GeM – Government Electronic Marketplace
Source: https://gem.gov.in/
Introduction:
·
Launched on 9th August, 2016
·
for procurement of Goods and Services
·
By Ministry of
Commerce
·
National Public Procurement Portal
·
Public
procurement amounts to 15-20% of a nation’s GDP.
·
Transforming
DGS&D – Director General of Supplies & Disposables to a digital e
commerce portal.
·
Adding New Rule
No. 149 to GFR – General Financial Rules, 2017
- Procurement of Goods and Services by Ministries/Depts will be
mandatory for Goods and Services available on GeM.
·
Rating to Buyers and Sellers
GFR - General Financial Rules, 2017
·
Railway Board vide it's letter No.2017/
F(X)II/PW/R dated 09.02.2018 advised all concerned to refer the rules under the
GFR- General Financial Rules, 2017 and used them as broad principles while
making financial decisions.
·
Indian Railways being part of Govt of India, it
is incumbent on Indian Railways to refer GFR in discharging financial
powers.
·
Any substantive deviation from GFR has become
part of reporting through the monthly PCDO by respective PFAs/FA&CAOs to
Financial Commissioner/Indian Railways in order to reporting to Ministry of
Finance.
·
Issued by Ministry of Finance, Dept of
Expenditure.
·
consists of 187 pages and 10 Chapters.
·
GFR first issued were issued for the first time
in the year 1947. These have subsequently modified and issued
as GFR 1963 and GFR 2005.
·
The following developments/Reforms/Innovative
changes are necessitated revision of GFR 2005 and brought out GFR
2017.
«
Budgetary reforms like 1) Removal of distinction
in non-plan and plan expenditure, 2) Merger of Railway Budget with General
Budget 3) focusing on outcomes through an improved Outcome Budget
document.
«
Reliance on DBT - Direct Benefit Transfer scheme
to ensure efficient delivery of entitlements.
«
Introduction of new e-sites like Central Public
Procurement Portal, GeM- Government e-Marketing portal, Non-Tax Revenue portal.
Vision
·
To affect an evolution in public procurement promoting a
transparent, efficient and inclusive marketplace.
Mission
·
Unified procurement policy.
·
Lean, dynamic
organization capable of continuous innovation and market driven decision
making.
·
Easy to use, Fully
automated platform
·
Transparency and efficiency in procurement.
·
Right Quality at Right
price.
·
Create Savings for the
Govt by reducing administrative and transaction costs
·
End to end solution
GeM Statistics:
·
Nearly 20 Lakh Products
·
Nearly 1 Lakh services
·
Nearly 11 Lakh Sellers/Service Providers
·
Nearly One lakh Crores Value transactions so far
·
Nearly 15000 Product categories
·
Nearly 200 Service categories
·
MSE share is 60%
GeM SPV
·
GeM Special Purpose Vehicle
·
Responsible for
operations and maintenance of GeM
·
A Section 8 (Non-Profit) Private ltd Company
under the Ministry of Commerce has been incorporated under the Companies
Act, 2013
·
To develop, manage and maintain the GeM
platform.
·
Autonomous organization
·
It is self-sustain its operations by charging minimum to buyers
and sellers.
·
Dr. Anup Wadhawan, Secretary, Department of Commerce and
Chairperson, GeM
·
Shri. Talleen Kumar, CEO, GeM
Modes of Buying
|
Value
|
Mode of Buying
|
Remarks
|
|
Up to Rs. 25 K
|
Direct Purchase
|
The comparison must be made
between
goods/services of at least three
different
manufacturers/OEMs and three different
sellers
|
|
25 K to 5 L
|
Direct Purchase L1
|
|
5 L and above
|
Bid/RA
|
This is preferred , even
for below
Rs. 5 Lakhs too. ·
To improve fair participation
in Bid / RA,
GeM now ensures that at least 3 sellers
have participated and
offered products
from at least 2 different OEMs. In case
buyer wants to proceed with less than
3 sellers or two
OEMs/Brand, they
have to upload approval from Competent
Authority.
|
E Bidding
·
The
Buyer can split the Bid with MSE Purchase Preference among maximum 5 MSE
Sellers. Top 5 MSE price offerings, within L1+15%, would be given an option to
match L1 price.
