What is GeM?

• A unified online platform for the procurement of commonly used goods

and services.

• A paper less and cashless e-marketplace.

• An open marketplace focusing solely on being a platform for

Government buyers to meet sellers and conduct business.

• A trust based portal where the buyer shall hold the responsibility to
ensure value for money and timely payment.
What is GeM?
• GeM is not to be made a party to any dispute between Buyer and
Seller.

• GeM is only a platform for Buyer and seller to contract business.

• GeM is not responsible for delivery of items or payments.

 PRODUCT RANGE IN GeM
• A4 printing paper, printing cartridges and electronic goods like
printers and laptops to highly specialized goods like drilling equipment
and medical equipment.

• For services, the spectrum ranges from standard services such as

security services, chauffeur services and gardening services to a more
complex set of specialized services such as consulting services and
engineering services.
User Registration
 Primary User
• Any officer at the level of Deputy Secretary of the Government of
India or equivalent.
• Responsible for registering the organization on GeM.
• Creation of user accounts for secondary users and assigning them
roles and responsibilities.
• Supervision of all transactions performed by secondary users.
• Responsible for ensuring compliance of GFR and/or Rules governing
public procurement.
 Secondary Users
• Officials responsible for procurement transactions on GeM including
Placement of Contracts, Receipt of Stores, and Payments to the
Sellers etc.
• The access rights permissible to registered Secondary users would be
decided by the Primary User of the Department.
• Secondary Users may be given the roles of Buyer / Consignee /
Drawing and Disbursement Office (DDO) / Paying Authority etc.
 Secondary Users
• Buyer
• Responsible for procurement procedures, placement of contracts, E Bidding/RA
• Search judiciously and shortlist items using filters
• Shall satisfy that the price of the selected offer is reasonable.
• Shall not place any order for offers in any wrong/inappropriate product category.
• Consignee
• Responsible for receipt and checking of the items
• Accept/Reject items
• Generate ‘Consignee’s Receipt cum Acceptance Certificate’ (CRAC)
• PAO
• DDO
Buyer’s responsibilities on GeM
portal
• to ensure that
• the procurement done by them are in compliance of General Financial Rules and / or Rules Governing Public
Procurement in respect of their organization,

• all GeM terms and conditions and other procurement Policies / Guidelines notified by the government from time to
time, including timely payments as per GeM terms and conditions

• the Buyers (in all capacities i.e. as Buyer, Consignee, DDO, Paying Authority etc) are responsible to ensure that the
procurement done by them are in compliance with GeM Terms and Conditions / Guidelines

• and all contract related transactions are completed within time lines prescribed in GeM Contract

• The Buyers must ensure that they have the requisite authorization to enter into contract with Seller(s) on GeM for and
on behalf of the organization

• While making procurement on GeM, the Buyers shall judiciously search and shortlist items using filters such as
quantity, technical parameters, delivery period, warranty period, consignee location(s), Seller’s eligibility etc. as per
their approved requirements
Buyer’s responsibilities on GeM
portal
• to ensure that

• The Buyers shall satisfy themselves that the price of the selected offer is reasonable.
• Buyer is at liberty to utilize all the data / information and Business Analytics made available in GeM including
e-bidding and reverse auction.

• The Buyers, before placing the order on GeM, should have the required mandatory approval with prior
sanction and approval of the competent authorities and shall be in compliance with and as per procedures
outlined in GFR and other procurement guidelines issued by the Government from time to time

• On award of the Contract(s), it would be construed that the Buyer has obtained all necessary Administrative &
Financial sanctions of the competent authority and adequate funds are available indicating the relevant Head
of accounts in the awarded Contract(s).

• The Buyers should not exercise any corrupt influence on any aspect of contract and commit to take all
measures necessary to prevent corruption maintaining complete transparency and fairness in all activities
related to GeM
Buyer’s responsibilities on GeM
portal
• to ensure that

• Buyers are not allowed to place any order at GeM prices outside GeM.

