Government e-Marketplace (GeM Portal)

 Introduction

“Revolutionizing Government Procurement: Exploring the Benefits of the Government e-Marketplace”

 

The Government e-Marketplace (GeM) is an online marketplace launched by the Government of India to enable government organizations, public sector undertakings (PSUs), and state governments to procure goods and services from registered suppliers.

The platform has been designed to bring transparency, efficiency, and cost-effectiveness to government procurement, while also promoting digitalization and ease of doing business.

Overview of GeM

GeM was launched in August 2016 by the Ministry of Commerce and Industry, and it has since become the main platform for government procurement in India. The platform is managed by the National e-Governance Division (NeGD), under the Ministry of Electronics and Information Technology. GeM has over 2.5 million products and services from more than 350,000 registered sellers and service providers. The platform provides an end-to-end online marketplace for procurement, starting from the selection of products or services to making payments.

Benefits of GeM

The GeM platform offers several benefits to government organizations, PSUs, and state governments, including:

1. Transparency: GeM provides a transparent and open platform for procurement, enabling buyers to view a range of products and services offered by different suppliers.
2. Cost-effectiveness: The platform is designed to promote competition, which can lead to cost savings for the government. Buyers can compare prices and features of products or services from different suppliers, enabling them to choose the best option.
3. Efficiency: GeM offers a streamlined procurement process, from product selection to payment, which can save time and reduce administrative costs. The platform also provides a single-window system for all procurement-related activities.
4. Digitalization: GeM is a digital platform, which promotes the government’s Digital India initiative. The platform enables electronic bidding, online payment, and e-signatures, which can reduce the use of paper and promote sustainable procurement.
5. Ease of Doing Business: GeM provides a level playing field for both large and small suppliers, enabling small and medium-sized enterprises (SMEs) to participate in government procurement.

Registration and Use of GeM

To use GeM, government organizations, PSUs, and state governments must register on the platform. Once registered, users can browse the range of products and services available on the platform and select the ones they require. The platform offers a range of product categories, including office supplies, IT equipment, furniture, and industrial products. Services offered on the platform include transportation, security, and housekeeping.

To sell products or services on GeM, suppliers must also register on the platform. Suppliers can register on the platform as individuals or as companies. The registration process is free, and suppliers must provide information about their company and the products or services they offer. Suppliers must also provide their bank account details to receive payments for products or services sold on the platform.

Here are some key points about the Government e-Marketplace (GeM):

• Government e-Marketplace (GeM) is an online procurement platform for government organizations in India.
• It was launched in 2016 to enhance transparency, efficiency, and speed in the public procurement process.
• GeM is managed by the Ministry of Commerce and Industry, Government of India.
• It offers a wide range of products and services, including goods, works, and non-consulting services.
• Registered sellers on GeM can sell their products and services to government buyers through the platform.
• Buyers can search for products and services, create and manage procurement orders, and make payments through the platform.
• GeM offers features such as e-bidding, reverse e-auction, and demand aggregation to help buyers get the best value for their purchases.
• It also offers features such as online bid and performance evaluation, online contract management, and online grievance redressal to ensure transparency and efficiency in the procurement process.
• GeM has simplified the procurement process and has reduced the time and effort required for procurement, leading to cost savings for the government and better business opportunities for sellers.
• It has also helped to promote the use of digital technology in the public procurement process and has increased the participation of small and medium enterprises in government procurement.

Overall, GeM has been a major initiative to bring transparency, efficiency, and cost savings to the public procurement process in India.

As a buyer on GeM :-

As a buyer, there are several benefits of using the Government e-Marketplace (GeM) platform for procurement. Here are some of the ways in which GeM can be useful for buyers:

1. Access to a wide range of products and services: GeM provides a single-window platform for procurement, which means that buyers can easily access a wide range of products and services, including common use items, office equipment, and even specialized services like transportation and catering. This eliminates the need to search for suppliers individually, saving time and effort.
2. Competitive pricing: GeM enables buyers to conduct e-bidding and reverse auction, which helps to drive down prices and ensure that the procurement is cost-effective. This feature allows buyers to compare prices from different suppliers and choose the one that offers the best value for money.
3. Verified suppliers: All suppliers registered on GeM are verified, which means that buyers can be assured of the quality of the products and services offered. This reduces the risk of fraudulent activities and ensures that the procurement process is transparent and efficient.
4. Timely delivery: GeM provides real-time tracking of the delivery of goods and services, which means that buyers can monitor the progress of their procurement and ensure that the delivery is timely. This feature helps to reduce delays and ensures that the procurement process is efficient.
5. Simplified procurement process: GeM has simplified the procurement process by providing a user-friendly platform that is easy to navigate. This eliminates the need for paperwork and reduces the time and effort required for procurement.
6. Compliance with government regulations: GeM is a platform that is compliant with government regulations, which means that buyers can be assured that their procurement is in line with the rules and regulations set by the government.

