How to Sell Products on Government e-Marketplace?
Indian Government launched transparent e-Marketplace popularly known as GeM to empower small traders and manufacturers.
Any small trader or manufacturer can get a GeM registration for its business easily. A business can then access the wide interface to sell its products and services to the distinguished buyers from Government sector or PSUs, where there is a huge requirement for such supplies.
Now the question arises,
How do the sellers having GeM registration sell their products to the Government sector buyers?
This is fulfilled by a process called Public procurement. The government buys the goods of registered buyers through the process of Public procurement.
1. What is Public Procurement?
Just like private companies, Governments offices purchase goods and services as per their operational and official requirement.
- Public procurement refers to the process by which central, state governments and PSUs buy goods & services from the private traders and manufacturers. In common terms, this is called government tender.
- Public procurement requires the strict procedure in order to ensure that the purchases are fair, efficient, transparent and with minimal public resources.
Now, we shall discuss different kinds of Public procurement or government tender.
2. Which are various types of government tenders?
There are basically 5 kinds of tenders as given below:
- Advertised Tender Enquiry
Invitation to tenders by advertisement should be used for the procurement of goods of the estimated value of ₹25 lacs or above. In such a case, the tender should be advertised on the Central Public Procurement Portal (CPPP) at the E-procurement portal. An organization has its own website should also publish all its advertised tender inquiries on the website.
- Limited Tender Enquiry
In a limited tender inquiry, various vendors (more than three) are impaneled by the Government Department for goods that are procured regularly by the Department. Usually, Limited Tender Enquiry is adopted when the estimated value of the goods to be procured is less than ₹25 Lacs.
- 2-Stage Bidding
For purchasing the high-value plant, machinery, etc. of a complex and technical nature, bids may consist of two parts, as below:
- Technical bid consisting of all technical details along with commercial terms and conditions;
- Financial bid indicating the item-wise price for the items mentioned in the technical bid.
- Single Tender Enquiry
Procurement from a single source may be resorted to in the following circumstances :
When only a particular firm is a manufacturer of the required goods, to the best of the concerned government department's knowledge.
In case of an emergency, when it is necessary to purchase the required goods from a particular source. In such cases, the reason for such a decision must be recorded and approval of competent authority must be obtained.
When specific standardized machines or spare parts have to be acquired in order to be compatible with existing sets of equipment (on the advice of a competent technical expert and approved by the relevant authority).
- Electronic Reverse Auctioning
An Electronic Reverse Auction is a type of online auction in which the traditional roles of buyer and seller in an auction are reversed. In an ordinary auction, buyers compete to obtain goods or services by offering increasingly higher prices. Conversely, in an electronic reverse auction, there is one buyer and many potential sellers. The sellers compete to obtain business from the buyer and prices will typically decrease as the sellers underbid each other.
If you need any sort of assistance regarding GeM registration, feel free to contact our business advisors at 8881-069-069.
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