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Good Practices and Innovations in Public Governance 2003-2011

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2007 Category 1: India<br />

Asia <strong>and</strong> the Pacific<br />

India<br />

2007 Category 1 W<strong>in</strong>ner<br />

e-Procurement Project<br />

Information Technology <strong>and</strong> Communications<br />

Department, Government of Andhra Pradesh<br />

Sitapur District of Uttar Pradesh (UP), India<br />

Description<br />

Mak<strong>in</strong>g public procurement processes more efficient <strong>and</strong> transparent by creat<strong>in</strong>g<br />

an onl<strong>in</strong>e portal accessible to everybody.<br />

Summary<br />

The e-procurement <strong>in</strong>itiative of the Government of Andhra Pradesh <strong>in</strong> India has <strong>in</strong>creased<br />

transparency <strong>and</strong> reduced corruption <strong>in</strong> public procurement by automat<strong>in</strong>g<br />

procurement processes <strong>and</strong> work flows.<br />

The Problem<br />

In Andhra Pradesh the cycle time of the tender<strong>in</strong>g process was long, often not highly<br />

transparent <strong>and</strong> cumbersome. The traditional system of procurement <strong>in</strong> the government<br />

departments of Andhra Pradesh was based on manual requests, approvals <strong>and</strong><br />

purchases of good <strong>and</strong> services. This system suffered from various problems, <strong>in</strong>clud<strong>in</strong>g<br />

<strong>in</strong>ord<strong>in</strong>ate delays (approximately four to six months) <strong>in</strong> tender process<strong>in</strong>g, heavy<br />

paperwork, multilevel scrut<strong>in</strong>y that consumed a significant amount of time, physical<br />

threats to bidders from contractors who wanted to suppress competition, human <strong>in</strong>terface<br />

at every stage, <strong>and</strong> <strong>in</strong>adequate transparency. This situation prompted the need for<br />

wide rang<strong>in</strong>g reforms <strong>in</strong> public procurement procedures so as to encourage simplification<br />

of procedures, greater transparency, better quality of work, <strong>and</strong> fair competition.<br />

The Solution<br />

In order to solve the above-mentioned problems, <strong>in</strong> <strong>2003</strong> an Internet-based platform<br />

for government procurement was launched <strong>and</strong> implemented by the Information<br />

Technology <strong>and</strong> Communications Department of the Government of Andhra Pradesh<br />

(AP). The transformation of the procurement system us<strong>in</strong>g ICT meant that government<br />

departments as well suppliers would conduct their procurement related transactions<br />

beg<strong>in</strong>n<strong>in</strong>g-to-end, from <strong>in</strong>vitation of tenders to the issu<strong>in</strong>g of supply orders,<br />

remotely <strong>in</strong> a new environment facilitated by emerg<strong>in</strong>g <strong>in</strong>ternet technology. All processes<br />

related to public procurement as well as work flows <strong>in</strong> government departments<br />

were automated through the use of ICT. This improved <strong>in</strong>ternal efficiency<br />

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