Simply put, the entire procurement processes laid down in the General Financial Rules have been converted into a software format and deployed on Government e-Marketplace(GeM).
For those of you who have experience marketing your products and services to Government buyers, you know what these terms mean. However, if you don’t have any experience of procurements through GeM, this post will still be useful as I’ll talk about how the process works on Government e-Marketplace(GeM).
Direct Purchase: For purchases of less than Rs 25,000, a Government buyer can directly purchase any item they require, much like how you can buy on Amazon.
L1(Lowest One) Process: Within the category of product that the Government buyer wants to procure, they can go ahead and select the L1 product within that category, if it suits their requirements and procure the item. Through this method, procurements upto Rs 5,00000 can be done.
Bid Process: This process compares all the bids or quotations that have been submitted by a vendor to the Government department that has published their requirement on Government e-Marketplace(GeM). The software compares whether the bids fulfil the technical criteria laid out by the buyer, and finally compare the bids on the prices quoted. The lowest quote(L1) wins the contract.
Reverse Auction(RA): After the L1 is decided, if the buyer still feels that the L1 quote is too high, they may decide a Reverse Auction which essentially gives the bidders another chance to quote their prices. This is essentially an automated way of doing a price negotiation.
Author:
Col.(Retd) Sanjay Pande(Managing Director, Kshemin Global)
Combat veteran, spent 25 years in the Indian Army. Post retirement, founded Kshemin in 2012. Kshemin Technologies develops products for ‘Frontline Combat Casualty Management’ and Kshemin Global helps clients sell their products and services to the Government.
You can connect with Col. Pande through:
www.kshemin.com www.colsanjaypande.com
Twitter- @ColSanjayPande
Facebook- Sanjay Pande
LinkedIn- Sanjay Pande
Instagram- ColSanjayPande, dotontarget, cook_indian_food_with_me