ITE&C Department – AP Procurement Policy for e-Governance –Operational guidelines
GOVERNMENT OF ANDHRA PRADESH
ABSTRACT
ITE&C Department – AP Procurement Policy for e-Governance –Operational
guidelines on Preferential Market Access for Government IT/Hardware procurements - Orders
– Issued.
INFORMATION TECHNOLOGY, ELECTRONICS &
COMMUNICATIONS (INFRA) DEPARTMENT
G.O.MS.No. 22 Dated: 28.11.2015
Read the following
1. G.O. Ms. No. 12 of ITE&CDept., Dt : 08.06.2015
2. G.O. Ms. No. 13 of ITE&C Dept., Dt : 11.08.2014
ORDER:
The Government of
AP has an ambitious plan of implementing e-Governance and establishing
environment conducive for development of IT industry in the State over the
next 5 years. To this end, GoAP has published a Blueprint, has notified an
IT Policy and is in the process of developing an Enterprise Architecture for
e-Governance. The Vision of the
Government is
“To develop Andhra Pradesh as a
knowledge society of global repute, with a focus on enhancing the quality of
life of its citizens, through high-quality education and healthcare, increased
productivity in agriculture and allied activities, creation of requisite
employment potential by promoting electronics and IT industries, and above all,
by providing good governance.”
2. ANDHRA PRADESH
PROCUREMENT POLICY:
Considering that the number of projects in the e-Governance sector is going
to be large, which requires appropriate implementation and procurement models
and in order to meet
the implementation needs of e-Governance, through G.O. vide reference 1st read
above, GoAP have notified a comprehensive ‘Procurement Policy for
e-Governance’, after approval of council of Ministers, with the objectives of
(a.) To enhance efficiency, effectiveness and transparency in procurement
decisions relating to e-Governance and (b.) To enable
Government departments and agencies to entrust works relating to design,
development and implementation of e-Governance projects on an outcome basis,
balancing costeffectiveness and transparency. As per this Procurement Policy,
the methods of procurement prescribed for complianceby all the Departments, are
(i) Rate Contracts (RC),
(ii) Limited Tenders - through Empanelment of Vendors, (iii) Swiss
Challenge, (iv) Promotion of Innovative products & Solutions, (v) PPP
Methods, (vi) Open competitive Bid and with (vii) Special Provisions for
Procurement in case of Repeat Orders, Emergency Procurements and Procurement of
proprietary products.
3. The Procurement Policy also envisages “Preferential Market Access” as
per IT Policy. The AP IT Policy, notified in G.O. vide reference 2nd read
above, after approval of Council of
Ministers, provides a preferential treatment for certain categories of IT
Companies specified therein, namely, MSME Companies and Rural IT Companies
registered and operating in AP. All turn key projects with an outlay up to Rs 5
cr (50 Mil) to be undertaken by Government Departments would be reserved for
MSMEs registered and operating in AP. MSME IT units
are those units that have an annual turnover of up to Rs 25 cr (Rs. 250 mil).
Further, Suo moto proposals, based on applications relevant to governmental
needs would be accepted
from AP based MSME IT units and the proposals adjudged to be the best among
those found to be relevant for achieving the objectives set out in the blueprint
will be accepted and projects to the tune of Rs 50 cr (500 mil) p.a would be
awarded to the IT units so selected. In addition, All district based turn key
projects with an outlay up to Rs 50 Lakhs would be reserved for Rural IT
companies. In all the above methods of procurement the eligibility criteria and
provisions for implementation of particular method of procurement has been
prescribed.
4. NEED FOR
PREFERENTIAL MARKET ACCESS:
However, in order to provide gainful employment to the educated youth of
the State, bring investments into IT/ITES/Electronics sector, augment the GSDP
and enhance the standard of living of the citizens of the State,there is need
for setting up of Application Development Centres, Software, IT/ITES
operations, Hardware Manufacturing/Assembling/ component manufacturing
facilities in the new State of Andhra Pradesh.
5. Keeping this in view, there is every necessity to encourage &
promote setting up of the domestic IT/Hardware Units in the new State of Andhra
Pradesh and for this purpose it is felt that a Preferential Market Access shall
be provided to those IT/Hardware units/companies, having their Development
Centres/Manufacturing facilities functioning/operating from across the 13
districts of the State of AP.
6. PROVISIONS ON
PREFERENTIAL MARKET ACCESS:
This policy is applicable to any IT/ITES/Hardware Unit/Company already
existing or commits itself to establish, within 3 months of award of contract, its
Application Development Centres, Software, IT/ITES operations, Hardware
Manufacturing/ Assembling/ component manufacturing facilities, in any one of
the 13 districts in the new State of Andhra Pradesh.
7. To avail Preferential Market Access from the Government of AP
Procurement Policy, the interested IT/Hardware companies shall get empanelled
with Andhra Pradesh Technology Services Ltd (APTS) – the procurement agency of
GoAP - andshall comply with all
the criteria indicated in the mandatory requirements of each category mentioned
in para 8 :
8. The mandatory requirements for each category are mentioned below:
I. Criteria for
Preferred vendor Empanelment / Rate Contract / Open Tender :
Mandatory requirements:
a. The vendor quoting/proposing a quote for the IT
Hardware Products must manufacture /assemble the product i n the 13 Districts
of AP.
b. The vendor should make the billing from any of
the 13 Districts of Andhra Pradesh
c. 50% of the employees employed by the vendor in
all locations in AP, shall belong to AP
d . The vendor shall have AP TIN registration
e. The vendor shall have CST
registration, in the jurisdiction of 13 Districts of Andhra Pradesh.
f. The vendor shall have
Service tax registration in the jurisdiction of 13 Districts of Andhra Pradesh.
