BOOKLET OF TERMS AND CONDITIONS

GOVERNMENT E-MARKET PLACE (GEM) - PILOT PHASE

 INDEX

CHAPTER TITLE
NO.

1. General Terms and Conditions of Sale / Purchase in Gov-

ernment e-Marketplace (GeM) - Pilot Phase

2. General Terms and Conditions for enrolment of Seller on

GeM (Government e-Marketplace) - Pilot Phase

3. Price Structure for GeM

4. Format for Contract placed through GeM

5. Special Terms and Conditions for e-bidding on GeM

6. Process Flow Reverse Auction (for Pilot Phase)

7. Special Terms and Conditions for Reverse Auction on GeM

under Pilot phase
 CHAPTER – 1

General Terms and Conditions of Sale/Purchase in Government e-

Marketplace (GeM) - Pilot Phase

1. GeM Portal :

The “GeM” i.e. Government e-Marketplace is for the government

users to cater to their demand of commonly required Goods &
Services.

“Purchaser (s)/Buyer(s)” is the Contract placing authority, which

includes Central Government Ministries/Departments including its
attached/subordinate offices, Central Public Sector Units (CPSUs)
and Autonomous Bodies located in Delhi/New Delhi acting
through its authorized officer(s) for and on behalf of President of
India/CPSU/Autonomous Bodies, as the case may be, for pur-
chase of Goods/Services offered by “Vendor(s)/Seller(s)”.

“Vendor(s)/Seller(s)” is the firm(s) [a proprietorship/partnership

firm/Limited Liability Partnership/Private Limited/Limited compa-
ny/Society registered under Society’s Act] that offers its
Good(s)/Service(s) on GeM and agree to accept the contract
placed by “Purchaser (s)/Buyer(s)” for supply of the
Good(s)/Service(s) as per the terms and conditions of GeM.

The “Vendor(s)/Seller(s)” on GeM will be the OEMs (Original

Equipment Manufacturers) and/or their authorized channel part-
ner(s)/ resellers and e- Marketplaces.

2. Annual Procurement Plan(s):

The Purchaser(s)/Buyer(s) will provide projection of their annual

demands in the GeM indicating required Goods/Services with
 specification & quality, quantity, consignee location and Delivery
Period requirements etc by way of Annual Procurement Plan.

3. Offer(s) by Seller(s):

Seller shall offer their Goods/Services indicating specification,

prices in Indian Rupees, terms of delivery and delivery period,
Warranty/Guaranty, validity etc as per template prescribed in
GeM. Seller would ensure that the Goods/Services offered are
latest, new and complete in all respects.

The same can be modified at any point of time until it has been
accepted by the Purchaser/Buyer by awarding the Contract. How-
ever, if the offer including prices is selected by the Purchas-
er/Buyer at any point of time, the same shall be valid for award
of Contract by the Purchaser/Buyer within five (05) days of such
selection duly notified in the system, regardless of further in-
crease in the prices by the Seller. After five days, such selection
would no longer be available for acceptance or award of Con-
tract. Purchaser is required to obtain necessary sanction and ap-
proval of competent authorities within these five days before
award of Contract.

4. Contract(s):

Purchaser/Buyer may award the Contract(s) digitally signed on-

line in the GeM after thorough and due diligence to meet their
requirements in all respects including quantity, quality, time and
at most economical prices. In case of Services, the agreed SLA
(Service Level Agreement) would also constitute the integral part
of the Contract(s). For award of Contract(s), Purchaser/Buyer is
at liberty to utilize all the data/information and tools made
available in the GeM including e-bidding and reverse e-auction.
On award of the Contract(s), it would be construed that the Pur-
chaser has obtained all necessary Administrative & Financial
 sanctions of the competent authority and adequate funds are
available indicating the relevant Head of accounts in the awarded
Contract(s). These Contract(s) and transactions in the GeM shall
be governed as per terms and conditions specified in the GeM
and also as applicable & prevailing Rules and Laws in India,
which are required to be adhered to by the Purchaser/Buyer as
well as Seller.

