The Government e-Marketplace (GeM) portal has become an important platform for businesses in India that want to participate in government procurement processes. GeM Portal allows companies to offer products and services to government departments in a transparent and competitive environment.
One key aspect of using GeM effectively is understanding the bidding process, which is critical in securing government contracts.
In this article, we will explain the different types of bids available on GeM and how each works.
Why Bids Are Important on GeM
Understanding the Bidding procedure in the GeM Portal is very important for businesses to participate in tenders. Bidding is categorized based on needs.
Bids on the GeM portal are crucial for both sellers and buyers for several reasons:
- Transparency: GeM’s bidding process is designed to be transparent. This means all sellers have an equal chance to compete for government contracts, which helps create a fair marketplace.
- More Business Opportunities: By participating in relevant bids, sellers can increase their chances of securing large orders from various government departments.
With that in mind, let’s dive into the different types of bids available on GeM.
Types of Bids on GeM
GeM bids are primarily divided into two categories, each suited for different procurement needs.
Standard Bid (Tender Bid)
This is the most common type of bid on GeM. A Standard Bid, also called a Tender Bid, is where sellers submit their offers in response to a specific requirement or tender posted by a government buyer.
- How It Works: Sellers submit their bids within a set time frame. Once the bidding period ends, the buyer evaluates the offers based on the price and technical compliance (how well the product meets the requirements). The contract is usually awarded to the seller who submits the lowest-priced and technically compliant bid.
Example: A government agency posts a requirement for office furniture, and sellers submit bids. The lowest-priced, compliant bid wins the contract.
In some cases, the bidding process can be either a Single Packet Bid or a Two Packet Bid, depending on the complexity of the procurement.
Bid to RA (Reverse Auction)
The Bid to RA process combines the regular bidding system with a Reverse Auction. After submitting their bids, sellers who meet the technical requirements participate in a live auction to offer lower prices in real-time.
- How It Works: Initially, sellers submit their bids as usual. After this, the Reverse Auction phase begins. During this phase, only those sellers who meet the technical specifications can participate, and they are allowed to reduce their prices in real-time to offer the lowest price.
Example: If a buyer needs to purchase electronic devices, sellers submit their initial bids. After the initial submission, a Reverse Auction begins, where sellers can lower their prices to win the contract.
This type of bid encourages competition and helps achieve better prices for the government.
Types of Bids Based on Product Categories
The bidding process on GeM varies based on the type of product being offered. Sellers may encounter different formats depending on whether they are offering standard or customized products.
Normal Category-Based Bid (Product Bid)
In this type of bid, the product is already listed under a standard category on the GeM portal. Sellers offering products within these categories can participate by submitting their bids directly.
- How It Works: The product categories are predefined by GeM, so sellers only need to ensure their products meet the specified criteria before submitting a bid. The bidding period for these bids must remain open for a minimum of 10 days.
Example: If a buyer posts a tender for laptops under the “Electronics > Laptops” category, sellers can directly submit their bids for laptops that meet the listed specifications.
Custom Catalogue-Based Bid
For products that do not fit into any of GeM’s existing categories, buyers can create a Custom Catalogue-Based Bid. In this case, the buyer specifies the product’s details, and sellers submit bids based on these custom requirements.
- How It Works: The buyer defines custom specifications, and sellers must review these carefully before submitting their bids. These bids typically remain open for at least 21 days.
Example: A government agency might require a specialized piece of scientific equipment that is not listed in the standard categories. The buyer creates a custom catalogue with specific requirements, and sellers submit their bids accordingly.
BOQ (Bill of Quantities) Based Bid
In projects where multiple products or services are needed, a BOQ-based bid is used. Here, the buyer provides a Bill of Quantities (BOQ), which lists the items needed along with their quantities. Sellers must quote prices for each item in the BOQ.
- How It Works: Sellers submit bids for each item listed in the BOQ, and the total cost is evaluated based on the entire package. The bid remains open for a minimum of 21 days.
Example: A construction project may require various building materials and services. The buyer issues a BOQ listing the needed items and their quantities, and sellers submit bids for the full package.
Service Bid
GeM is not just for products; it also allows the procurement of services. In a Service Bid, government entities post requirements for services, and sellers provide their proposals based on these needs.
- How It Works: Service bids follow a different process than product bids, as the focus is on service deliverables and expertise. Sellers submit proposals detailing their skills, experience, and pricing. GeM has a predefined service catalogue, but if the service is unique, custom specifications can be created.
Example: A government department may need IT infrastructure maintenance. Sellers offering IT maintenance services can submit proposals based on the specifications provided by the buyer.
Single Packet vs. Two Packet Bids
GeM bids can be further categorized into single-packet or Two-packet bids, depending on how the evaluation process is structured.
Single Packet Bids
In a Single Packet Bid, all required documents, including technical specifications and financial quotations, are submitted together. The buyer then evaluates both the technical and financial aspects at the same time.
- Best For: Simple procurements with fewer technical requirements, where all documents can be assessed at once.
Example: A tender for standard office supplies, where the technical specifications are simple and straightforward.
Two Packet Bids
A Two Packet Bid is a more detailed evaluation process. The technical bids are opened and assessed first, ensuring the products meet all required specifications. Only those bids that are technically compliant are then moved to the second stage, where the financial bids are evaluated.
- Best For: More complex procurements, especially where technical compliance is critical before considering the price.
Example: A tender for specialized equipment where the technical requirements must be thoroughly evaluated before considering the financial aspects.
Conclusion
Understanding the different types of bids on the GeM portal is key to successfully securing government contracts. Whether it’s a simple Standard Bid, a more competitive Reverse Auction, or a complex Two Packet Bid, knowing how each bidding process works will help sellers improve their chances of winning contracts.
By staying informed about the different types of bids and best practices, sellers can better position themselves to take advantage of the many opportunities available on GeM.
For those looking for additional guidance or training on how to navigate the GeM portal, professional support and detailed tutorials are available to help businesses make the most of this platform.