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Selection of Service ProvidersSelection of Service Providersfor Project on biometrics enabled for Project on biometrics enabled

ICT solution for People’s ICT solution for People’s Empowerment under Mahatma GandhiEmpowerment under Mahatma Gandhi

National Rural Employment Guarantee ActNational Rural Employment Guarantee Act(MGNREGA)(MGNREGA)

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Disclaimer This presentation is merely indicative for facilitating a consultative process with the prospective

participants in the bidding process for Selection of Service provider for Project on biometrics enabled ICT solution for People’s Empowerment under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). MORD reserves the right to modify any aspect of the project or the qualification process in the bid documents which shall formally commence on 26.10.2010 with the RfQ issuance.

In furnishing this Presentation, neither MORD, nor its employees, consultants, advisors undertake to provide the recipient with access to any additional information or to update it or to correct any inaccuracies therein which may become apparent. MORD also reserve the right, without prior notice, to change the procedure for the identification of the preferred bidder or terminate the discussion and the delivery of information at any time before the signing of any agreement for the project without assigning reasons thereof. MoRD, its employees or its Transaction Advisors would not be liable for the accuracy or completeness, for MORD, doeas not make any representation or warranty, express, or implied with respect to the information contained in the Presentation.

It is not intended to provide the basis of any investment decision and each prospective Bidder must make its own independent assessment in respect of the project. Further, no person has been authorised by the MORD, to give any information or to make any representation not contained in the Presentation.

Moreover, neither MORD, nor its employees or consultants will have any liability to any prospective Bidder or any other person under law, equity or contract, or otherwise for any alleged loss, expense or damage which may arise from or to be incurred or suffered in connection with anything contained in the presentation or any matter deemed to form part of the Presentation.

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Table of Contents MGNREGA Salient Features of the Act Current Institutional Framework for MGNREGS Key Stakeholders Role of Gram Panchayat Legal Framework to facilitate PPP Project Scope of work of Service Provider Indicative SLA Implementation Framework and Timelines Issues for Discussion with Service Providers Proposed Qualification Process

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MGNREGA The Mahatma Gandhi National Rural Employment Guarantee Act 2005

(MGNREGA or Act) was notified on September 7, 2005

MGNREGA is a social security legislation with a right based framework.

It aims to enhance livelihood security in rural areas by providing at least 100 days of guaranteed wage employment to every rural household whose adult members volunteer to do unskilled manual work.

The Act spans 619 districts, 6000 Blocks, 6 lakh villages and around 2.35 lakh village Panchayats.

Permissible works at the GP predominantly include water and soil conservation, afforestation and land development works.

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Salient Features of the Act Employment will be given within 15 days of application for work, if it is not then daily

unemployment allowance as per the Act, has to be paid. The liability of payment of unemployment allowance is of the States.

Work should ordinarily be provided within 5 km radius of the village. In case work is provided beyond 5 kms, extra wages of 10% are payable to meet additional transportation and living expenses.

Wages are to be paid according to piece rate or daily rate. Disbursement of wages has to be done on weekly basis and not beyond a fortnight in any case

At least one-third beneficiaries shall be women who have registered and requested work under the scheme.

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Salient Features of the Act The shelf of projects for a village will be recommended by the gram sabha and approved by

the Zilla Panchayat.

At least 50% of works will be allotted to Gram Panchayats for execution

Permissible works predominantly include water and soil conservation, afforestation and land development works

A 60:40 wage and material ratio has to be maintained. No contractors and machinery is allowed.

The Central Government bears the 100 percent wage cost of unskilled manual labour and 75 percent of the material cost including the wages of skilled and semi skilled workers

Social Audit has to be done by the Gram Sabha. All accounts and records relating to the Scheme should be available for public.

Grievance redressal mechanisms have to be put in place for ensuring a responsive implementation process

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Central Level

State Level

District Level

Block Level

G.P. Level

MINISTRY OF RURAL DEVELOPMENT

CENTRAL EMPLOYMENT GUARANTEE COUNCIL

Pr. Secretary/ Secretary, RD

Commissioner, RD

State Employment Guarantee Council

State Government (Rural Development Department)

District Panchayat

District Programme Coordinators (DPCs)

Programme Officers (POs)

Additional Programme Officers (APOs)

Intermediate Panchayat

Junior Engineer

Gram Sabha

Gram Rozgar Sevak/ Panchayat Secretary

Mate

Gram Panchayat

Vigilance & Monitoring Committee

Chartered Accountant/ Local Fund Auditor/ Accountant General

Technical Secretariat

District Internal Audit Cell

Technical Coordinating Agencies

Technical Resource Support Groups

OPERATIONAL FRAMEWORK MONITORING FRAMEWORK

Current Institutional Framework for MGNREGS

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Key Stakeholders Beneficiaries

Gram Sabha

PRIs, specially the gram panchayat

Programme Officer at the block level

District Programme Coordinator

State Rural Development Department officials and State Council

Ministry of Rural Development and Central Council

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Role of Gram Panchayat The Gram Panchayat is the pivotal body for implementation at the village level.

