The Government e-Marketplace (GeM) in India facilitates online procurement by various government departments and organizations. While GeM provides a platform for conducting reverse auctions, the specific rules and guidelines for reverse auctions may vary depending on the policies and procedures of the procuring entity. However, GeM generally follows certain principles and guidelines to ensure transparency, fairness, and efficiency in the reverse auction process. Here are some key aspects of GeM reverse auction rules:
- Registration: Suppliers intending to participate in reverse auctions on GeM need to register on the platform and fulfill the registration requirements specified by GeM. This typically involves providing necessary documentation and information to verify the supplier’s credentials.
- Tender Posting: Buyers (government departments or organizations) post procurement requirements on GeM, including specifications, quantities, and terms and conditions. The tender documents are made available to registered suppliers for review and bidding.
- Bidding Process: Suppliers submit their bids electronically through the GeM platform during the specified bidding period. Bids typically include the quantity of goods or services offered and the price per unit. Suppliers may have the option to revise their bids within the bidding period.
- Price Reduction: GeM reverse auctions follow a descending price model, where prices decrease over time as suppliers compete to offer the lowest price. The platform displays the current lowest bid, encouraging suppliers to submit lower bids to remain competitive.
- Real-time Monitoring: GeM provides real-time monitoring and tracking of reverse auctions, allowing buyers to monitor bid activity and prices as they evolve during the auction period. Buyers can view bid details and supplier information through the platform.
- Bid Evaluation: At the end of the auction, the buyer evaluates the bids received based on predetermined evaluation criteria, which may include price, quality, delivery time, and other relevant factors specified in the tender document.
- Selection of Winning Bid: The buyer selects the winning bid based on the lowest price offered by a qualified supplier meeting the specified requirements. GeM may provide automated features for bid evaluation and selection based on predefined rules and criteria.
- Contract Finalization: Once the winning bid is selected, the buyer finalizes the contract with the winning supplier through the GeM platform. Contract details, including terms and conditions, are communicated electronically to the supplier.
While these are general aspects of GeM reverse auctions, specific rules and procedures may vary depending on the procurement policies of the government department or organization conducting the auction. Suppliers participating in GeM reverse auctions should familiarize themselves with the specific rules and guidelines provided by GeM for each auction they intend to participate in.