The Government e-Marketplace (GeM) is a government-run e-commerce portal. It is a one-stop to facilitate and enable easy online procurement of the Consumer Goods & Services that are needed by various Government Departments, Organizations and PSUs.
The government under the Allocation of Business Rules, 1961 had begun the GeM in 2017. The main objective of the GeM is to ensure transparency, efficiency and promptness in the procurement of supplies.
What is Public Procurement?
Government offices, just like private companies, have to buy goods and services for their operational and office needs.
Public procurement (government tenders) refers to the process by which central, state governments and PSUs buy goods and services from the private traders and manufacturers.
Government procurement requires to follow strict procedures in order to ensure that the purchase process is fair, efficient, transparent and minimizes the on-site of public resources.
Why opt for GeM Registration?
GeM registration can empower the small traders, manufacturers and service providers to enter the wide and interactive online platform, where they can directly sell their products & services to various buyers from the Government Departments, Organizations and PSUs.
Public procurement on the GeM portal ensures transparency, efficiency, and promptness in the procurement and payment of suppliers.
It enables the Central, state governments and PSUs to buy the goods and services directly from the private traders and manufacturers instantly and hassle-free.
Benefits of Sellers on GeM Registration
- Assistance in tradeAll Government departments including Central, State Government and PSUs have to fulfill their purchase requirement only through sellers registered under the GeM portal. GeM registration has a great avenue for private companies business growth.
- Direct Government Purchase Traders can sell their products of value up to ₹50,000/- at fair prices directly to the government buyers without bidding just like amazon and Flipkart.
- Special Benefits for StartupsThere is an option for GeM registration as a startup on the GeM portal having unique and innovative product. The government has relaxed norms to procure goods from new Startup entrants.
- Less paperworkThere is minimum paperwork required to obtain GeM registration. Moreover, there is an easy and fair process for tender allotment under the GeM portal.
- TransparencyWith online GeM portal- transparency, effectiveness, and speed have been enhanced during the procurement of required goods and services
5 TYPES OF GOVERNMENT TENDERS ON GEM?
1. Advertised Tender Enquiry
The government advertises requirement on GeM portal and Central Public Procurement Portal (CPPP) for procurement of goods and services. And give Invitation to sellers to apply tenders.
This method used by government organizations when the procurement of goods and services of the value of INR. 25 lakhs and above.
2. Limited Tender Enquiry
This method is used when any goods and services regularly procured by government departments such as stationery, printer cartridge filling, water supply, etc.
Under limited tender inquiries, limited suppliers are impanelled by the Government Department.
Usually, Limited Tender Enquiry is used when the estimated value of the goods and services to be procured is less than INR 25 Lac.
3. Two-Stage Bidding
This is a traditional method used to procure high-value items such as purchasing plant and machinery etc. and when any procurement requires to assess complex and technical specifications.
Under Two-Stage Bidding, tender is allocated to a supplier based on successfully passing below 2 stages:
- Technical Assessment,
- Financial L1 (Lowest Price) Bid
4. Single Tender Enquiry
This method is very useful for startups having unique and innovative products. In order to empower startups, the government has also launched a special scheme “Startup Runway” for procuring unique and innovative products directly from startups.
There can be several circumstances such as
- Only a single supplier is available to the best of the knowledge of the government department’s officials.
- When the procurement of goods is urgent and necessary to purchase from a particular known source.
- When specific supplementary machines or spare parts required which is only compatible with existing procured machinery.
- This method adopted when the availability of desired goods and services scarce in the open market or suppliers are very limited.
5. Electronic Reverse Auctions
Auction is what when you give a bigger bid to buy the auctioned item. Under Reverse auction, you bid a lower price to sell your product.
An Electronic Reverse Auction is a type of online auction available on GeM portal. Under electronic reverse auction, there is one buyer (government department) and many potential sellers (private companies). The sellers give lower bid to obtain business from the buyer and bid will typically decrease as the sellers underbid each other.