How is Vendor Assessment done on Government e-Marketplace?
The Government e-Marketplace (GeM) is a B2G e-commerce portal launched by the Government of India in 2016. It is an interactive online platform where sellers, as well as government buyers, connect for the procurement of Goods & Services that are required by various Government Departments, Organizations and Public Sector Undertakings.

A trader or a manufacturer, who wishes to put up his products on sale or deliver his services directly to the government authorities, have to first get GeM registration as a seller on the Government e-Marketplace (GeM).

After the GeM registration process, there’s an important stage called vendor assessment. In the case of a manufacturer/OEM, the seller can sell his goods only upon the vendor assessment.

Here, we will try to understand the vendor assessment process. First of all, we must know the process of on-board the new seller (OEM) on the GeM portal.

₹1,11,000 Crore worth of Goods and Services have been purchased through GeM till now. After the Launch of the GeM Portal in August 2016 by the Ministry of Commerce and Industry, it has shown rapid growth.

For those who aren’t familiar with the term ‘GeM,’ let’s get on the same page.

The Government e-Marketplace, or GeM, is an online platform for central and state government agencies to procure public goods and services. Sellers, manufacturers, and OEMs who want to sell directly to the government can now register on the GeM portal. There are multiple steps involved in the GeM Registration.

After successful ID Creation and Profile Completion, manufacturers and resellers need to claim their OEMs through Vendor Assessment to sell their goods/services.

Let’s understand all about the Vendor Assessment starting with its definition first.

What is Vendor Assessment?
Benefits of Registering on GEM as Seller
Documents Required for Vendor Assessment
Process of Vendor Assessment
What is Vendor Assessment?

Vendor Assessment is one aspect of Vendor validation on the GeM portal. It is done to determine the quality of a vendor and its products & services. From 1 August 2017, all the manufacturers and resellers are required to claim their OEM to be able to offer their goods and services on GeM.

It’s a filterable parameter on GeM that buyers can use to narrow down their options for vendors. The merchant and vendor gain reputation and authenticity as a result of this. Currently, the Quality Council of India (QCI) is in charge of conducting vendor assessments of all vendors on GeM.

Some important key points of Vendor Assessment are:

The validity of a vendor assessment is 3 years. However, a vendor can opt for vendor assessment even before the expiry of validity.
The Government fee for Vendor Assessment on the GeM portal is ₹11,200 (Excluding GST).
All those entities that possess Certificate are exempted from Vendor Assessment on GeM.
Benefits of Registering on GeM as Seller

1. Access to the National Public Procurement market.

2. Special provisions and sections for startups,MSMEs, and Emporium products.

3. Sellers belonging to North-East states and J & K are exempted from ITR at the time of bid participation.

4. Direct access to Government departments and their organizations.

5. Easy access to participate in bids/reverse auctions.

Documents Required for Vendor Assessment

Following is the list of initial documents to be furnished by sellers for carrying out Vendor Assessment:

1. Company/ Firm registration documents

2. Name, Contact details with the e-mail address of the promoters

3. PAN card copy

4. Memorandum of Association & Articles of Association (in case of Companies) or Partnership Deed (in case of Partnership firm)

5. GST registration (all required in case of multiple billing addresses)

6. Cancelled Bank Cheque

7. Copy of Purchased Order copies, Delivery Challans, GRN (Goods Received Note), Invoice for Government Tenders/ Businesses for the last three financial years. These documents are required for all the order details filled in the form of government orders and corporate orders.

8. Financial Statements (Profit & Loss Statement and Balance Sheet) for the last three financial years.

9. Vendor Principal Agreement copy (applicable if the entity is a dealer or a vendor of an OEM)

10. Banker Reference Letter on account performance

11. Management undertaking stating that the firm is not debarred/blacklisted by any Government Organizations.

12. Management undertaking for years of experience in dealing with Government Organizations.

Process of Vendor Assessment

The overall process of Vendor Assessment is carried out in 2 steps:

1. Desktop Assessment

2. Video Assessment

Desktop Assessment: In the desktop assessment, all the documents related to the manufacturer and their goods/services need to be submitted. The aim of this assessment is to validate the organizational details which also include the financial capacity, production capacity, and authenticity of the vendor’s profile.

Video Assessment: Video assessment can also be understood as confirmation and verification of all the information provided through desktop assessment. In this step, an expert validates the entire process through video calling with the help of a mobile-based application. Video Assessment confirms the physical location, process capacity, safety measures, supply, and other relevant things.

 

1. WHAT IS THE PROCESS OF ON-BOARD A NEW SELLER ON THE GEM LOGIN?
Given below is the complete process of on-board a new seller on the GeM login, explained in detail:-

Step 1: GeM Registration
The seller has to register under the GeM portal by submitting business details.

Step 2: Product listing
The seller has to upload products that wish to sell on the GeM portal.

Step 3: Setup OEM Control Panel
In the case of the manufacturer, the seller has to obtain Original Equipment Manufacturers (OEM) to claim ownership of their originally manufactured products.

Step 4: Vendor Assessment
This is the most important stage. Once the manufacturer having GeM Registration, gets an OEM panel, then the seller has to complete the Vendor registration process.

2. HOW IS THE VENDOR ASSESSMENT DONE?
The Vendor Assessment or Vendor registration is subject to the Quality Council of India [QCI].

Vendor Assessment is done on the payment of a nonrefundable government fee of INR 11,200/- + 18% GST.

Besides, the manufacturer’s products have to go through with quality assessment conducted by the Quality Council of India (QCI).

The manufacturer may be asked to obtain further cerfication.

The OEM may be required to get the ISO certification in India.

3. WHICH SELLERS ARE EXEMPT FROM THE VENDOR REGISTRATION PROCESS?
A seller having GeM registration is exempt from the Vendor registration process if:

● His Product is related to:-

Stationery

Artistic work or

Handicraft

● The Manufacturer is having any of the following certificates:-

ZED Cerficate

BIS License

NSIC Registration

Udyog Aadhaar aka MSME registration certificate approved by DIC

After the successful completion of the abovementioned Vendor registration process, the product shall go live and ready for sale on the GeM portal.