Government e-Marketplace

(GeM)
Mandated by GFR – Rule 149 of GFR 2017
The Procurement of Goods and Services through GeM.

Definition of goods/services or works should be as per

GFR. (Railway Board letter no. 2010/RS(G)/363/1 dated 27.04.2017 )

Indian Railways to follow broad principles of GFR while

making financial decisions, especially as Railway Budget

is merged with Railway budget and deviations, if any has
to be reported to Finance Ministry. (Railway Board letter
No. 2017/F(X) II/PW/6 dated 09.02.2018)
 Definition of Works/Goods as per GFR

‘Works’ means new constructions,

additions/ alterations to existing
works, repairs to new/ old buildings/
structures.

This may be Minor works or Repair

works. Works will also include
services or goods incidental or
consequential to the original.
 Definition of Works/Goods as per GFR
 ‘Goods’ includes all articles,
material, furniture, spares, machinery,
equipment, vehicles, medicines, railway
rolling stock, accessories, software,
technology transfer, licenses, patents or
other intellectual properties purchased
or otherwise acquired for the use of
Government.
 The term ‘Goods’ also includes
works and services which are
incidental or consequential to the supply
of such goods, such as, transportation,
insurance, installation, commissioning,
training and maintenance.
 Definition of Services as per GFR
 ‘Services’ means any subject
matter of procurement other than
goods or works except incidental
to services.
Example- Vehicle hiring,
Cleanliness, OBHS, Rest House
upkeep, Maintenance etc.

 Head of Office is reckoned as

principal employer, whose duty is
to ensure abiding the various
provisions of labour act by the
contractor.
 What is GeM?
GeM - Government e-Market Place.
Genesis - Hon’ble FM Budget Speech 2016.
One stop Online Market Place for common
use goods and services for government
users.
Mandated by Rule 149 of the GFR-2017 for
procurement of common use Goods and
Services by Ministries/ Departments .
GeM portal is owned and managed by GeM
SPV registered under companies Act,2013.

Railway board vide letter

88/RS(G)/779/14 Pt. Dt 22.09.17 has
issued the guidelines for implementation of
Rule 149 of the GFR-2017.

Vide Railway board letter no. 2010/H/4/1/1

Dt. 19.03.18, the procurement of Drugs/
Pharmaceutical products is also to be done
through GeM.
 GeM - Objectives
Provide Government users the speed and flexibility
of e-commerce site in sourcing its requirement.
Relieve government users from mundane tendering
activities.
To have technology enabled dynamic, self sustaining,
user friendly, fair and transparent procurement
system.
Time bound transactions.
Simplified system for vendors to get Govt. orders.
 Key Advantages for Buyer

End to End Provides Provides options for Offers rich listing of

System from transparency and search, compare, products for
Registration to ease of buying select individual
Payment and buy facility categories of
Goods/Services

Up-to-date user- Order Process E-Signed Option to provide Bunching for

friendly dashboard redesigned for Documents multiple consignee products is available
for buying, ease of use locations and for Bidding
monitoring quantity after
supplies and authentication
payments
Key Advantages for Seller

Direct access One-stop shop for Dynamic pricing: Consistent and

to all bids / reverse auction Price can be changed uniform
Government on products / based on market purchase
departments services conditions procedures
across the GeM
portal

New Product Seller friendly News and Event New on GeM – Shows
suggestion dashboard for Section for Regular list of new product
facility available selling, and Updates categories added
to Sellers monitoring of
supplies and
payments
Benefits

Greater Transparency &

Speed in Public Competitive Prices
Procurement

Multiple
Slashed administrative & Procurement &
transaction costs Supports ‘Make in India’ Payment Options
Buyer – Primary User

Buyer &
n
Consignee ca
be the sa m e
entity
es
Makes purchas
B IL L S
and draft

Primary User
Process bil
ls for
p aym en t
Scope of Primary
User:
1. Register
Organization
2. Creation /
Modification of
Secondary Users
d
3. Manage users an
Accepts &
Deactivation
Rejects
4. Monitoring of
co signment.
n
Orders placed
Also generates
CRAC
Seller – Primary User

Primary
User

Secondary Secondary User

User – BID – Process Order
Participation

Role-based Secondary Users – Bid

Role-based Secondary Users – Bid
Participation, Product Upload,
Participation, Product Upload,
Process Order, Payment
Process Order, Payment
Confirmation
Confirmation
NOTE: All roles can be performed by single
Workflow and Timelines
Competent Authority

Primary User Secondary User

Organization Secondary User

Registration Registration

Fill the required

fields to register the
organization with
GeM.

