How To Follow The GeM Procurement Manual Step by Step
With the Indian government’s commitment to promoting transparency, efficiency, and ease of doing business, the Government e-Marketplace (GeM) has emerged as a revolutionary e-procurement portal. To help streamline the procurement process, the GeM Procurement Manual serves as a comprehensive guide for buyers and sellers. In this blog by Tender 18, we’ll take you through a step-by-step approach to understanding and implementing the GeM Procurement Manual.
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What is the GeM Procurement Manual
The GeM Procurement Manual is an official document designed by the Government of India that outlines standardized procedures for procurement through the GeM portal. It aims to ensure best practices, eliminate ambiguity, and assist government departments, PSUs, and other buyers in executing purchases in a compliant and efficient manner.
Step-by-Step Guide to Following the GeM Procurement Manual
Step 1: Understand the Eligibility and Registration Process
The first step is to identify your role—buyer or seller.
Buyers include central/state government departments, PSUs, and autonomous bodies.
Sellers include OEMs, service providers, resellers, and startups.
Fill in the required details such as Aadhaar, PAN, organization details, and verify using OTPs.
Submit necessary documents like GST certificate, business registration, etc.
Once registered, you’re officially part of the GeM ecosystem.
Step 2: Identify the Right Procurement Mode
The GeM Manual outlines different procurement modes based on the value of purchase:
Up to ₹25,000: Direct Purchase without comparison.
₹25,001 – ₹5,00,000: L1 Purchase (Minimum of 3 bids required).
Above ₹5,00,000: Through Bid/Reverse Auction (RA) or Customized Bids.
Each procurement method has predefined steps and timelines that must be strictly followed.
Step 3: Product or Service Selection
Buyers must ensure they are selecting the correct and most suitable item:
Use relevant filters and specifications while searching.
Compare multiple sellers for price, rating, and delivery.
Check for OEM tag (Original Equipment Manufacturer) where applicable.
GeM’s AI system often recommends the most preferred listings based on your requirement.
Step 4: Placement of Order or Bid
Depending on the procurement method:
For Direct Purchase:
Select the product or service.
Check seller credentials and delivery timelines.
Place the order directly through the GeM portal.
For Bidding or RA:
Create a Bid/RA through the dashboard.
Fill in detailed specifications, terms, and delivery instructions.
Publish the Bid for public participation and allow sellers to respond.
Ensure the Bid is open for at least 10 days (as per GeM Manual recommendations) to enable fair competition.
Step 5: Evaluation of Bids
Once the bidding period closes:
Evaluate all bids as per eligibility, technical compliance, and price.
You can accept or reject any bid with proper justification (documented in the system).
Ensure no bias or manipulation in evaluation to remain compliant.
GeM also provides automated L1 identification, but manual scrutiny is required for technical evaluation.
Step 6: Placing the Purchase Order (PO)
Upon finalizing the winning bidder:
Generate the Purchase Order through the GeM portal.
The PO should include delivery timeline, warranty conditions, and payment terms.
The seller receives the PO via email and in their dashboard.
Ensure the order value, specifications, and quantity match the Bid/RA outcome.
Step 7: Delivery and Acceptance of Goods/Services
The seller is responsible for delivering within the agreed timeline.
Once goods/services are delivered, buyers must inspect and accept or reject the item within 10 working days.
If accepted, update the system status as “Accepted.”
Buyers must report any delays or issues on the GeM platform for resolution and record-keeping.
Step 8: Invoice Generation and Payment
After acceptance:
The seller uploads the invoice on the GeM portal.
Buyers must process the payment within 10 days (or as per the contractual terms).
Payment is done through PFMS (Public Financial Management System).
Late payments attract penalties and are recorded on the seller's feedback dashboard.
Step 9: Performance Monitoring and Feedback
The manual emphasizes the importance of performance feedback:
Buyers can rate sellers on parameters like product quality, delivery time, and service support.
Ratings help in creating a transparent seller performance profile.
Sellers too can rate buyers for promptness and professionalism.
This mutual rating system helps maintain credibility and quality on the platform.
Step 10: Record Keeping and Compliance
All GeM transactions must be documented for audit and compliance purposes.
Maintain Purchase Orders, invoices, delivery challans, and inspection reports.
Follow internal department rules along with GeM guidelines.
In case of disputes, rely on GeM’s online dispute resolution mechanism.
The manual also recommends periodic training and workshops for procurement officers to stay updated.
Key Benefits of Following the GeM Procurement Manual
Transparency: Everything is traceable and digital.
Efficiency: Reduces time and paperwork in procurement.
Fair Competition: Open bids level the playing field.
Cost-Effectiveness: Price comparison and bidding ensure the best deal.
Audit-Friendly: Digital records streamline audits and reduce fraud.
Conclusion
Following the GeM Procurement Manual step by step ensures that you remain compliant with government policies while benefiting from a streamlined and transparent procurement process. Whether you're a buyer or seller, understanding these procedures gives you a competitive edge in public procurement.
At Tender 18, we help businesses navigate the complex world of tenders and government procurement. From real-time tender alerts to expert guidance on platforms like GeM Tender opportunities, we’re your trusted partner in growing your government business.
