DIRECTORATE GENERAL

OF
SUPPLIES & DISPOSALS

E-PROCUREMENT EXPERIENCE
Background - Organization
DGS&D - Central Purchase Organization of Govt of India
Headquartered at New Delhi with three regional purchase
offices in Metros and 27 QA offices in major industrial towns
Purchase directorates organized commodity wise to facilitate
maintenance of data, market intelligence, technological
advancement in products and processes
Quality Assurance offices located near users and industry to
facilitate quick response
Technical and multi-disciplinary workforce including two Group
A engineering services recruited thru UPSC
ISS (purchase) officers posted in other ministries to assist in
procurement of exclusive items
Background Role

DGS&D is engaged in diversified activities like -

Conclusion of Rate Contracts for over 350 product categories involving
20000 items besides spares etc.
6000 GoI users spread across the country
Serves / facilitates over 10000 tenderers including 2600 DGS&D
registered suppliers,
Pre-despatch inspection against DGS&D contracts and direct orders on
request
Formulate procurement policies and procedures
Cargo clearance at major ports
Provide consultancy in the procurement management
Goods procured worth Rs 40 bn during 2005-06.

Estimated procurement by State Govt, PSUs & other Organizations

based on R/Cs Rs. 60 bn.

DGS&D provides single point contact for Govt users and

vendors/suppliers for procurement of commonly used goods
Transparency
DGS&D manual prescribes procurement procedures, forms, delegation to
different functionaries and guides decision making. It is a priced document &
also available on DGS&D website.
All Products categories, specifications, bidding terms and conditions finalised
through extensive consultative process with suppliers and users
DGS&D website (dgsnd.gov.in) contains details of products/ procurement
specifications, tender enquiries, rate contracts, registered firms, policies &
procedures, forms etc.
On-line tendering made compulsory from 1st April 2006.
Well defined delegation of powers and channel of submission.
All R/C proposals scrutinized by Finance. Additionally CCA exercises checks at
post-contract stage.
Regular rotational transfers of officers.
Works under a focused attention of Industry and vigorously interacts with
industry, users and other connected with Purchase management.
Full fledged vigilance set-up at DGS&D and Department of Commerce.
All contractual and other documents are regularly audited by a dedicated wing of
CAG.
 E-Procurement - Benefits
Increased Transparency & Wider Competition
Simplify & Speed Up Tendering Processes
Real Time Generation Of Detailed & Accurate Data
Elimination Of Human Error
Seamless Sharing Of Information
Ease Of Operation & Quicker Decision
Comprehensive Website To Facilitate Tendering, Contracting,
Ordering And Retrieval Of Information To Authorized
Functionaries - Online Interaction Avoiding Physical Visits
Facilitating Pre And Post Contract Management
Reduction In Cost Of Government Purchases
E-Procurement - Components
E-Purchase
E-Tendering
Registration
Tender Notice
Store coding
Tender enquiry
Technical Particulars
Bid submission
Evaluation of Bids
Bid opening
Award of Rate Contract

E-Inspection / Supply
E-Payments
Supply Order
Bill submission
Inspection
Processing
Dispatch Details
Payments
Receipt Details
Debit Adjustments
Status
Complaints
DGS&D Website (http://www.dgsnd.gov.in)
A comprehensive DGS&D website facilitates
A single access point for DGS&D officers, suppliers and
customers
Downloading of DGS&D Manual, forms, conditions of
contract, circulars
Notices, agenda and minutes of the Consultative
Meetings
Suppliers registration
Download of summary and full text of Parallel Rate
Contracts
Creation and Hosting of
Tender enquiries & tender notices and corrigenda
Rate contracts,
Technical specifications.
DGS&D Website (http://www.dgsnd.gov.in)
Provides access to Indentor's page and Vendors page
for the following activities
Indentors Page-
Online placement of supply orders
Entering Receipt Particulars of stores
Intimation regarding shortages/quality
Suggestions for bringing new items on RC
Vendors page
Online submission of Registration application
Online inspection call
Entering dispatch particulars
Online submission of Bills
Suggestions for bringing new items on RC
ALLOCATION OF FUNDS
YEAR PLAN ACTUAL FUNDS
ALLOCATION ALLOCATION UTILIZED
2001-2002 65.00 35.00 18.00

