procurement to establish value adding supply relationships leading to reduced cost of doing business for both government and industry ix. Effective tender processing: Use of different types of e-Auctions to get better prices for GoC. x. Open platform: Level playing field and “fair” competitive platform for the suppliers. xi. Disposals: Accessing a wider customer base when disposing of redundant assets xii. Smart governance: Increased transparency, monitoring and control of procurement process4. Functional Features The development of e-Procurement in the State of Chhattisgarh has beencategorised into various functional modules which would automate the completeprocurement cycle from crade-to-grave. The following are the functional modules asimplemented in the State of Chhattisgarh. i. Centralized Registration of Suppliers/ Contractors ii. Indent management iii. e-Tendering iv. e-Auction 5
  6. 6. v. Contract management vi. Catalogue managementvii. e-Paymentsviii. Accounting ix. Management Information Systems (MIS)Centralised Supplier Registration The Centralised Supplier Registation module provides a single window whereinall suppliers / contractors can submit their applications online for registration in variousdepartments. The request for registration is made online through the eProcurement portaland the same gets subsequently routed to the concerned officials of the variousdepartments. The workflow of the Centralised Supplier Registration Module is asfollows.Step-1: Suppliers / Contractors apply online for registration through the eProcurement Portal.Step-2: The Application is routed online to the concerned official of the department(s).Step-3: The Supplier / Contractor is verified on various registration criteria either online or physicallyStep-4: The concerned official approves the registration of the Supplier / Contractor online using Digital Signature The Centralised Supplier Registration Module also provide a view of the BidCapacity of each Contractor / Supplier to facilitate departments in estimating the strengthof the Contractor / Supplier.Indent Management The Indent Management Module involves in framing purchase / work proposal,review of proposal, internal approvals, technical approvals, administrative approvals,preparation of tender document and preparation of Notice Inviting Tender. The Module 6
  7. 7. automates the workflow of the department wherein the approvals are given using DigitalSignature Certificates.e-Tendering The e-Tendering Module involves in advertisement of tender, downloading oftender documents, online submission of bids, online bid evaluation and award of contract.The bids are submitted by bidders using their Digital Signature Certificate and the bidsare opened using the Digital Signature Certificates of the Bid Evaluation Committee. Thesystem generates an automated bid evaluation chart which serves as a basis to finalise theaward of contract.e-Auction The auction module is a facility that allows suppliers to dynamically out-bid theircompetitors within a time-frame specified by a buying agency. The auction module hasfacilities for both buying (reverse auction) and selling (forward auction) of goods, worksand services. In reverse auction, suppliers quote a price lower than their competitors toundertake a task, implying in a two-dimensional graph, the arc representing price goes onthe reverse as quoted price gets lower. Forward auction is used to sell off excess itemsheld by government. The suppliers keen on purchasing the items quote higher than theircompetitors, which results in the price curve moving in upwards/forward direction. Boththe auction types allow suppliers to participate in the bidding activity as anonymousactors.Contract Management The Contract Management Module involves in the processes between issuance ofwork order and completion of the work which are electronically handled. The ContractManagement module enables the Government to maintain an overview of the works inprogress. Once a part of a work is completed, then payment to the supplier is quickly 7
  8. 8. arranged as bills associated with the work are processed in an automated system. Oncethe bills are approved, arrangements can be made to have the payment transferredautomatically from government’s bank account to that of the suppliers’ account. When inplace for a period of time, the system collects a repository of knowledge that can be usedto measure the performance of a contractor.Catalogue Management In the catalogue management module, the information about rate contractsnegotiated by the government is hosted in an online environment enabling thedepartments to use the negotiated rate contracts and directly place orders for goods andservices with the supplier community. The module automatically checks forauthorization, handles accounting formalities, generates usage reports and forwardsdelivery information. Since access to rate contract information is made easier with themodule, the utilization of rate contracts by the end users will increase. The MIS reportsgenerated by the module help purchasing officers in estimating the demand for a productor a service.e-Payment The e-Payments module facilitates online transfer of funds – both inflows andoutflows – happening during the course of public procurement activity. The onlinetransfer facility has been featured in multiple ways such as through Credit Cards,Purchasing Cards and Internet Banking applications. In the public procurement context,the e-payment module involves during sale of tender documents, online transfer of EMDand payment to suppliers/contractors for purchase of goods and completion of works. Theimplementation partner integrates the e-Procurement application with the Banks asdecided by the Government. 8
