Good Practices and Innovations in Public Governance 2003-2011
Good Practices and Innovations in Public Governance 2003-2011 Good Practices and Innovations in Public Governance 2003-2011
Good Practices and InnovATIONS in Public Governance within government departments, shortened tender cycle times, eliminated subjectivity in the evaluation of tenders, lowered costs thanks to increased competition generated by remote bidding, and reduced corruption. In the pre e-procurement era, the departments used to take on average from 90 to 135 days for the finalization of high value tenders. The tender cycle time has gradually come down to the average of 42 days over a period of one year and was further reduced to 35 days at the end of the second year. There is greater accountability since the electronic records/documents can be retrieved at any given time and all users’ activities are undertaken online. The new system has also reduced opportunities for corrupt practices: the e-procurement system allows a supplier to view the Notice Inviting Tenders, download bid documents and Bill of quantities, free of cost, ‘anywhere’ and ‘any time’ from the Internet. This has empowered the supplier as he is no longer dependent on government workers for issuing a Request for Proposal (RFP), clarifications on the bids, bid submission, information on tender evaluation status, etc. The entire e-procurement process was designed to eliminate the human interface, i.e., the interaction between supplier and government department, during pre bid and post bid processes, has been minimized. The automatic tender evaluation functionality has reduced subjectivity in tender evaluation. It has also increased access to information, and therefore created greater business opportunities for suppliers. In fact, before the system was put in place, suppliers had to physically scan several newspapers to keep track of tenders called by the various departments. Now, the new E-Procurement system provides all information regarding procurement requests online. It allows the suppliers to access the tender document and submit their bids online by paying transaction fees to the service provider. Due to this innovative project, the suppliers have been able to participate in the procurement process of a larger number of departments at vastly reduced transaction costs. The news system has also provided equal opportunities to small and medium suppliers. Earlier, small and medium suppliers were harassed and physically prevented form participating in the tendering process. They were either not allowed to purchase the tender document or submit their bids against a tender. However, through the e- procurement exchange, they can easily participate in the government’s procurement process remotely by sitting in their offices. It has eliminated the opportunity for contractor/supplier cartels. The tendering process has been made completely anonymous till the bid opening stage. Only after the opening of bids, does anyone come to know the names of the bidders. Due to this lack of information, the suppliers have been prevented from forming a cartel. Now the bids are received from a wider section of small and medium Suppliers. 292
2007 Category 1: India Furthermore, the e-procurement system has allowed for the standardization of procurement processes across government departments. At the outset, an effort was made to standardize the procurement processes and forms used by the various departments and especially for works tenders. Today, all the departments follow a common tendering process and forms for works tenders. Even these processes are being re-engineered to further improve the efficiency and curtail subjectivity in tender evaluation on the part of the department users. A similar exercise is underway for products as well. The e-procurement project has also reduced the costs of governance. Due to increased efficiency, the time spent on the processes has been reduced by approximately 70%. This has resulted in reduced costs of the government administration and overheads. The government has set up a corpus fund outside the regular treasury controls with contributions from all the successful vendors using the e-procurement platform. 50% of the accruals are channeled back to the participating departments for buying computers, peripherals, internet connections and the 50% balance is used for consolidating the initiative like conducting trainings for users, seminars and workshops etc. This project has received several awards in the past besides the United Nations Award. 293
- Page 266 and 267: Good Practices and InnovATIONS in P