The Gram Panchayat is responsible for the following activities:

Planning of works Receiving applications for registration Verifying registration applications Registering households Issuing Job Cards Receiving applications for employment (demand for work) Issuing dated receipts Allotting employment within fifteen days of application for work Executing works Maintaining records Convening the Gram Sabha for social audit Monitoring the implementation of the Scheme at the village level.

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Legal Framework The Act was notified in 2005 and operational guidelines were issued in 2008.

Important provisions of the Act Under Section 27 (1) of the Act, the Central Government may give such directions as

it may consider necessary to the State Government for the effective implementation of the provisions of this Act.

(ii)    Under Section 30 the Central Government has rule making powers in relation to all aspects of the implementation of the Act

(iii)   In fact the rules made by the State Government  under Section 32(1) have to be  consistent with this Act and the rules made by the Central Government,

The Act vests sufficient powers with the Central Government to appoint a service provider for such areas as it may determine, for undertaking the task of collecting data, digitizing data and monitoring the implementation of the Act.

A comprehensive scope of work can therefore be validly vested with a service provider by the Government of India and the same would be binding on both the State Government as well as the Gram Panchayats

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Project MoRD proposes to engage a private sector Service Provider to implement

biometrics enabled ICT solutions (Solution) at Gram Panchayats for the effective delivery of MGNREGS.

The Service Provider is expected to enrol the beneficiaries in accordance with UIDAI requirements either by

hiring an EA or SP can undertake the enrolment process, where enrolment has not already been done by Other registrars.

responsible for the design, procurement, installation and delivery of the technological solution for enabling biometric based operations at the GP/worksite level as per terms of Agreement.

MORD desires to implement the Solution across India covering approximately 5.28 crore rural households (demanding job in FY 2009-10).

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Concession period is 6.5/13 years

Service Provider would bear all the capital and operational expenses during the tenure of the contract, including refreshment of technology.

MORD may pay to the Service Provider for the contract period for its services: Fixed fee for the successful UIDAI enrolment Fixed annual fee per Gram Panchayat Transaction based fee for operations

Payments to Service Provider will start as and when a GP is operationalised i.e. attendance on the job site is done through biometric enabled mobile / handheld devices and e-musters are prepared.

Project Structure

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Enrolment Complete the enrolment of existing job card holders within a specified time period and

as decided in consultation with the State Enrolment process would be carried out at the Gram Panchayat level by setting up Enrolment

Centres / Stations at the Gram Panchayats.

The enrolment process has to be UIDAI compliant.

The data collected should capture MGNREGA relevant information as required for the MGNREGA processes viz. Name, photograph, biometric details, address, and bank account details for respective Job Cards.

Any other data requirement that the state government may specify separately to be collected during the enrolment process.

For those job card holders who have an ADHAAR number; the enrolment process would need to capture the information required for MGNREGA and authenticate the ADHAAR number, provided that MORD has an arrangement with the other Registrars on sharing of data required by Service Provider to carry out the processes envisaged.

Complete the enrolment of newly registered MGNREGA job card holders from time to time as per the UIDAI enrolment process

Scope of Work of Service provider

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Enrolment Centre as per UIDAI specifications

Scope of Work of Service Provider

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Integration with MGNREGA database

Manage the temporary enrolment database at the Enrolment Center till the time data is sent to UIDAI.

Coordination / integration with the Registrar for accessing biometrics data from the centre/state level databases maintained for personalization of smart cards if required, in accordance with the security features and processes prescribed by the Registrar.

Maintain application software for field operations. The application software should be able to feed the information to the MoRD web based MIS.

Web service client may be used to update centralized MIS.

Manage the transaction databases at GP level and integrating the same with NREGASOFT

Scope of Work of Service Provider

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Installation and operation of ICT infrastructure/devices at the GP/Worksite level (Solution)

Procure, install and maintain the complete Solution at Gram Panchayat and relevant work sites.