  9. 9. Accounting The accounting module calculates payments made to contractors for completionof works and for purchase of goods. For works procurement, the system automaticallycalculates the payment due to a contractor based on information available in themeasurement book and rates quoted by the contractor for undertaking the Work. Forgoods procurement, the system maintains data on the extent to which negotiated ratecontracts have been used. The system also generates reports on the time taken to processtenders, number of bids received in response to a tender, time taken to complete a workand purchase goods. In summary, the system intelligently accounts key aspects of thepublic procurement activity.Management Information System (MIS) The MIS module is a critical component, which collects, records, stores andprocesses data collected from all the departments in an integrated manner. The module istightly integrated with the rest of the modules and provides functional support, decisionsupport and performance monitoring.5. Technical Architecture The core eProcurement solution of GoC comprises of the modules such as Tendermanagement, auction management etc addressing the functional requirements along withthe Registration and Authentication module, which facilitates user registration,authentication and personalization services. The system topology for eProcurementsolution implemented in the State of Chhattisgarh is illustrated in Figure 1. Thisarchitecture enables both suppliers and buyers (department users) to use the sameplatform for submission of purchase requisitions, processing of purchase orders, creationof tender notifications, submission of tender responses, evaluation of tender responsesand award of contract etc. The solution components depicted in the diagram below aredeployed on separate servers. However, the solution offered by the vendors does not 9
  10. 10. compromise the performance or security of the overall solution through such aggregationof the solution components on to a single server. The onus of the security andperformance of the solution completely rests with the implementation partner withcritical administrator rights being controlled by the Government. Figure 1: e-Procurement System Topology Application Serverfarm Tender Auctions Catalogue Intrusion Detection Web server farm System management management management system system system Netwok Attached Storage DMZ Secured Network Internet FW 1 FW 2 LDAP/ User DB Database Serverfarm6. Deployment Features e-Procurement solution is deployed on n-tiered architecture with web, applicationand database server farms. Each tier is scaled independently, both vertically andhorizontally, to address the performance and scalability requirements. Figure 2 illustratesthe infrastructure components of the eProcurement solution implemented in the State ofChhattisgarh. 10
  11. 11. Fig 2: Deployment Features of eProcurement Solution Client Tier Web Server Tier Application Server Tier Database Server Tier - HTTP, HTTPS, - Servelt/ASP for round - Load balancing robin load balancing - LAN - LAN, WAN - HTTP over LAN - JDBC/ODBC - Buyer Management - Supplier Management - Tender Management - Auctions Management - Catalogue Management Client TierThe client tier runs on a browser and uses html for presentation. The client communicateswith the web server tier using http. Web Server TierThe web server manages static images and pages and passes client requests from thebrowsers to the application server tier using http. Application Server TierThe application servers (buyer management, supplier management etc) are multi-threadedapplications with two main areas of logical functionality: a. Handling client requests and generating html as a response, and b. Managing and supplying object data, including database interaction. Database TierThe eProcurement solution uses standard relational database platform for objectpersistence and all business object data is stored in a database. 11
