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CHALLENGES IN PUBLIC PROCUREMENT

CHALLENGES IN PUBLIC PROCUREMENT. P ANEL DISCUSSION – 27 TH NOVEMBER, 2010. RAVI DUTT GAUR CHIEF MGR. – PROCUREMENT [P&P], HPCL. OBJECTIVES.

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CHALLENGES IN PUBLIC PROCUREMENT

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  1. CHALLENGES IN PUBLIC PROCUREMENT PANEL DISCUSSION – 27TH NOVEMBER, 2010. RAVI DUTT GAUR CHIEF MGR. – PROCUREMENT [P&P], HPCL.

  2. OBJECTIVES • TO HAVE UNIFORM, SYSTAMATIC, EFFICIENT & COST EFFECTIVE PROCEDURES IN ACCORDANCE WITH THE RULES & REGULATIONS OF THE ORGANIZATION BASED ON THE GUIDELINES FROM DEPT. OF PUBLIC ENTERPRISES AND CENTRAL VIGILANCE COMMISSION.

  3. OBJECTIVES • MAINTAIN TRANSPARENCY, COMPETITION, FAIRNESS & ELIMINATION OF ARBITRATION. • EFFICIENCY, ECONOMY & ACCOUNTABILITY. • MAINTAIN TIME FRAME.

  4. TOOLS • PURCHASE MANUAL. • LIMITS OF AUTHORITY MANUAL. • GUIDELINES FROM DEPT. OF PUBLIC ENTERPRISES & CENTRAL VIGILANCE COMMISSION.

  5. FUNDAMENTAL PRINCIPLES • BRING EFFICIENCY, ECONOMY & TRANSPARENCY. • PURCHSAE FROM KHADI, HANDLOOM INDUSTRY, NSIC, SSI, PSU, AS PER PRICE PREFERENCE/PURCHASE PREFERENCE POLICY DRAFTED BY THE GOVERNMENT FROM TIME TO TIME.

  6. MODERN TOOLS – E PROCUREMENT COMPONENTS. • E- PROCUREMENT : REGISTRATION, AWARD OF CONTRACT. • E-TENDERING : TENDER TO BID EVALUATION. • E-SUPPLIES : SUPPLY ORDER TO MATERIAL RECEIPT. • E-PAYMENT : BILLS SUBMISSION TO FINAL PAYMENT.

  7. Different Users of E-procurement

  8. WHY BIG ORGANISATIONS NEED E-PROCUREMENT • BIG GEOGRAPHICAL COVERAGE. • ALL PURCHASE DATA AVAILABLE AT ONE PLACE FOR REFERENCE BY EVERYBODY. • MORE USER FRIENDLY. • HELPFUL IN DIVERSIFIED ACTIVITIES • MULTI CRORE PROCUERMENT BENEFITS. • INCREASED TRANSPARENCY • MORE COMPETITION

  9. WHY BIG ORGANISATIONS NEED E-PROCUREMENT • SIMPLE PROCEDURES. • SPREADING UP TENDERING PROCESS. • REAL TIME GENERATION OF DATA. • ALL INFORMATION AVAILABLE AT SITE. • EASY OPERATION. • FASTER DECISIONS. • ROBUST DATA AVAILABLE RIGHT FROM ENROLLMENT TO TENDERING TO FINALISATION OF THE TENDER • REDUCTION IN COSTS.

  10. DISADVANTAGES PURCHASE deptt. ADVANTAGES (1) Reduced Purchasing Cost. -> Reduces postage costs and the expenses and space considerations surrounding paper-based record storage. -> Having track of all bids @ click of mouse means leveraging your knowledge to obtain better pricing. (2) Enhanced Efficiency & Reduced Cycle Time -> Allows business transactions to occur in less time and with fewer errors than traditional, paper-based means. -> Earlier signing & Stamping of all pages of Physical replaced by digital signing of e-tender. -> E-tenders can be opened at short-notice, as bidders are not required to attend the same, thereby reducing cycle time by 3-4 days. -> helps with the decision-making process by keeping relevant information neatly organized and time-stamped (3) Transparency -> all transactions standardized and trackable. Management of vendors registered.: -> Many bidders have multiple User IDs at eproc site, which creates problem while floating tender, as to which ID should be given access for particular tender. -> Once access given to any User ID ,the same cannot be reversed. -> Giving access to single bidder through more than IDs can result in receiving multiple online bids. (2) Poor Response in case of procurement of certain items. (3) Limitation:-E-tendering not done for items like Stationary Items, Tourist Cars, Canteen Contract, Security Services and Housekeeping Contracts. (4) Irreversibility: - If by mistake online bid of a party gets rejected , the same cannot be recovered.

