An Overview

By:-
Gajanand Prasad
Executive Director IRILMM &
Former Principal Chief Materials Manager/NWR
 Evolution of GeM

“Invasion of armies can be resisted but not the

Idea whose time has come”.
Victor Hugo 1875
 Evolution Of GeM-contd.

Ø ISD 1860 In London For Import

Ø ISD1922 In India Civil & Defence

Ø DGS&D-1951 Inspection & Purchases Re-organised

Ø DGS&D Rate Contracts

Ø Rly & Defence Purchase –Seperated-1974

Ø Committee of secretaries in 2016 recommended for e-commerce platform

Ø Announced in Hon’ble FM Budget Speech 2016,

Ø SPV of DOT & MoC hosted by DGS&D

Ø GeM version 1,2,3

 PM’s Massage

“Government is committed to curbing corruption. One of the key

aspect of this objective is to minimise government’s human
transactional interface. Accordingly, public procurement is being
transformed by leveraging technology such as online market
places & E-tendering. GeM also offers other advantages such as
minimising prices whole maximising ease, efficiency and
transparency. It will help enhance processes in ways such as
demand aggregation, real time price discovery & prompt
automated payments”.
 What is GeM?
Ø Government e-Market Place for common use goods and services for
government users ( Central, State & PSUs)

Ø Announced in Hon’ble FM Budget Speech 2016, SPV of DOT & MoC

Ø Provision in Rule 149 of General Financial Rules 2017 E-COMMERCE

+
BIDDING =
Ø GeM is like e-commerce platform with Bidding option
GeM
Ø Rule 159-GFR 2017, Central Public Procurement Portal (CPPP)

Ø CPPP - all the tender notices on one site to improve transparency in PP

Ø All Advertised/Limited/Single Tender Enquiry & the awarded contracts to be

published.
Ø Takes care of Purchaser’s Perspective
§ Speed, Flexibility, User friendly
§ Quality products

Ø Takes care of Seller’s Perspective

§ Equal opportunity to supply (Article 14)
§ Timely receipt of payment
§ Transparency

Ø Provision to penalise for misconduct of suppliers-reporting of incidence

Ø Relieves from mundane tendering activities
Ø To promote standardization of products, aggregated demand Projection.
Ø Promotes MSME sectors and Make in India
 Uniqueness

Ø Comparison with LPR

Ø With price on other sites

Ø Price holding 5 days

Ø 10 % Minimum discount

Ø Special discount to defense

Ø Qty. based discount

Ø Free delivery to consignee

Ø Data analytics
 Inclusion of Services

Ø Each department in govt. outsources services like Taxi, manpower,

Management Services, IT services

Ø Procured Repeatedly

Ø No Service Level Agreement (SLA)

Ø Regular, spot & leasing

Ø Online log book

Ø Direct access to all Govt. Departments

Ø Paperless & e-sign enabled [Aadhar Based]

Ø GeM procurement is seller driven

Ø Listing a product based on demand

Ø Freedom from registration/bureaucratic hassles

Ø Freedom from fixed specification

Ø Dynamic pricing

Ø Complete information at one place

Ø Consistent and uniform purchase procedures

Ø Fast & Timely payment
Ø PM’s Vision of ease of doing Business
Ø Max. governance with least Government
 New Facilities in GeM Version3.0
Ø Ability for Sellers to offer additional discounts

Ø Provision for Sellers to bid for part of quantity requirement of Buyers

Ø Buyer Classification based on payment history

Ø Revamped Buyer Dashboard

Ø Provision to Explore the Product Categories and Services on GeM without

login credentials

Ø Special section for “Make in India” to promote innovation

Ø Revamped design to promote trial products under Startup Runway

 Plan Ahead

Achieved till Febuary,2019

Ø Products 34,400, Sellers 2,11,000

Ø Products -8,64,000, Services- 6,555

Ø Orders 16 Lakh, Value Rs. 22,333 Crs.

Ø More than 17 states have signed MOU with GeM

Aiming to Achieve

Ø Rs. 50, 000 Cr in one year

Ø Rs 2,00,000 Cr in 5 years

Ø Gem 3.0 launched on 26.1.18, overhaul with superior technology

Ø Continuous Improvements based on feed back

 Who can sell on GeM ? What are Pre-requisites?

