How to Participate in GeM Tender: Complete Bidding Guide

Tenders are formal invitations issued by companies, institutions and government bodies to submit bids on various goods, services, projects and contracts. The process helps the issuer get the highest value for their money while promoting transparency for all parties. The GEM portal provides a centralised place for all market participants in India to submit bids for government tenders issued by government agencies, ministries and public sector undertakings (PSUs).

GeM tenders come with detailed eligibility criteria, documentation, terms and conditions that sellers need to fulfil to submit bids. Businesses that offer the best quality, price and expertise tend to win bids for GeM tenders.

Bids and tenders can be categorised into multiple types, depending on the process and product/service category. Here are the different types -

Based on Procurement Method

Standard Bid

A standard bid or tender is the most common type of GeM bid. These tenders remain open for specific periods, during which sellers can submit bids to qualify for the contract. Buyers typically award standard tenders to the lowest price bidder (L1). Any GEM-registered seller is eligible to participate in these bids.

Reverse Auctions

A bid to RA (reverse auction) is a bid format where multiple sellers compete to secure the contract by gradually lowering their bids. It has an initial phase where sellers submit their bids to a GeM tender, after which the buyer selects a smaller group of sellers to hold a reverse auction.

Direct Procurement

For certain small orders, government bodies can directly order goods and services from selected sellers without a bidding process.

Based on Product Categories

Catalogue Bids

This is the normal category-based bids, where sellers offer goods in preexisting and standard categories. The GeM portal has predefined specifications for these categories, which sellers need to meet. These bids are open for at least 10 days.

Custom Item Bids

Under this category, buyers get the freedom to choose any product/s and custom specifications for the products. Custom bids must be open for at least 21 days.

BOQ Bids

Bill of Quantities or BOQ bids are Excel-based bids that do not require any preexisting catalogue. The buyer must create a BOQ document, stating which items they require and order quantities. Government bodies issue BOQ tenders when they need multiple products, typically for construction and infrastructure projects.

Service Bids

The GeM portal primarily facilitates the processing of product-based orders. However, when government agencies require specific services or a bundle of services, such as IT consulting or maintenance services, they can issue service tenders.

Once you have registered your business on the GeM portal, you can start searching for tenders in your respective product/service category. Here’s how to search for GeM tenders:

Step 1: Go to the official GeM portal and sign in using your credentials. If you aren’t registered, click on ‘Sign Up’ and ‘Seller’ and provide some basic information to register your business.

Step 2: Once registered, you need to list your products or services under preexisting catalogues. Make sure to add high-quality images, product descriptions, specifications and warranty details.

Step 3: Go to the ‘Bids’ tab on the dashboard to find current tenders relevant to your business. You can use the search bar to find tenders or the ‘Advanced Search’ to filter using product category, location, contract date, buyer category, etc.

Step 4: Review the tender details to find the specifications, order quantities, tender value and other important information. Make sure to go through the requirements before you learn how to bid on the GeM portal and start bidding.

Go through our detailed step-by-step guide on how to bid on tenders on the GeM portal:

Step 1: Thoroughly analyse the tender document and look for things like:

Technical specifications, including order quantity, scope of work, service level agreements (SLAs), product quality, etc.

Financial details, including pricing, GST, payment terms, etc.

Eligibility criteria and documentation requirements

Step 2: Once you’ve prepared everything for the bidding process, click on the ‘Participate’ button next to the tender details.

Step 3: Start filling in the required details under ‘Bid Details’, such as bid amount and delivery date. Then, move on to ‘Technical Offering’ and enter the product/service specifications. For example, you have to enter details like cleaning materials, indoor area and room type for cleaning services.

Step 4: Enter your pricing, including additional charges (if any) and GST. Then, click on ‘Show Estimation Price’ to view the estimated budget. Click on ‘Encrypt and Save’ to continue.

Step 5: Upload the required documents, including certificates, financial documents and licences.

Step 6: Check your final bid document and verify by entering the one-time password (OTP).

After you’ve successfully submitted your bid, you can see your participation status. Keep track of your submitted bid by regularly checking the ‘My Bids’ section on the dashboard. Make sure to respond promptly to any buyer queries or clarifications.

Now that you know how to submit bids on the GeM portal, let’s understand the prerequisites to participate in GeM bidding. Here are the requirements:

• Seller Registration: Businesses participating in GeM bids must be registered on the portal. Sellers must register themselves on the portal by entering their GST, PAN and business registration details.

