Gem Vendor Assessment – Types, Process, Documents, Fees

Gem Vendor Assessment

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The Government e-marketplace (GeM) has revolutionized procurement by creating a seamless platform where businesses can offer products and services directly to government entities.

A major part of this process is the GeM Vendor Assessment, designed to ensure that sellers meet quality and compliance standards.

This guide will guide you through everything you need to know about GeM Vendor Assessment.

What is GeM Vendor Assessment?

The GeM Vendor Assessment is an evaluation conducted to verify the credibility, quality, and capacity of vendors looking to register on the GeM portal. This process not only enhances trust but also ensures a consistent level of quality across vendors supplying to government buyers.

Vendors who pass this assessment are marked with a “VA” tag in front of their names on the GeM Marketplace. This tag boosts buyers’ confidence, as it assures them they’re dealing with sellers whose credentials have already been verified and authenticated.

Currently, vendor assessments on the GeM portal are handled by Rail India Technical and Economic Service (RITES). The entire RITES assessment process is conducted online, and the assessment fee is paid directly to RITES.

This evaluation is crucial for verifying the seller’s credentials and quality standards. Once the video assessment is complete, the seller receives the OEM (Original Equipment Manufacturer) Panel or OEM certification on GeM.

Types of GeM Vendor Assessment

There are different types of vendor assessments based on the nature and scope of the business. Here are the main types:

  1. Basic Vendor Assessment:
    Suitable for smaller-scale vendors, this assessment focuses on the vendor’s core eligibility and compliance documentation.
  2. Advanced Vendor Assessment:
    Required for businesses that deal with high-value products or complex services, the advanced assessment includes thorough inspections and capability verification.
  3. Product-Specific Assessment:
    For vendors supplying specialized or high-tech equipment, this assessment checks the specific products to ensure they meet the required specifications.

Vendor Assessment Process on the GeM Portal

RITES conducts the Vendor Assessment for GeM in two main stages:

  1. Video Assessment
    Following the Desktop Assessment, a Video Assessment is conducted via a mobile-based application through video calling. An expert will join the call to verify and validate all the details and documents submitted by the vendor during the Desktop Assessment.
  2. Desktop Assessment
    In the Desktop Assessment, vendors submit the necessary information and documents for initial review. If any discrepancies are identified, RITES will flag them as non-compliant.

Desktop Assessment

The first step in the Vendor Assessment process is a Desktop Assessment, where RITES reviews the documents and information provided by the business. This stage aims to get a clear understanding of the entity’s processes, policies, procedures, and overall performance. For OEMs, the Vendor Assessment is focused on three key areas:

  • Business Location: A detailed profile of the vendor
  • Financial Capacity: An assessment of the company’s financial stability
  • Production Capability: An evaluation of the company’s ability to manufacture and deliver products

To complete the assessment, manufacturers need to provide some basic information and supporting documents, including:

  • Confirmation of whether all production takes place at a single site or multiple locations
  • The number of manufacturing sites involved
  • The complete address of each manufacturing site
  • The GSTIN of each manufacturing location (supported by the GSTIN certificate)

Video Assessment

The Video Assessment process is organized into five key parts:

  1. Introduction
    The assessment begins with an introductory session to get everyone on the same page.
  2. Question & Answer
    Here, assessors ask questions to clarify details about the business, products, or processes involved.
  3. Examination of Raw Material Stores
    This step involves reviewing the raw materials in storage to verify quality and compliance.
  4. Manufacturing or Assembling Process Examination
    The assessors observe the manufacturing or assembling process to ensure it meets the required standards.
  5. Evidence/Photography Session
    The process wraps up with photos or other evidence to document compliance and quality.