II. Criteria for Preferred Application
Development Service Provider:
Mandatory requirements:
a. The Development Centres
shall be in any of the 13 Districts of AP, wherein 50% of the employees
employed in all locations in AP, by such development centre, shall belong to AP
b. The Application
Development Service Provider should make the billing from any of the 13
Districts of Andhra Pradesh
c. The Application
Development Service Provider shall have AP TIN registration
d. The Application Development
Service Provider shall have CST registration in the jurisdiction of 13
Districts of Andhra Pradesh.
e. The Application
Development Service Provider shall have Service tax registration in the
jurisdiction of 13 Districts of Andhra Pradesh.
III. Criteria for Preferred IT/ITES and
Support Services Provider:
Mandatory requirements:
a. The IT/ITES and Support
Services provider having the unit/company/ office in any of the 13 Districts of
AP, wherein 50% of the employees employed, by such unit/company/ office in all
locations in AP, shall belong to AP
b. The IT/ITES and Support
Services Provider should make the billing from any of the 13 Districts of
Andhra Pradesh
c. The IT/ITES and Support
Services Provider shall have AP TIN registration
d. The IT/ITES and Support
Services Provider shall have CST registration in the jurisdiction of 13
Districts of Andhra Pradesh.
e. The IT/ITES and Support
Services Provider shall have Service tax registration in the jurisdiction of 13
Districts of Andhra Pradesh.
9. The Benefits to preferred vendors/Developers/ Service Provides for
Categories I,II
and III are as below :
a. 50% discount in Earnest
Money Deposit (EMD)
b. 25% discount in
Performance Bank Guarantee (PBG)
c. "50% relaxation of
per-qualification criteria stipulated in respective tenders/bid documents,
RFPs, such as Turnover (in financial terms & Quantity of orders handled),
net worth, service facilities or any other prequalification criteria as is
deemed fit. ".
d. For IT Hardware Products : 50% of the order quantity will be awarded if they
are willing to match L1 price (if L1 vendor is not the preferred vendor ) for
hardware items.
e. For Application Development Service
Provider or for IT/ITES and Support Services: preference will be given in awarding the project
or work if they are willing to match L1 price (if L1 is not the preferred
Developers/ Service Provider), provided the price quoted by them is not more
than 20% of the L1 price.
10. In respect of Application Developer or bidding company or both, applied
for any tender (availing benefit of PMA) and not able to open their Development
Centres/ facilities in the new State of Andhra Pradesh, the said Application
Developer or bidding company or both, shall undertake to outsource 30% of the
such work awarded to them, to an existing AP based company and that AP based
company shall fulfil the condition of employing 50% of the employees of the AP
origin.
11. Failure to comply with the conditions
specified in para 6 &8 :
If any IT/ITES/Hardware Unit/Company/vendor/ Application Development
Service Provider (as an existing unit/company/ Development centre) which has
undertaken or proposed to
establish within 3 months of the award of contract, fails to fulfil the
conditions specified in para 6 & 8 above, will be visited with following
consequences:
a. The contract secured/
awarded, under this policy will be liable for cancellation and shall be treated
as NULL and VOID.
b. The Performance Bank
Guarantee will be forfeited.
c. Any advances/payments
made for the execution of the contract awarded shall be recovered along with
applicable interest.
12. DEFINITION OF EMPLOYEES FROM ANDHRA
PRADESH:
For the purposes of this provision of employees from AP, a person of AP
origin from any of the 13 districts of Andhra Pradesh, is defined as specified
below:
a. A resident of the State
of AP.
b. Domiciled in the State of
AP.
c. Born in the State of AP.
d. Studied in
School/College/University in the State of AP for four years continuously.
e. A person either of whose
parents was born or attended School/ College/ University in State of AP or was
domiciled in AP.
13. A resident of the State of AP is defined as a person satisfying any of
the following criteria:
a. Whose name finds place in
electoral roll anywhere in Andhra Pradesh.
b. Whose name finds place in
the citizens data maintained by the Revenue Department and is assigned with a
multipurpose identity card no. (also termed SSID No:)
c. Who holds a ration
card/telephone connection/gas connection in his/her name or in the name of any
member of his/her family.
d. Who is able to furnish
any other proof of residents like drawl of monthly salary through bank branch
in any of the 13 districts of Andhra Pradesh.
14. This Preferential Market Access Policy is applicable for procurement of
State-funded projects under “AP Procurement Policy for e-Governance” for
Government of Andhra
Pradesh only.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
G.S.PHANI KISHORE
SPECIAL SECRETARY TO GOVERNMENT
To
All the Departments of Secretariat
All the District Collectors & Magistrates, AP
All the HoDs
The Managing Director, M/s APTS Ltd.
Copy to:
The Chief Minister’s Office/Chief PRO to C.M.
The OSD to Hon’ble Minister for Information Technology, Andhra Pradesh
The PS to PFS, Andhra Pradesh
The PS to OSD to Hon’ble CM, Andhra Pradesh
The PS to Chief Secretary to Government of Andhra Pradesh
The PS to Advisor, ITE&C, Andhra Pradesh
//FORWARDED::BY ORDER//
SECTION
OFFICER
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