KSPHC: Overcoming Transparency Issues

KSPHC undertakes the construction of buildings that house
employees of the state government in the police, prisons, home guards and fire
departments.

In 2000, transparency in dealings was included in the Public
Procurement Act (PPA), and the Right to Information Act was enacted. This
compelled the Karnataka State Police Housing Corporation (KSPHC) to set up the
electronic tendering system.

The conventional tendering process led to the KSPHC overshooting
tender cycle times, resulting in delays in project completions. Prior to the
implementation of the e-tendering solution, KSPHC had its own web-based project
management system. The need to speed up the process was felt as well.

Driven by this, and the need to comply with the provisions of
the PPA, KSPHC had to look for an e-tendering solution provider. The search for
the e-tendering solution ended with Wipro, which deployed the Electronic
Government Procurement System with an online reverse auction. The system
facilitated the display of notices-inviting tenders incorporating the
qualifying requirements-on the KSPHC's website. It enabled KSPHC to post and
amend tender documents, and view and compare bids online.

"The solution enabled us and the other departments to
leverage the system and conduct online tendering with ease. It is helping the
state government to save immensely on costs," says Sri Kumar, chairman and
managing director, KSPHC.

The system provides for a registration process which is
open-ended, and those agencies which are registered with KSPHC can participate
in the tender process. It facilitates vendors to electronically download and
upload tender documents, track the status of the tenders and receive email
alerts. The bids are stored in the computer and can be opened only at the
specified date and time of opening of the tender.

Before the closed bids are opened, an online reverse auction is
conducted and the bidders have the option of revising their closed bids. During
the reverse auction process, the bidders get to know only the prevailing lowest
bid at any given point of time, and the identity of the other bidders, including
the one with the lowest bid, is kept a secret.

The system facilitates the bidders to enter their bids from the
place of their choice, and a username and password is given to them regulate
their entry into the auction rooms. After the online reverse auction is
completed, the lowest bid is determined therein.

The solution also provides for payment gateways, and issues
digital certificates to ensure secure online transactions between the department
and the vendors.

Karnataka government's Rural Development and Panchayati Raj (RDPR)
is now utilising KSPHC's system, to invite tenders for award of contracts in
the Pradhana Mantri Gram Sadak Yojana. Projects worth Rs 100 crore in Phase IV
are currently being e-tendered, thereby ensuring a transparent process in the
award of contracts for the construction of rural roads. In just six reverse
auctions so far, KSPHC has been able to save a substantial amount in the RDPR
project alone.

Added to this, transparency has led to sound decision-making,
and an improvement in the pace at which orders are finalized. Human errors have
also been minimized.

Urvashi Kaul

urvashik@cybermedia.co.in