Bids on GeM Portal - Types, RA, Participation & Fees

The Government e-Marketplace (GeM) Portal introduces a transparent and user-friendly business connection platform that accelerates efficient public procurement processes in India. Sellers who participate in GeM Portal bidding acquire the chance to win public sector contracts from different industries while simultaneously extending their market visibility and developing their credibility in government deals. Businesses must learn the bidding process specifics and assigned compliance requirements and best practices to achieve their best outcomes when using Gem Platform.

The article offers comprehensive knowledge about GeM to both fresh sellers and experienced vendors by explaining registration process and documentation needs, bidding techniques, and framework compliance requirements. Businesses can attain profitable contracts alongside building strong customer relationships while bolstering national supply networks through organized readiness and bidding maneuvers.

Professional Utilities delivers comprehensive services for GeM Portal sellers, including GeM Registration, across all registration steps together with documentation support and bid management solutions for the achievement of successful bidding outcomes. We will help your business succeed through every stage of government marketplace participation.

What is Bidding on GeM Portal?

Bidding on the GeM Portal refers to the procedure whereby registered sellers vie to provide products or services to government departments and organizations. The Government e-Marketplace (GeM) offers a transparent and efficient online platform where buyers can post their requirements, and sellers can present their competitive bids. Participation may occur through direct bidding or reverse auctions, fostering fair competition and ensuring optimal value for government acquisitions.

In order to engage in GeM bidding, sellers are required to first complete the GeM registration process and fulfill all technical and documentation prerequisites. By adhering to these regulations and supplying accurate information, sellers can effectively display their products or services to a broad spectrum of government buyers. This procedure simplifies procurement, enhances visibility for sellers, and improves the likelihood of successfully securing government contracts.

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Prerequisite to Participate on GeM portal Bidding

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.
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Types of Bids on GeM Portal

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

  1. 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
  2. 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.
  3. 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.
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RA or Reverse Auction Bids on GeM Portal

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.
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How to Participate in Bids on GeM Portal?

Start by logging into the GeM portal, find tenders relevant to your products, and submit your bid details. Follow the steps below to compete successfully!

  • Portal Login Sellers must log in to their GeM portal account using their registered credentials.
  • Searching for Product Search for the desired product using the search option or notification panel. You can view live tenders from buyers based on their requirements.
  • Submitting Bidding Documents and Details Submit all details related to the product, base price, discount, and offered price. The evaluation process typically takes a few days, and sellers offering the most competitive value are selected.
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Cost of Bid Participation on GeM Portal

Understanding the bidding fees on the GeM portal is essential for sellers, as both vendor assessment and caution money charges are determined by their annual turnover.

Annual Turnover Vendor assessment Fee inclusive of GST
Up to 20 lakhs ₹ 871.61
From 20lakh - 1Cr ₹ 1743.22
More than 1 Cr ₹ 3486.44
Caution Money Deposit Fees
Seller Turnover less than 1 Crore Rs 5,000/-
Seller Turnover in between 1 Crore and 10 Crores Rs 10,000/-
Seller Turnover more than 10 Crores Rs 25,000/-

The cost for bid participation on the GeM portal are as follows:

  • Bid Participation Cost: ₹1,500 per bid
  • Bid Participation with Product Listing: ₹2,500 per bid

The above fees include guidance, preparation and submission of Bids as per GeM guidelines. Any additional requirements shall be charged separately with prior approval.

Note: The aforementioned Fees is exclusive of GST.

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Important Factors regarding GeM Bids

Before participating in GeM bids, ensure you meet the framework guidelines, submit all required documents, and understand the bidding terms to maximize your chances of success.

  • Sellers can participate in bid/RA who comply with the procedure of the GeM framework.
  • As per additional terms and conditions (ATC) of the bid/RA, which should provide all relevant documents.
  • No interaction between buyer and seller till the contract is awarded to the respective party.
  • The seller can directly create a bid or RA and even convert the proposal to RA as per their requirement.
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Securing GeM Bids with Professional Utilities

Participating in the GeM portal bidding process on the GeM portal must fulfill eligibility requirements, quote favorable pricing, and adhere to GeM guidelines. Entirely, the bidding process on the GeM portal, from understanding buyers’ demands and finalizing bids to submitting the latter on the GeM portal, requires extensive time and planning.

Professional Utilities, seasoned with GeM registration and bidding consultants, offers complete assistance pertaining to complete document adherence, favorable pricing, and hassle-free bidding on the GeM portal. Our assistance would help GeM sellers successfully obtain government contracts and develop their core business based on its overall benefits available on the GeM portal.

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FAQ’s on Bids on GeM Portal

What is the process of bidding on GeM portal?

The process of bidding on GeM Portal involves registering as a seller, listing your products, selecting relevant tenders, submitting your bid or participating in a reverse auction, and waiting for evaluation to win the contract.

What is L1, L2, and L3 in bidding?

In GeM bidding, L1, L2, and L3 refer to the ranking of bids based on price: L1 is the lowest bidder, L2 is the second lowest, and L3 is the third lowest. The contract is usually awarded to L1, but reverse auctions may involve other ranks.

How to get GeM Registration with Professional Utilities?

With Professional Utilities, you can complete your GeM registration in quick, simple steps:

  1. Contact us
  2. Provide necessary documents and details
  3. Get your GeM portal registration within 1-2 working days
What are the GeM portal Registration Fees?

GeM registration consultants fee in Ghaziabad varies based on the turnover of registered sellers. Additionally, the cost of vendor assessment is also required to pay by the seller to get registered on the GeM portal.

Turnover of seller GeM Registration Fees
Turnover less than ₹1 Crore ₹5,000/-
Turnover between ₹1 crore - 10 crore ₹10,000/-
Turnover more than ₹10 crore ₹25,000/-
Fee for Vendor Assessment ₹11,200 + GST
Note:- Time required for GeM Vendor assessment is 10-25 working days
Who buys from the GeM portal?

The central and state Government does the majority of procurement through GeM; however, private buyers also can enlist themselves to buy goods via GeM guidelines.

What is the minimum time for bidding on GeM?

The minimum time for bidding on GeM Portal is 7 days from the date the bid is published, allowing sellers sufficient time to submit their offers.

Do government directly purchase from the seller on GeM?

Yes, the government can directly purchase from sellers on GeM until and unless the procurement cost is not more than rupees 25,000.

What is GeM Push Button Procurement and how does it work?

GeM Push Button Procurement is a simplified e-procurement process on the Government e-Marketplace that allows government buyers to quickly procure goods and services. Buyers can select products from registered GeM vendors and place orders directly with minimal formalities, ensuring transparency, efficiency, and faster delivery. Complete guidance on using this facility is available at GeM Push Button Procurement.

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