Buyer CONSIGNEE
• Select Product Seller Confirmation
andSeller Confirmation
Delivery of Goods• Receive
• Select mode of Procurement and Delivery of Goods
& inspection of Goods
(DP/L1/Bidding/RA)
Delivery
• Right to Reject Order with-in
• Upload scanned Financial Delivery
Period 10 Days
Approval Period
Within 15 • CRAC Generation
• Generate Contract order Within
days 15
days

Bill to be drafted by Buyer

Bill to be drafted by Buyer

Process payment Bill to PAO

Bill to PAO
• DDO – Through PFMS Post payment
Post payment
confirmation Seller will
• PAO – Through SBI MOPS/Offline Payment Processed confirmation Seller will
mode Payment Processed confirm order closure
confirm order closure
Terms and Condition For Sale/ Purchase
Dynamic System– Seller submits Online its
products with the specification parameters,
prices, delivery schedule, places of delivery etc.
Terms of Delivery - Free Delivery at Consignee
Site
Rates - inclusive of all duties and taxes.
Currency - INR only
E-signed offer at the terms and conditions of
GeM
Methodology for utilisation of
GeM portal
Procurement up to Rs. 25,000/- through any of
the available suppliers/Seller on GeM Portal.

Above Rs. 25,000/- and up to Rs. 5,00,000/-

through the GeM Sellers having lowest price
amongst the available sellers, of at least three
different Manufacturers, on GeM. (Online
bidding and online reverse auction can also be
used).
Methodology for utilisation of
GeM portal
 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.

Procuring authority to satisfy himself about

the reasonableness of price of the selected
offer and see that the offer meet the requisite
quality, specifications and delivery period.
 SOP-GeM
Allowed in railways on 22.09.2017 with offline
mode of payment. Same powers as available for
placement of DGS&D rate contract

As per SOP 2018 Model SOP 2018.pdf Item

available in GeM has to be procured through GeM
only. Stores officers have full powers as per their
power of acceptance for procurement. Above 50
lakhs TC will decide

As per model SOP Para 2.13 user department can

purchase if authorised by PHOD up to Rs 25,000/-
in each case subject to ceiling limit of Rs 10 lakh
per annum
Methodology for utilisation of
GeM portal
Procurement through GeM by user departments:

 Officers authorised by PHODs of user departments

may be permitted to buy Non-stock items available
on GeM up to Rs. 25,000 in each case, subject to
annual ceiling of Rs. 10 lakhs per department per
annum. The officers will have to certify as follows:
“I,.........., am personally satisfied that these goods
purchased are of the requisite quality and
specification and have been purchased from a
reliable supplier at a reasonable price.”
Methodology for utilisation of
GeM portal
PAC Buying

Buyer can use PAC filter provided on

GeM for selecting a specific model/ make
available from a particular GeM Seller.
Bidding will be mandatory for
procurements above Rs. 25,000/-.
Only the OEM and their authorised
dealers are permitted in bidding.
 Basic Setup
Primary User :-
i. To create Organization.
ii.To create/transfer/remove secondary users.
iii.Primary user account can also be transferred.
iv.Primary user cannot be a buyer.
v.All users need email on gov.in/nic.in domain &
Aadhar no. along with mobile no linked with it.
 Basic Setup
 Secondary Users:-

For all other activities relating to GeM

purchase
three categories of users are required.

i. Buyer: From Stores Dept.

ii.Consignee (Indenter): From Indenting Dept.
iii.Paying Authority: From Accounts
Dept.
 Work Flow and timelines
Enrolment of all the three types of secondary users
will be managed by the Buyer/Stores Dept.
Info required---Name/Designation/Official Email ID/
Aadhar No./Mobile No. linked with Aadhar.
Indenter/ Consignee will send requisition (signed
and approved by CA) to Stores Dept.
Use administrative, financial and technical filters to
choose products/vendors.
Buyer i.e. Stores official will create demand on GeM
portal and generate contract on GeM portal. The
validity of demand created on portal is only 10 days.
 Cont..
Once order is placed by buyer, Seller has 96 hrs
to accept or reject the order placed.