5. Prices:

The prices shall be firm and fixed at any point of time and shall
be indicated in INR for each accounting unit on all inclusive ba-
sis, both in numerical digits as well as words in the offer (s) as
well as Contract(s). In case of any difference between the two,
entries in the words will prevail. The offered prices in the GeM
shall in no case exceed than its MRP and/or those offered else-
where including any e-commerce sites for that point of time. In
case lower prices are found / discovered at any stage, the dif-
ference shall be recovered from the Seller by the Purchase/Buyer
in addition to their removal / debarring from the GeM by DGS&D.

6. Terms and Conditions in GeM:

The offer (s) and resultant Contract(s) to be awarded will be go-

verned by this “General Terms & Conditions of Sale/Purchase in
GeM. The offer(s) and resultant Contract(s) are required to be di-
gitally signed using class 3 digital signature on-line by the com-
petent authority of the Seller and Purchaser/Buyer.

7. Performance Security and Performance

The Seller, OEM as well as its authorised Channel Partner/ resel-

ler and e-Market Places, shall be jointly and severally responsible
for satisfactorily execution of contract including warranty obliga-
tions etc. In case of default, necessary punitive actions shall be
 initiated against the seller including their debarment or downward
grading in the GeM.

For procurement through Reverse Auction/e-bidding, Purchas-

er/Buyer may appropriately incorporate suitable provisions for
Performance Bank Guarantee (PBG), if required, as part of bidding
document and hence contract.

8. Duties & Taxes :

(a) Prices shall be all inclusive basis i.e. including excise duty tak-
ing into account the MODVAT benefits if any, sales tax
(ST/CST/VAT/), Service Tax, Customs duty, Entry Tax etc. indi-
cating its applicable rate(s). Statutory variation, if any, shall
be applicable during the original / re-fixed delivery period spe-
cified in the Contract(s).

(b) The Bill Form shall be on-line provided to the seller by the
Purchaser which may inter alia include the following confirma-
tions from the Seller:

(i) Regarding Excise Duty: Seller while submitting the Bills, will
also furnish the Certificates on the Bill itself stating that i)
Certified that the Excise Duty charged on this Bill is not
more than what is payable under the provision of the rele-
vant Act or the Rules made there under; ii) Certified that
the amount of Rs……………claimed as Excise Duty in this bill
is in accordance with the provisions of the Rules in all re-
spects and that the same has been paid to the Excise Au-
thorities in respect of the Stores covered by this Bill; iii)
Certificate with each Bill to the effect that no refund has
been obtained in respect of reimbursement of Excise Duty
made to the Seller during three(3) months immediately pre-
ceding the date covered by the relevant Bill; iv) Seller’s Sta-
tutory Auditor’s Certificate as to whether any refunds have
 been obtained or applied for by the Firm or not in the pre-
ceding financial year, after the Annual Audit of their Ac-
counts also indicating details of such refunds/application, if
any; v) A Certificate along with the Final payment Bills to
the effect whether or not they have any pending ap-
peals/protest for refund or partial refund of Excise Duties
already reimbursed to the Seller by the Government pending
with the Excise Authorities and, if so, the nature of the
amount involved and the position of such appeals; vi) An
undertaking to the effect that in case it is detected by the
Government that any refund from Excise Duty Authorities
obtained by the Contractor after obtaining reimbursement
from the Paying Authority and if the same is not refunded
by the Seller to the Paying Authority, giving details and par-
ticulars of transactions, the Paying Authority will have full
authority to recover such amount from the Seller’s outstand-
ing bills against a particular contract or any other pending
Government Contract and no dispute on this account would
be raised by the Seller.