• Documentation Requirements: Businesses need to have various documents, including registration papers, certificates, industry-specific licences, etc., to be eligible for GeM bidding. They need to have audited financial statements, tax filing documents and experience certificates, among others, to apply.

• Completed KYC Verification: SMEs (small and medium enterprises) must complete their KYC verification to view open GeM tenders. To complete the KYC process, documents such as an Aadhaar card, a PAN card, business registration documents, etc., are required.

• Valid Brand Authorisation: To sell branded products, third-party sellers must obtain the respective brand authorisation certificate (BAC).

A business needs the following documents to participate in bidding on the GeM portal:

• KYC Documents: Aadhaar card, PAN card, email/mobile verification of the business owners/partners

• Registration Certificates: GST registration certificate, establishment registration certificate, ESI registration certificate, EPF registration certificate

• Financial Statements: Audited financial statements for the last three years, turnover certificate

• Past Performance Certificates: Awarded by government agencies, institutions, etc.

• Other Documents: ISO certificates, BIS certificates, third-party inspection notes, purchase copies, invoices and execution certificates for previous projects, etc.

After understanding how to open bids on the GeM portal, one must learn how to respond to the buyer’s clarifications and queries on your bids. Here are the steps:

Step 1: Log in to the GeM portal and navigate to the dashboard by entering the password and captcha.

Step 2: Go to the ‘Bids’ section and click on ‘List of Bids’ to view your bids, queries, clarifications or ‘corrigendum’ raised by the buyer.

Step 3: Once the buyer has raised a corrigendum (official correction or amendment to a tender), you can view it under ‘View Corrigendum’. You can reply to it by selecting “Corrigendum’ from the dropdown menu and writing your reply.

Step 4: You can click on ‘View Representations’ to check all responses filed by you to the buyer and their respective response. Click on ‘Reply Representation’ to reply to the next response.

Step 5: Buyers can also seek clarifications for any document submitted by sellers at any time. You can find these by going to- ‘Bids’ > ‘Open Technical Bid’ > ‘View Documents & Seek Clarifications’.

Step 6: Click on any entries in the ‘Clarification’ column against your uploaded documents. Write your response within 1000 characters, upload a new document (if required) and click on ‘Submit’ to finalise your response.

Step 7: Buyers can also seek clarifications during technical evaluation. To respond, go to the ‘Bids’ section on the dashboard and find your bid. Click on ‘Pending Clarifications’ to respond to the latest response filed by the buyer.

Follow these tips and tricks to successfully win bids on the GeM portal:

• Know Your Business’s Capabilities: Before taking on a government contract, you must know whether your business can fulfil it. The best way to do this is to audit your business operations. Assess your vendor availability, delivery capacity, storage space, manpower and finances to see if you can win the tender.

• Read the Tender Proposal Carefully: Before filing a GeM bid, you must read through the proposal document carefully. Check every requirement, such as the eligibility criteria, technical specs, expected quality and delivery deadlines. Make sure your business is actually capable of delivering the project before bidding.

• Provide Specific Information: To successfully win bids, include specific information, such as the materials required, product features, delivery time and other details. Also, make sure to highlight the strengths and unique selling points (USPs) of your organisation.

• Respond Promptly to Clarifications: You should respond to any buyer’s response or query within 24-48 hours. Also, ensure to provide clear and accurate information and upload the correct documents for clarification requests.

• Set the Price Quote Wisely: While most businesses are tempted to quote the lowest possible price, that’s not always what wins bids. Ensure to offer realistic pricing while providing clarifications for every item, including product price, taxes and delivery charges. Justify every element pricing, such as higher brand value or warranty.

Any business that wants to successfully win government tenders should go through our detailed guide on how to participate in GeM bids. The key to success is thorough preparation, as businesses need to research the tender requirements and audit their operational capabilities. A tiny mistake can lead to immediate rejection, and a failed project can result in financial repercussions.

Experienced bidders on the GeM portal have established systems, including multiple layers of reviews and proposal editing tools. In addition, they tend to invest in commercial insurance to safeguard their business from unexpected and unfortunate events. A commercial insurance policy provides business owners with peace of mind and ensures the realisation of their business-related plans.

For small and medium businesses that trade products, damage during delivery and transit is a major concern. Fortunately, there is business insurance for small businesses that can provide sufficient financial protection. The TATA AIG Marine Cargo Insurance is perfect for protection against theft, fire, loss or delays for both domestic and international shipments. It’s especially helpful for MSMEs as it ensures all-around financial protection.