ECPSC 2024

PROCUREMENT AND OUTSOURCING ON GeM

Intro
1. Public proc in India amts to approx. 15-20% of the GDP. Therefore, a need was felt
for an effi run public proc platform. Accordingly, GeM (Government e-Marketplace) was
launched on 09 Aug 2016 as an online, end to end soln for proc of commonly used
goods & services for all central & state govt depts/agencies.
2. Proc out of all pub funds is now mandatory to be done through GeM (GFR-
2017 Rule 149). The basic tenets of proc remain the same as earlier. Any proc process
should constitute broadly of fwg:-
(a) Acceptance of Necessity (AON) by the Competent Fin Auth (CFA).
(b) Floating of Request for Proposal (RFP).
(c) Bidding by interested parties, opening of bids and preparation of
comparative statement.
(d) Supply Order to L1 bidder.
(e) Receipt of goods, inspection and acceptance.
Proc on GeM
3. The buying modes sp on GeM can be divided into fwg:-
(a) Direct Purchase. Upto Rs 25,000/- through any of the avbl suppliers on
GeM.
(b) Direct Purchase with L1. Above Rs 25,000/- and upto Rs 5,00,000/-,
prices of three sellers on GeM will be compared for same product specification.
(c) E-Bid/Reverse Auction (RA). Above Rs 5,00,000/- through the lowest
price provided by the L1 bidder through RA/Bidding. In case of RA, the
interested sellers bid on decr scale to become L1.
4. Terminologies Peculiar to GeM
(a) Provisional Receipt Certificate (PRC). Issued online by the
Buyer/Consignee within 48 Hr of receipt of goods or services. It contains the fwg:-
(i) Qty recd.
(ii) Dt of receipt.
(b) Consignee’s Receipt & Acceptance Certificate (CRAC). Issued online,
digitally signed within 10 days of dt of issue of PRC. It indicates the fwg:-
(i) Qty ordered.
(ii) Qty rejected (if any, with reasons for rejection).
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(iii) Qty accepted and cleared for payment.

5. Advantages of Proc on GeM.

(a) Offers rich listing of products for indl cat of goods/services.
(b) Enables search, comparison, selection and buying.
(c) Provides transparency and ease of buying.
(d) Ensures continuous vendor rating system.
(e) Provides easy return policy.
(f) Reasonability of rates.
(g) Strict adherence to timelines.
(h) Min paper wk.
(j) Direct ECS payment to seller.

Outsourcing on GeM
6. Outsourcing ref to hiring of Human Resource (HR) as a service. The feature has
been lately added on GeM platform, by empaneling vendors with manpower adept in the
fd of adm. The method and mode of hiring shall remain the same, as for any
goods/services already been proc on GeM.
7. 13 areas of professional services have been considered as a part of HR
services. These are manpower with expertise in the fd of adm, audit, court reporting,
messenger services, receptionists, service order dispatching, personnel
assistance, multi-tasking staff, data entry opr, nursing staff, librarian etc.
8. Key Features.
(a) Avbl of Manpower. Manpower avbl in six different geographic regions.
(b) Mode of Hiring. Hiring may be done for specific duration or on
mly/qtly/yearly basis.
(c) Proficiency. Manpower with expertise and knowledge in 13 areas
considered as of now. More professions can be added as per reqmts of buyer.
9. Scope of Outsourcing in Armed Forces.
(a) Defi in WE. Outsourcing is not permitted against defi in unit/fmn WE.
(b) Non-Core Tasks. Existing outsourcing of conservancy staff etc is now reqd
to be mandatorily done through GeM. Similarly contracts pertaining to catering,
housekeeping etc can be undertaken.
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(c) Source of Payment. Outsourcing on GeM can be done only for cases
where payments are being made out of public funds.

10. Benefits. Besides advantages of proc goods/services on GeM, outsourcing on

GeM accrues fwg advantages/benefits for the Armed Forces:-
(a) Optimal Use of Combatant Manpower. Avbl manpower can be gainfully
utilized for their primary/intended task by reducing their emp on non-core tasks.
(b) Quality of Manpower. Onus of ensuring requisite proficiency of staff
being hires wrests with the vendor. The same is in-turn ensured through various
checks and bal on GeM platform.
(c) Fin Saving. GeM offers services through multiple vendors, therefore
ensuring competitive bidding. The same leads to fin saving and optimal
utilization of funds.
(d) Enhanced Combat Effi. By way of making manpower avbl for trg and
ops.

Conclusion

11. GeM offers a vast spectrum of proc options. Optimal expl of this tool can however
be ensured only through precise knowledge of fin procedures, rules and familiarity with the
portal. The canons of fin propriety and prudence should always be ex while undertaking
any fin transaction whether on GeM or otherwise.