MCD Brings Transparency with e-Tendering

Figures suggest that the e-Tendering process has achieved significant time- and resource-efficiencies. For instance, over 30,000 tenders have been transacted through the e-Tendering system by MCD, making it one of the world's highest volumes in numbers by any government  organization. But MCD officials are not satisfied with what they have achieved in their efforts to fully automate the procurement process. Ask Arun Kumar, an executive engineer at MCD who has become the face of the IT initiatives in the corporation. "The e- Tendering mechanism has not yet improved the time and process efficiencies as much as we would like," he says modestly. "This is because only the part of the system that concerns tender receipts has been automated, with great success. So, while this portion has been simplified for the contractors and for us, the approval cycle needs to be automated," he says.

The e-Tendering system itself has helped MCD take huge strides in the preliminary stages of procurement. And it hasn't walked the road alone. In May 2005, it outsourced the project to Wipro. The e-Tendering system has enabled MCD to post and amend tender documents, and view and compare bids online. This has substantially reduced administrative costs and eliminated the difficulties associated with paperwork.  Transparency is the biggest benefit of the system, asserts Arun Kumar. Wipro has also ensured that the payment gateway and issuance of digital certificates provide secure online payment options to the suppliers or contractors.

The implementation was done in a phased manner," recalls Srivastava. First, the tender purchase and download was made compulsory through electronic route. Then, the bid preparation and submission were made compulsory for all tenders above Rs 30 lakh. The value slab was reduced subsequently, he says. The application service provider set up the infrastructure to install and enable the electronic procurement system. Second, it maintained an online/offline backup at the disaster recovery site, and ensured proper backup of each tender, enabling easy access and avoiding data loss in case of server failure. And third, it has provided onsite and telephonic help desk services with 24x7 service.

Since Wipro came on board in 2005, it has trained 300 users and 2,000 contractors. The MCD, on its part, put basic infrastructure in place, providing Internet connections in each of its offices and the wherewithal to bring all users on to one network. In 2003, it brought Hyderabad-based ECIL-SARK Systems to train Citizen Service Bureau users on latest technology in urban planning. Simultaneously, by engaging internal users in newer IT-enable functions such as property tax management, MCD began to rein in the change. 

"For now, the transparency and equal terms for all contractors are the biggest takeaways of the implementation. "It has reduced the subjectivity in the process of selection," says Kumar.

It has been an eventful year for MCD - from the traders' protests last year against sealing of shops to its recent elections. On the technology front, however, the progress and change within the government organization has been silent but steady.

The Person Behind It

Dr Anurag Srivastava

VP for Consulting Services, Wipro

Governments are making process and structural changes more responsive and transparent in their functioning. The adoption of e-Tendering is a major step in this direction.

P.K.Khandelwal

Superintendent Engineer, MCD

Following the early success, e-Tendering has been proposed for all types of products and services across all zones such as education, sanitation and health.