  11. DISADVANTAGES OF E-PROCUREMENT END USERS/TECHNICAL Deptt. (HPCL) ADVANTAGES OF E-PROCUREMENT Ease in doing Online Technical Evaluation -> Can be done from anywhere , even from actual project/Working site. ->All documents submitted by bidders are available online, so minimum/no follow up with Purchase Group/ Bidder for requisite documents. Can be simply downloaded. ->Queries, if any, can be sought online from bidders and replies can be received online. This communication gets recorded and can be traced any time. -> Connectivity Issues at some working site. -> Difficulty faced in downloading of submitted documents , which results sometimes delay in completion of technical evaluation. -> Specially in public tenders, many bidders still submit hard copy (BQC Documents), which also needs to be evaluated. -> Since majority of LPR approving authority are still not performing technical review at eproc site, hard copy of technical report needs to be submitted to Purchase Deptt. in most of the cases.

  12. DISADVANTAGES BIDDERS/VENDORS ADVANTAGES Bidders can submit their online bid, no paper work needs to be done. Bid rejection due to postal delay NIL.(Except for EMD). Complete Transparency:- A techno-commercially accepted bidder has complete information of processing tender of sitting at their office. No need to come for Price Bid Opening or unprice bid opening. The same can be viewed online, beneficial for outstation bidders. the e-market places break down geographic barriers and make product catalogs available to a wider market of buyers. Improper Monitoring of registered e-mail results in loss of information regarding floating of tender AND Queries posted by HPCL. Many times connectivity issues, expiry of Digital Certificate results in non submission of online bid. Small suppliers/Vendors do not prefer e-tendering because of requirement of dedicated trained staff and cost of digital certificate involved.

  13. CHALLENGES • INTEGRATION OF SBUs ON ONE PLATFORM. • MANAGEMENT OF VARIOUS TYPES OF WORKS [SUPPLIES, WORKS, SERVICES, CONSULTANCY, ETC.] • DIFFERENT SBUs HAVING DIFFERENT REQUIREMENTS. • ADHERENCE OF PURCHASE MANUAL, LIMITS OF AUTHORITY, CVC GUIDELINES & OTHER INSTRUCTIONS ISSUED BY GOI.

  14. CHALLENGES • PURCHASES INVOLVING IMPORTS. • PURCHASES INVOLVING LIMITED SUPPLIERS/ MONOPOLY SUPPLIERS. • CARTEL FORMATION. • EXTERNAL AGENCIES LIKE NSIC, PSUs AS SUPPLIERS. • CHAIN MANAGEMENT. • TECHNICAL INFRASTRUCTURE [IT SECURITY OF DATA, BACK UP DATA, ETC.].

  15. TANGIBLE BENEFITS WHICH ARE ALREADY VISIBLE • GREATER TRANSPARENCY. • REDUCES PROCESS TIME/COSTS. • AVAILABILITY OF REAL TIME DATA. • CONVENIENCE OF TRANSACTING ON-LINE. • LESSER PHYSICAL VISITS BY SUPPLIERS. • INCREASED OPPORTUNITIES.

  16. PROBLEMS FACED IN THE PROCESS. • INITIAL STGE – LESSER PARTICIPATION. • FEAR OF UNKNOWN IN THE MINDS OF VENDORS. • CARTELLING. • COMPUTER LITERACY LEVELS IN THE ORGANIZATION AS WELL AS OUTSIDE.

  17. THANK YOU.

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