GOVERNMENT e-MARKET PLACE (GEM)
By Shri Joseph, SSO(A)/Trichy
1. Railway Board vide their letter No:88/RS(G779)14pt dt:22.09.17 and 2016/RS(M)/GeMptdt: 07.12.17 has issued guide lines regarding procurement of commonly used Goods and Services available on Government e-Market place and payment through IPAS.
2. Rule 149 of General Financial Rules (GFR)- 2017,issued by Ministry of Finance legislated as under:
a) DGS&D or any other agency authorised by the Government will host an online Government e-Marketplace (GeM) for common use Goods & Services.
b) DGS&D will ensure adequate publicity including periodic advertisement of the items to be procured through GeM for the prospective suppliers.
c) The procurement of Goods & Services available on GeM.
d) The credentials of suppliers on GeM shall be certified by DGS&D.
e) The procuring authorities will certify the reasonability of rates.
f) The GeM portal shall be utilized by the Government buyers for direct on-line purchases under:
i. Up to Rs.50,000/- and up to Rs.3,00,000/- through the GeM seller having lowest price amongst the available sellers, of at least three different manufacturers, on GeM, meeting the requisite quality, specification and Delivery periods.
ii. Above Rs.50,000/- and up to Rs.3,00,000/- through the GeM seller having lowest price amongst the available sellers, of at least three different manufacturers, On GeM meeting the requisite quality, specification and Delivery Periods.
iii. The tools for online bidding and online reverse auction available on GeM can be used by the buyer if decided by the competent authority.
iv. Above Rs.3,00,000/- through the supplier having lowest price meeting the requisite quality, specification and delivery period after mandatorily obtaining bids, using online bidding or reverse auction tool provided on GeM.
v. 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 products/service category, as per terms and conditions of GeM.
vi. The above mentioned monetary ceiling is applicable for purchases made through GeM.
vii. For purchases, if any, outside GeM , relevant GFR Rules shall apply.
viii. The Ministries / Departments shall work out their procurement requirements of Goods & Services on either OPEX MODEL OR CAPEX MODEL as per their requirement/suitability at the time of preparation of Budget Estimate (BE) and shall project their Annual procurement plan of Goods & Services GeM portal within 30 days of Budget approval.
ix. 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 , Departments own last purchases price etc.
x. A demand for goods shall not be divide into small quantities to make piecemeal purchases to avoid procurement through L1 Buying /Bidding/ reverse auction on GeM or the necessity of obtaining the sanction of higher authorities required with references to the estimated value of the total demand.
3. It has been decided that, the procurement of common use of Goods & Services, available on GeM, should be done using the services of GeM, seamless integration of GeM, TMMS and Railway payment system (IPAS) is being actively pursued with GeM/ DGS&D and CRIS to ensure full utilization of services of GeM.
4. Following guidelines are issued for successful implementation of procurement through GeM:
a) DELEGATION OF POWERS SHALL BE AS FOLLOWS:
i. Delegation of Powers, authority for approval and limits thereof on such delegation or authority, as circulated vide Railway Board’s letter dt:06.01.17, in relation to placement of purchase orders for items available on DGS&D Rate contracts shall now apply for procurement of common use Goods & Services available on GeM, without going into the formalities of Tender Committee examination, as followed in existing system of placement of purchase order against DGS&D rate contracts.
b) ENROLMENT OF USERS (users includes indentor , purchaser, consignee, paying authority)
ii. Procedure, terms and conditions for enrolment of user is available on GeM website.
iii. User can also refer to department of commerce office memorandum.
iv. Users should continuously update themselves about these terms and conditions by regularly visiting GeM website.
v. For procurement through GeM, TRS conditions of contract will not be applicable.
c) Procedure of placement of contract through GeM has been detailed in the user manual available online on GeM website.
d) Bidding or Reverse Auction on GeM as prescribed in para (III) and (IV) of above shall be conducted by the purchases officer competent to accept the offer.
e) In case failure of order places through GeM, purchases may, after recording detailed reasons, procure that item through normal procurement procedure, outside GeM. Such failure shall be reported to GeM.
f) If any buyer want to include any additional special terms & conditions, over and above the General and special terms & conditions available on GeM, then the same have to be incorporated in the Tender(Bidding process). However the buyer has to ensure that there is no violation of General and special terms & conditions for sale/ purchase of Goods and Services on GeM.
g) Placement of covering PO and Data Porting to IMMS:
i. Pending integration of IMMS with GeM, Procedure as is being followed for dealing with DGS&D Rate/Running shall also be followed for placement of covering PO and data porting to IMMS for procurement through GeM.
h) ACCEPTANCE OF MATERIALS:
ii. Acceptance of materials shall be governed by General terms and conditions for sale/ purchase of Goods & Services on GeM and Ministry of Finance Office Memorandum No.F 26/4/2016 PPD dt:20.09.2016, and additional special terms and conditions, if any, incorporated by the buyesr in the Bidding Process.
iii. Procedure for payments to seller/Buyer in GeM has been mandated and circulated by Ministry of Finance Office Memorandum No.F 26/4/2016 PPD dt:20.09.2016, which needs to be followed by Ministry of Railways and its PSU’s.
1. If the buyer is not using any online payment portal/method or integration of Payment portal of buyer with GeM Portal is not yet complete, offline payments can be made using existing payment methods of the buyer organisation.
2. However, the process up to bill processing by Buyer will have to be completed on Gem portal itself and all e-signed documents available on GeM portal shall be accepted for such off line processing of bills.
3. There shall be no need for getting such documents signed by issuing authority.
4. Also the time lines prescribed for payment has to be adhered to even in case of offline payments.
Thanks to Shri Joseph, SSO(A)/Trichy for contributing good and explanatory article on GeM. Expect more articles from him to benefit the Accounts staff.