• The prices on GeM are only applicable if the procurement is made through GeM portal.

• Using GeM prices for procurement outside GeM portal is strictly prohibited.
• Further, Buyers are not allowed to place any off-line contract to the Seller directly based on the
outcome of e-Bidding/ RA conducted on GeM.

• All such contracts shall be treated as null and void

• GeM reserves the right to delete all data related to such transactions from GeM database besides
taking suitable actions against such Buyers including suspension from GeM and / or reduction of
Buyer rating etc.
 Buying Modes Supported
• Direct Purchase

• Value up to ` 25,000/-

• For low value transactions.

• Shall allow the buyer to directly procure from any available seller on GeM
that meets the requisite quality, specification and delivery period as specified
by the buyer.
 Buying Modes Supported
• Direct Purchase with L1

• Value up to ` 5,00,000/- (Excluding automobiles where limit is of ` 30,00,000/-)

• For mid value transactions

• Shall allow the buyer to directly procure from the L1 seller after comparing all
available sellers

• The comparison must be made between goods/services of at least three

different manufacturers/OEMs and three different sellers.
 Buying Modes Supported
• E-bid
• Value above ` 5,00,000/- (Excluding automobiles where limit is of ` 30,00,000/-)
• Shall allow buyers to conduct an electronic bid for the goods and services on the
platform.
• Technical parameters and warranty identified by the buyer shall be base
parameter.
• Bid life cycle is by default 90 days (can be configured to 120, 150 or 180 days)
• Minimum time for submission of bids is 10 days after publication.
• Bids submitted shall remain valid for minimum 15 days from bid opening date.
• Two bid system
 Reverse Auction (RA)
• If two or more bidders offer same lower price RA has to be
conducted.
• Bid start price
• Bid decrement value
• Bidders can bid one or multiple step decrement lower than the
prevailing lowest bid at that time.
• Bid closing time will be automatically extended by another 15 minutes
if a lower price bid is received within 15 minutes of existing end time
of RA
 E-Bid to RA
• After completion of technical evaluation, RA for 50% of technically
qualified bidders, arranged in the order of prices from lowest to
highest.
• Eligible sellers would be rounded off to next higher integer.
• If only one OEM product in 50% then participation is increased to get
at least product of one more OEM.
• Bidders eligible for SME or Make in India coming within 15% and 20 %
respectively of L-1 is also permitted.
 Buying Modes Supported
• Proprietary Article Certificate (PAC) Buying

• The GeM platform shall allow buyers to procure on a proprietary basis by

using the PAC filter provided on the GeM platform, which allows the selection
of a specific model/make from a particular seller that is available on the
platform.
• PAC certificate is mandatory
• Except for direct buying up to ` 25,000/-, bidding is mandatory
 Audit Trail
• GeM has been envisioned as a trust based system, and this shall be the basis
for many decisions on the platform.
• In order to effectively implement this system, GeM shall institute a set of
internal checks and controls.
• A key aspect amongst these shall be GeM maintaining an audit trail i.e. a
securitized chronological record that provides documentary evidence of the
sequence of activities carried out on the platform during any transaction that
takes place on the platform.
• The purpose of keeping audit trail in the system is to allow Auditors to
evaluate the process transparently, and review the choice of filters, data,
evaluation criteria and confidentiality techniques that are used on the
platform.
 Rules for Sellers
• Minimum discount of 10% on MRP is mandatory.
• Can offer higher discounts.
• Must offer best possible lowest price on GeM and undertake that it
would not sell or offer to sell the same product outside GeM in
comparable quantity on similar terms and conditions at a price equal
to or lower than Offer price in GeM.
 Performance Security and
Performance
• There shall be no Performance security / PBG requirement for
contracts up to ` 5,00,000/- either through Direct purchase or Direct
Purchase with L1

• For contract placed following E-Bid/RA performance security @ 2% of

the value of the contract.
• Buyer has option to select performance security between 2% to 10%.