“Case studies for Academic Institutions”

by

Prof. Koona RamjiTEQIP Coordinator, AUCE (A), Andhra University

1Welcome to all the

Participants“Three Day Residential Training Programme on

e-Procurement” from 28-30 June 2017-APHRDI-Bapatla.

Activities to be taken up byAcademic Institutions2

Improvement in teaching training and learning facilities: • Modernization and strengthening of laboratories and establishment of new laboratories

for existing UG and PG programmes and for new PG programmes

• Modernization of Classrooms (Smart Boards and Computers linked to LCD Projectors withScreen, V‐SAT, Audio and Video etc.)

• Updating of Learning Resources (books, e‐books, e‐journals, CDs and professionalsoftware)

• Procurement of Furniture.

• Establishment/ Up gradation of Central and Departmental Computer Centres

• Modernization/ Improvements of supporting Departments

• Modernization and strengthening of Libraries and increasing access to knowledgeresources.

• Refurbishment (Minor Civil Works) and Major Civil Works

• Consultancy Services

3MAJOR PROCUREMENT

ACTIVITIES

1

•Modernization and strengthening of laboratories / establishment of new laboratories

2•Modernization of classrooms

3•Procurement of Learning Resources

4•Procurement of furniture

5•Procurement of Computers

7/6/2017

4MAJOR PROCUREMENT

ACTIVITIES

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•Modernization and Strengthening of Libraries

7•Procurement of Software's

8•Minor Civil Works

9•Major Civil Works

10•Consultancy services

7/6/2017

PROCUREMENT CATEGORISATION5

Equipment

Books & LRs

Furniture

Minor Items

Goods

Repair

Refurbishment

Extension

Works

CATEGORIZATION OF PROCUREMENTS

By Category of Goods & Services

Goods

Services

Civil Contracts

By Nature of Procurement

Tenders

Rate Contract & Catalogue Buying

Auctions, Reverse Auctions

LCB, NCB, ICB, LIB

By Size / Volume of procurement

High Value, low volume

Low value, High Volume

By Portfolio of services needed

Requisition, Bid Process

Evaluation, Award, PO

Supply, Quality check, Inventory Management

Payment, Accounting, Audit

MIS, EIS

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PROCUREMENT CATEGORISATION8

S.No.

ActivitiesCategory of Expenditure

Percentage

(%)1 Improvement in teaching,

training and learningfacilities

(i) Procurement of Goods :40(a) Equipment

(b) Furniture(c) Books & LRs & Software(d) Minor Items

(ii) Refurbishment(Major & Minor Civil Works)

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(iii) Consultancy Services 2

INDICATIVE CATEGORY-WISE FUNDING FOR KEY ACTIVITIES PERGOVERNMENT FUNDED/AIDED INSTITUTIONS:

VALUE THRESHOLD - GOODS9

Equipment

Threshold per

ContractProcurement Method

> US$ 300,000 International Competitive Bidding (ICB)

<=US$ 300,000 Limited International Bidding (LIB)

> US$ 20,000

<= US$ 300,000National Competitive Bidding (NCB)

<= US$ 20,000 Shopping

<= US$ 20,000 Direct Contracting/ Shopping

Furniture <= US$ 20,000 Shopping

Books & LRs <= US$ 20,000 Direct Contracting/ Shopping

Minor Items <= US$ 500 Direct Contracting

VALUE OF CONTRACT THRESHOLD LIMITS

FINACIAL STATUS OF

PROCUREMENT (RS. IN LAKHS)11

S. No.Activities /Category

of Expenditure

Expenditure

for

The financial

year

Cumulative

expenditure

to date

Pipeline

Expenditure

Committed Expenditure

1

Improvement in

Infrastructure,

teaching, training and

learning facilities

(a) Equipment

(b) Furniture

( c)Books & LRs &

Software

(d) Minor Items

(e) Major Civil Works

(f)Refurbishment (Major

& Minor Civil Works)