Ensure availability of mobile devices for the Gram Panchayat staff, services and uptime as per service level standards.

Ensure data captured at worksite is fed into NREGASOFT as per frequency prescribed.

Training & Orientation for the GP Level functionaries involved with Mahatma Gandhi National Rural Employment Guarantee Act operations

Scope of Work of Service Provider

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Implementation of project at the GP/Worksite level: Ensure the Solution functions as per the service level standards at the ground level to Facilitate application for registration & demand for work.

Issue computer/device generated dated receipt of job application with job card no. inscribed.

Operate & Maintain e-Muster (biometric attendance) solution at relevant work sites for taking real time attendance for MGNREGA workers. Attendance information should automatically feed into MoRD MIS on daily basis or as per prescribed frequency. NIC will develop the e-Muster application and web service which is required to update centralised MIS.

Capture verification of measurement of work to support / certify wage payments calculations.

Provide for identification of work survey number so that same may be integrated with NREGA SOFT. Every work site will need to be associated with Longitude and Latitude using any GPS enabled devices / mobile phones so that work assigned can be recorded.

Generate electronically list of workers at the end of every month stating names and payments due may be from work executed, wage compensation, or unemployment allowance paid. At Panchayat level the list shall be displayed.

Maintain other electronic registers for the Gram Panchayat as per requirements of the Contract and by appropriately integrating with the NREGASOFT

Scope of Work of Service Provider

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Operations: Proposed infrastructure required

Scope of Work of Service Provider

DevicesDevices

•Handheld Device with• Camera• Fingerprint scanner• Printer• Adequate battery

•Printer

•Handheld Device with• Camera• Fingerprint scanner• Printer• Adequate battery

•Printer

PeoplePeople•One field officer for every 5 gram panchayats•One Area project manager for every district•One State project manager for every state

•One field officer for every 5 gram panchayats•One Area project manager for every district•One State project manager for every state

Other Infrastru

cture

Other Infrastru

cture

•Printer rolls•Printer cartridge•Stationary•Power Backup device

•Printer rolls•Printer cartridge•Stationary•Power Backup device

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Optional (after due permission from the MORD is sought in writing)

Service Provider may also operate as a village level BC in association with authorized bank.

Scope of Work of Service Provider

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Implementation Framework

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Implementation Framework A Service Provider will be selected for each state through a single bid process for

all the States. (MORD reserves the right to cluster states).

One state/cluster of states will be managed by one service provider.

A tripartite Service Agreement will be entered between the MORD, State Government and Service Provider

MORD will appoint a Third Party Agency to monitor the Project in each state during implementation

The current institutional framework, monitoring framework and the reporting and fund flow mechanism will remain unaltered as far as MGNREGA implementation is concerned.

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Expected SLA – key parameters Enrolment

Coverage of beneficiaries in a GP (80% of jobcard holders & 95% of current workforce – last financial year)

Coverage of GPs (90% of GPs as per Enrolment Plan)

Operations Number of GPs operationalised as per agreed timeline (90%) Deployment of requisite manpower at a location Availability of all manpower provided as per working hours Time taken for resolution of technical issues faced related to

application software loaded on HHT Availability of equipment – number of days for defect rectification

Strong service standards would be laid in the service agreement. An Independent third party Consultant would monitor the implementation.

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Implementation Timelines Mobilization

Planning, financing, procurement of hardware, recruitment & training, coordination with state, district, block and GP level nodal agency.

This phase is for three months from award of contract

Enrolment One time Enrolment for existing Job Card Holders

The activities involved in enrolment are capturing of biometric data as per UIDAI specifications Enrolment process will start latest by 3 months from award of contract Process to continue over a period of 18 months covering all the existing beneficiaries. First set of enrolment will be done for beneficiaries who were employed last year under MGNREGA. Expected number : 5.81 crores (Assuming that rest 50% would have been covered under other

schemes)

– No of beneficiaries demanding job in FY 2009-10: 11.63 crores (approx)

New Enrolments Service Provider will deploy its resources at each district for addition/modification of the information by

new beneficiaries

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Implementation Timelines Operations

Procure, install solution at GP Commencement of recording daily attendance at the worksite as per Agreement This phase of operations is dependent on enrolment and will commence latest by 7th

month from award of contract One month lag between enrolment at GP and commencement of operations for that

GP

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Implementation Timelines

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Discussion issues for SP’s

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Issues for discussion Biometric Enrolment

Enrolment of the workers coming to worksite should be done first or Should the biometric enrolment be done at one time for all the Job card holders

Place of setting up Enrolment station for Biometric Enrolment: Gram Panchayat Office or Worksite

Definition of Operations Kit

Attendance on Worksite In case if the attendance is not possible through “HHD /Mobile ICT Device” due to any

reason then how would the Muster Roll be updated? Should the Paper Muster roll be used in case of failure of “HHD /Mobile ICT Device”

or due to false rejection of finger print?

