How To Sell On A Government Platform (Gem)

To assist small traders and producers, the Indian government developed GeM, a transparent e-Marketplace. A GeM registration for a small trader or factory is simple to get. A company can then use the extensive interface to offer its products and services to prestigious consumers from the government sector or PSUs, where such supplies are in high demand.

Now the question is,

How do vendors with a GeM registration market their wares to purchasers in the government sector?

A mechanism known as public procurement is used to accomplish this.

The government purchases items from registered purchasers through the public procurement process.

1. WHAT IS PUBLIC PROCUREMENT?

Government agencies, like private businesses, buy goods and services to meet their operational and official needs.

• The process by which the federal, state and public sector entities purchase products and services from private traders and producers is known as public procurement. This is referred to as a government tender.
• Public procurement necessitates a stringent method to ensure that purchases are made in a fair, efficient, transparent, and cost-effective manner.

Now we’ll go through the many types of public procurement or government tenders.

2. WHICH ARE VARIOUS TYPES OF GOVERNMENT TENDERS?

There are five primary types of tenders, as listed below:

Advertised Tender Enquiry

For the acquisition of products with an estimated value of $25 lacs or more, invitation to tenders by advertisement should be utilised. In this situation, the tender should be announced on the E-procurement portal’s Central Public Procurement Portal (CPPP). If a company has its own website, it should post all of its publicly announced tender enquiries there as well.

Limited Tender Enquiry

Various vendors (more than three) are impanelled by the Government Department for items that are acquired on a regular basis in a restricted tender enquiry. When the projected value of the items to be procured is less than $25 lacs, Limited Tender Enquiry is usually used.

2-Stage Bidding

Bids for the high-value plant, machinery, and other items of a complicated and technical nature may be divided into two halves, as shown below:

• All technical specifics, as well as commercial terms and conditions, are included in the technical bid.
• The item-by-item price for the items stated in the technical bid is indicated in the financial bid.

Single Tender Enquiry

When just one firm is a manufacturer of the required items, to the best of the concerned government department’s knowledge, procurement from a single source may be used.

• In the event of an emergency, the required items must be purchased from a certain source.
• In such circumstances, the cause for the decision must be documented, and approval from the appropriate authority must be sought.
• When particular standardised machines or spare parts must be purchased to be compatible with existing equipment sets (on the advice of a competent technical expert and approved by the relevant authority).

Electronic Reverse Auctioning

An Electronic Reverse Auction is a sort of online auction in which the buyer and seller roles in the auction are reversed. In a traditional auction, bidders compete for products or services by placing ever-increasing bids.

In an electronic reverse auction, on the other hand, there is only one buyer and many prospective sellers. As the sellers fight for the buyer’s business, prices often fall as the sellers underbid each other.