In conclusion, GeM is a useful platform for buyers who are looking to procure goods and services from verified suppliers in a cost-effective and efficient manner. It simplifies the procurement process and provides access to a wide range of products and services, making it an ideal platform for government organizations, PSUs, and other public organizations.

Here are the general steps to procure through GeM:

1. Register on GeM: Buyers need to register on the GeM platform to access the procurement services. Registration is free and requires basic information such as name, email address, and mobile number.
2. Create a requirement: After logging in to the GeM platform, the buyer needs to create a requirement for the product or service needed. The buyer can search for the product/service using the GeM catalog, or can create a customized requirement.
3. Publish the requirement: After creating the requirement, the buyer needs to publish it on the GeM platform. The requirement is visible to all the registered sellers on the platform.
4. Receive bids from sellers: After the requirement is published, the registered sellers on the platform can bid on the requirement by quoting their prices. The buyer can view the bids and compare them to choose the best offer.
5. Accept the bid and make payment: Once the buyer has selected the best offer, they can accept the bid and make payment through the GeM platform. GeM offers various payment options such as online payment, payment through GEM advance payment account, and payment through government e-payment gateway.
6. Receive the product/service: After the payment is made, the seller delivers the product or service to the buyer as per the agreed terms and conditions.

It is important to note that the actual procurement process may vary depending on the type of product or service being procured, and the rules and regulations of the buyer’s organization. Buyers are advised to refer to the GeM user manual and other resources available on the GeM platform for detailed information on the procurement process.

Here are the different modes of procurement available on the GeM portal:

1. Direct Purchase: In this mode, the buyer can directly purchase goods or services from a seller without inviting bids. This mode is suitable for products or services that are available at a fixed price, and for which no negotiation is required.
2. Marketplace: In this mode, the buyer can invite bids from multiple sellers for a specific requirement. The seller with the lowest bid is selected for the purchase.
3. Bid: In this mode, the buyer can invite bids for a requirement that is more complex or requires some negotiation. The bidding process can be either a single-stage or a two-stage bidding process, depending on the complexity of the requirement.
4. Reverse Auction: In this mode, the buyer can invite bids for a requirement and the seller with the lowest bid wins the auction. The reverse auction is suitable for products or services for which the buyer wants to achieve the best possible price.
5. e-Bidding: In this mode, the buyer can invite bids from multiple sellers for a requirement that involves technical specifications. The e-bidding process involves the evaluation of the technical specifications and the financial bid to determine the best offer.
6. Request for Proposal (RFP): In this mode, the buyer can invite proposals from sellers for a complex requirement that involves a detailed specification. The RFP process involves the evaluation of the technical and financial proposals to select the best offer.

The choice of procurement mode depends on the complexity of the requirement and the buyer’s procurement policy. GeM provides a user manual and other resources on its portal to help buyers choose the appropriate mode of procurement.

CRAC

CRAC stands for Consignee Receipt and Acceptance Certificate, which is a document that is generated when the buyer receives and accepts the goods or services delivered by the supplier. In the context of the Government e-Marketplace (GeM), CRAC is an important part of the procurement process as it serves as proof of delivery and acceptance of the goods or services.

Here is how CRAC works on GeM:

1. Delivery: Once the supplier delivers the goods or services to the buyer, the buyer needs to acknowledge the delivery on the GeM platform. This can be done by clicking on the “Acknowledge Receipt” button on the order details page.
2. Inspection: After acknowledging the delivery, the buyer needs to inspect the goods or services to ensure that they meet the quality and quantity specifications mentioned in the order. If there are any discrepancies, the buyer needs to raise a dispute on the GeM platform.
3. Acceptance: If the goods or services meet the quality and quantity specifications, the buyer needs to accept the delivery by clicking on the “Acceptance” button on the order details page. This generates the CRAC document, which serves as proof of delivery and acceptance.
4. Payment: Once the delivery has been accepted and the CRAC has been generated, the buyer needs to make the payment to the supplier. GeM provides multiple payment options, including online payment through net banking, credit/debit card, or UPI.