(g) Consultant Services

12 PROCUREMENT STATUS

A. EXPENDITURE CCMPLETED/COMPLETED/PIPE LINE

Sl. NoPkg No as

in PMSS

Package Name as

in PMSS

Method of

Procurement

Initiated

Date

Estimated Amount as

in PMSS

1 Shopping

2 Shopping

3 Shopping

4 Direct Contract

5 Shopping

6 Direct Contract

7 Shopping

8 Shopping

9 Direct Contract

10 Direct Contract

11 Direct Contract

12 Shopping

13 Direct Contract

14 Direct Contract

15 Shopping

16 Shopping

17 Direct Contract

18 Shopping

19 Shopping

TOTAL Rs. In Lakhs

STATUS OF PROCUREMENT AS ON ---------

Approved Initiated for procurement

Proc method No. of Pckgs Amount No. of Pckgs Committed

Direct

Shopping

NCBs

Total

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e-PROCUREMENT ACTIVITIES

• Provide end-to-end procurement process flow to standardizing theprocurement

• Provide information on specifications of items, maintain databaseof manufacturers/suppliers etc.

• Generate advertisement details, Standard Bidding Documents(SBDs), Bid Evaluation Report (BER), Purchase Order (PO), paymentdetails etc.

• Provide contract management functions like identifying contractmilestones (warranty period, performance guarantee, deliveryschedule etc), review supplier performance against contract etc.

• It will meet MIS requirements for documentation/reportgeneration requirements of all the users

• It will also generate print outs in the standard formats at everystage in unitized forms like daily, monthly and in the integrated/aggregated forms like quarterly, half yearly, annual etc.

PMSS SOFTWARE OF CORE COMPETENCIES

7/6/2017

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MAKING OF PMSS

➢ PMSS was developed over a period of almost 1 year. Through a competitiveselection, Compulink Software Ltd. Pune, India was selected for the development.

➢ It involved efforts from TEQIP - NPIU and a national Level Experts Committee of 9faculty members from the reputed engineering colleges and continuous professionaland technical support from the Bank Procurement Team to ensure a successfuldevelopment.

➢The need for developing a centralized software that allow more than 200

engineering higher education institutions spread across the states in India to carry

out procurement in an efficient and consistent manner

➢It was felt from the experiences of major deviations from agreed procurement

arrangements and poor capacity observed in implementation of TEQIP Phase 1

ended in 2009.

➢As part of the project preparations, GoI and Bank agreed to develop Procurement

Management Support System (PMSS) to help the institutions manage procurement

worth about US$ 200 Million in the project.

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PMSS Modules

Configuration :

•Allows setting up Institution details

•Allows other configurations e.g.

providing Departments details,

Purchase committee details etc

Request/ Queries :

This module is used for posting

queries related to procurement

process or technical queries on

PMSS

PMSS – MIS :

•Generates reports

•Useful in monitoring procurement

Procurements :

•Procurement plan creation

•Procurement Plan approvals

•Procurement initiation to closure is

done in this module

e-Dashboard :

•Shows alerts and

•Informative graphs on procurements

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Procurements Module

Procurement

•Procurement Plan➢Plan Creation

➢Plan Revision

• Procurement Plan Approval

•Shopping – Goods/Works

• Direct Contracting – Goods/Works

• Competitive Bidding➢ National Competitive Bidding (NCB)

Goods/Works

➢International Competitive Bidding

(ICB)

➢Limited International Bidding (LIB)

• Services➢ Methods for selection of Firms

➢ Methods for selection of Individual

Consultants

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Direct Contracting (DC)

o Direct Contracting follows this process o Direct Contracting is similar to Shopping except;

o Quotations are invited from only one supplier/ contractor. Thus the condition on minimum three suppliers/ contractors does not exist for Direct Contracting.o Quotation Opening and Quotation Evaluation steps are not present for Direct Contracting.

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National Shopping (NS) - Goods

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DIRECT CONTRACTING(<Rs. 9.0 Lacs) SHOPPING (<=RS. 9.0 LAKHS)

Equipment/ Books & LRs, specifically certified as proprietary or where there is sole manufacturer of the item.

Min. 3 quotations from three different suppliers/ contractors

Extension of existing contracts awarded following prescribed procedures, justifiable on economic grounds.

Items readily available off the shelf or standard specifications commodities

Standardization of equipment or spare parts to be compatible with existing equipment.

