Issues in Government Procurement and Contracting

One of out circle members outlined yesterday how to procure a computer in Govt her friend required 90-100 signatures on file. Little progress has been made in the last decade when it comes to making Government Procurement transparent and efficient. Either procurement processes are too long or corrupt in many cases. Below are some of the key issues highlighted by you with Government procurement and contracting. Kindly review them and please highlight key root causes for these issues. Once we understand them, let us have a seperate discussion on solutions. This can be one area where reforms from the Government can have a lasting impact, drive India’s progress and save taxpayers money.

We look forward to your inputs!

Government Procurement & Contracting - Key Issues

1.Procurement process is very slow, tedious and full of paper work
2.Government tendering process is too lengthy & time consuming
3. Set rules and regulations are very complicated
4.SME's are afraid of taking participation directly
5.mE-tendering system is still in its nascent stages
6.Local tendering is full of corruption
7.Files don’t move unless bribes are paid to clerks and officers
8.There is a strong presence of conflict of interest in Government procurement and tendering
9.The eligibility criteria of the Government tenders does not give chance to startup firms to participate
10.Contractors do not get EMD (Earnest Money Deposit) refund for months
11.The rates finalization process is very long
12.Payments of the contractors stay stuck for a long time
13.The tender system is based on price and not quality of work
14.Contracts with the lowest bids are accepted even after knowing that the rates are much lower than the cost leading to compromise in quality
15.Contractors fill one tender in 3 different names after colluding with the authorities
16.Cartels exist in tendering
17.Liquidation damages are charged many times without basis citing late receipt and suppliers need to pay bribes to get them removed
18.Collecting retention money in projects is difficult as many times the individuals responsible for signing off want bribes. more  

View all 131 comments Below 131 comments
The red tape is so vexing. more  
Yes, the process is very slow, tedious and full of paper work, in order to keep the officials away from accountability. It is the practice and procedure. The system needs to be changed. more  
Once Item demented Then Only Two TOP accountable peoples responsible for implementing including requirements , and commissioning .At the same time verify with the True User by another wing .Things may go some what better . more  
Apart from the standard procedures followed, the process needs updation as few are still follwing British era practices, like lowest quote etc. rather than quality and latest version / need based decisions are to be taken, eg. police dept. was buying only bullet motorcycles but of late changed for security reasons both 2 wheelers/4 wheelers, so is for all the procurement's the changes are to be in place. more  
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