Government e-Marketplace (GeM) is the National Public Procurement Portal to promote a transparent, efficient, and inclusive marketplace. GeM provides the setup for e-market for different goods & services procured by Government Organisations / Departments / PSU’s. It provides the various tools of e-bidding, reverses e-auction, and demand aggregation to facilitate the government users, achieve the best value for their Products.
The Ministry of Commerce & Industry has launched the 3rd version of the Government e- marker place (GeM 3.O). The earlier version GeM 2.O was launched in the year 2016.
GeM 3.O has a powerful search engine and price comparison using third party sites multisource and real-time. It has a performance-based User Rating and online vendor assessment (optional). It has market based-bundling and bunching of products and services. It also has multi-Cart Functionality and offers more Services with bid and RA Facilities.
The thrust on a trust-based system has already taken its roots with buyers and sellers. The scaled-up version-GeM3. Ois taking this trust-based system to greater heights, through automation of its process. Self-declaration is the key, along with an intense automated process to penalize any deviant behaviour. Similarly, good buyer behavior is a key component to generate seller confidence on the GeM portal so that they can offer the best price and quality.
Benefits of GeM 3.O
- Completely transparent transactions across all ranges.
- Market based generic requirements across all government agencies.
- Open and dynamic market place with a rating based on the performance of users on websites.
- Standardisation of specification of both products and services enabling.
- Standardisation of specification of both products and services enabling empirical price comparability.
- Generic standards established through universal service levels and cost comparison enabled.
Terms and conditions:
- The offer(s) and resultant Contract(s) and all Supporting Documents are required to be e-signed online by the respective user/functionary of the Seller and Buyer. The E-sign is at par with digital signatures as per Information Technology Act Amendment 2008. No Ink Signed copies of these documents are required for processing/legality as per OM.
- Prices shall be quoted by Sellers on an all-inclusive basis i.e. including excise duty taking into account the MODVAT benefits if any, sales tax (ST/CST/VAT/), Service Tax, Customs duty, Entry Tax, etc. Statutory variation, if any, shall be to the Seller’s account and no modification in the contract price, on account of such modification shall be allowed during the delivery period.
- All Products supplied under the Contract(s) shall have Guarantee/Warranty for 1 year from the date of receipt. Seller at the time of listing/offering the products may choose to provide a longer guarantee period (i.e. more than 1 year).
- There shall be no Performance security/PBG requirement for contracts placed under Direct Purchase Option on the GeM portal as of now. However, for procurement through reverse Auction/e-bidding, Security Deposit/Performance Bank Guarantee (PBG) @2% of the contract value, shall be applicable in respect of the contracts valuing above Rs. 25, 00,000.
- The Goods delivered shall carry the self-certified Warranty/Guarantee. The buyer shall have the right to reject with proper justification any consignment of the Goods received within a period of 10 days of the receipt. No payment shall be made for rejected goods and the Seller would be liable to take back such rejected Goods within a period of 10 days without any charges.
- All the Goods/Services on GeM shall be offered on Free Delivery at Site basis including loading/unloading. In respect of items demanding installation or commissioning (as indicated in technical details of the item), the charges for the same shall also be added in the offered price on GeM.
- On-line payments shall be made in INR against the on-line bills to be submitted by the Seller:
For Goods: 100% payment will be released within the period of 10 days of the issue of consignee receipt-cum-acceptance certificate (CRAC) and submission of bills.
For Services: 100% payments on the basis of monthly bills will be paid within the period 10days of submission of bills with prescribed documents.
- If the Seller fails to deliver the Goods/Services within the period of the Delivery, Liquidated Damages will be charged @ 0.5% per week or part of the week of a delayed period not exceeding 5% of the contract value.
- Sellers shall offer a minimum discount of 10% over MRP of the products, mandatorily unless otherwise specified for offering their products on the GeM portal. The discount of 10% over MRP is the Minimum discount and sellers are free to offer a higher discount on the GeM portal.
- In case of registration of Primary user/Buyer and creation of secondary user(s) by the former, their Aadhar (UID) details collected by GeM are solely for user verification and to utilize e-signing on the documents. The e-sign works based on details available in the Aadhar database of UIDAI and there is no interference in the personal details of the user.
- Buyers are not allowed to place an order at GeM prices other than the GeM. The prices on GeM are only applicable if the procurement is made through the GeM portal. Using the GeM prices for procurement other than the GeM portal is strictly prohibited.
- GFR rule 149 allows direct on-line purchases on GeM up to Rs.50, 000/- through any of the available suppliers on the GeM, meeting the requisite quality, specification and delivery period. However, GeM being a dynamic online marketplace this is subject to procuring authorities convinced about the reasonability of the rates.
- In case of Direct Purchase, during carting period of 5 days, rates for carted quantity, for that buyer, are fixed for five days against any upward revision by the seller. However, the advantage of any downward revision in the offer price of the Carted item shall be automatically provided to the buyer by GeM.
- The Buyer will provide a projection of their annual demands in the GeM indicating necessary Goods/Services with specification & quality, quantity, consignee location, and delivery period requirements, etc. by way of Annual Procurement Plan.
General Financial Rules-2017
Rule 149: DGS & D or any other agency authorized by the Government will host GeM for the common use of the Goods and Services. DGS & D will ensure adequate publicity including the periodic advertisement of the goods/services to be procured through GeM for the prospective suppliers. The Procurement of Goods and Services by Ministries or Departments will be compulsory for Goods or Services available on the GeM portal. The credentials of suppliers on GeM shall be certified by DGS & D. The procuring authorities will authenticate the reasonability of rates. The GeM portal shall be exploited by the Government buyers for direct on-line purchases as under:
1) UptoRs.50, 000/-through any of the available suppliers on the GeM portal, meeting the requisite quality, specification, and delivery period.
2) Above Rs.50,000/- and up to Rs.30,00,000/- through the GeM Seller having the lowest price amongst the available sellers, of at least 3different manufacturers, on the GeM portal, meeting the requisite quality, specification and delivery period. The buyer can use tools for online bidding and online reverse auction available on the GeM portal if allowed by the competent authority.
3) Above Rs.30,00,000/- through the supplier having the lowest price meeting the requisite quality, specification, and delivery period after mandatorily obtaining bids, using online bidding or reverse auction tool provided on the GeM portal.
4) Theinvitationfortheonlinee-bidding/reverseauctionwillbeavailabletoalltheexistingSellersorother Sellers registered on the portal and who has offered their goods/services under the specific product/service category, as per terms and conditions of GeM.
5) The above mentioned monetary ceilings applicable only for purchases made through GeM. For purchases, if any, outside GeM, relevant GFR Rules shall apply.
6) The Ministries/Departments shall work out their procurement requirements of the Goods and Services on either “OPEX” model or “CAPEX” model as per the requirement and suitability at the time of preparation of Budget Estimates (BE) and shall project their Annual Procurement Plan of the goods and services on GeM portal within 30 days of Budget approval.
7) The Government Buyers may as certain the reasonableness of prices before placement of the order using the Business Analytics (BA) tools available on the GeM portal including the Last Purchase Price on GeM, department’s own Last Purchase Price, etc.
8) Demand for goods shall not be divided into small quantities to make piecemeal purchases to avoid procurement through-1Buying/bidding/reverse auction on GeM or mandatory to obtain the sanction of higher authorities required concerning the estimated value of the total demand.