What is the process of GEM Bidding

The GeM Bidding Process is the method by which sellers offer their products or services to government buyers through the GeM portal (Government e-Marketplace). When a government department needs something, like furniture, computers, manpower services, etc., it posts its requirement on GeM. Registered sellers then submit their price offers (bids) for that requirement. The government buyer reviews all the bids and usually selects the seller who offers the best quality at the most competitive price.

This way, sellers get a fair chance to do business with government departments, PSUs, and other government agencies.

GeM Bidding = Seller offers → Government evaluates → Best offer wins the contract.

The GeM bidding process can be broken down into three main stages:

Expression of Interest (EOI):

At this stage, government buyers express their interest in purchasing a specific product, service, or task. Sellers are invited to show their interest in participating.

Bidding Stage:

After expressing interest, eligible sellers submit their offers or quotations. This stage involves competitive pricing and proposals from multiple sellers.

Evaluation and Selection:

In this final stage, government buyers evaluate the bids based on price, quality, and other requirements. The seller offering the best value is selected, and the order is placed accordingly.

Process of Participating in GeM Bids

When sellers upload their products or services on the GeM portal, they can view available Bids/Reverse Auctions (RA) and Purchase Requisitions listed by government buyers.

Registered Sellers or Original Equipment Manufacturers (OEMs) on the Government e-Marketplace (GeM) platform are eligible to participate in these bids.

They can submit their offers against the bids created by buyers and compete to supply goods or services based on the specified requirements.

Benefits of GeM (Government e-Marketplace)

The Government e-Marketplace (GeM) is an advanced online platform that offers numerous benefits to sellers, government departments, the Indian industry, and the overall economy. The benefits for different stakeholders are as follows:

Benefits for Sellers:

Access to Government Buyers:
Sellers get direct access to all government departments, ministries, and public sector units across India.
Comprehensive Product and Service Listings:
GeM provides a detailed yet easy-to-navigate listing of a wide range of products and services, making it an ideal marketplace for sellers.
Hassle-Free Marketing:
Sellers can market their products and services directly to government buyers without the need for intermediaries or extensive promotional efforts.
Dynamic Pricing:
GeM uses dynamic pricing models that adjust based on current market conditions. This promotes healthy competition and offers better opportunities for sellers.
User-Friendly Dashboard:
The GeM dashboard is sleek, easy to use, and equipped with all the necessary features and tools for sellers to manage their listings, orders, and payments.
One-Stop Platform for Auctions and Bids:
GeM serves as a centralized platform for participating in reverse auctions and bidding for government contracts, making the selling process more efficient.
Opportunity to Suggest New Products:
Sellers are also given the option to suggest new products or services that can be added to the GeM platform, expanding their business scope.

Benefits for Buyers

The Government e-Marketplace (GeM) portal offers several important benefits to buyers, ensuring a smooth and transparent procurement experience:

Reliable Vendor Rating System:
GeM provides a strong vendor rating framework that helps buyers evaluate sellers based on performance, ensuring quality and reliability.
Friction-Free Purchasing:
Buyers can easily purchase services and commodities online from anywhere, at any time, without complicated procedures.
Search, Select, Compare, and Buy:
GeM offers easy options to search for products, compare prices and features, and make purchases quickly and efficiently.
Promotes Accountability and Transparency:
The vendor rating and feedback system encourages sellers to maintain high standards, promoting transparency and accountability in every transaction.
User-Friendly Portal Design:
The GeM platform is designed to be highly user-friendly, with everything organized and accessible in one place for a seamless experience.
Hassle-Free Return Policy:
In case of any issues, buyers can benefit from an easy and hassle-free return and refund process.
Transparent Buying Process:
Every transaction on GeM is fully traceable and transparent, ensuring fairness and trust between buyers and sellers.

GeM Bid Types and Procurement Methods

Regular Bids

A Regular Bid on the Government e-Marketplace (GeM) portal is created by a buyer for a specific product, service, or commodity. This allows registered vendors to participate and submit their offers.
Vendors can create bids for a single product category based on their offerings.
Buyers also have the option to create bids for a pre-defined group of categories, allowing more flexibility in sourcing related products or services together.
If the standard parameters available on the GeM portal do not fully meet the buyer's specific needs, buyers can add up to five additional parameters. Vendors are then required to confirm whether their products or services comply with these additional customized requirements.

Custom Bids

When a required product or service category is not available on the Government e-Marketplace (GeM) portal, buyers have the option to create a Custom Bid.

In a custom bid, buyers specify their exact requirements, and sellers can upload their products or services against the request.

This process helps in fulfilling unique needs while optimizing supply and demand, ensuring that both buyers and sellers get what they are looking for.

BoQ (Bill of Quantity) Bids

If the desired product is not listed on the GeM portal, and buyers wish to combine multiple products and services into one order, they can create a BoQ (Bill of Quantity) Bid.

