Department of Expenditure,Ministry of Finance has added a New Rule 141-A in the General Financial Rules(GFR) on the request of the Department of Commerce regarding proposed creation of One Stop Government e-Marketplace (GeM) by Directorate General Supply and Disposal (DGS&D).

The DGS&D will host an online Government e-Marketplace (GeM) for common use Goods and Services.  The GeM would be dynamic, self-sustaining and user friendly. DGS&D will ensure adequate publicity including periodic advertisements in newspapers of the GeM and the items to be procured through GeM for the prospective suppliers. The procuring authorities will satisfy themselves that the price of the selected offer is reasonable. GeM may be utilized by Government buyers (at their option) for direct on-line purchases as under:

• Upto ₹ 50,000/- through any of the available suppliers on the GeM, meeting the requisite quality, specification and delivery period;
• Above ₹ 50,000/- through the supplier having lowest price amongst the available suppliers on the GeM, meeting the requisite quality, specification and delivery period.GeM will also provide tools for online bidding and online reverse auction which can be used by the Purchaser.

The above monetary ceiling is applicable only for purchases made through GeM.  For all other purchases, GFR Rule 145, 146, 150 and 151 will apply.

All Central Government Ministries/ Departments have been requested by the Department of Expenditure to bring the amendment to the notice of all their Attached and Subordinate offices for their information.

This OM is also available on the Finance Ministry website www.finmin.nic.in

Government e Marketplace procurement permits optional online purchases with simplified supplier selection and online auction tools. Rule 141-A authorises DGS&D to host a Government e Marketplace (GeM) for common goods and services, requires DGS&D to publicise the portal and items, obliges procuring authorities to ensure price reasonableness, and permits direct online purchases through GeM with supplier selection according to quality, specification and delivery; GeM will also offer online bidding and reverse auction. The monetary ceiling in Rule 141-A applies only to GeM purchases; other procurements remain subject to existing GFR rules.