  12. 12. 7. Security InfrastructurePublic Key Infrastructure e-Procurement solution has become an interface between suppliers / contractorsand department through the open internet channel, which is susceptible to hacking andother unauthorized activities. To enable secured and reliable communication, theeProcurement system implemented in the State of Chhattisgarh has deployed the use ofDigital Signature Certificates for user identification, authorization and encryptionfunctionality. The Public Key Infrastructure (PKI) using digital certificates establishes areliable and secured e-transaction platform between buyers and suppliers. While all thepre-tendering and post tendering activities internal to the department are approved usingthe Digital Signature Certificates of the concerned officials, the e-tendering activity isoperated through the private key and public key of the bidders and the governmentofficials. The bidders use their public key for data encryption while submitting the hash ofthe bid. The authorised government officials use their public key to generate the superhash of the bids followed by the bidder authorising the government officials in using thepublic key of the bidders to decrypt the bids. At every stage, the hashes and the superhashes are matched in order to maintain the integrity and transparency. The bids aresubsequently opened using the Digital Signature Certificates of the committee members.The submitted tenders cannot be seen or read by any person as they would be encryptedform and can only be decrypted using the private keys of the bidders, which are in strictpossession of the bidders.Firewall The Firewall Solution for eProcurement solution provides robust security featuresto secure the solution Infrastructure from unauthorized access and use. Following outlinesthe broad specifications of the firewall solution deployed for the eProcurement solution. 12
  13. 13. No. Feature Requirement Concurrent Supports at least 1000 concurrent connections with at least 1.5 1 Connections Gbps throughput Gigabit The firewall solution supports the gigabit Ethernet ports 2 Ethernet ports Supports destination URL policy management Denial-of-service (DoS) detection and prevention Dynamic port mapping; Java applet blocking VPN QoS support; real-time alerts Supports the basic network protocols services such as VLAN’s, DHCP, BOOTP, OSPF, RIP, TFTP, etc. Audit trails Other Policy-based multi-interface support 3 Features Network Address Translation (NAT); bidirectional NAT; dual NAT Time-based access lists Authentication, authorization, and accounting (AAA) Dynamic, per-user authentication and authorization Supports ‘stateful inspection fire-walling’ as well as ‘application and protocol inspection’ Provides VPN services including site to site VPN connectivityNetwork Intrusion Detection SystemNo. Feature Requirement Facilitates to detect, report, and terminate any unauthorized activity in the eProcurement solution network. Minimum inspection rate of 500 Mbps; Transparent to legitimate traffic/network usage Responds to unauthorized activity to block offenders from 1 Features accessing the network or terminate offending sessions Maintains a comprehensive attack signature list to detect content-based and context-based attacks Supports Alarms to include attacker and destination IP addresses, destination port, and attack description - CGI Scripts - Web Server Attacks, Web Browser Attacks - IP Spoofing Secured - SMURF, TCP Sequence Number prediction 2 Environment - Buffer over flows - DNS Attacks, PING Sweeps, TCP Scans, UDP Scans, OS Identification, Account Scans, DOS Attacks etc 13
  14. 14. 8. Operational Features In order to kick-start the implementation of e-Procurement project in the State ofChhattisgarh and subsequently sustain it, the Government has made the implementationpartner mandatory to provide training to government users & vendor community, providehelp desk operating for 12 hours every day and deploy 200 desktops at locations decidedby the departments.Training Since the e-Procurement system brings about a new way of working fordepartmental end users and the supplier community, a high priority has been given totraining component. Training facilitates two-way interactions between the usercommunity and the implementation partner, based on which the implementation partnercan customize the system to better suit the requirements of the government. The trainingprogramme comprises of 1 day workshop at district level to provide awareness togovernment officials and vendor community followed by detailed and in-depth trainingon various modules. The departments would identify the concerned officials on modulelevel and accordingly ensure that the officials are trained. The training manual, preparedin Hindi and English, is being given to the participants in order to provide readyreference.Helpdesk Services In order to facilitate the smooth functioning of the e-Procurement system, a well-functioning help desk service has been set up by the implementation partner. The helpdesk is accessible on a 12 x 7 basis ( 9 AM to 9 PM ) and those help desk operators arecapable of communicating fluently in Hindi and English. The help desk operators arewell-acquainted with the e-Procurement system both function-wise and technical-wise inorder to resolve the queries in an expeditious manner. 14
