Para 4.6.3 - GeM Procurement Rules | KartavyaDesk
Original Rule Text
Manual for Procurement of Non-Consultancy Services, 2025 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 4.6.3 of the Manual for Procurement of Non-Consultancy Services outlines the rules for buying goods and services through the Government e-Marketplace (GeM). Essentially, if what you need is available on GeM, you *must* buy it there, not through older methods like getting quotes directly (Rule 154 & 155 of GFR). The specific method you use on GeM (direct purchase, bidding, or reverse auction) depends on the price. For purchases above ₹50,000 and up to ₹10,00,000, you should choose the GeM seller with the lowest price from at least three different manufacturers or service providers, ensuring they meet your quality and delivery needs. For 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 *through* GeM; if you're buying something not available on GeM, the regular General Financial Rules (GFR) apply.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •If an item/service is available on GeM, it *must* be purchased through GeM.
- •For purchases between ₹50,000 and ₹10,00,000, select the lowest-priced GeM seller from at least three different providers meeting your requirements.
- •For purchases above ₹10,00,000, mandatory online bidding or reverse auction on GeM is required.
- •Ministries/Departments must project their Annual Procurement Plan of goods and services on GeM portal within 30 days of Budget approval.
- •Procuring entities are responsible for ensuring the reasonableness of rates using GeM's Business Analytics tools.
Practical Example
The Ministry of Agriculture needs to purchase 500 water pumps for a new irrigation project. The estimated cost is ₹7,50,000. Since water pumps are available on GeM, Mr. Sharma, the procurement officer, cannot use direct purchase methods. He must use GeM. He finds several sellers offering water pumps. He identifies three different manufacturers whose pumps meet the required specifications. After comparing their prices, he selects the seller offering the lowest price among the three, ensuring they can deliver within the project's timeline. If the estimated cost was ₹12,00,000, Mr. Sharma would be required to conduct an online bidding or reverse auction on GeM to ensure the most 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 split a large purchase into smaller ones to avoid using bidding or reverse auction on GeM?▼
How do I ensure I'm getting a reasonable price on GeM?▼
What is the 'OPEX' and 'CAPEX' model mentioned in the rule?▼
What are the GFR rules mentioned in this para?▼
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 4.6.3 of the Manual for Procurement of Non-Consultancy Services, if a required item is available on GeM, which of the following procurement methods is permissible?
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