public-procurement
 

Telangana’s commitment has been focused on cultivating the institutional support for startups by providing demonstrable and transparent procurement processes. The objective was to stimulate efficient and friendly public procurement opportunities and promoting a healthy and competitive market for startups. The other prime initiative was to eliminate fraud, obscure activity and corruption and promoting sustainable procurement practices in the market. 
In support of this, the Government laid out:

  1. Relaxation norms for Startups in Public Procurement through GO.Ms.No.08 dated April 28th, 2018
  2. Preferential Financial Advantage to Startups through GO.Ms.No.08 dated April 28th, 2018
  3. Bilateral Procurement from Startups irrespective of a floated procurement notice/tender through GO.Ms.No.08 dated April 28th, 2018

1. Relaxation norms for Startups in Public Procurement

The Government of Telangana through GO.Ms.No.08 dated 28/04/2018 had brought in the undermentioned relaxations to Startups in Public Procurement: –

  • Prior turnover – Startups shall not be subjected to any prior turnover criterion for being eligible to participate in a government procurement process
  • Prior experience – Startups shall not be required to have any prior experience of having participated in a public procurement process
  • Exemption from Submission of EMD – Startups shall not be required to submit an Earnest Money Deposit to participate in public procurement process

In order to be deemed eligible, the Startup must submit a covering letter requesting for this relaxation in the format attached in Annexure-I (as available in the GO) to the Principal Secretary, ITE&C Department.  The Startup shall then be issued a certificate as prescribed in Annexure-II (as available in the GO) which may then be used for availing the benefits outlined earlier.

2. Preferential Financial Advantage to Startups

Startups shall be given a 15% relaxation on their submitted financial quotations pertaining to procurement, subject to meeting of quality and technical specifications (process for the same is elaborated below):

 Explanation:

a) If a startup quotes Rs X to be paid to them for goods/services in response to an RFP, then the following calculation is made: Y=X*85/100

Rs Y is then used for all subsequent calculations as the financial bid of the startup for evaluation irrespective of the kind of evaluation i.e. QCBS, LCS etc.

b) If a startup offers to pay Rs X for owning/operating goods/services in response to an RFP, then the following calculation is made: Y=X*115/100

Rs Y is then used for all subsequent calculations as the financial bid of the startup for evaluation irrespective of the kind of evaluation i.e. QCBS, LCS etc. 

3. Bilateral Procurement from Startups irrespective of a floated procurement notice/tender

The method detailed below shall be used to procure technology-based solutions from eligible Startups with innovative technology solutions irrespective of a floated procurement notice/tender. Interested Startups can submit an Expression of Interest (EoI) and detailed proposal by mailing the same to startup_cell@telangana.gov.in, irrespective of a floated procurement notice/tender.

Quality Evaluation Committee (QEC), a committee comprising of product specialists and technologists, shall then be constituted by the ITE&C department in consultation with relevant line departments for evaluating the quality and technical specifications of the product/service proposed.

If the solution is innovative and unique (as decided by QEC):

The QEC shall evaluate the solution within 30 days from receipt of EoI and submit its report to the relevant authority along with recommendation, failing which the solution will be deemed to be certified automatically.

Upon being certified by the QEC of the quality, Startups with unique products shall be asked to deploy a pilot as a Proof of Concept (PoC) for a stipulated time period in a designated location. During the course of the pilot, QEC shall conduct an impact study and submit its recommendations within 30 days of completion of the pilot to the line department, Secretary, ITE&C and MD, TSTS, failing which the pilot will be deemed to be approved for scale up automatically. Standard rate contracts such as NIXI, COTS, etc. shall be applied if possible.

 If the solution is innovative but not unique (as decided by QEC):

Startups which have developed innovative, but not unique (ex. smart parking), products with potential Govt. utilization shall go through the Swiss Challenge method as described below.

The QEC shall evaluate the solution within 30 days from receipt of EoI and submit its report to the relevant authority along with recommendation, failing which the solution will be deemed to be certified automatically. Upon clearing the quality and technical evaluation by the QEC, the proposal shall be made public inviting suggestions and counter proposals. In case the original proposer is unable to match the more attractive and competing counter proposal, the project shall be awarded to the counter proposal. Financial advantage to Startups, as detailed earlier, shall be applicable in the Swiss Challenge method of procurement, as well.

S.NOGO-Ms-NoFile
1Relaxation of Norms for Startups in Public Procurement of TechnologyDownload

These are the sample RFP’s which highlight the relaxations provided to encourage public procurement for Startups and encourage entrepreneurship. 

S.NO RFPFile
1Agriculture-Related Solutions using Emerging TechnologyDownload
2 Seed Traceability Solution in Agriculture using BlockchainDownload
3 Grading and Quality Assaying Solutions in
Agriculture using Emerging Technology
Download