E RA (Reverse Auction)
·
All e-bids and RAs on GeM shall be exclusively
completed through the GeM platform with no reference to any outside source or
links.
·
What is eRA - Electronic Reverse Auction in Indian Railways
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A
|
Auction
(Forward Auction)
|
a public sale in which goods are sold to the
highest bidder .
One
seller, but many buyers.
Example is Scrap Sales in IR through E-Auction
|
|
|
|
|
|
R
|
A
|
Reverse
Auction
|
A public
Procurement in which goods are
brought
from the lowest bidder.
One buyer, but
many sellers.
|
|
|
|
|
e
|
R
|
A
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Electronic
Reverse Auction
|
An online,
real-time dynamic Reverse Auction.
(in IR
- through IREPS)
|
Advantages for Buyers
1.
Transparency and
ease of doing
2.
Offers rich listing of Products for individual category
of Goods & Services
3.
Direct purchase for amounts up to Rs. 25 K
4.
Price
Trends and Price Comparison From Multiple Suppliers
5.
Direct notifications to sellers
6.
Notification to buyers
regarding:
·
expiry of DP (Delivery Period) for the contract
·
Initiation of cancellation of contract in case of non-delivery
by sellers
Advantages for Sellers:
·
Access
to National Public Procurement market
·
No
charges or fee for getting registered
·
Special
provisions and sections for startups, MSMEs and Emporium products
·
Fully
online, paperless and contactless platform
·
Multiple
invoice for single order
·
Easy
access to participate in bids/reverse auction
·
Clock
has been enabled in RA to display remaining time for seller participation
·
Online
grievance redressal mechanism for quick resolution
·
All sellers will be shown reasons for rejection
·
Seller
friendly dashboard for monitoring supplies & payments
·
Dynamic
Pricing- Price can be changed based on market conditions
·
Direct
access to Government departments and their organizations.
·
Railways
and GeM
·
Annual Stores purchases by Railways - Approx Rs.
50,000 Crores (30% -Fuel only)
·
Total staff of Stores Dept - Approx 20 thousands
·
Procurement of common use Goods and Services
through GeM is a priority area of Government of India and is being monitored at
highest level.
·
Vide OMs under reference, for procurements made
under Rule 149 of GFR 2017, buyers are mandated to make payments within 10
calendar days after generation (including auto generation) of Consignee Receipt
and Acceptance Certificate (CRAC) in the GeM.
·
Penal Interest - 1% per month of the delayed
payment beyond the prescribed timeline
·
Pro rate - If the delay is 10 days, the
calculation of penal interest is 10/30 x 1 %.
·
Such penal interest is not paid to sellers, but
will be retained by Gem SPV and used the same for training purposes of buyers
and sellers.
·
CRAC - Consignee Receipt and Acceptance
Certificate
·
Finance Officers of Zonal Railways, PUs and
other units shall take an undertaking from the executive officers while vetting
the estimates and tender documents that the item/service will be procured
through GeM only, if it is available in GeM.
·
The
procurement through GeM - seamless integration of GeM, iMMS and IPAS
·
IRS conditions will not be applicable
·
In case of failure of order placed through GeM,
the procurement can be made outside GeM and reporting failure on GeM.
·
60:40 splitting, if L2 rate is within 3 % of L1
rate. Otherwise 65:35
Service Contracts and GeM
·
If Services available on GeM portal, Procurement
has to be done through GeM only.
·
Exception to the above rules is with Specific
reasons with justification and Personal approval of GM/DRM is required.
·
Delegation
of Powers to invite and accepting Service Tenders
|
PHOD/HOD
|
DRM
|
All other Officers
|
|
Full powers
|
Rs. 100 Crores
(long term contracts)
|
As per delegation of
Service contracts
|
Enter Service Contract in place of
termination of existing Service Contract:
·
DRMs have
full powers .
·
For a
period of 3 months only.
·
By calling quotations from approved list of
vendors.
·
Finance concurrence required
·
Source:
Sl.No.44 of Works Matters of MSOP
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