(ii) Regarding Sales Tax/VAT: In Contract(s) or amendments

thereto allowing Sales tax/VAT, State or Central, the Seller
shall furnish the certificates on their relevant Bill for Sales
Tax: i) “Certified that the goods on which Sales Tax has
been charged have not been exempted under the Central
Sales Tax Act or State Sales Tax Act or the rules made
thereunder and the charges on account of Sales Tax on
these goods are correct under the provisions of that Act or
the Rules made there under; ii) Certified further that we (or
our branch) or (Agent) …………. (Address) ……………… are reg-
istered as dealers in the State of …………. under Registration
No. …….. for the purpose of Sales Tax; iii) Certificate that
the assessment for the period under which the supplies
made to the Government Department or Consignee has
been made or not. In case the Assessment has been done,
 the Seller should furnish a copy of the Assessment Order in
which the supplies or the supply order have been covered
to determine the exact rate of sales tax at which they have
been assessed by the sales tax authorities.

(c) Octroi Duty and/or other local taxes: The Seller shall have
discretion to offer Goods/Services for the select consignee lo-
cations in the country and they are expected to account for
all local taxes (such as levy of town duty, Octroi Duty, Ter-
minal Tax and other levies of local bodies etc.) also while
quoting the price for the listed Goods/Services.

9. Enrolment/ Transaction Fee from Sellers for utilization of GeM :

During Pilot Phase, no enrolment/transaction fee shall be

charged from the Seller for enrolment and usage of GeM.

10. Integrity Pact :

a) As an Integrity Pact, all the users in GeM i.e. Seller as well as

Purchaser/Buyer shall use, practice and observe all the best,
clean, ethical, honest & legal means and behaviour maintaining
complete transparency and fairness in all activities related to
GeM.

b) In compliance thereof, the Seller undertakes that ;

(i) None of its office bearers/Proprietor/partners/Directors

or employee/ representative have been ever convicted in
any court of law for moral turpitude or involved/guilty of
malpractices such as bribery, corruption, fraud, substitu-
tion of bids/offers, interpolation, misrepresentation, eva-
sion, habitual defaulter of tax/dues payments to govern-
ment etc in relation to the business dealings;
 (ii) They are not suspected to be of doubtful loyalty to India;

(iii) They have not been recommended by CBI or any other

investigating agency for business transactions with the
governments in India;

(iv) There in no prima facie case that they have been in-
volved of guilty of an offence involving moral turpitude;

(v) There is no security and question of loyalty consideration

for the State/India warranted;

(vi) The Goods/Services including Prices offered are the best

and most economical for the Government users without
any attempt to make any cartel/pool of any sort/manner
whatsoever;

(vii) All the information/undertakings given in GeM are true to

the best of knowledge and belief and any contradiction
thereto would be held against me/our company for any
consequential actions including removal/ debarment from
the GeM as deemed fit by the DGS&D.

11. Guarantee/Warranty :

The Goods/Services supplied under the Contract(s) bears the

manufacturer’s Warranty/Guaranty and shall be new, of best qual-
ity, workmanship, in accordance with the requisite specifications &
quality and shall have Guarantee/Warrantee for the agreed pe-
riod from the date of receipt by the user/consignee/Purchaser.
Notwithstanding the fact that the Purchaser or its Quality Assur-
 ance Officer may have inspected and/or approved the said
Goods/Services, it is further guaranteed that if during the said
period, the Goods/Services be discovered not to conform to the
requisite description and quality and/or not giving satisfactory
performance or have deteriorated, and the decision of the Pur-
chaser in that behalf shall be final and binding on the Seller and
the Purchaser shall be entitled to call upon the Seller to rectify
and/or replace the Stores or such portion thereof as is found to
be defective by the Purchaser within 7 days and in such an
event, the above period shall apply to the Goods/Services recti-
fied and/or replaced from the date of rectification and/or re-
placement mentioned in warranty thereof. Otherwise, the Seller
shall pay to the Purchaser such compensations that may arise by
reasons of the warranty therein contained. In cases requiring
Spares, the Seller guarantees that they will supply Spare Parts, if
and when required on agreed basis for an agreed price. The
agreed basis could be an including but without any limitation an
agreed discount on the published catalogue of an agreed percen-
tage of profit on the landed cost. The Seller furnishes the War-
ranty to the effect that before going out of production for the
Spare Parts, they will give adequate notice to the Purchaser of
the Goods/Services so that the latter may undertake the balance
of lifetime requirements. The Seller also furnishes the Warranty to
the effect that they will furnish the blue prints of drawings of the
Spares, if and when required in connection with the said
Goods/Services.