  15. 15. Deployment and Maintenance of Desktops To ensure the successful uptake of e-Procurement, the implementation partner isdeploying 200 desktop computers as part of the Agreement. The desktops are beingdeployed as per the requirement of the departments and is maintained by the partner forthe full contract period.9. Implementation Methodology The implementation of e-Procurement is done in two phases: pilot and roll-out.The pilot phase lasted for a six-month period, during which time, the implementationpartner is asked to deploy all the required modules on a test basis. The State of Chhattisgarh had identified five departments viz., Public WorksDepartment, Water Resources Department, Public Health & Engineering Department,Health Department and Chhattisgarh State Industrial Development Corporation where thee-Procurement solution was implemented on pilot basis. Initially, all tenders worth Rs. 50lakh and above was to be processed through the e-procurement system. Subsequently, theslab has been reduced to include all tenders worth Rs.10 lakh and above. As on date, 24departments have successfully adopted the eProcurement system The performance of the implementation partner is evaluated at the end of the pilotphase. If the system performs to the expectations, then the Government permits theimplementation partner to roll-out the system across departments in the State. During theroll-out phase, the implementation partner deploys all the modules across departments inthe State as per the Service Level Agreement (SLA). The roll-out phase will last for fiveyears in addition to the six months allocated for the pilot phase.At the end of the five years, the Government will review the situation and decide on theout-right purchase of the system – (i.e.) perpetual license for the e-Procurementapplication and systems software and transfer of hardware assets on which the applicationis deployed - as against a renewal of the partnership and exiting the partnership. 15
  16. 16. 10. Business Model The Government of Chhattisgarh (GoC) is implementing the e-Procurement solutionon a Private-Public-Partnership (PPP) mode wherein the private partner is required toprovide e-Procurement as a service and engage on a Build-Own-Operate (BOO) basis withTransfer – BOO (T) – as an option. The private partner customizes, deploys and maintainsthe e-Procurement infrastructure setup during the course of implementation. The partnershipis for a five-year period in addition to the six months allocated for the pilot phase providedthe Service Level Metrics as mentioned in the Agreement are adhered to. The private partner is remunerated for the services rendered on a “transaction fee”model. The transaction fees paid to the Vendor is calculated at the module level. Some ofthe nine modules have been clubbed together and termed as a unit for transaction feecalculation purposes. A payment mechanism is not specifically devised for modules on e-Payments, Accounting and MIS, since they are an integral part of the rest of the modules.The clubbing of the modules has resulted in six units, for each of which a method isprescribed for calculating the transaction fee. An example of the method is “fixed fee per bid received”. In the fixed fee model, asum of money – say Rs. 500 – is paid for each bid submitted in response to a tender. Otherexamples of the methods used for transaction fee calculation are “Percentage of EstimatedContract Value (ECV) of a tender” and “Percentage of order value”. Looking at the businessmodel holistically, a combination of methods (hybrid business model) has been adopted tocalculate the pay-outs made to the private partner for provision of the different services of e-Procurement system. Since e-Procurement is a commercial activity, the transaction fee shallbe paid by the supplier/contractor organizations responding to the government procurementrequirements. In a few instances, the Government has defined a cap or ceiling on the fee theprivate partner can charge for provision of the services of a module. Such a cap/ ceiling hasbeen defined as a measure to protect the interests of the suppliers/ contractors and to ensurethat unduly high rates charged for such services would not adversely affect the growth of the 16
  17. 17. usage of the e-Procurement system. The Government has imposed such a cap as a de-riskingmeasure to ensure that the uptake of certain e-Procurement modules is not adversely affecteddue to high rates the Vendors may quote. For the purpose of calculation of transaction fee, government procurement isconceptually divided into two types: i. Procurements with Estimated Contract Value (ECV) - designed for Works ii. Procurements without ECV - designed for Goods The e-Procurement system comprises of the following five units, for each of which amethod for calculation of Service Charge is defined: i. Indent management, e-Tendering and e-Auction modules for ECV procurement ii. Contract management module iii. Indent management, e-Tendering and e-Auction modules for non-ECV procurement iv. Catalogue-based purchase management module v. Centralized supplier registration moduleIndent Management, e-Tendering and e-Auctions modules for ECV procurement Contract Value (Rs.) Fixed Transactional fee per bid (Rs.) Upto 10 lakhs 120 10 – 50 lakhs 360 50 – 100 lakhs 1040 1 – 10 cr. 1440 More than 10 cr. 4000 17
