L1 Comparison on GeM
Buyers have two ways to procure goods and services from the Gem Portal. One is through Bid/RA and the other is through Direct Purchase.
L1 Comparison on GeM
Buyers can acquire goods and services from the Gem Portal through Bid/RA or Direct Purchase.
On the GeM Portal, buyers can procure goods and services in two primary ways – through Bid/Reverse Auction (RA) or through Direct Purchase. In both cases, the Lowest One (L1) principle applies, meaning procurement must be awarded to the seller offering the lowest price among eligible vendors
For direct purchases, buyers can acquire products or services up to Rs 50,000. For orders ranging between Rs 50,000 and Rs 10,00,000, buyers must compare offers from at least three different OEMs or service providers. These providers must meet the criteria for quality, quantity, specifications, and delivery timelines.
Once the buyer inputs their requirements, including product specifications, seller ratings, and delivery period, the system will recommend the L1 product that best fits those criteria. Only the L1 product recommended by the system can be added to the cart by the buyer.
What Is L1?
L1 stands for Lowest One. GeM was designed to streamline and improve transparency in public procurement. Any purchase made through Bid/RA or L1 selection must be made with the seller who has quoted the lowest price, except in cases where certain sellers are given preference.
We are preparing to generate L1 comparisons on GeM using a seller account. By filtering the right criteria to identify the L1 product, we can share this comparison with the buyer to facilitate the order.
Prerequisites
- Before preparing L1 comparisons, ensure you have the following details:
- Category/Product
- Quantity
- Rate
- Delivery Location
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Steps for L1 Comparison
Here’s how to filter and identify the L1 product on GeM:
Log in and Access the Marketplace
Visit the official GeM website and click the Login button located at the top right. Enter your GeM Seller User ID and password to log in.
Find the Category
After logging in, navigate to the GeM Marketplace by clicking the “Market” link, or directly access it here. You can search by category name or keywords related to your products or services to find the appropriate category.
Choose the Right Filter
On the left side of the page, there is a “Filter” section with four options:
- ADMINISTRATIVE
- FINANCIAL
- MAKE/MODEL SELECTION
- PRODUCT SPECIFICATIONS (Ensure you’re logged in to see these filters).
Product Specification
Focus on the Product Specification section. Once clicked, you’ll see two types of filters:
- Golden Parameters (yellow)
- Silver Parameters (Grey)
Select the appropriate golden parameters for your product or service to ensure it qualifies as L1. When comparing products, ensure you check offers from at least three OEMs or service providers.
What is L1 purchase in GeM?
L1 in GeM means “Lowest One.” It refers to the seller who offers the lowest price while meeting all buyer requirements. Purchases up to ₹50,000 can be made directly. For amounts between ₹50,000 and ₹10,00,000, buyers must compare at least three OEMs or service providers. For values above ₹10,00,000, procurement is usually done through Bid/RA (Reverse Auction).
How many OEMs are needed for L1 purchase in GeM?
When making a purchase between ₹50,000 and ₹10,00,000, GeM requires the buyer to compare and evaluate offers from at least three different OEMs or service providers. This comparison ensures transparency and helps identify the eligible seller offering the lowest price while meeting all specifications.
In which format is the L1 Comparison Sheet downloaded in GeM?
The L1 Comparison Sheet can be downloaded in Excel or CSV format. This sheet typically includes important details like seller names, their quoted prices, product specifications, delivery timelines, and other criteria used for making the L1 selection.
What are Golden Parameters in GeM?
Golden Parameters are mandatory product or service specifications such as brand, make/model, warranty, and key technical features. These parameters must be applied during the L1 comparison process to ensure only compliant offers are considered. If golden parameters are not selected or matched, the system will not be able to finalize the L1 seller.
What is the difference between an L1 Buyer and an L1 Vendor in GeM?
An L1 Buyer is the government official or department responsible for initiating and approving procurement on GeM. The L1 Vendor (or seller) is the supplier who offers the lowest price while fully meeting the buyer’s quality, specification, and delivery requirements, making them eligible to fulfill the purchase order.
Are there any tricks to win L1 in GeM?
While some users look for shortcuts or “L1 tricks,” the recommended and safest way to win the L1 selection is to offer competitive pricing, strictly comply with golden parameters and other specification requirements, maintain high seller ratings, and ensure timely delivery. Using unofficial tricks or manipulations can lead to sanctions or account suspension by GeM authorities.
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