After receipt of material, Consignee will login to

the portal and will need to generate Consignee
Receipt and Acceptance Certificate (CRAC)
within 10 days of receipt of stores otherwise his
right to reject the item stands forfeited.

Paying Authority will login to the portal

and
arrange release of payment within 10 days of
generation of CRAC.
 Cont.
All the users will be alerted via SMS in
registered Mobile no as well as via e-mail at
each stage of procurement.
Stages like PO placement, CRAC generation
and payment.
All this procurement transaction is to be done
online via GeM, iMMIS and IPAS portal as all
three portals have been integrated. Some
issues regarding payment are getting
resolved.
 SPECIAL TERMS &
CONDITIONS FOR GEM
PROCUREMENT
 SPECIAL TERMS & CONDITIONS FOR GEM PROCUREMENT

Consignee shall have the right to reject on proper

Consignee’s
justification any consignment of the Goods received
Right to
Rejection
(Return Policy) within a period of 10 days of receipt. No payment

shall be made for rejected goods and the Seller

would be liable to take back such rejected Goods

within 10 days without any charge.

SPECIAL TERMS & CONDITIONS FOR GEM PROCUREMENT

All the Goods/Services on GeM shall be offered

Terms of on Free Delivery at Site basis including

Delivery &
Delivery Period
loading/unloading. In respect of items requiring

installation or commissioning (as indicated in

technical details of the item), the charges for the

same shall also be included in the offered price

on GeM.
SPECIAL TERMS & CONDITIONS FOR GEM PROCUREMENT

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 10 days

Payment
Authority &
Payment of issue of consignee receipt-cum-acceptance certificate
Terms
(CRAC) and submission of bills.

For Services: 100% payments on the basis of monthly bills

will be paid within 10 days of submission of bills with

prescribed documents.
 SPECIAL TERMS & CONDITIONS FOR GEM PROCUREMENT

If the Seller fails to deliver the Goods/Services within the

Liquidated Delivery/Time, Liquidated Damages will be charged @

Damages
0.5% per week or part of the week of delayed period not

exceeding 10% of the contract value.

 SPECIAL TERMS & CONDITIONS FOR GEM PROCUREMENT

Sellers shall offer minimum discount of 10% over

Mandatory MRP mandatorily unless otherwise specified for

Minimum
Discount on
MRP offering their products on GeM portal. The

discount of 10% over MRP is the Minimum

discount and sellers are free to offer higher

discount on GeM.
 SPECIAL TERMS & CONDITIONS FOR GEM PROCUREMENT

Buyers are not allowed to place any order at GeM prices

outside GeM. The prices on GeM are only applicable if

Restrictions on
Outside
Purchase the procurement is made through GeM portal. Using

GeM prices for procurement outside GeM portal is

strictly prohibited.
 SPECIAL TERMS & CONDITIONS FOR GEM PROCUREMENT

GFR rule 149 allows direct on-line purchases on GeM up

to Rs 25,000/- through any of the available suppliers on

Reasonablenes the GeM, meeting the requisite quality, specification and

s of Rates
delivery period. However, GeM being a dynamic online

marketplace this is subject to procuring authorities

convinced about the reasonability of rates.

 SPECIAL TERMS & CONDITIONS FOR GEM PROCUREMENT

In case of Direct Purchase, during carting period of 10

days, rates for carted quantity, for that buyer, are frozen
Static Price in
case of Direct
Purchase for ten days against any upward revision by seller.

However, advantage of any downward revision in the

offer price of Carted item shall be automatically provided

to the buyer by GeM portal.

 Some services available on
GeM

VEHICLE HIRING SERVICE

CATERING SERVICE
CLEANING AND SANITATION SERVICE
TECHNICAL MANPOWER SERVICE
SECURITY MANPOWER SERVICE
PEST CONTROL SERVICE
THANKS