  18. 18. Contract Management modulePercentage of Contract Value: 0.02 % Contract Value (Rs.) Cap Value (Rs.) Upto 10 lakhs --- 10 – 50 lakhs 360 50 – 100 lakhs 1040 1 – 10 cr. 1440 More than 10 cr. 4000Indent management, e-Tendering and e-Auction modules for non-ECV procurementFixed Transactional Fee per bid (all slabs): Rs. 240Catalogue Management ModulePercentage of Contract Value: 0.25 %Minimum Transactional Fee per Order: Rs. 50 Order Value (Rs.) Cap Value (Rs.) 5,000 – 25,000 50 25,000 – 50,000 75 50,000 – 1lakh 90 1 – 10 lakhs 700 More than 10 lakhs 15,000Centralized Supplier Registration moduleOne-time Registration Fee per Supplier: Rs. 500Yearly Maintenance Fee per Supplier: Rs. 10011. Institutional Structure The State of Chhattisgarh has institutionalised the implementation of e-Procurement by constituting Empowered Committee and Task Force, nominating theSecretary, PWD as the State Nodal Officer and engaging Chhattisgarh infotech & biotechPromotion Society (CHiPS) as the nodal agency to assist the State in successfullyimplementing the e-Procurement project. Each department has been directed to appoint 18
  19. 19. their nodal officers who would be involved during the implementation of the project andwould also serve as a one point contact to CHiPS and the implementation partner inproviding the necessary information. The Institutional Structure set up by the State of Chhattisgarh for theimplementation of e-Procurement project is illustrated in Figure 3 below. Figure 3: Institutional Structure •Chief Secretary, Chairman • Secretary, IT • Secretary, WRD Empowered •Secretary, PWD Committee •Secretary, Health PHED •Secretary, Finance •Secretary, Public Relations •Secretary, Energy •Secretary, P&RD CHiPS •Secretary, School Education •MD,CSIDC •CEO, CHiPS Member Secretary State TASK Nodal Officer FORCE Nodal OfficerRole of GovernmentNodal Officer Nodal Officer Nodal Officer Nodal OfficerThe PWD and responsibilities of the Government in implementing the project are as roles WRD CSIDC Healthfollows: i. Constituted an eProcurement Cell which governs the implementation effort. The e-Procurement Cell is a part of CHiPS, which is the State Nodal Agency for the implemenation of e-Procurement. ii. Evaluate the bids received in response to this RFP and select the implementation partner 19
  20. 20. iii. Finalization of the Agreement and the SLA with the implementation partner iv. Provide office space for placing the hardware where the application is hosted and data is stored v. Develop IT and networking infrastructure at the departmental level as required vi. Prepare the list of personnel (government users and contractors) who shall be trained and issue communication to the trainees regarding the time and venue where the training activity is heldvii. Provide office space required for conducting training programsviii. Framing of suitable procedures to ensure that the payment that is due for the services rendered is paid on-time in terms of the SLA/Agreement conditions ix. Act pro-actively to reform procurement processes x. Acquiring total ownership of the data generated through eProcurement system xi. Tie-up with one or more Banking or Financial institutions to facilitate e-Payment.xii. Create a mechanism for resolution of disputes that may arise between the Implementation Partner and the Governmentxiii. Implement policy reforms and amendments as required for implementation of the project.Role of CHiPSThe roles and responsibilities of CHiPS in implementing the project are as follows: i. Co-ordinate with the departments and agencies implementing the project to ensure their participation in the e-Procurement initiative. ii. Facilitate setting-up of a project management team which would meet once every two weeks to take stock of the progress of the project, resolve issues and suggest relevant policies and guidelines with respect to change in existing procurement process, template of the tender document, etc 20
  21. 21. iii. Finalization of project implementation plan along with the timelines and deliverables in consultation with the implementation partner iv. Monitor the performance of implementation partner using SLA criteria specified in the RFP v. Select a reputed Third Party Testing Agency to test the e-Procurement solution on various pilot and rollout service level metrics. vi. Select a reputed Third Party as the agency for conducting security audit of the e- Procurement systemvii. Issuance of Digital Signature Certificates to Government officials.Role of Implementation Partner Since the e-Procurement initiative is implemented on a Private-Public-Partnership(PPP) basis, the implementation partner is expected to enthusiastically partake in theimplementation effort. The roles and responsibilities of the implementation partner are asfollows.Project Planning i. Appoint a full-time project manager to overlook the implementation of the e- procurement solution and the subsequent operations. ii. Install a project implementation team of programmers and system analysts to aid in the process iii. Prepare a detailed project plan based on the approved rollout plan of departments and functionality to be implemented. The plan should indicate: a. Availability of resources b. Sequence of activities, timelines and dependencies iv. Ensure coordination with the nodal agency in terms of reporting, decisions to be taken, and other Government formalities to be completed. v. Identify and highlight risks and issues in a timely manner. Communicate the same to the Project Management Team and the Task Force vi. Assess and plan for training requirements 21
