Download - Selling to Government
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Selling to Government
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General purchase behavior
y Competitive bidding (tenders) are oftenrequired to demonstrate the principle ofEqual Opportunity.
y Negotiated contracts are also possible,particularly in case of no competition to thevalue provider in question.
y
Political influences, national / regional bias& personal considerations are otherimportant factors in b2g selling.
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Role of government
y Specialized role of government and differentmotives like social, disaster relief,infrastructure development, defence,
education, political make b2g different fromb2b marketing considerations.y These factors often lead to non-standardized
products.y
This complexity and lack of standardizationare often the result of significant negotiationby a diverse group of stakeholders.
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Common Government Purchase Process
y Tenders Rate Contracts
y Tenders - Purchase Contracts
y Limited tenders
y Negotiated Contracts
y Most important - Through Government InstitutionalChannels
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Some major Government Customer segments
Ministries central & state
y Examples PMO, MHA, MOD, MEA,MOF, MHRD, MHE, MOR, MCA,
MUD,MOL, MYAy Characteristics
1. Huge staff
2. Lot of report generation
3. Lot of meetings & presentations4. Enough budgets
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Contd.
Central Government agenciesy R&D Centers NPL, CSIR, CRRI, CFTRI, FRI,
IPR, CMC, C-Dot, ISROy
NIC National Informatics Centrey Controlling & Monitoring Bodies AGCR, CVC,
CEC, Planning Commissiony Taxation Excise, Sales tax, Income Taxy Education IITs, IIMs, Universities, KVS,
Navodyay Vidhyalaya SangathanyApex Education Bodies NCERT, CBSE, AICTE,
UGC
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Contd.
Law enforcement agenciesy State Police Departmenty CBIy
RAWy Judiciary Courtsy CISFy NSGy
ATSy Paramilitary forces BSF, CRPF, ITBP, Coast
Guard
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Contd.
Utilities & Infrastructure Providers
y Municipal Corporations
y Electricity Boards
yWater Supply Departments
y CPWD & PWD
y NHAI, AAI, BRO
y Fire Control Departments
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PSUs
y Oil sector ONGC, IOC, HPCL, BPCL
y SAIL
y Power sector BHEL, NTPC, PFCL, PGCIL
y Banks SBI, RBI, PNB etc.
y Fertilizer sector NFL, IFFCO, KRIBHCO
y Defence Equipment BEL
y Telecommunication BSNL, MTNL, TCIL-VSNL
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Contd.
Transportation, Travel, Trading
y Indian Airlines, Air India
y Indian Railways Railway divisions, ICF, RCF,
DLWy DMRC
y Concor
y State Transport Corporations
y Shipping Corporation of India
y STC & MMTC
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PDS
Social Retail Services
y Commodities
y Kerosene
y Cooking Oil
y Candles, Matches
y Basic Health Medicines
y Family Planning Medicines
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Government sector-wise most commonprocedures
y Ministries KB, NCCF for all routinizeditems. Tenders for non-regular or specialrequirements like for new projects. Can also
ask NIC for IT related requirements.y Central government agencies KB, NCCF.
y Law enforcement agencies CBI, RAW
through KB, NCCF. State Police & otherdepartments float annual R/C for variuosproducts.
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Contd.
y Utilities Providers Generally have task-specificrequirements. Go for individual registration /limited tender method.
y
Defence Sector Mostly through the DefenceR
/Cof DGS&D for all routinized purchases. Newproduct suppliers have to be approved by DGQA
before they can apply for DGS&D registration.
y
PSUs More autonomous. Have full fledgedPurchase Departments. Go for empanelment /limited tender route.
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Contd.
y Paramilitary forces Can not buy through DGS&DDefence R/C. Can buy through DGS&D Civil R/Cor float open tenders.
y Railways & other non-military key establishments Can buy through DGS&D Civil R/C. Also go
through open tenders, registration + limitedtenders & local purchase routes.
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Contd.
y Banks Have their own procedures. Differentbanks give different purchasing powers to theirbranch managers within which he can havestraight negotiations, 3 quotations or buying from
any government channel.
y Educational Institutions Most have them havedecentralized system with the HOD having
authority for his departments routine purchases.Anything beyond that has to be routed through theCentral Administration department.
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