- Page 268 and 269: Good Practices and InnovATIONS in P
- Page 270 and 271: Good Practices and InnovATIONS in P
- Page 272 and 273: Good Practices and InnovATIONS in P
- Page 274 and 275: Good Practices and InnovATIONS in P
- Page 276 and 277: Good Practices and InnovATIONS in P
- Page 278 and 279: Good Practices and InnovATIONS in P
- Page 280 and 281: Good Practices and InnovATIONS in P
- Page 282 and 283: Good Practices and InnovATIONS in P
- Page 284 and 285: Good Practices and InnovATIONS in P
- Page 286 and 287: Good Practices and InnovATIONS in P
- Page 288 and 289: Good Practices and InnovATIONS in P
- Page 290 and 291: Good Practices and InnovATIONS in P
- Page 292 and 293: Good Practices and InnovATIONS in P
- Page 294 and 295: Good Practices and InnovATIONS in P
- Page 296 and 297: Good Practices and InnovATIONS in P
- Page 298 and 299: Good Practices and InnovATIONS in P
- Page 300 and 301: Good Practices and InnovATIONS in P
- Page 302 and 303: Good Practices and InnovATIONS in P
- Page 304 and 305: Good Practices and InnovATIONS in P
- Page 306 and 307: Good Practices and InnovATIONS in P
- Page 308 and 309: Good Practices and InnovATIONS in P
- Page 310 and 311: Good Practices and InnovATIONS in P
- Page 312 and 313: Good Practices and InnovATIONS in P
- Page 314 and 315: Good Practices and InnovATIONS in P
- Page 318 and 319: Good Practices and InnovATIONS in P
- Page 320 and 321: Good Practices and InnovATIONS in P
- Page 322 and 323: Good Practices and InnovATIONS in P
- Page 324 and 325: Good Practices and InnovATIONS in P
- Page 326 and 327: Good Practices and InnovATIONS in P
- Page 328 and 329: Good Practices and InnovATIONS in P
- Page 330 and 331: Good Practices and InnovATIONS in P
- Page 332 and 333: Good Practices and InnovATIONS in P
- Page 334 and 335: Good Practices and InnovATIONS in P
- Page 336 and 337: Good Practices and InnovATIONS in P
- Page 338 and 339: Good Practices and InnovATIONS in P
- Page 340 and 341: Good Practices and InnovATIONS in P
- Page 342 and 343: Good Practices and InnovATIONS in P
- Page 344 and 345: Good Practices and InnovATIONS in P
- Page 346 and 347: Good Practices and InnovATIONS in P
- Page 348 and 349: Good Practices and InnovATIONS in P
- Page 350 and 351: Good Practices and InnovATIONS in P
- Page 352 and 353: Good Practices and InnovATIONS in P
- Page 354 and 355: Good Practices and InnovATIONS in P
- Page 356 and 357: Good Practices and InnovATIONS in P
- Page 358 and 359: Good Practices and InnovATIONS in P
- Page 360 and 361: Good Practices and InnovATIONS in P
- Page 362 and 363: Good Practices and InnovATIONS in P
- Page 364 and 365: Good Practices and InnovATIONS in P
2007 Category 1: India<br />
Furthermore, the e-procurement system has allowed for the st<strong>and</strong>ardization of procurement<br />
processes across government departments. At the outset, an effort was<br />
made to st<strong>and</strong>ardize the procurement processes <strong>and</strong> forms used by the various departments<br />
<strong>and</strong> especially for works tenders. Today, all the departments follow a<br />
common tender<strong>in</strong>g process <strong>and</strong> forms for works tenders. Even these processes are<br />
be<strong>in</strong>g re-eng<strong>in</strong>eered to further improve the efficiency <strong>and</strong> curtail subjectivity <strong>in</strong> tender<br />
evaluation on the part of the department users. A similar exercise is underway<br />
for products as well. The e-procurement project has also reduced the costs of governance.<br />
Due to <strong>in</strong>creased efficiency, the time spent on the processes has been reduced<br />
by approximately 70%. This has resulted <strong>in</strong> reduced costs of the government adm<strong>in</strong>istration<br />
<strong>and</strong> overheads.<br />
The government has set up a corpus fund outside the regular treasury controls with<br />
contributions from all the successful vendors us<strong>in</strong>g the e-procurement platform.<br />
50% of the accruals are channeled back to the participat<strong>in</strong>g departments for buy<strong>in</strong>g<br />
computers, peripherals, <strong>in</strong>ternet connections <strong>and</strong> the 50% balance is used for consolidat<strong>in</strong>g<br />
the <strong>in</strong>itiative like conduct<strong>in</strong>g tra<strong>in</strong><strong>in</strong>gs for users, sem<strong>in</strong>ars <strong>and</strong> workshops<br />
etc. This project has received several awards <strong>in</strong> the past besides the United<br />
Nations Award.<br />
293