2002-2003 211.39 200.00 155.78

2003-2004 190.95 191.00 168.80

2004-2005 224.23 126.00 126.00

2005-2006 61.47 130.00 130.00

TOTAL 753.04
Note: All amounts are in Rupees in lakhs
Challenges (1)
Integration of Nation wide spread of DGS&D Purchase
and QA offices
Multiple Matrices of Rate Contract as against
Single/Limited Matrix of Fixed Quantity (Ad-hoc)
Contracts
Integration of
large Govt user base including those in far flung areas
(over 6000)
Tenderers spread across the country (over 10000)
Registration of vendors (over 2600)
Management of over 2500 Contracts and 60,000
supply orders
Different Purchase Directorates have different
requirements
Challenges (2)
Adherence to GFR, DGS&D Manual, CVC
Guidelines and other Instructions issued by
Government
Interface With External Agencies like NSIC,
DGQA (Defence), BIS etc.
People and Process Change management
Technical challenges like IT Infrastructure,
Data Security, backups, etc.
 e-Procurement Solution Interactive
Modules - Current Status
Store Directory Coding of All RC items Complete
Registration module Database of all registrations (over 2600)
Tender module
Tender Notices & Tender Enquiries 250+ RC cases since Jul05
Rate Contract Module 240 RC cases since Jul05 involving
over 1400 parallel RCs.
Other Parallel Rate Contracts not due for renewal placed on
database
Inspection Module
Supply order module- Lateral entry of over 6000 supply
orders
Inspection note module over 7500 inspection notes
 e-Tendering

E-Tendering System (https://dgsnd.govtprocurement.com)

Online Publishing & download of tender enquiries
Supplier registration
Online bid submission by suppliers
Online bid opening & witness by suppliers
Spot Price Comparative Chart
Security Audit by STQC
102 RC tenders opened online
Over 1000 bids submitted through e-tendering

The e-Tendering system is implemented and

maintained by M/s. C1 India Pvt. Ltd., New Delhi
SECURITY & AUTHENTICATION

SECURED HOSTING FACILITY

WEB SECURITY SSL TECHNOLOGY
TWO FACTOR AUTHENTICATION WITH DIGITAL
SIGNATURES PKI
BID ENCRYPTION AT DATA BASE
AUDIT TRAIL OF EACH ACTIVITY
GOOD BACKUP POLICY
SECURITY AUDIT BY INDEPENDENT THIRD
PARTY
TIME STAMPING
ACCESS CONTROL SYSTEMS
e-Tendering - Benefits
To DGS&D -
Greater Transparency
Reduced process cycle time
Reduced costs
Improved image
Instant availability of real time information
Cartel Breaking
To Suppliers-
Reduced costs
Convenience of transacting online with DGS&D
No physical visits to DGS&D
No pressure of cartel
Increased opportunities
Training

All the staff in DGS&D trained in Computer usage

Concerned Officers and staff trained on application
software modules
Few officers trained in system and database
administration
Over 120 Govt. DDOs trained at HQ and regional
offices
700 suppliers trained on e-tendering module
PROJECT OBJECTIVES

TRANSFORMATION OF EXISTING PAPER BASED ACTIVITIES IN

TO COMPUTER BASED ENVIRONMENT
PROCUREMENT OF NECESSARY HARDWARE AND SOFTWARE
SETTING UP OF WEB/MAIL SERVER
NETWORKING OF DGS&D (HEADQUARTERS) WITH REGIONAL SUP
PLY OFFICES AND REGIONAL AND FIELD QUALITY ASSURANCE
OFFICES AND ALSO PAY AND ACCOUNTS OFFICES
ON-LINE TENDERING PROCESS
ENCRYPTION AND SECURITY OF DATA
INTERACTIVE
OPERATIONAL MODULES
SUGGESTION SYSTEM