Ø OEMs and/or their authorized channel partner(s)/ resellers

Ø All vendors needs to be GST Compliant.
Ø Registration process is completely online through
www.gem.gov.in. No physical interaction.
(1. Email, 2. Mobile, 3. PAN, 4. GST No, 5. TIN, 6. Aadhar No, 7. Bank
A/c Details.)
Ø Can be started even with one listing.
Ø Registration & listing of products is free of cost.
Ø Rate reasonable, quality, specifications and delivery procurer’s decision
 Ordering through GeM

Ø Procurement of Goods & Services mandatory GFR, 2017 Rule 149

Ø Conditions of GeM will applicable

Ø Department specific conditions of tender not applicable.

Ø Inspection Agency of one’s choice can be specified.

Mode of purchase

i. Upto Rs.50,000 - Direct Purchase.

ii. Above Rs.50,000 & upto Rs. 30 lakhs- lowest from at least 3 different
manufacturers (e-Bidding/ eRA – optional )

iii. Above Rs. 30 lakhs (e-Bidding/e-RA – mandatory)

Ø EMD for estimated value above Rs.25 lakhs in the form of e-BG, if needed.

Ø EMD valid for 45 days.

Ø No Performance Guarantee (PG) for contracts up to Rs.30 lakhs

Ø For > Rs.30 lakhs, PG valid for 2 months beyond date of completion/
waranty.

Ø To be submitted within 15 days of award of contract in the format provided

on GeM.

Ø Buyer has the option to select PG from 2% to 10%

Ø Qty. option (+-) 25%

 .

Ø Consignees Right to Rejection within 10 days

Ø Free delivery to destination
Ø Price is inclusive of all taxes and Freight.
Ø LD @ 0.5% per week, subject to maximum of 5% online
Ø All documents generated in GeM are e-signed through Aadhaar OTP
Ø Sellers rates and delivery schedule in PO
Ø Refund Policy – within 10 days
Ø Consignee’s Receipt and Acceptance Certificate within 10 days (CRAC)
Ø Dispute resolution mechanism is available
Ø Payment Terms & Conditions - Government users to ensure payment - Detailed
Guidelines for release of Payment vide DOE OM Number 26/04/2016/PPD
dated 20.09.2016.
1) Buyer
Ø Who can buy
Ø How to register to buy
Ø How to buy
2) Seller
Ø Who can sell
Ø How to register to sell
3) GeM –SPV (DOE&T & MoC )

4) Paying Authority

5) QCI
6) CII/FICCI etc.

Role and responsibilities of all stake holders are defined

 PRIMARY USER
Deputy Secretary/Equivalent officer OR Head of the Office at Sub Centre /Unit/Branch of
Govt.Organization /PSU/ Autonomous Bodies/Local Bodies/Constitution Bodies/Statutory Bodies.

Role & Responsibility

Ø Representative of Buyer organization
Ø Filling up Organization details Searching
Carting
Ø Creation of Secondary Users – Editing Order Placement
Roles and Deactivation
Ø Monitoring of Orders placed Recipient of the
Ø Administration of GeM procurements Product

PRIMARY Can Process bill to

USER PFMS

Paying Authority for

online and offline
Payments

Ø Buyer and Consignee can be the same entity

***Ø Primary User cannot order products/make
Ø Primary User can create new Primary User payments on GeM
upon transfer etc. Ø Primary User can create any no. of Secondary
Users
 Basic Environment & Work Flow
PAO BUYER
ISSUE PAYMENT ADVICE WITHIN 2 DAYS
PAYMENT ADVICE RECEIVED BY CR RECEIVED BY THE BUYER
CONTRACT IS ISSUED CONTRACT IS ISSUED
THE PAO
PLACEMENT OF E-SIGNED
SANCTION ORDER
RELEASE PAYMENT
[WITHIN 10 DAYS OF
GeM
CRAC]
CONTRACT IS ISSUE PRC WITHIN 48 HOURS
GIVES ISSUED CONTRACT IS ISSUED
CONFI RECEIVES THE
RMATI SANCTION ORDER ISSUE CRAC WITHIN
ON 10 DAYS

