Replacement of name of erstwhile DGS&D (Directorate General of Supplies & Disposals) by GeM (Government e-Marketplace) in General Financial Rules (GFRs) 2017

DoE: Amendments in General Financial Rules (GFR) 2017

No.F.1/26/2018-PPD
Government of India
Ministry of Finance
Department of Expenditure
Procurement Policy Division

Room.No.512, Lok Nayak Shawan,
New Delhi dated the 2nd April , 2019.

OFFICE MEMORANDUM

Subject: Replacement of name of erstwhile DGS&D (Directorate General of Supplies & Disposals) by GeM (Government e-Marketplace) in General Financial Rules (GFRs) 2017 - reg.

The undersigned is directed to refer Supply Division, Department of Commerce (DoC) OM No. 1(1 )/2018-Pol. Dated 20.08.2018 proposing changes in GFRs, 2017 and to say that the proposal of DoC has been examined and it has been decided with the approval of Finance Minister to make changes to the GFRs, 2017 as mentioned below:

1. Existing Provisions of GFRs, 2017 

Rule 147: Powers for procurement of goods:

The Ministries or Departments have been delegated full powers to make their own arrangements for procurement of goods. In case, however, a Ministry Of Department does not have the required expertise, it may project its indent to the Central Purchase Organisation (e.g. DGS&D) with the approval of competent authority. The indent form to be utilized for this purpose will be as per the standard form evolved by the Central Purchase organisation.

Amended Rule

Rule 147: Powers for procurement of goods:

The Ministries or Departments have been delegated full powers to make their own arrangements for procurement of goods and services, that are not available on GeM. Common use Goods and Services available on GeM are required to be procured mandatorily through GeM as per Rule 149.

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2. Existing Provisions of GFRs, 2017 

Rule 149 Government e-Marketplace (GeM):

DGS&D or any other agency Government of India has authorized by the Government will host an online Government e-Marketplace Marketplace (GeM) for common use Goods and Goods and Services.
DGS&D will ensure adequate publicity Including periodic advertisement of the items to procured through GeM for the prospective suppliers. The Procurement of Goods and Services by Ministries or Departments will be mandatory of Goods or Services available on GeM. The credentials of suppliers on GeM shall be certified by DGS&D. The procuring authorities will certify the reasonability of rates. The GeM portal shall be utilized by the Government buyers for direct on-line purchases as under:

• Up to Rs.50,000/- through any of the available suppliers on the GeM, meeting the requisite quality, specification and delivery period .
• Above RS.50,000/- and up to Rs.30, 0000/- through the GeM Seller having lowest price amongst the available seiters, of at least three different manufacturers, on GeM, meeting the requisite quality, specification and delivery period. The tools for online bidding and online reverse auction available on GeM can be used by the Buyer if decided by the competent authority.
• Above RS.30,00,000/- through the supplier having lowest price meeting the requisite quality, specification and delivery period after mandatorily obtaining bids, using online bidding or reverse auction tool provided on GeM.

Amended Rule

Rule 149 Government e-Marketplace (GeM):

Government of India has established the Government e·Marketplace (GeM) for common use Goods and Services. GeM SPV will ensure adequate publicity Including periodic advertisement of the items to be procured through GeM for the prospective suppliers. The Procurement of Goods and Services by Ministries or Departments will be mandatory for Goods or Services available on GeM. The credentials of suppliers on GeM shall be certified by GeM SPV. The procuring authorities will certify the reasonability of rates. The GeM portal shall be utilized by the Government buyers for direct on-line purchases as under:

• Up to Rs.25.000 through any of the available suppliers on the GeM, meeting the requisite quality, specification and delivery period.
• Above RS.25,000 and up to RS.5,00,000 through the GeM Seller having lowest price amongst the available sellers (excluding Automobiles where current limit of 30 lakh will continue), of at least three different manufacturers, on GeM, meeting the requisite quality, specification and delivery period. The tools for online bidding and online reverse auction available on GeM can be used by the Buyers even for procurements less than Rs 5,00,000.
• Above Rs, 5,00,000 through the supplier having lowest price meeting the requisite quality, specification and delivery period after mandatorily obtaining bids, using online bidding or reverse auction tool provided on GeM (excluding Automobiles where current limit of 30 lakh will continue).

Note: There is no change in clauses (iv) to (viii).

