GeM Incident Management

GeM Incident Management System:-

Government e-Marketplace (GeM) is a trust-based system. As self-declaration is the key, robust automated processes to penalize any deviant behavior at the GeM platform are necessary. Similarly, good buyer behavior is key to generating seller confidence in GeM to offer the best price and quality.

The government of India has launched the GeM portal for the public procurement of goods and services. Launching the GeM is to simplify the procurement process for public sector organizations and promote MSMEs in India.

However, sometimes many deviations occur during or after the allotment of contracts. In such cases, buyers & sellers can raise complaints on the gem Incident management system regarding the discrepancy. The system is designed to handle complaints and grievances regarding the gem vendors and participants.

What is the GeM incident management system?

GeM introduced this Incident management system (IM) to avoid incidents that can cause product loss, damaged goods & services & fraud on its portal.

The IM system is an automated system that aims to build buyers’ trust by penalizing any illicit practice during and after the contract allotment. The system also helps identify and rectify issues to prevent any damage to buyers and sellers on the portal.

In this new GeM 3.0 update the government of India has updated deviation to increase the reliability and transparency of the GeM.

Objectives of Incident management?

  • Enhance transparency, liability & communication among buyers & sellers
  • Enhance incident management and prioritize a solution-based approach
  • It ensures that processes and procedures are regularly updated for effective and speedy responses.
  • Introducing an incident management system aims to make the gem platform safer and more trustworthy for buyers and sellers.

Who can raise an Incident:

  1. Buyer on GeM
  2. Sellers or service providers
  3. GeM admin in case of post-contract incidents
  4. GeM portal in case of the rise of incidents by the Gem portal, the same procedure as indicated in the policy would be applicable.

Types of deviation of GeM

GeM classified deviation into the following types

Mild deviation:-

As per GeM, mild deviations can be termed as minor documentation errors & errors in listing products & services in irrelevant categories up to 2 such deviations during the rolling period of 30 days.

Serious deviation:-

Serious deviation can be termed as Intentionally deceiving the translation either by the Buyer or Seller. The category also includes data duplication and non-delivery of products and services.

To rectify such deviations, said parties will be given 15 days to rectify the deviation if the deviation still needs to be rectified within the stipulated time. Then the GeM administrator will post a “show cause” notification on the user’s dashboard, asking for a response within 7 business days.

Severe deviation:-

As per the described rules by GeM causes of severe deviation can be as is follows:-

  • Deceiving MRP
  • Fake documentation
  • Violation of guidelines of the GeM
  • Not complying with the rules of the contract after the allocation
  • Withdrawal or any modification in the bid within the validity period

Violators will be given a minimum of 7 days to rectify the deviation. If failed to resolve the problem within the stipulated time, the gem admin shall send a notice to the user via their dashboard.

Grave deviation:-

The Grave incidents adversely impact the reputation/ credibility of the GeM platform. The violators will be asked to resolve the issue within due time.

In case of non-rectification of deviation by buyer/seller, the reporter of the incident can escalate to the gem admin an auto show-cause notice will be sent to violators automatically.

Potential areas of deviation identified by GeM:

Area of deviationsPre-contractPost-contract
During registrationIncorrect informationmisleading documents, Such as financial information fake credentialsNil
During listingsIrrelevant product or service listingInaccurate submission to mislead the buyersMisrepresentation about authorisationMismatch of quoted MRPFake or poor quality productsConflicting products or services
During tender processMisleading documentsunauthorized products & servicesviolation of integrityFraud behavior during tender processFail to complete contractsNon delivery or delaysPoor performance or sub standard servicesFails to provide additional required document after the allotment of project

Identification of deviation on Gem by one of the following ways:

  1. Auto-generated:-Action of the Seller or Service Provider & Buyer on the GeM portal that is not in line with the terms and conditions on GeM. 

Including those identified through analytics will attract platform-driven action by GeM. Some of the key identified deviations might also be penalized.

  1. Manually Reported:-These deviations are usually manually reported by either sellers, buyers or service providers to Gem. In case of such incidents, they would get solved within the stipulated time. if the Seller fails to take cognizance of the incident, it will be escalated to GeM Admin for further actions against defaulters.

Penalties for non-rectification incidents:

Types of IncidentsPenalties for non rectification
Serious incidentsSuspension of account for 30days for 1st time and 2nd time deviation within a period of 90 calendar days.
For 3rd and subsequent deviation, the Gem account will be suspended for 45days.
Severe incidentsFor 1st and 2nd deviation within the period of 120 calendar days, the account will be suspended for 45 days at least.
For 3rd and  subsequent deviation suspension of account can be as long as 60 days. Or the gem admin might recommend the ministry for strong action.
Grave incidentsSuspension of account can be as long as 60 days for 1st and 2nd incident within 180 calendar days.
For 3rd or subsequent incident suspension of account can be upto for  90days to 1year.
In many cases gem admin might recommend the vendor to ministry for legal actions for non rectification or grave violation of gem policy.

Provision to Seller & Service Provider to rectify the deviation

  • Sellers & service providers will get a show cause notice from gem admin as soon as the buyers report the incident.
  • If the deviation is already rectified by the seller or service prover, they can indicate it on the incident management dashboard.
  • In case of deviation remains and there is a scope for rectification. Sellers must indicate it on the incident management system and rectify it within 5 working days.
  • If the Buyer fails to provide consent to the seller & service provider to rectify the deviation, in that case gem shall take action as per the gem policy.
  • In case the Buyer allows sellers to rectify their deviation, then he/she shall provide his/her consent on the incident management dashboard within 5 days from the day the Seller made its request to rectify the deviation.
  • If the Buyer does not respond to the Seller’s request to rectify the deviation, it will be considered as “No Consent given”, and the Gem admin will proceed with a further step per GeM policy.
  • Once the Buyer accepts the request of the Seller or Service provider to take corrective action, then the status of the incident would be termed as “Corrective Action initiated”.
  • Once the rectification is done successfully, both the Buyer & the seller/service provider need to update the status on the GeM incident management dashboard with valid documentation. Only after the Gem closes the incident in case of a delay in delivery, it will automatically get closed by the system.
  • In case the Seller fails to fulfill the commitment of rectifying the deviation, the Buyer can re-escalate the incident to GeM after 10 calendar days.

Provision for appeal

  • Sellers or service providers can only appeal after the imposition of penalties.
  • They must be made within 10 calendar days of the imposition of penalties.
  • The APPEAL provision for sellers and service providers will be available only once per incident.
  • The APPEAL process is only accessible if new, relevant evidence emerges since the GeM Competent Authority made the decision.
  • The status of Seller/SP will not change during the period of consideration of APPEAL.

Charges for consideration of appeal on Gem IM system

  1. 5% of contract value with a minimum of ₹1,000 and a maximum of ₹10,000 would be charged as the fee for the consideration of APPEAL.
  2. If the deviation is not linked with a specific contract in such cases, a minimum of  ₹1,000 will be charged for appeal.
  3. If the decision favors the applicant, then the paid fee will be refunded to the applicant as per the GeM policy.

Closure of Incident:

  • Incidents can be closed by the concerned person (without escalating to Gem admin) who has raised it in the first place if the incident has been rectified.
  • GeM admin can also close the incidents once they are escalated. To close incidents, sellers/service providers must submit the required information regarding rectifying deviations in the incident management system.

GeM Admin can close the incident after the escalation by “Buyer” in cases where Seller & service provider fulfills the cause deviation & the Buyer also confirms the same on the dashboard (with supporting documents where required) after availing the opportunity to rectify the deviation.