12. Purchaser’s/Consignee’s Right of Inspection for Accep-

tance/Rejection (Return Policy):

The Goods/Services delivered shall bear the self certified Manu-

facturer’s/Seller’s Warranty/Guaranty. Purchaser/Consignee shall
have the right to inspect themselves and/or through its ap-
pointed agency, at manufacturer’s/Seller premises and/or Consig-
nee’s site(s) on receipt and accept or reject on proper justifica-
 tion any consignment of the Goods/Services received within a
period of 10 days of receipt and will accordingly issue on line
‘Purchaser’s/Consignee’s Receipt cum Acceptance Certificate’,
which will form the basis of Payments to the Seller. In case such
Certificates are not issued within 10 days, the concerned
Goods/Services will be considered as deemed accepted. However,
no payment are required to be made for rejection, if any, and in
that event the Seller would be liable to remove/lift back such re-
jected Goods/Services within 10 days without any extra
charge/cost to the Purchaser/Consignee failing which suitable
ground rent/warehousing charges would be payable by the Seller
to the Purchaser/Consignee, which is treated as Return Policy of
the GeM.

13. Payment Authority and Payment Terms:

On-line payments shall be made in INR as per following terms by

the Pay & Accounts Officer of the Purchaser to be stipulated in
the Contract against the on-line bills to be submitted by the Sel-
ler:

a) For Goods :

In case of goods, 100% payment will be released within ten

(10) days of issue of consignee receipt-cum-acceptance certifi-
cate and submission of bills.

b) For Services:

In case of services, 100% payments on the basis of monthly

bills will be paid within 10 days of submission of bills with
prescribed documents.

c) All the aforesaid activities shall be on-line in the GeM.

14. Resolution of disputes:

In the event of any question, dispute or difference arising under

the terms and conditions of the GeM, the jurisdiction of the same
shall be at the place from where contract has been placed by
the purchaser and may be referred to the arbitration for which
the arbitrator(s) for adjudication of the matter shall be nominated
by the Purchaser. The arbitration in the matters related to GeM
shall be governed as per prevailing Indian Arbitration and Concili-
ation Act 1996 and would be binding upon the Seller and Pur-
chaser/Buyer. In all such cases in the GeM, the dispute would
not be referred or entertained by Facilitation Council, Consumer
Forum or any other adjudication forum and DGS&D would not be
a party to any such dispute/matter.

15. Terms of delivery and Delivery Period :

All the Goods/Services in the GeM shall be offered on Free Deli-

very at Site basis including loading/unloading, installation, com-
missioning etc as required, indicating the time period as Delivery
Period for its completion. The Seller would offer these details,
which would constitute the part of the awarded Contract(s) in the
GeM and would make a binding Contract between the Seller &
the Purchaser/Buyer. Any modification thereto shall be mutually
agreed and incorporated in the Contract. This Delivery Pe-
riod/Time shall be deemed to be essence of the Contract and
delivery must be completed not later than such date(s).

The Consignee will as soon as possible but not later than 10

days from the date of arrival of Goods/Services at destination
site notify the Seller of any loss or damage that may have oc-
curred during transit.
16. Extension of Delivery Period :

Purchaser may, on the request of the Seller or otherwise, extend

the delivery date suitably subject to the following conditions:

a) The original Delivery Period may be re-fixed by the Purchas-

er without any
Liquidated damages subject to Force Majeure conditions
mentioned below and also on the ground/reasons attributa-
ble to the Purchaser.

b) For other cases, provided the price trend is not lower, the
Delivery Period may be suitably extended for which an
amount equal to the Liquidated Damages for the extended
period(s) for delay in the supply of the Goods/Services after
the expiry of Contract delivery/re-fixed period, shall be re-
covered from the Seller as mentioned hereinafter for the ex-
tended period. No increase in price on account of any oth-
er ground including market rate, statutory increase in or
fresh imposition of Customs Duty, Excise Duty, Sales
Tax/VAT which takes place after the original/re-fixed deli-
very date shall be admissible during such extended pe-
riod(s), though reduction if any of these accounts shall be
payable to the Purchaser.