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3. Existing Provisions of GFRs, 2017 

Rule 150: Registration of Suppliers:

• With a view to establishing reliable sources for procurement of goods commonly required for Government use, the Central Purchase Organisation (e.g, will prepare and maintain item-wise eligible and capable suppliers approved suppliers will be known as "Registered Suppliers". All Ministries Of Departments may utilise these lists as and when necessary. Such registered suppliers are prima facie eligible of consideration for Procurement goods through Limited Tender Enquiry. They are also ordinarily exempted from furnishing bid security along with their bids. A Head of Department may also register suppliers of goods which are specifically required by that Department or Office, periodically. Registration of the supplier should be done following a fair, transparent and reasonable procedure and after giving due publicity.
• The list of registered suppliers for the subject matter of procurement be exhibited on the Central Public Procurement Portal and websites of the Procuring Entity/ e-Procurement / portals.

Amended Rule

Rule 150: Registration of Suppliers:

(i) For goods and services not available on GeM, Head of Ministry / Department may also register suppliers of goods and services which are specifically required by that Department or Office, periodically. Registration of the supplier should be done following a fair, transparent and reasonable procedure and after giving due publicity. Such registered suppliers should be boarded on GeM as and when the item or service gets listed on GeM.

(v) The list of registered suppliers the subject maner of procurement be exhibited on websites of the Procuring Entity / e-Procurement / portals.
Note: There is no change in clauses (ii) to (iv)

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4. Existing Provisions of GFRs, 2017 

Rule 155: Purchase of goods by Purchase Committee:

Purchase of goods costing above Rs.25,000 (Rupees twenty five thousand only) and upto RS.2,50,000/- (Rupees two lakh and fifty thousand only) on each occasion may be made on the recommendations of a duly constituted Local Purchase Committee consisting of three members of an appropriate level as decided by the Head of the Department. The committee will survey the, market to ascertain the reasonableness of rate, quality and specifications and identify the appropriate supplier. Before recommending placement of the purchase order, the members of the appropriate supplier. Before recommending placement of the, committee will jointly record a certificate as under:
"Certified that we, members of the purchase committee are jointly and individually satisfied that the goods recommended for purchase are of the requisite specification and quality, priced at the, prevailing market rate and the, supplier recommended is reliable and competent to supply the good, in question, and it is not debarred by Department of Commerce debarred by Department of Commerce or Ministry/ Department concerned."

Amended Rule

Rule 150: Purchase of goods by Purchase Committee:

In case a certain item is not available on the GeM portal. Purchase of goods costing above Rs. 25,000 (Rupees twenty five thousand only) and upto RS.2,50,000 (Rupees two lakh and fifty thousand only) on each occasion may be made on the recommendations of a duly constituted Local Purchase Committee consisting of three members by the Head of the Department. The committee will survey the market 10 ascertain the reasonableness of rate, quality and specifications and identify the appropriate supplier. Before recommending placement of the purchase order, the members of the committee will jointly record a certificate as under:

"Certified that we, members of the purchase committee are jointly and individually satisfied that the goods recommended for purchase are of the requisite specification and quality, priced at the, prevailing market rate and the, supplier recommended is reliable and competent to supply the good, in question, and it is not debarred by Department of Commerce debarred by Department of Commerce or Ministry/ Department concerned."

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5. Existing Provisions of GFRs, 2017 

Rule 225 (xiii ): Copies of all contracts and agreements for purchases of the value of Rupees Twenty-five Lakhs and above. and of all rate and running contracts entered into by civil departments of the Government other and the departments like the Directorate General of Supplies and Disposals for which a special audit procedure exists, should be sent to the Audit Officer and or the Accounts officer as the case may be.

Amended Rule

Rule 225 (xiii): Copies of all contracts and agreements for purchases of the and agreements for purchases of the value of Rupees Twenty-five Lakhs value of Rupees Twenty-five Lakhs and above. entered into by civil contracts entered into by civil departments of the Government, should be sent to the Audit Officer and or the Accounts officer as the case and may be.

2. It has been also decided to delete Rules 148,156,159(iv), 160(iii),173(xv) and 174(iv) of GFRs, 2017 related to rate contracts.

3. This OM is also available on our website www.doe.gov.in -> Notification -> Circular -> Procurement Policy OM.
4. Hindi version of this OM will follow.

(K Narayana Reddy)
Under Secretary to the Govt. of India
Telfax:·24621305
Email:·kn.reddy@nic.in