The Government e-Marketplace (GeM) is a unified public procurement portal designed to simplify the procurement of goods and services for government departments.
One of the core principles of GeM is ensuring transparency, efficiency, and fairness in the procurement process.
To maintain these values, the platform employs various evaluation methods based on the type of procurement, the products or services involved, and the specific requirements of the buyer.
Understanding the different evaluation methods on GeM is crucial for sellers to optimize their bidding strategies and increase their chances of winning contracts.
Here’s an in-depth guide to the Evaluation Methods on GeM:
What are Evaluation Methods on GeM?#
Evaluation methods on the Government e-Marketplace (GeM) can be defined as a standardized process followed to evaluate the bids submitted by sellers against a tender to participate and win the government orders.
These methods ensure fairness, transparency, and efficiency in selecting the best offer, based on criteria such as price, product specifications, and quality.
The evaluation process plays a critical role in determining which bid aligns best with the buyer's requirements, and it helps in maintaining compliance with procurement guidelines.
Different Types of Evaluation Methods#
Following are the different evaluation methods available on GeM.
1. Total Value-wise Evaluation#
Value-wise evaluation refers to assessing bids based on their total value or cost, rather than individual item prices. This approach is useful for procurements involving multiple products, bundled services, or lots (categories of items), with the primary goal being to evaluate the overall financial impact of the entire requirement instead of focusing on the cost of each component separately.
How does Value-wise evaluation usually work?
- Buyer combines several products or services or both under one single bid.
- Instead of selecting the lowest price for each product, the overall cost of all items in the bid is used for comparison.
- The contract is awarded to the vendor offering the lowest (L1) total cost.
Key Features:
- Can be used for complex or bundled procurements involving multiple categories of products and services.
- The overall price competitiveness is crucial.
- Price advantage is gained through offering bulk discounts or optimized total pricing.
- Better coordination for bundled items or services, one vendor manages all aspects, reducing delays.
Example: If a government department is procuring 500 computers along with accessories like monitors and keyboards, the bid would be evaluated based on the total combined price of the entire lot. Sellers offering discounts on bulk quantities or optimizing their total cost will have an advantage.
2. Item Wise Evaluation#
Item-wise evaluation refers to the methodology where each item in a bid is evaluated individually, and the contract for each item is awarded to the vendor offering the lowest price (L1) only for that specific product or service. This method is often used when a tender involves multiple items that are not related or need to be evaluated separately for pricing and quality.
This method ensures that the buyers don't lose the opportunity of getting the best price for each item in a multiple-product purchase.
How does Item-wise evaluation usually work?
- The buyer publishes a tender on GeM with multiple non-relevant items.
- In response to the tender, the sellers submit their bids, specifying prices for each item.
- Each item in the bids is evaluated independently and the lowest price (L1) for each item is identified.
- Different vendors are awarded the contracts as per the quoted prices for individual items.
Key Features:
- Each item is evaluated individually for technical suitability and price.
- Different sellers may win the bid for different items based on their individual L1 prices, even if they do not offer the best total price.
- Buyers can source the best-priced items from different suppliers.
- Important for tenders with diverse product categories.
Example: A tender for office supplies might involve items such as paper, printers, and chairs. In this case, each item is evaluated separately, meaning the seller offering the lowest price for printers might win that segment, even if they don’t offer the lowest price for chairs or paper.
3. Group Wise Evaluation#
Group-wise evaluation is a procurement strategy where multiple related items are grouped into a single lot or package, and bids are evaluated collectively for the entire group rather than on an individual item basis. The vendor offering the lowest total cost for the entire group (L1) wins the contract.
This method is typically used for procurements where multiple items are interdependent and required to work in harmony for a specific project or goal.
The grouping allows the buyer to assess whether the combination of products or services offers the best value and functionality.
How Group-wise Evaluation Usually Works?
- The buyer defines a logical group of interconnected items in the tender.
- Sellers submit their bids considering the total cost for the entire group.
- The bids are evaluated based on the total group value, and the supplier offering the lowest cumulative cost (L1) for the entire group wins the contract.
- A single contract is awarded to the L1 vendor for all items in the group.
Key Features:
- Multiple related items are grouped into a single lot or package.
- Evaluation is focused on how well the group of items works together.
- Best suited for projects where compatibility between different components is crucial.
- The contract is awarded to the vendor offering the lowest total cost for the entire group.
Example: For a project involving the setup of a new office, items such as desks, chairs, and office partitions might be grouped and evaluated together. The focus is on ensuring that all items meet the project’s aesthetic, functional, and budgetary requirements.
Best Practices for GeM Sellers#
To succeed in GeM bids, sellers must adapt to the evaluation method chosen by the buyer. Here are some best practices to follow:
-
Understand the Evaluation Method: Before submitting a bid, always review the tender document to identify the evaluation method. This will help you tailor your bid to meet the buyer's expectations.
-
Ensure Technical Compliance: Make sure that your products or services meet all technical specifications outlined in the bid. Non-compliance could result in disqualification, even if your price is competitive.
-
Optimize Pricing Strategy: Consider offering competitive pricing, bulk discounts, or optimizing your pricing to increase your chances of winning.
-
Submit Complete Documentation: Ensure that all necessary licenses, certifications, and supporting documents are attached. Missing documentation could delay the evaluation process or lead to rejection.
Conclusion#
Understanding the different evaluation methods available on the GeM portal is crucial for successful participation and improving your chances of winning government tenders. Whether the focus is on price, quality, or technical specifications, each method requires a tailored approach to maximize your chances.
By aligning your bid with the buyer’s evaluation criteria, you can augment your chances of acquiring contracts and establishing yourself as a trusted supplier in government procurement.
If you need further assistance with bidding on GeM or have any questions about the evaluation methods, feel free to reach out to us for expert guidance.