Pre-requisites for Video Assessment

The Video Assessment is conducted through a video call, so it’s essential to prepare the following items in advance:

  • A Compatible Android Phone: Make sure you have an Android phone, preferably brands like Samsung, OnePlus, Redmi (Mi), or Motorola, with an operating system version of 5.0 or higher.
  • Headphones or Earphones: Use a pair of headphones or earphones that come with a microphone for clear audio during the assessment.
  • GeM Video Assessment App: Download and install the GeM Video Assessment App from the Google Play Store.
  • Reliable Internet Connection: Ensure you have a high-speed internet connection that works well at your manufacturing site.
  • Operational Manufacturing Site: Your manufacturing site should be fully operational, and ready to showcase the manufacturing process, including all machines and available staff.
  • Quality Manager Availability: Have your quality manager on hand to explain the quality assurance processes for your products.
  • Relevant Documents and Certificates: If available, gather documents related to R&D, patents, and prototypes for reference during the assessment.

GeM Vendor Assessment Fees

The new vendor validation policy on the GeM platform has removed the exemption previously granted to Original Equipment Manufacturers (OEMs) for vendor assessment, even if they had a UCC or NSIC certificate. Now, OEMs are required to complete a GeM Vendor Assessment conducted by RITES within 30 days.

Here’s an outline of the fees involved in the vendor assessment process based on the business’s annual turnover:

Annual TurnoverVendor Assessment Fee (including GST)
Up to ₹20 lakhs₹871.61
₹20 lakhs – ₹1 crore₹1,743.22
Over ₹1 crore₹3,486.44

Additionally, GeM requires a Caution Money Deposit from sellers, which varies with turnover:

Seller TurnoverCaution Money Deposit
Less than ₹1 crore₹5,000
Between ₹1 crore and ₹10 crores₹10,000
More than ₹10 crores₹25,000

This updated policy ensures that all vendors, including OEMs, meet consistent assessment standards on the GeM platform.

Documents Required for GeM Vendor Assessment

The specific documents required for GeM vendor assessment can vary depending on the type of products or services you offer, as well as any specific requirements set by the government agency. However, some of the common documents that are typically required include:

  • PAN Card Copy: This is a mandatory document for all vendors.
  • GST Registration Certificate: If applicable, you will need to provide a copy of your GST registration certificate.
  • Company/Firm Registration Documents: This includes documents such as the Memorandum of Association (MoA) and Articles of Association (AoA) for companies, or the Partnership Deed for partnership firms.
  • Financial Statements: You will need to provide your financial statements for the last three financial years.
  • Bank Details: This includes a cancelled cheque and bank statement.
  • Product Catalogues: You will need to provide detailed product catalogues, including specifications, technical details, and pricing information.
  • Quality Certifications: If you have any quality certifications, such as ISO certifications or certifications from relevant regulatory bodies, you will need to provide copies of these certificates.
  • Vendor Principal Agreement: If you are a reseller or distributor, you will need to provide a copy of your vendor principal agreement.
  • Other Relevant Documents: Depending on the nature of your business, you may need to provide additional documents, such as licenses, permits, or certifications.  

Who Can Apply for Vendor Assessment on GeM?

Vendor Assessment is essential for sellers looking to participate in public procurement for Q1 and Q2 category products on the GeM platform.

Original Equipment Manufacturers (OEMs) can apply for Vendor Assessment under the following conditions:

  • They operate a manufacturing unit.
  • They have an assembling unit.
  • They are third-party manufacturers, regardless of whether they use their brand name.

If the products are manufactured outside of India in a location that doesn’t share a land border with India, the manufacturing entity must register as a Deemed OEM on GeM.

It’s important to know that companies from other countries can still sign up as OEMs on the GeM website, but they must have a registered foreign subsidiary in India.

For non-manufacturing OEMs, those who own a brand but do not produce the products themselves, they can still claim OEM status if they have contract manufacturing agreements with other manufacturers. However, during the Vendor Assessment, these OEMs must provide the assessing agency (RITES) with the contract or agreement between themselves and the contract manufacturer.

Contact Bidz Professional’s GeM Registration Consultants today to get help with the vendor assessment process and set your business up for success on the GeM portal.

Frequently Asked Questions (FAQs)

  1. What is the purpose of the GeM Vendor Assessment?
    The GeM Vendor Assessment ensures that only credible and qualified vendors are listed on the platform, helping maintain quality and trust for government buyers.
  2. How long does the GeM Vendor Assessment process take?
    The assessment process can take anywhere from a few days to several weeks, depending on the complexity and the vendor’s preparedness.

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