In conclusion, CRAC is an important part of the procurement process on GeM as it serves as proof of delivery and acceptance of the goods or services. It helps to ensure that the procurement process is transparent and efficient, and that the buyer receives the goods or services as per the agreed-upon specifications.

GeM General Terms & Conditions

To ensure the smooth functioning of the platform and provide a transparent and fair environment for all users, GeM has laid down certain terms and conditions. In this write-up, we will discuss the general terms and conditions of the GeM portal.

1. Eligibility: To use the GeM portal, the user must be an authorized representative of a government department or organization. Private entities are not allowed to use the portal.
2. Registration: Users must register on the GeM portal to access its features. The registration process involves providing personal details and other relevant information. The user must ensure that all the information provided is accurate and complete.
3. Use of GeM Portal: The GeM portal must be used only for lawful purposes. Users must not use the portal to engage in any activity that is illegal, unethical, or fraudulent. They must not interfere with the functioning of the portal or disrupt other users’ access to the platform.
4. Information on the Portal: All the information provided on the GeM portal, including product details, specifications, and prices, is subject to change without prior notice. The user must verify the information before making any purchase.
5. Product Quality: The government has the right to reject any product that does not meet the specified quality standards. The vendor must ensure that the product delivered meets the required standards and specifications.
6. Payment: Payment for the goods or services must be made in accordance with the terms agreed upon between the buyer and the seller. The payment must be made through the GeM portal using the approved payment method.
7. Dispute Resolution: In case of any dispute or disagreement, the parties must attempt to resolve it amicably. If the dispute cannot be resolved, it will be referred to the GeM Dispute Resolution Committee.
8. Termination: The GeM portal has the right to terminate the user’s account in case of any violation of the terms and conditions or any fraudulent activity.
9. Intellectual Property: The GeM portal and all the content on it, including images, text, and logos, are protected by copyright and other intellectual property laws. The user must not use the content for any commercial or non-commercial purpose without the written consent of the GeM portal.

In conclusion, the GeM portal has laid down certain terms and conditions to ensure a fair and transparent environment for all users. It is the responsibility of the user to read and understand the terms and conditions before using the platform. Any violation of the terms and conditions may result in the termination of the user’s account and legal action.

General Financial Rules, 2017 Rule 149

Government e-Market place (GeM): Government of India has established the Government e-Marketplace (GeM) for common use Goods and Services. GeM SPV will ensure adequate publicity including periodic advertisement of the items to be procured through GeM for the prospective suppliers. The Procurement of Goods and Services by Ministries or Departments will be mandatory for Goods or Services available on GeM. The credentials of suppliers on GeM shall be certified by GeM SPV. The procuring authorities will certify the reasonability of rates. The GeM portal shall be utilized by the Government buyers for direct on-line purchases as under:

(i) Up to Rs.25,000/- through any of the available suppliers on the GeM, meeting the requisite quality, specification and delivery period.

(ii) Above Rs.25,000/- and up to Rs.5,00,000/- through the GeM Seller having lowest price amongst the available sellers (excluding Automobiles where current limit of 30 lakh will continue), of at least three different manufacturers, on GeM, meeting the requisite quality, specification and delivery period. The tools for online bidding and online reverse auction available on GeM can be used by the Buyer even for procurements less than Rs 5,00,000.

(iii) Above Rs.5,00,000/- through the supplier having lowest price meeting the requisite quality, specification and delivery period after mandatorily obtaining bids, using online bidding or reverse auction tool provided on GeM (excluding Automobiles where current limit of 30 lakh will continue).

(iv) The invitation for the online e-bidding/reverse auction will be available to all the existing Sellers or other Sellers registered on the portal and who have offered their goods/services under the particular product/service category, as per terms and conditions of GeM.

(v) The above mentioned monetary ceiling is applicable only for purchases made through GeM. For purchases, if any, outside GeM, relevant GFR Rules shall apply.

(vi) The Ministries/Departments shall work out their procurement requirements of Goods and Services on either “OPEX” model or “CAPEX” model as per their requirement/ suitability at the time of preparation of Budget Estimates (BE) and shall project their Annual Procurement Plan of goods and services on GeM portal within 30 days of Budget approval.