17. Force Majeure:

If at any time during the continuance of the Contract, the per-

formance in whole or in part by either party of any obligation
under this Contract shall be prevented or delayed by the rea-
sons of any war, hostility, acts of the public enemy, epidemics,
civil commotion, sabotage, fires, floods, explosion, quarantine
restrictions, strikes, lockouts or act of God provided notice of
happening of such event duly evidenced with documents is giv-
en by one party to the other within 10 days from the date of
 occurrence thereof, neither party shall be by reasons of such
event, be entitled to terminate the Contract nor shall either
party have any claim for damages against the other in respect
of such non-performance or the delay in performance, and de-
liveries under the contract shall be resumed as soon as prac-
ticable after such event has come to an end or ceased to ex-
ist, and the decision of the Purchaser as to whether the delive-
ries have been so resumed or not, shall be final and conclu-
sive, Provided further that if the performance in whole or part
of any obligation under this contract is prevented or delayed
by reason of any such event for a period exceeding 10 days,
either party may at its option terminate the contract provided
also that the purchaser shall be at liberty to take over from
the Seller at a price to be fixed by Purchaser, which shall be
final, all unused, undamaged and accepted material, bought out
components and stores in course of manufacture in the pos-
session of the Seller at the time of such termination or such
portion thereof as the Purchaser may deem fit excepting such
materials, bought out components and stores as the Seller may
with the concurrence of the Purchaser elect to retain.

18, Liquidated Damages:

If the Seller fails to deliver any or all of the Goods/Services with-

in the original/re-fixed Delivery/Time period(s) specified in the
Contract, the Purchaser will be also entitled to deduct/recover
the Liquidated Damages for the delay, unless covered under
Force Majeure conditions aforesaid, @ 0.5% per week or part of
the week of delayed period as pre-estimated damages not ex-
ceeding 5% of the contract value without any controver-
sy/dispute of any sort whatsoever.
19. Termination for default:

If the Seller does not perform their obligations under the Con-
tract within the Delivery Period/Date stipulated in the Contract,
the same would constitute the breach of the Contract and the
Purchaser shall have the right to Cancel/withdraw the Contract
for the unsupplied portion after the expiry of the original/re-fixed
delivery date/period stipulated in the Contract. Such cancellation
on account of non performance by the Seller would entitle the
Purchaser to forfeit the Performance Security Bank Guarantee in
whole or in part, if applicable, apart from their downgraded rat-
ings or debarment from the GeM.

20. Closure of Transaction:

After satisfactory completion of all the obligations under the Con-

tract, No Demand Certificate in the GeM would be digitally signed
and issued on–line in the GeM which would be taken as final set-
tlement of all dues of the Contract and treated as repository and
archived in the GeM.

21. Role of DGS&D in GeM :

DGS&D is hosting GeM portal envisaged to function as one-stop

online shop catering to, with duly secured payment transactions
in electronic mode and with adequate facilities including e-
bidding, reverse e-auction as well as Call Centre as help desk.
Further, GeM is equipped with back up for audit trails in respect
of all data/transactions, duly certified by Standardisation Testing
& Quality Certification (STQC), DeitY, Government of India. It in-
cludes its regular modifications and up-gradations from time to
time. DGS&D is operating this portal only as a facilitator to var-
ious government department users to source their demand of
commonly required goods and services on competitive prices with
the speed and flexibility of e-commerce platform. As such, the
role of DGS&D is restricted to the extent of facilitator only and
the purchase agreement in respect of any of the transaction ex-
ecuted through GeM shall be between the Purchaser /Buyer and
Seller.

