Re: [IAC#RG] [India-egov] Award of government projects on nomination basis

On Nov 7, 2014 11:21 AM, "sachdeva_sameer@yahoo.co.in [India-egov]" <India-egov@yahoogroups.com> wrote:
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> Many ministries, departments and government agencies award projects to M/s National Institute for Smart Government (NISG) on nomination basis. These include projects on consulting and manpower outsourcing.  Department of Posts, UIDAI, NeGD, NATGRID, MCA have even outsourced PMUs to NISG without a tender process.
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> It is worth mentioning that NISG is a private entity by virtue of having 51 percent stake with private sector. Despite above it has been given grants and projects on nomination basis by various government agencies.  
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> This is violation of CVC Office Order No.23/7/07 (as available at link http://cvc.nic.in/181212_12122012.pdf) regarding  Transparency in Works/Purchase/Consultancy contracts awarded on nomination basis. Further there has been instances where NISG has further awarded the consulting contracts to private organizations on back-to-back basis without any value addition. This act of NISG subverts the Commission's emphasis on integrity, transparency, fairness and equity in decision making. The departments are also not putting details of the projects awarded on nomination basis on their websites as required by CVC. 
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> In the Supreme Court judgement in case of Nagar Nigam, Meerut Vs A1 Faheem Meat Export Pvt Ltd it was clearly observed by the Supreme Court that
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> "The law is well-settled that contracts by the State, its corporations, instrumentalities and agencies must be normally granted through public auction/public tender by inviting tenders from eligible persons and the notification of the public-auction or inviting tenders should be advertised in well known dailies having wide circulation in the locality with all relevant details such as date, time and place of auction, subject-matter of auction, technical specifications, estimated cost, earnest money Deposit, etc. The award of Government contracts through public-auction/public tender is to ensure transparency in the public procurement, to maximize economy and efficiency in Government procurement, to promote healthy competition among the tenderers, to provide for fair and equitable treatment of all tenderers, and to eliminate irregularities, interference and corrupt practices by the authorities concerned. This is required by Article 14 of the Constitution. However, in rare and exceptional cases, for instance during natural calamities and emergencies declared by the Government; where the procurement is possible from a single source only; where the supplier or contractor has exclusive rights in respect of the goods or services and no reasonable alternative or substitute exists; where the auction was held on several dates but there were no bidders or the bids offered were too low, etc., this normal rule may be departed from and such contracts may be awarded through 'private negotiations'."
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> In light of above judgment , the award of projects and manpower outsourcing to NISG is against the spirit of Article 14. There are many other organizations like Ernst & Young, KPMG, PWC, Grant Thornton, Accenture, Capgemini, Deloitte, Wipro, TCS, IL& FS etc which offer consulting in area of e-governance which can compete with private entity NISG and offer services at competitive price to government departments.
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> I think that as a community we must create awareness that projects cannot be awarded by government agencies on nomination basis irrespective of the amount of the assignment.
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> If this practice is not stopped the day is not far that a CAG report will highlight loss to exchequer in award of e-governance projects as it revealed the coal and spectrum scams. As a responsible citizen I will be writing to CVOs, secretaries and financial advisors of all government departments to stop this practice. I will also request you to all to create awareness around the same. After all non awareness of the above CVC circular by officials will not act as their defence for violation of rules in first place.
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> Together we can make a transparent and progressive India. 
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> Posted by: sachdeva_sameer@yahoo.co.in
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