When does a GeM purchase need a bid or reverse auction?
Since the Department of Expenditure order of 10 July 2024, GFR Rule 149 allows direct purchase on GeM up to Rs 50,000, purchase from the L1 seller among at least three manufacturers above Rs 50,000 and up to Rs 10 lakh, and makes a bid or reverse auction mandatory above Rs 10 lakh.
The older limits of Rs 25,000 and Rs 5 lakh are still widely quoted. They were doubled in July 2024.
- Terms:
- L1, Reverse auction