It shall be responsibility of the Purchaser / Buyer to ensure due

diligence in respect of any of the activities pertaining to the pro-
curement like technical acceptability of goods / services, creden-
tials of the sellers, reasonability of prices, execution of contract
and other allied activities. DGS&D shall not be held responsible
on any of the afore-said aspects in respect of contract(s) placed
by the purchaser / Buyer.

DGS&D also reserves the rights to remove/debar any Seller or

Purchaser/Buyer or any item(s)/category of item(s) from the GeM
owing to any default, breach, non-compliance to terms and con-
ditions of GeM and Rules made by Government from time to
time.

Undertaking/Certificate

I, on behalf of the Seller/Purchaser, as duly constituted and au-

thorized authority, confirm to have carefully read all the afore-
said terms and conditions of GeM and unconditionally accept the
same.

Digitally signed Digitally signed

(For Seller) (For Purchaser)

 CHAPTER – 2

General Terms and Conditions for enrolment of Seller on GeM (Gov-

ernment e-Marketplace) Pilot (Phase)

1. The Sellers on GeM will be the OEMs (Original Equipment Manu-

facturers) and/or their authorized channel partner(s)/ resellers
and e- Marketplaces.

2. Sellers enrolled with GeM are required to maintain absolute inte-

grity, follow decent standard of business ethics and do nothing
unbecoming of enrolled seller.

3. Seller enrolled with GeM can offer any number of products.

However, it will be sole responsibility of the seller to satisfy
themselves regarding possessing the requisites for doing business
for the offered product(s). Authorized channel partner(s)/ resellers
can offer products of only one OEM in a particular product cate-
gory.

4. Seller enrolled with GeM shall be required to furnish requisite in-

formation regarding them and their offered product(s) on GeM as
per template prescribed in the GeM.

5. Sellers are required to keep GeM updated with changes/ amend-

ments in any of the particulars furnished by them. Updates to-
wards such changes would strictly be required to be made by
Seller within a period of 15 days from the date of such
change(s). Non-compliance of instant condition shall tantamount
to concealment of facts and make them liable of removal of their
enrolment with GeM and / or punitive action(s) as deemed fit.

6. Seller would also be liable to be suspended / debarred from

GeM and / or punitive action, if they fail to abide by any of the
 terms & conditions stipulated for GeM or on the following
grounds.
If the seller:-
Ø supplies goods of inferior/ substandard quality
Ø executes services without conforming to requirement given in
Service Level Agreement (SLA),
Ø fails to execute an order/ contract or fail to execute it satis-
factorily,
Ø is declared bankrupt or insolvent,
Ø fails to produce the requisite documents/ information during
the course of inspection / assessment at any stage; and,
Ø on any other ground for which, in the opinion of GeM, the re-
tention of the seller or any of its offered product in GeM is
not in Public Interest.

7. The grounds mentioned above are illustrative only. The Appellate

Authority for any representation or grievance on account of sel-
ler’s removal would be vested with the Director General.

8. DGS&D reserves the right to inspect and to assess manufacturing

/ testing / quality control arrangement(s) of manufacturing pre-
mises and / or any of the premises related to manufacturing
process of offered product of the Seller. DGS&D also reserves
the right to inspect quality of the offered product through docu-
ments, test reports/ certificates, testing at any independent lab
or through inspection/ testing by its authorized representative/s
at firm’s premises or at user’s premises as decided by DGS&D,
for which the seller shall provide necessary facilities and man-
power for such purpose.