  22. 22. Solution Design i. Meet the functional and technical specifications as mentioned in the RFP ii. Ensure complete understanding of the same by the Development and Implementation teamsiii. Design electronic forms as applicable to Government work iv. Suggest to the State any improvements in the process required for better service delivery v. Install a mechanism for the continuous improvement of the e-procurement functionality in view of the international best practices.Solution Development i. Build and manage catalogues ii. Configure and customize the e-Procurement application to fit the requirementsiii. Make the system inter-operable with the banking/financial institutions with which Government has tied-up for e-Payment iv. Conduct requirements analysis and prepare To-Be scenarios v. Provide Government with the latest updates on the application vi. Appoint a full-time Quality Assurance (QA) manager to overlook the development/customization effort.Project Implementation i. Install, test and manage a secure and scalable e-Procurement application adopting open and inter-operable standards ii. Develop and maintain IT and networking infrastructure required for the provision of trainingiii. Provide timely training to the government officials and the vendor community with supporting literature / documentation. 22
  23. 23. iv. Partner with Government in effecting overall co-ordination with all the participating departments/agencies to achieve successful launch within the prescribed time v. Install, test and manage the hardware required for hosting the application vi. Set-up the Disaster Recovery Center (DRC) operationsO&M i. Adhere to the SLAs stated in the RFP ii. Provide helpdesk services iii. Periodically (as agreed upon with the State) furnish data about the functioning of the system, especially in relation to the security aspects iv. Conduct periodic meetings with the State Project Implementation Team to discuss progress and any issues encountered during the operations. v. Set-up the digital signature / PKI related process and issuance of Digital Certificates in conformance with guidelines as in IT Act 2000, either directly or in collaboration with partners; and also establish the issuance process in such a manner as to enable government employees and contractors to procure such digital certificates from any vendor confirming to the stipulations vi. Design Security Policy and Operational Documents12. Service Level MetricsPilot Project SLAsService Metrics Parameters Basis of Measurement Remarks Equivalent of capacity toCapacity of the Application Simulating the stated handle 5000 transactions perand Database Server loads and testing the hourConcurrent connects to system performance 1000 using load-testingApplication Server toolsConcurrent number of users 2000connected to the system 23
  24. 24. Deployment SLAs Low Parameter Target Deductions Deductions Breach Deduction PerformanceDeployment Rs. 30000 > 10 Rs. 50000of e- 8 weeks None 8-10 weeks each week weeks each weekTenderingDeployment 10 Rs. 15000 >12 Rs. 30000of Contract None 10-12 weeks weeks each week weeks each weekMgmtDeployment Rs. 10000 > 10 Rs. 15000of Indent 8 weeks None 8-10 weeks each week weeks each weekMgmtDeployment 10 Rs. 15000 >12 Rs. 30000of Catalogue None 10-12 weeks weeks each week weeks each weekMgmt.Operational SLAs Low Parameter Target Credits Credits Breach Credits PerformanceAvailability ofagreed services 99.00% 11 99.0-97% 6 <97.0% -5over InternetAverage e-Procurement Portal < 7sec 6 8-15 Sec 3 >15 sec -2page loadingResolution of >7Critical faults in <5 working 5-7 working 7 4 working -2the e-Procurement hours hours hourssystem 24
  25. 25. Resolution of non-critical faults in the >72 <48 hours 4 48-72 hours 2 -1e-Procurement hourssystemGrowth rate of 10% over 6% overregistration of Below previous 2 previous 1 0suppliers measured 6% quarter quarterquarterlyGrowth rate of 10% over 6% overtransactions Below previous 2 previous 1 0measured quarterly 6% quarter quarter Below >70% 60-70% 60%Training 8 4 0 satisfaction satisfaction satisfacti on TOTAL 40 21 -1013. Current Status of the Project The e-Procurement project has been formally inaugurated by the Honble ChiefMinister of Chhattisgarh on 14th August 2007 with the Water Resources Departmentsuccessfully processing a tender. 20 departments have successfully adopted theeProcurement system which is evident from the fact that 13578 tenders worthRs.31821.37 crores have been processed and 4275 vendors have been registered till datefrom 2007. Details are: Department Tenders processed Total value (in Crore) PWD 6375 17927.93 WRD 2290 7281.95 PHED 444 529.96 Health 148 1850.85 CSIDC 267 RC** P&RD 1530 2386.78 Urban Dev. 2134 1536.03Animal Hus & Diary 16 45.55 Social Welfare 2 2.91 CG RES 285 141.55 CG Minor Forest 2 24.1 CG Civil Supplies 1 RC** CG Handicraft 1 1.88 CG Warehouse 72 78.03 CG Power Gen. 2 NA Food and Drug 2 6 25
  26. 26. Mandi Board 7 7.86 Total 13578 31821.37This has been possible due to constant follow-up and periodic reviews. Softwaretesting has been done through STQC. System has been integrated with NSDLpayment gateway. The State is saving around 10 – 15 % on its procurementexpenditure by implementing eProcurement apart from having a transparent andeffective system of working. The project has bagged CSI Nihilent Best eGovernanceProject Award 2008 and Information Week EDGE Award 2011 26