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Para 4.17.2 - GeM Mandate | KartavyaDesk

Goods Manual

Original Rule Text

attached/ subordinate offices), CPSEs, and autonomous bodies is mandatory for Goods or Services available therein as per Rule 149 of GFR, 2017. 3. Products and services are listed on GeM by various suppliers, as on other e-commerce portals. Supplier registration on GeM is online and automatic based on PAN Card, Aadhaar Card, GST Certification, Bank Account and Financial Information, Corporate Registration Documents (Udyam registration for MSEs), VAT or TIN Number, Proof of Address, Contact Details, etc. Suppliers offer their products on GeM, and government buyers can view and compare all the products. 4. Demand Aggregation: The best prices for a user can be available if the same requirements and demands of various organizations are aggregated. This acts as an incentive for the supplier to quote their best price. For the same products, the demand of various government departments can be clubbed together, and reverse auction can be done based on aggregate demand, which will provide the best prices to the government. Department. 5. Authority of procurement through GeM: Procurement through GeM has been authorised as per GFR, 2017 Rule 149: - 6. “Government e-Market Place (GeM): GeM SPV (Special Purpose Vehicle) will ensure adequate publicity, including periodic advertisement of the items to be procured through GeM for the prospective suppliers. Suppliers' credentials on GeM shall be certified by GeM SPV. The GeM portal shall be utilized by the Government buyers for direct online purchases as follows:- 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. 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, 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 is available on GeM, it is not permitted to purchase the same under Rule 155 of the GFR, 2017. 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

What This Means

Para 4.17.2 of the Manual for Procurement of Goods, 2017, essentially mandates that all government organizations, including attached offices, subordinate offices, CPSEs (Central Public Sector Enterprises), and autonomous bodies, *must* use the Government e-Marketplace (GeM) portal for procuring goods and services that are available there. This rule is linked to Rule 149 of the General Financial Rules (GFR), 2017, which establishes GeM as the primary platform for government procurement. Think of it as the government's own Amazon or Flipkart, but specifically designed for government departments to buy what they need.

The goal is to promote transparency, efficiency, and cost savings in government procurement. By centralizing purchases through GeM, the government can leverage its collective buying power to negotiate better prices and ensure fair competition among suppliers. This rule applies whenever a government entity needs to buy a product or service that's listed on GeM. It affects all government employees involved in the procurement process, from the initial request to the final purchase order.

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

Key Points

  • •Mandatory use of GeM for available goods/services by government organizations.
  • •Linked to GFR Rule 149, which authorizes GeM for government procurement.
  • •Promotes transparency, efficiency, and cost savings in government purchases.
  • •Supplier registration on GeM is online and automatic based on PAN, Aadhaar, GST, etc.
  • •Demand aggregation and reverse auctions on GeM help secure the best prices.

Practical Example

The Department of Rural Development needs to purchase 50 new desktop computers. Before looking at other vendors, Ms. Sharma, the procurement officer, checks GeM. She finds several suppliers offering computers that meet the department's specifications. Since the total cost is estimated to be ₹6,00,000, she uses the GeM portal to compare the prices of at least three different manufacturers. She selects the supplier with the lowest price that meets the department's quality and delivery requirements. If the estimated cost was above ₹10,00,000, Ms. Sharma would have to use the online bidding or reverse auction tool on GeM to get the best possible 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?▼
If the item is not available on GeM, you can follow the procurement procedures outlined in other relevant GFR rules (e.g., Rule 154 or 155) for purchases outside of GeM.
Are there any exceptions to using GeM?▼
While the rule mandates using GeM for available items, exceptions might exist in specific circumstances, such as emergency procurements or situations where GeM cannot meet the required specifications or delivery timelines. These exceptions should be documented and justified according to the relevant guidelines.
How does GeM ensure the quality of products and services?▼
GeM SPV certifies supplier credentials. Buyers are responsible for ensuring that the products and services meet their required quality and specifications. GeM also provides mechanisms for reporting and resolving quality issues.
What is the process for demand aggregation on GeM?▼
Departments can coordinate with GeM SPV to club their demands for the same products. GeM then facilitates a reverse auction based on the aggregate demand, allowing suppliers to offer competitive prices.
What are the different purchase limits on GeM?▼
Up to ₹50,000, you can purchase directly from any available supplier. Between ₹50,000 and ₹10,00,000, you must choose the lowest-priced seller among at least three different manufacturers. Above ₹10,00,000, you must use online bidding or reverse auction.

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 4.17.2 of the Manual for Procurement of Goods, 2017, which of the following entities is MANDATED to procure goods and services through GeM if available?

Related Rules

Para 9.4Manual for Procurement of Goods, 2024 - Para 9.4 - Chapter 9Para 9.5.5Manual for Procurement of Goods, 2024 - Para 9.5.5 - Chapter 9Para 1.8.2Manual for Procurement of Goods, 2024 - Para 1.8.2 - Chapter 1Para 2.2.2Manual for Procurement of Goods, 2024 - Para 2.2.2 - Chapter 2Para 2.2Manual for Procurement of Goods, 2024 - Para 2.2 - Chapter 2

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