REGISTRATION SYSTEM

PURCHASE SYSTEM

INSPECTION SYSTEM

E-TENDERING

STORE DIRECTORY

MIS

PAYMENT SYSTEM
Recognition by GoI

This initiative of DGS&D has been recognized

by Department of IT & C, Govt of India.
Few organizations have already approached
DGS&D to use its e-Procurement platform
Future Roadmap
Redesigning of website
Integration with DGQA, Min. of Defence, NSIC, BIS
Business Process Re-engineering
Development of software for
Specialized products
Fixed quantity products
Administration
Shipping
Litigation
Integration of Govt DDOs and suppliers
Advance Training on computers, System & Data
Administration to DGS&D officers
Future Roadmap

Requirement
Improving the capacity of the system
Creating backup and security
Professional assistance in software
development
Improving computer-Officials Ratio from
present 1:4 to1:2 in next three year
Training of users and suppliers on
application software
HINDSIGHT A BETTER APPROACH

E-PROCUREMENT INITIALLY NOT VISUALISED THOUGHT OF AS

COMPUTERISATION OF HQ ONLY
INCLUSION OF THE STAKEHOLDERS FOR INPUTS &
FEEDBACK
CLEAR TARGETS & GOALS NOT DEFINED WHAT TO DELIVER
SOFTWARE DEVELOPMENT INCLUSION OF OUTSIDE EXPERTS
DEDICATED TEAM OF OFFICERS BEFORE ATTEMPT
CONNECTIVITY PLANNING SHOULD HAVE BEEN AS PER THE
REQUIREMENT
SYSTEMATIC APPROACH TO WEB DESIGN
PROCESS RE-ENGINEERING BEFORE ATTEMPTING
COMPUTERISATION
TRANSFORMATION

PROPOSALS FOR NEW ITEMS TO BE BROUGHT ON R/C,

STORE CODING, TECHNICAL PARTICULARS, PLANNING
NOTE, BID PROCESSING, COMPARATIVE/RANKING
STATEMENTS, REFERENCES, ETC. IS PROCESSED
THROUGH COMPUTERS.
ALL TENDER NOTICES, TENDER ENQUIRIES, RATE
CONTRACTS, AMENDMENTS, TERMS AND CONDITIONS,
TENDER FORMS/DOCUMENTS, POLICY & PROCEDURES,
CIRCULARS, ETC. ARE AVAILABLE ON WEB AND ARE
DOWNLOADABLE.
 HARDWARE & SOFTWARE
457 COMPUTER SYSTEMS ARE IN POSITION AT
HEADQUARTERS AS WELL AS REGIONAL SUPPLY AND
REGIONAL/FIELD QUALITY ASSURANCE OFFICES.
PURCHASE OF 176 COMPUTER SYSTEMS IN PROCESS
PROPOSE TO PURCHASE COMPUTER SYSTEMS TO ENABLE
EVERY OFFICER OF THE LEVEL OF LOWER DIVISION CLERK
AND ABOVE TO HAVE A COMPUTER SYSTEM.
ALL COMPUTER SYSTEMS ARE PRELOADED WITH WINDOWS
OPERATING SYSTEM AND MICROSOFT OFFICE.
ALL COMPUTER SYSTEMS ARE ALSO INSTALLED WITH ANTI
VIRUS SOFTWARE.
WEB AND MAIL SERVER

DGS&D WEBSITE http://dgsnd.gov.in IS OPERATIONAL.

