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Rule 149 - GeM Procurement | KartavyaDesk

GFR 2017

Original Rule Text

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.

What This Means

Rule 149 of the General Financial Rules (GFR), 2017, primarily focuses on how government departments should procure goods and services through the Government e-Marketplace (GeM) portal. It emphasizes using GeM for purchases and outlines specific procedures to ensure transparency, efficiency, and value for money. The rule covers aspects like bidding processes, price reasonableness checks, and preventing the splitting of demands to avoid competitive bidding. It affects all government departments and employees involved in procurement activities.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •GeM is the preferred platform for government procurement.
  • •Bidding/reverse auction is available to all registered sellers on GeM.
  • •Ministries/Departments must project their Annual Procurement Plan on GeM within 30 days of Budget approval.
  • •Reasonableness of prices must be ascertained using Business Analytics (BA) tools on GeM.
  • •Demands should not be split to avoid L-1 buying/bidding/reverse auction on GeM.

Practical Example

The Ministry of Rural Development needs to procure 100 laptops for its field officers. According to Rule 149, they should first check the GeM portal for available options. They find several vendors offering laptops that meet their specifications. The ministry then uses the Business Analytics tools on GeM to compare prices and check the Last Purchase Price of similar laptops. After confirming the reasonableness of the prices, they initiate a bidding process on GeM, allowing all registered vendors in the laptop category to participate. The ministry selects the vendor offering the best value for money, ensuring compliance with GFR Rule 149. They cannot split the order into smaller quantities to avoid the bidding process.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

What is the main purpose of Rule 149?▼
The main purpose is to ensure that government departments use the GeM portal for procurement and follow transparent and efficient procedures to obtain the best value for money.
What does 'L-1 Buying' refer to in the context of GeM?▼
L-1 Buying refers to purchasing from the vendor offering the lowest price (L-1) in a bidding process. Rule 149 aims to prevent splitting demands to avoid the competitive bidding process that leads to L-1 selection.
What are the Business Analytics (BA) tools mentioned in Rule 149?▼
Business Analytics (BA) tools on GeM help government buyers assess the reasonableness of prices by providing data such as the Last Purchase Price on GeM and the department's own Last Purchase Price. This helps in making informed procurement decisions.
What happens if a product or service is not available on GeM?▼
Rule 149(v) states that the monetary ceiling is applicable only for purchases made through GeM. For purchases outside GeM, relevant GFR Rules shall apply.
What is the significance of projecting the Annual Procurement Plan on GeM?▼
Projecting the Annual Procurement Plan on GeM helps in better planning and resource allocation. It also provides visibility to potential vendors, allowing them to prepare and participate in the bidding process.

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 Rule 149 of GFR 2017, which of the following is the preferred platform for government procurement?

Related Rules

Rule 271General Financial Rules 2017 (amended July 2024) - Rule 271 - Chapter 10Rule 109General Financial Rules 2017 (amended July 2024) - Rule 109Rule 146General Financial Rules 2017 (amended July 2024) - Rule 146 - Chapter 6Rule 169General Financial Rules 2017 (amended July 2024) - Rule 169 - Chapter 6Rule 215General Financial Rules 2017 (amended July 2024) - Rule 215 - Chapter 6

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