(vii) The Government Buyers may ascertain the reasonableness of prices before placement of order using the Business Analytics (BA) tools available on GeM including the Last Purchase Price on GeM, Department’s own Last Purchase Price etc.

(viii) A demand for goods shall not be divided into small quantities to make piecemeal purchases to avoid procurement through L-1 Buying / bidding / reverse auction on GeM or the necessity of obtaining the sanction of higher authorities required with reference to the estimated value of the total demand.

Incident Management

Firstly, let’s define what Incident Management means. Incident Management is a process used by organizations to identify, analyze, and correct any incidents or issues that may arise in a system. In the case of GeM portal, this means identifying and resolving any issues that may impact the platform’s performance, user experience, or data security.

The Incident Management process on the GeM portal includes the following steps:

1. Incident Identification: In this step, any incidents or issues are identified and reported to the GeM portal team through the dedicated email or support portal.
2. Incident Logging: Once an incident has been identified, it must be logged into the incident management system. This step includes recording all relevant information about the incident, such as the type of incident, its impact, and the affected components.
3. Incident Categorization: The next step is to categorize the incident based on its type and severity. This helps the GeM portal team to prioritize the incidents and allocate resources accordingly.
4. Incident Prioritization: The incidents are then prioritized based on their impact on the platform’s performance and user experience.
5. Incident Investigation and Diagnosis: The GeM portal team investigates the incident and identifies the root cause of the issue. This step helps in developing an effective solution to resolve the incident.
6. Incident Resolution: The next step is to resolve the incident by implementing the necessary corrective actions. This includes restoring any lost data, fixing any technical issues, and ensuring the GeM portal is back to its optimal performance.
7. Incident Closure: The final step in the incident management process is to close the incident by verifying that the solution has been implemented successfully, and the issue is resolved.

In conclusion, the Incident Management process is critical for the efficient and effective operation of the GeM portal. It ensures that any issues that may impact the platform’s performance or user experience are identified, diagnosed, and resolved in a timely and efficient manner. The process promotes transparency, accountability, and ensures the platform’s continued success in facilitating government procurement in a digital ecosystem.

Types of Bids

Let’s discuss the various types of bids available on the GeM portal.

1. Single Bid: This type of bid is used when there is only one supplier or vendor capable of supplying the required goods or services. This bid can be used in situations where the product is exclusive or specialized, and only one vendor can provide it. In such cases, the single-bid system ensures that the procurement process is not delayed.
2. Open Bid: An open bid is a type of competitive bid in which multiple vendors can participate in the procurement process. Open bidding is used for procurement when the product or service is widely available and can be provided by multiple vendors. This bid process ensures a transparent and competitive procurement process, which helps to get the best quality goods or services at a reasonable price.
3. Limited Bid: A limited bid is a competitive bid in which the number of bidders is restricted. It is used in situations where the number of potential suppliers or vendors is limited or pre-determined. Limited bidding ensures that the procurement process is competitive while also reducing the administrative effort required to evaluate multiple bids.
4. Proprietary Bid: A proprietary bid is used when the product or service can only be provided by a single vendor. It is commonly used for proprietary products that are unique or patented. The proprietary bidding process is designed to ensure a fair and competitive procurement process while ensuring that the procurement of unique or specialized products is not delayed.
5. Reverse Auction: In a reverse auction, the roles of buyer and seller are reversed. In this type of auction, multiple suppliers bid to offer the lowest price for the required goods or services. The reverse auction process is designed to encourage competition among suppliers and help government organizations get the best price for the goods or services they require.

In conclusion, the GeM portal offers multiple types of bids to ensure that the procurement process is streamlined, competitive, and transparent. The type of bid selected depends on various factors, including the availability of the product or service, the number of potential suppliers, and the nature of the product or service. By offering multiple types of bids, the GeM portal ensures that government organizations can procure the goods and services they require efficiently and effectively while promoting fair competition among suppliers.

Conclusion

The Government e-Marketplace is a major initiative by the Indian government to promote transparency, efficiency, and cost-effectiveness in government procurement. The platform has already attracted a large number of suppliers and buyers, and it has the potential to transform the way government procurement is conducted in India. GeM promotes digitalization and ease of doing business, and it is expected to play a key role in the government’s efforts to promote the use of technology in all aspects of governance.