Bidding on Gem portal - Process, Types & Fees

The first requirement to participate in GeM tenders is vendor registration on the GeM portal. Registration is simple, free, and open to eligible MSMEs.

Bidding applies only for procurements above ₹3,00,000.
• GeM Portal Registration: Registration on the GeM portal is necessary for any business that wants to sell its products and services to the government through public procurement. Initial registration is free, but sellers must submit caution money as required by GeM guidelines.
• Vendor Assessment by RITES: After registration, vendors undergo assessment by Rail India Technical and Economic Service (RITES) to obtain OEM or deemed OEM status. The assessment process has two stages:
• Desktop Assessment: Submit all relevant business information, including product description, processes, and methods of operation.
• Video Assessment: Conducted online via an authorized application. Vendors must answer technical questions about products and manufacturing, and showcase premises, work area, and operations.

Some seller categories are exempt from the assessment and can directly participate in bidding and tenders.

• Brand and Product Listing on GeM Portal: Once OEM status is obtained, vendors must list their brand on the GeM portal. Brand listing can be as a registered trademark, a business brand, or as unbranded vendors.
• Product Listing on Portal: After brand listing, vendors must complete catalog management by listing products in relevant categories and sub-categories.

GeM (Government e-Marketplace) offers three key types of bids for sellers to participate in:

• Regular Bids: Regular bids are initiated by buyers for specific product categories, allowing eligible vendors to submit their pricing and offers. These bids can be categorized as follows:
  • Pre-defined products
  • Single product categories
  • Categories where existing parameters are insufficient
• Custom Bids: Custom bids are created when the desired product category does not exist. Buyers can initiate a custom bid on the portal according to their specific requirements.
• Bill of Quantity (BoQ) Bids: BoQ bids are initiated when a product is unavailable in an existing category, and the buyer wants to combine multiple products or services. The buyer creates BoQ bids to allow sellers to participate in the bidding process.

The RA (reverse auction) bidding system is a competitive system provided to buyers to ensure that it gives all eligible vendors equal opportunity to participate in the bidding and quote their maximum discount on the products and services offered on the GeM portal.

• Regular Auction (Reverse Auction): Buyers usually opt for a reverse auction when they have a complete understanding of the marketplace and base price. Eligible vendors submit their bids, and the vendor offering the lowest discount is considered the L1 bidder.
• Bid to (RA) Reverse Auction: While creating a bid, buyers can choose the “Bid to RA” option. In this case, around 50% of vendors become eligible for the offer. The 50% evaluation is based on the lowest price quoted by the bidder during the bid or auction.
• GeM RA When More Than One Vendor Quotes L1 Price: If RA is not initially opted by buyers, but more than one vendor qualifies for the L1 price, buyers are allowed to initiate a reverse auction to finalize the contract.