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Issues for discussion e-Muster

Application development requirement and standard Web-Service and development.

Measurement of Work Decision on the use of e-MB book instead of Paper MB

KYR+ Application Customization as per MGNREGA fields, Field Identification for KYR+ for Integration.

Data Security Service provider should ensure that the data in the offline/ online version is secure

and cannot be tampered. It should be added in the SLA with heavy penalties on the Service Provider.

The use of digital signatures or other security solution to be worked out for the JE/Engineers or Mates in the context of the rural setting.

Verification Terminal Security Definition on Biometric Records and Storage. Biometric template Storage Security Definition on Mobile Device.

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Issues for discussion Standards

Biometric finger print standard required for verification process. Biometric template standard for sharing and storage in Database / Mobile Device.

Data Warehousing Requirement Analysis of State Level Database/ Data Warehousing

For offline GP/Worksite For online GP/Worksite

– Note: Do we need to manage distributed databases by service providers? Service provider will need to procure servers for state data warehousing or existing

databases / servers will be used which is already hosted at NICNET? Data Warehousing Authority discussion & find out if data can be hosted outside Govt.

Premises. Department of IT to share the details of the Implementation status of State Data

Centre (in all the States and UTs) and expected roll out.

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Issues for discussion Responsibility for integrating and merge issued UID number / Data Packets with

existing MGNREGA State Database

Smart Cards Should smart cards be used for offline authentication purpose, where Smart card can

carry encrypted Biometric Templates for 1:1 Match at HHD/Mobile ICT Device?

Incase Smart Card is chosen as offline Authentication Media, define Smart Card specification and Memory requirement. (SCOSTA CL/SCOSTA/JAVA Card/ Magstripe).

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Proposed Qualification Parameters

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Eligible Bidders Eligible Entities

Company incorporated under the Indian Companies Act, 1956 (including Section – 25 of the Act) or

Society registered under Societies Registration Act 1860 or Public trust registered under the Indian Trusts Act 1882

In case of a Consortium, any combination of above with max of 4 members

In case of a Consortium, the combined Technical Capacity and Networth of those Members, who have and shall continue to have an equity share of at least 11% in the Consortium, should satisfy the eligibility condition; Lead Member to have minimum 26% stake in the consortium

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Eligible Parameters: Technical Capacity The Applicant shall qualify if in any of the following categories :

Has undertaken UIDAI enrolments as “Enrolling Agencies” for undertaking demographic and biometric data collection for enrolment of residents; or

Managed minimum 500 Common Service Centres (CSCs)  under the CSC Scheme of National e-Governance Plan; or

Successfully implemented at least 3 e-governance projects with a state government / central government / PSU in last five years in India. The scope of such projects should include supply of hardware, development of application software  and O&M of application software  ; or

Successfully implemented at least 1 smart card based project with personalization solution in India in last 5 years end at date of issue of RFQ, which involves delivery of atleast 1 lakh smart cards; or

Any institution which has more than 500 Business Correspondents as defined by RBI.

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Eligible Parameters: Financial Capacity

A minimum net worth criterion to be set out for all the states.

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Number of Bidders Clustering: Clustering or grouping of the states together based on the number of

Gram Panchayats, administrative or geographic considerations may be done by MORD

Max Number of States : A cap on the states a Bidder can be awarded on absolute basis Financial bids would be opened in a pre-defined order of states Bidder can be L1 in a max 5 number of states

OR

Networth based limit on number of States: Financial bids would be opened in pre-defined order of states Financial bids of a bidder would be opened only if the remaining net worth is more

than the net worth required for that state. If the Bidder is L1, the net worth required for the state would be deducted from its net

worth to get its remaining net worth (Bid capacity would be determined for the bidder to assess his ability to finance the project i.e. net worth criteria to be met)

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Bid Parameters Concession Period: 6.5 years / 13 years

Bid Parameter:

Fixed fee per Gram Panchayat; or Fixed fee per Gram Panchayat plus Transaction based fee for operations

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For any further queries/ clarification/ responses, please contact

Jyoti Gujral: jyoti@idfc.com

Ritesh Saxena: ritesh_saxena123@yahoo.com

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Thank You