9. DGS&D reserves the exclusive right and discretion for addition /

deletion of any of the offered product(s) on GeM and also to
amend any of the terms & conditions stipulated for “enrolment
of Seller on GeM”.
10. The individuals enrolling/offering products/participating in e-
bidding/reverse auction on GeM, for and on behalf of any legal
entity, must ensure that they have the requisite authority from
legal entity to enter into contract with GeM for and on behalf of
the legal entity failing which the individual concerned shall be li-
able for its actions and for any liability arising out of such ac-
tions.
 CHAPTER – 3
Price Structure for GeM

Product Name:

Brand:

Model:

MRP(all inclusive) per unit in Rs.: MRP

Offer Price (all inclusive) per unit in Rs. for GeM OP <= MRP
Buyer:
(Excise Duty)/(Excise Duty+ Service Tax) included
in the offer Price [effective rate in %age]
CST/VAT* included in the offer Price [in %age]
*To be indicated as applicable for individual des-
tination(s) where product is being offered for
supply
Quantity Discount on offer price [in %age]

Slab No. Quantity in Ac- Quantity discount as %

counting unit age of offer price
From To
1
2
3
4
5
 CHAPTER – 4

Format of Contract placed through GeM

Contract No. …… System Generated Unique no. .………………..

Dated …….……
Contract placed on (Seller):
M/s. …Complete name and address of Seller……………..
Unique GeM ID : . ………………
Contract placing authority (Purchaser):
…….. Complete name and address of Order Placing Authority
………………….
Unique GeM ID : …………………
This Contract is for the supply of the stores detailed in the schedule
below in accordance with the General Terms and Conditions of Sale /
Purchase in Government e-Marketplace (GeM), General Terms and Con-
ditions for enrolment of Seller on GeM (Government e-Marketplace) and
(if applicable) Special Terms and Conditions for Reverse Auction on
GeM or Special Terms and Conditions for e-bidding on GeM, shall op-
erate to create a specific contract between the Seller on one part and
the Purchaser on the other part.

1. Purchaser: …….Complete details of purchaser like Central / State /

PSU / Autonomous etc. and complete organization chain to be in-
serted by the System….

2. Major and Minor A/C head to which cost is debitable:

…………………………………..

3. Name & Address of A/C Officer of Indenting Office:

4. Terms of delivery: Free Delivery at Site including loading / unload-

ing, installation, commissioning.

5. Name and address of Inspection Authority and place of inspection

(if any):
6. Paying Authority: Same as Purchaser mentioned above.

7. Schedule to the Contract:

Item Item Make Name and Ordered Unit Rate per Unit Effective Rate of Excise Rate of CST / Delivery
No De- and address of Quantity inclusive of all Duty and / or Service VAT included in Period
scrip- Model Consignee Duties and Taxes Tax included in price price (inclusive
tion (in. Rs.) (inclusive of all sur- of all sur-
charges) charges)
1
2
Total Order Value (in INR)

8. This Delivery Period/Time shall be essence of the Contract and de-

livery must be completed not later than such date(s)

9. Performance Security (if any): Seller has to deposit to the Purchaser

within 10 days an acceptable Performance Security Bank Guarantee in
the format provided on GeM with validity upto 30 days beyond the pe-
riod of Guarantee/Warranty from any Scheduled/Nationalized Bank in
India for an amount of 5% of the Total Order Value.

10. Taxes and Duties: Statutory variation in taxes and duties, if any,
shall be to purchasers account during the original / re-fixed delivery
period specified in the Contract(s).

11. Octroi Duty and/or other local taxes: Normally the stores sup-
plied to Government Departments against Government Contracts are
exempted from levy of town duty, Octroi Duty, Terminal Tax and other
levies of local bodies against production of Exemption Certificate from
authorised officers. Such exemption certificates shall be provided by
the Purchaser along with the Contract failing which such exemptions
will not be applicable.

12. Resolution of disputes: In the event of any question, dispute or dif-

ference arising under the terms and conditions of the GeM, the juris-
diction of the same shall be at the place from where contract has
been placed by the purchaser and may be referred to the arbitration
for which the arbitrator(s) for adjudication of the matter shall be no-
minated by the Purchaser while awarding the Contract itself. The arbi-
tration in the matters related to GeM shall be governed as per prevail-
ing Indian Arbitration and Conciliation Act 1996 and would be binding
upon the Seller and Purchaser/Buyer. In all such cases in the GeM,
the dispute would not be referred or entertained by Facilitation Coun-
cil, Consumer Forum or any other adjudication forum and DGS&D
would not be a party to any such dispute/matter.