SELLER CONSIGNEE
GOODS DELIVERED TO THE
CONSIGNEE
 Competent Authority

Primary User Secondary User

Organization Registration Secondary User Registration

Fill the required fields to register the • Buyer • Consignee

organization with GeM • DDO • PAO
Buyer

BUYER Seller Confirmation

CONSIGNEE
• Select Product Price Holding – 10 days and Delivery of • Receipt of Goods Within
• Select mode of Procurement- DP/L1/Bidding/RA Goods • PRC Generation 48 Hrs
• Upload scanned Financial Approval – E-sign Default Delivery • Inspection of Goods
• Sanction Order – E-sign Period • Right to Reject Order within
• Generate Contract order – E sign within 15 days 10 Days
Go Back to Buyer
• Process Draft Invoice
• Claim LD (If any) CRAC Generation
Note : Seller to take away Goods
Within 10 Days within 10 days If Consignee
PAYMENT AUTHORITY exercises Right to reject.
• Invoice Payment
• DDO – Through PFMS Seller Confirms and
• PAO – Through SBI MOPS/ Through Offline mode Order Closed
Ø At times unworkable rates on the GeM portal by some vendors

Ø No provision to add any special/specific requirement of purchaser

Ø No provision of staggered delivery period/LTC

Ø No delivery period beyond 90 days

Ø Need to address the issues relating to rejections in the warranty

Ø No provision for quoting of taxes and duties by the bidders

Ø No Price Variation clause(PVC)

 Issues with GeM Contd..

Ø Splitting of quantity amongst multiple firms not allowed

Ø Placing single order against different paying authority for same item not
possible

Ø Purchase Preference Policy of the Government such as preference to

MSEs, Make in India, Domestic Electronic Products Manufacturers etc. not
taken care ( now done)

Ø Many a times L-1 bidder does not accept the contract against its own bid-
But punished

Ø System of EMD refund to unsuccessful bidder should be automatic

SN Details Link
1 Training https://gem.gov.in/training
2 Frequently asked Questions https://gem.gov.in/userFaqs
(FAQs)
3 Resources (User Manual, https://gem.gov.in/support
Videos, PPTs)
4 Support Desk https://gem.gov.in/gemtickets
5 GeM Contacts https://gem.gov.in/contactUs
6 Escalation Matrix https://assets-
bg.gem.gov.in/resources/pdf/escalat
ion-matrix.pdf
7 Help Desk Toll Free No. 1-800-102-3436 / 1-800-419-3436
Materials are procured by :
a) Headquarters (PCMM)
b) Stores Depots
c) Divisional Stores Officers and
d) User Departments
Purchase Power of HQ
SN. Level Limit
1 PCMM Full power
2 CMM > 1 crores upto 10 crore
3 Dy.CMM > 10 lakhs upto 1 crore
4 SMM > 5 lakhs upto 10 lakhs
5 AMM Upto 5 lakhs
SN Level Value Limit
Sr.DMM/Dy.CMM
1 Rs.50 lakh per case
(Depot)
2 DMM/SMM (Depot) Rs.10 lakh per case
3 ADMM/AMM (Depot) Rs.5 lakh per case

Officers of HQ
Rs. 25000/- in each case with annual
ceiling of Rs.10 Lakhs per department.
4 User Departments
Branch Officers (Division/ Workshop)
Rs. 25000/- in each case with annual
ceiling of Rs.1 Lakhs per branch officer.
 Observed during 06.09.18 to 17.10.18
Activities
i. Buyer Registration
a. Primary users- 58
b. Secondary user:
1. Buyer – 364
2. Paying Authority - 54
3. Consignee - 838
ii. Seller Registration – 10
iii. Training & Awareness – 84
iv. Ordering Through GeM
a. No. of orders – 2974
b. Value – 96.64 crores
Period Transaction Volume of
procurement

Upto March’18 No. of orders 5116

Value (in Crs. of Rs) 73.33

April’18 to Nov.’18 No. of orders 13216

Value (in Crs. of Rs) 346.49

Total upto No. of Orders 21000

January,2019
Value (in Crs. of Rs) 530