Para 4.5.2 - GeM Procurement Rules | KartavyaDesk
Original Rule Text
a) Up to Rs.50,000/- through any of the available suppliers on the GeM, meeting the requisite quality, specification, and delivery period. Note 1: In the case of automobiles, direct procurement under this sub-para is permitted without any ceiling limit. Note 2: In case the item is available on GeM, it is not permitted to purchase the same under Rule 154 of the GFR, 2017 (Purchase without quotation). b) Above Rs.50,000/- and up to Rs.10,00,000/- through the GeM Seller having the lowest price amongst the available sellers, of at least three different manufacturers of goods or service providers (in case of services), 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. 10,00,000/-. Note 1: In case the item/ service is available on GeM, it is not permitted to purchase the same under Rule 155 of the GFR, 2017 (Purchase by Purchase Committee). c) Above Rs. 10,00,000/- 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 GeM. d) 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 the terms and conditions of GeM. e) The above-mentioned monetary ceiling is applicable only for purchases made through GeM. For purchases, if any, outside GeM, relevant GFR Rules shall apply. f) 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 (thirty) days of Budget approval. g) It may be noted that it is the responsibility of the Procuring Entity to do due diligence to ensure the reasonableness of rates. The government buyers may ascertain the reasonableness of prices before placing an order using the Business Analytics (BA) tools available on GeM, including the last purchase price on GeM, the department’s own last purchase price, etc. h) Demand 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.”
What This Means
Para 4.5.2 of the Manual for Procurement of Consultancy Services outlines how government departments should buy goods and services through the Government e-Marketplace (GeM). It essentially sets spending limits and dictates the procurement method based on the value of the purchase. For smaller purchases (up to ₹50,000), you can buy directly from any supplier on GeM that meets your needs. For purchases between ₹50,000 and ₹10,00,000, you must choose the GeM seller with the lowest price from at least three different manufacturers or service providers. For larger purchases (above ₹10,00,000), you *must* use online bidding or reverse auction on GeM to get the best price. Remember, these rules only apply to purchases made *through* GeM; if you're buying outside of GeM, different rules apply. Also, departments need to plan their procurement needs in advance and avoid splitting up large purchases to circumvent these rules.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Purchases up to ₹50,000 can be made directly from any GeM supplier.
- •Purchases between ₹50,000 and ₹10,00,000 require selecting the lowest-priced GeM seller from at least three options.
- •Purchases above ₹10,00,000 *must* use online bidding or reverse auction on GeM.
- •These rules apply *only* to purchases made through GeM.
- •Departments must plan procurement in advance and avoid splitting orders.
Practical Example
The Ministry of Agriculture needs to hire a consultant to develop a new farmer outreach program. The estimated cost is ₹6,00,000. According to Para 4.5.2, the Ministry *must* procure the consultant through GeM. They need to identify at least three different consultancy firms listed on GeM that offer the required services. After comparing their bids, they must select the firm offering the lowest price that meets their quality and specification requirements. If the estimated cost was ₹12,00,000, they would be required to use the online bidding or reverse auction tool on GeM to ensure a competitive price.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What happens if the item I need isn't available on GeM?▼
Can I use online bidding or reverse auction for purchases *below* ₹10,00,000?▼
What does 'OPEX' and 'CAPEX' model mean in the context of procurement?▼
How do I ensure the reasonableness of rates on GeM?▼
What is the consequence of splitting a large purchase into smaller ones to avoid bidding?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Test Your Knowledge
Question 1 of 3
According to Para 4.5.2 of the Manual for Procurement of Consultancy Services, for purchases made through GeM, up to what amount can a government department procure goods or services directly from any available supplier, provided they meet the required quality, specification, and delivery period?
Related Rules
Need help understanding this rule?
Ask Niti — your AI assistant for Consultancy Manual and other government rules