TENDER NOTICES AND TENDER ENQUIRIES WITH CORRIGENDA,
DIRECTORATE-WISE LIST OF RATE CONTRACT DETAILS, AND
ZONE-WISE LIST OF REGISTERED VENDORS CAN BE SEEN AND
DOWNLOADED.
CONDITIONS OF CONTRACT, INSTRUCTION TO BIDDERS,
VARIOUS FORMS FOR REGISTRATION, BILLS, REFUND OF
SECURITY DEPOSIT, ETC. CAN ALSO BE DOWNLOADED.
VENDORS CAN SUBMIT APPLICATION FOR REGISTRATION AND
PLACE INSPECTION CALL ON-LINE.
INDENTORS CAN PLACE SUPPLY ORDERS ON-LINE.
ALL DIRECTORATES/OFFICES/OFFICERS OF UNDER SECRETARY
LEVEL AND ABOVE AND ALL BASE LEVEL OFFICERS IN
PURCHASE AND QUALITY ASSURANCE ARE PROVIDED WITH E-
MAIL ID AND CAN ACCESS WEB MAIL.
NETWORKING

DGS&D WEB, MAIL, PROXY, ANTI VIRUS, IDS SERVERS ARE IN

POSITION.
ALL DIRECTORATES/SECTIONS AT HEADQUARTERS
INCLUDING QA (DELHI CIRCLE) ARE CONNECTED THROUGH
LOCAL AREA NETWORK.
ALL REGIONAL/FIELD OFFICES ARE CONNECTED THROUGH
INTERNET.
A 2 MBPS LEASED LINE WITH 2 MBPS BANDWIDTH IS IN
POSITION WITH A 256 KBPS LEASED LINE WITH THE OFFICE
OF CHIEF CONTROLLER OF ACCOUNTS.
ALL REGIONAL AND FIELD OFFICES HAVE BEEN PROVIDED
WITH BROADBAND CONNECTIVITY OF 1 MBPS/512 KBPS/256
KBPS CAPACITY AS PER THE LEVEL OF CONNECTIVITY
REQUIRED.
IMPROVED NETWORKING IS UNDER CONSIDERATION
ENCRYPTION & SECURITY OF DATA

DOCUMENTS GENERATED THROUGH

WEB ARE IN PDF
345 OFFICERS IDENTIFIED TO RECEIVE
DIGITAL SIGNATURE CERTIFICATES
250 OFFICERS ISSUED WITH DSC
SMART CARD READERS PURCHASED
DIGITAL SIGNATURE INTEGRATION BY
M/S SIFY COMMUNICATIONS PVT LTD
(FORMERLY M/S SAFESCRYPT)
SUGGESTION SYSTEM

PRO MODULE

MENU FOR RCP DIRECTORATE

SRC / SUBCOMMITTEE MODULE

ON-LINE SUGGESTION
REGISTRATION SYSTEM

APPLICATION THROUGH APPLICATION FROM MANUFACTURER

WEB APPLICATION FROM AGENT
STATUS OF APPLICATION
GUIDELINES

PROCESSING OF
PROCESSING OF APPLICATION
APPLICATION MISC/AMENDMENT
ALLOCATION/RECOMMENDATION
UTILITIES
REPORTS
DELETION
MONITORING
SUMMARY OF REGISTERED CASES
PROGRESS OF REGISTERED CASES
FIRM-WISE REGISTRATION
ITEM-WISE REGISTRATION
PURCHASE SYSTEM

TECHNICAL PARTICULARS/ELIGIBILITY CRITERIA

ADMINISTRATIVE MODULE
TENDER MODULE
WORKING MODULE
MIS
REPORTS
Query
PROCESSING OF RC TENDER DECISION
REVISED TENDER
COUNTER OFFER
SCRAPPING
RC AWARD
ADVANCE RC
RC DOCUMENT
TENDER MODULE (NDP)