Advertisement is not mandatory

Performance Security required in Works contract

Prices quoted must be in Indian rupees only

All duties, taxes payable by the supplier/ contractor shall be included in

Direct Contracting & National Shopping

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NCB – Goods

NCB – Goods follows this process

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NCB PROCUREMENT STEPS

NCB also known, as Open Tender is the competitive bidding procedure normally used for procurement of goods and works.

The tender documents shall furnish all information necessary for a prospective bidder to prepare a tender for the goods/ works to be provided.

The bid document should invariably contain standard bidding and contract conditions to make it self-explanatory. Some of the mandatory requirements in a bid document include- Invitation for bids (IFBs), Instructions to Bidders (ITBs), Contract Data including Bill/ Schedule of Quantities (BOQ), General Terms & Conditions, Award Criteria, Notification of Award, Execution of Contract, Quality Control, Payment Terms, Taxes and Duties, Completion Certificate, Warranty/ Defect Liability, Drawings, Dispute Resolution, Arbitration, Force Majeure, etc.

The procedure shall provide adequate competition among participants in order to ensure reasonable prices

Bill/ Schedule of quantities (BOQ) will indicate the description of items to be provided along with quantities and the phased manner in which the goods/ works are required to be delivered or constructed.

Bidding documents should state clearly whether the bid prices will be fixed or price adjustments will be made to reflect any changes in major cost components of the goods/ works.

Prices quoted must be in Indian rupees only

All duties, taxes payable by the supplier/ contractor shall be included in the total price.

National Competitive Bidding (NCB)

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ICB PROCUREMENT STEPS

ICB is generally adopted where supplies cannot be met from indigenous sources and need import, and/ or foreign firms are expected to participate resulting in more competition.

Invitation for bids (IFBs) for ICBs shall be published in daily national newspaper with wide circulation all over the country, at least in one english and one regional language daily.

Apart from wide publicity nationally, advertisement of invitation for bids (IFBs) shall be published in United Nation’s Development Business (UNDB)/dg Market online and project website.

Use of the World Bank Standard Bid Documents.

Sale of bid documents should start only after publication of invitation of bids in newspapers and UNDB/ dg Market.

Bidding period shall be 45 to 90 days from the start of the sale of the bid documents.

Domestic preference shall be allowed to domestic bidders with respect to foreign bidders as mentioned in the bid documents.

Other procedures for ICB will broadly be same as that of National Competitive Bidding (NCB) in respect of bid opening, bid evaluation, notification & publishing of award of contract, complaint redressal etc.

International Competitive Bidding (ICB)

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LIB PROCUREMENT STEPS

Limited International Bidding (LIB) is essentially ICB by direct invitation without open advertisement.

It may be an appropriate method of procurement where (a) there are only limited numbers of suppliers, or (b) other exceptional reasons may justify departure from full ICB procedures.

Under LIB, borrowers shall seek bids from a list of potential suppliers broad enough to assure competitive prices, such list to include all suppliers all over the world.

Domestic preference is not applicable in the evaluation of bids under LIB.

In all respects other than advertisement and preferences, ICB procedures shall apply, including the publication of award of contract in UNDB online and in dg Market and use of the World Banks Standard Bidding documents.

Other procedures for ICB will broadly be same as that of National Competitive Bidding (NCB) in respect of bid opening, bid evaluation, notification & publishing of award of contract, complaint redressal etc.

Limited International Bidding (LIB)

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DETAILS OF PROCUREMENT

Name of the Institution :

DETAILS OF PROCUREMENT UPT0 ------ Packages Amount

Total Number of Packages & amount approved

Total Number of packages initiated & estimated

amount

Total Number of packages PO issued & amount

Total Number of packages Completed & paid

the amount

DIFFICULTIES / SUGGESTIONS IN

IMPLEMENTATION OF THE PROJECT

Difficulties

1. Data requirement for the procurement action through the PMSS web site.

2. Generation of various types of reports from the data in the MIS web site.

Suggestions

1. MIS web site can be made more user friendly so that user can customize the required report

2. PMSS web site can be made with simple requirement of data like, data of vendors etc.

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Heritage Buildings

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ALUMNI CONTRIBUTIONS

Dr. Y.V.S. MURTHY AUDITORIUM – Worth of 3 Crores

ALUMNI CONTRIBUTIONS

Health Center – Worth of 1.0 Crore

THANK YOU

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