Through a BoQ bid, buyers can define a detailed list of items and services required, and sellers can participate in the bidding process accordingly by quoting prices for the complete set of requirements.

Different Types of RA (Reverse Auction) on GeM

The Government e-Marketplace (GeM) offers different types of Reverse Auction (RA) methods to ensure transparent, competitive, and fair procurement. Here’s a detailed look at each type:

1. Regular RA (Reverse Auction)

When a buyer has complete knowledge of the required product or service and can identify a base price, they can opt for a Regular Reverse Auction (RA).

In this process:

Eligible vendors are invited to quote discounts based on the buyer’s defined base price.
The seller offering the maximum discount (L1 – Lowest Bidder) will be considered for awarding the contract.

This method encourages competitive pricing and ensures the government receives the best value for money.

2. Bid to RA (Reverse Auction)

While creating a bid, buyers have the option to enable the Bid to RA feature.

In this process:

Only 50% of the qualified sellers (based on the lowest price quotations) are allowed to participate in the Reverse Auction.
The selection of these 50% sellers is determined by their initial bid price during the normal bidding phase.
After qualification, these selected sellers compete in the RA to offer even better prices.

This method ensures that only serious and competitive sellers move forward to the auction stage.

3. GeM RA (Reverse Auction when L1 Price is Quoted by Multiple Sellers)

If more than one seller quotes the same L1 price (lowest price) during the normal bidding process, and the buyer has not enabled RA initially:

Only one of the sellers (who confirms willingness to match the L1 price) will be allowed to proceed to a Reverse Auction.
This ensures fair competition and allows the buyer to finalize the best offer among equally priced sellers.

Requirements Before Starting GeM Bidding

To participate in the BID/RA (Reverse Auction) process on the Government e-Marketplace (GeM), vendors must meet the following conditions:

Compliance with GeM Rules:
Vendors must strictly adhere to the rules and framework set by the GeM portal to be eligible for bidding or participating in reverse auctions.
Submission of Required Documents:
Vendors are required to submit all necessary documents as per the Additional Terms and Conditions (ATC) specified for the specific BID/RA.
No Direct Interaction:
Until the contract is officially awarded, vendors and buyers are not allowed to engage in direct communication. All interactions must happen through the GeM platform.
Bidding Flexibility:
Vendors have the option to place their bids directly or convert the process into a Reverse Auction (RA) if allowed by the buyer.

How to Register on the GeM Portal

If you have not yet registered on the GeM portal, follow the steps below to complete your registration and become an eligible seller to participate in bidding on the Government e-Marketplace:

Visit the GeM Registration Portal:
Open the official GeM registration website
Access the Registration Form:
You will be directed to the application form page.
Fill Out the Required Details:
Carefully enter all the necessary information as requested in the form.
Review Your Inputs:
Double-check all the details you have entered to ensure accuracy before clicking the "Submit" button.
Proceed to Payment:
After submitting the form, you will be redirected to the payment gateway. Complete the payment process as instructed.
Receive OTP Verification:
Once your payment is successful, you will receive an OTP (One-Time Password) on your registered mobile number or email address.
Share OTP with the Executive:
Our executive will contact you. Please share the received OTP with them to proceed with the registration verification.
Get GeM Login Credentials:
After verification, you will receive your GeM portal login credentials at your registered email address
Catalog Listing:
Once registered, you will need to list your products and services on the GeM portal through gem catalogue service to start selling.

GeM Bidding Process

Once you have successfully registered on the GeM portal and logged in using your new credentials, follow these steps to begin the GeM bidding process:

Step 1: Log in to the GeM Portal

Visit https://gem.gov.in/

Step 2: Search for the Desired Product or Service

After logging in:

Use the "Search" tool at the top of the page to find the commodity or service you wish to bid for.
Alternatively, browse through the "Categories" section to locate the specific product or service.

Step 3: Select Your Product

Find your product listed under the "L1 Category."
If you prefer Indian-made products, select the "Made in India" filter.
You can also use the "Compare" tool to view and compare different products or services to choose the best offering.

Step 4: Add to Cart and Proceed to Bidding

Once you have selected your product, add it to the cart.
You will then be redirected to a new page.
Click on "Proceed to Checkout", and you will find the "Bid" option.
Click the "Bid" button to start participating in the GeM bidding process.

Conclusion

At gemregistrar.org, we want you to know that just registering on the GeM portal is not enough to win a contract. Sellers must meet all the required conditions and offer the best possible price to attract buyers during the bidding process. Also, even after registration, there is a proper step-by-step process that takes time and effort to participate in GeM bidding. We hope this guide has made it easier for you to understand how the GeM Bidding Process works and how you can start bidding successfully. If you need any help with GeM registration, bidding, or anything else, our team at gemregistrar.org is always ready to support you.

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