PROCESSING OF RC(NDP)
PURCHASE SYSTEM (Contd.-)
RATE CONTRACT RC REPORT WITH ALL AMENDMENTS

REPORT ON PERFORMANCE
PERFORMANCE DRAWAL
DRAWLS

BANK GUARANTEE BANK GUARANTEE DETAILS

SECURITY DEPOSIT SECURITY DEPOSIT DETAILS

AMENDMENT AMENDMENT DETAILS

FALL CLAUSE FALL CLAUSE DETAILS

 INSPECTION SYSTEM

DAK MODULE DAK ENTRY

SUPPLY ORDER MODULE SUPPLY ORDER ITEM ENTRY

SUPPLY ORDER CONSIGNEE-WISE
INSPECTION DETAILS ITEM ENTRY
INSPECTION CALL
INSPECTION DETAILS
RELEASE OF STORES
NON-DEPARTMENTAL PURCHASE ORDER
PRE-STOCK INSPECTION CALL PROCESSING
ALLOCATION/RELEASE/RECEIPT OF
DESPATCH DETAILS STORES
RECEIPT OF STORES
CONSIGNEE REJECTION DETAILS
PAYMENT SYSTEM

DOCUMENTS RECEIPT

BILL SUBMISSION

PROCESSING

PAYMENTS

DEBIT ADJUSTMENTS
STORE DIRECTORY

ITEM ENTRY
PARAMETER ENTRY
MINOR ITEM
MANAGEMENT INFORMATION
SYSTEM
BANNING OF FIRMS
MAPPING OF STORE
QUERY ON RC ISSUED
TP PREPARED FOR MAJOR STORE
MIS REPORTS (RELATED TO RC)
TENDER DUE FOR OPENING
TENDER NOTICES APPROVED TODAY
TENDER NOTICES APPROVED TILL DATE
TENDER NOTICES DUE FOR OPENING DURING A PERIOD
TENDER ENQUIRIES
FILE NAME LISTING FOR UPLOADING RC DOCUMENT ON
WEBSITE
MONITORING FOR PURCHASE SYSTEM
WHAT IS A RATE CONTRACT?

A RATE CONTRACT IS AN AGREEMENT

BETWEEN THE PURCHASER & SUPPLIER TO
SUPPLY STORES AT A SPECIFIED PRICE DURING
THE PERIOD MENTIONED IN THE RATE
CONTRACT
NO QUANTITIES ARE MENTIONED
NO MINIMAL DRAWAL GUARANTEES
NATURE OF A STANDING OFFER FROM
SUPPLIER
LEGAL CONTRACT ON PLACEMENT OF SUPPLY
ORDER BASED ON R C
AKIN TO FRAMEWORK AGREEMENT OF EU
 INDENTORS PAGE & VENDORS PAGE

WHO ARE INDENTORS CENTRAL GOVT DEPTS,

STATE GOVT DEPTS, PSUs THOSE WHO USE
DGS&D RATE CONTRACTS
DDOs NEED TO REGISTER THEMSELVES ON THE
INDENTORS PAGE
USE DIGITAL SIGNATURE TO SIGN AND PLACE
SUPPLY ORDERS FROM JUNE 2006 INTEGRATION
WITH DIGITAL SIGNATURES ALMOST COMPLETE,
TESTING GOING ON ALSO CHANGEOVER TO 10G
AS
SIMILAR FACILITIES FOR VENDORS WRT THEIR
AREA OF STAKEHOLDING WITH DGS&D
 MATRIX OF EFDEF EB TENDERS OPENED ON
06-10-2005
20 ITEMS 33 FIRMS 6 PARAMETERS

Price
Registration
BIS Licence
Technical compliance
Compliance to Special &
General Terms & Conditions
Excise Duty
Sales Tax
Past Performance 3 yrs
SSI Status
Terms of Delivery
Delivery Period

PICTORIAL PRESENTATION ONLY IN RESPECT OF TWO FIRMS OUT OF 33 BIDDDERS

 MATRIX OF XLPE (LT) TENDERS OPENED ON
29-09-2005
88 ITEMS 38 FIRMS 6 PARAMETERS

Price
Registration
BIS Licence
Technical compliance
Compliance to Special &
General Terms & Conditions
Excise Duty
Sales Tax
Past Performance 3 yrs
SSI Status
Terms of Delivery
Delivery Period

PICTORIAL PRESENTATION ONLY IN RESPECT OF TWO FIRMS OUT OF 38 BIDDDERS