13. Liquidated Damages: If the Seller fails to deliver any or all of the
Goods/Services within the original/re-fixed Delivery/Time period(s) spe-
cified in the Contract, the Purchaser will be entitled to deduct/recover
the Liquidated Damages for the delay, (unless covered under Force
Majeure conditions prescribed on GeM), @ 0.5% per week or part of
the week of delayed period as pre-estimated damages not exceeding
5% of the contract value without any controversy/dispute of any sort
whatsoever.

14. FINANCIAL CERTIFICATE

I certify that:
(a) We are a …………………. (to be auto filled by system based on pur-
chaser credentials - Central Government Department / State Govt De-
partment / Central PSU / State PSU / Autonomous institution).
(b) The expenditure involved for this purpose has received the sanction
of the competent financial authority.
(c) The funds are available under the proper head in the sanction
budget allotment for the concerned financial year.
(d) I have been fully authorized by the Department to sign the supply
order and incur the liability of the Goods being ordered.
Signature
Designation
Copy to (System Generated):
1. Indenting Officer
2. Consignee
3. Paying Authority
4. Inspection Officer (if applicable)
 CHAPTER – 5

Special Terms and Conditions for e-bidding on GeM

(For procuring consolidated demand of one product category for mul-
tiple consignee locations from single lowest acceptable bidder)

The following terms and conditions shall be applicable to the e-Bidding

on GeM platform by the Buyers, in addition to laid down “General
Terms and Conditions for enrolment of Seller on GeM (Government e-
Marketplace)” AND “General Terms and Conditions for Sale / Purchase
in GeM (Government e-Marketplace)” already agreed by the Seller
(while enlisting itself as a Seller and by enlisting at Product on GeM).
In case of any discrepancy/conflict in terms and conditions in the afo-
resaid, Special Terms and Conditions for e-bidding on GeM shall have
precedence over the terms/conditions given in any other document.

2. The option to go for e-bidding on GeM will be exercised at the

discretion of the Buyer for his requirement for particular item corres-
ponding to an available product category on GeM. Accordingly, the
Buyer shall identify the product category available on GeM and define
product specifications and warranty in terms of pre-defined parameters
for the product on GeM, which shall serve as product specifications for
e-bidding. The Buyer will put bid invitation notice on GeM and CPP
portal for wider publicity, giving at least clear 7 days from the date of
publication of biding notice on GeM and CPP).

3. The GeM shall automatically generate notice for e-bidding to all

the Seller(s) who have listed products on GeM meeting the product
specifications for e-bidding, inviting them to participate in the upcom-
ing e-bidding. All the sellers who have enlisted product(s) meeting the
product specifications for e-bidding at least 48 hours prior to the ap-
pointed date and time for opening of bids, shall be automatically ex-
tended such bid invitation. The decision of the Purchaser/GeM regard-
ing technical/commercial acceptability of the individual Seller to be in-
vited for e-bidding shall be final. Upon being notified/ invited for e-
bidding, the Seller shall have discretion to participate in the same. On-
ly the Sellers who receive the invitation for bid on GeM shall be eligi-
ble to participate in the e-bidding. The Seller participating in the e-
bidding shall offer one of his already enlisted product(s) which shall
remain available on GeM at least up to validity of bid under e-bidding.

4. The bids under e-Bidding of GeM shall be invited with bid validity
period of 15 days from the date of bid opening which may be further
extended by 15 days by mutual consent of Seller/Buyer, if required.

5. The e-bidding shall be single stage e-bidding with terms of deli-

very as applicable for GeM pilot phase and same shall be conducted
by the Buyer on GeM stipulating the requirements such as:
a. Quantity:
b. Distribution of quantity among the consignee locations
c. Delivery period
d. Quantum of EMD (if any, to be given by bidder),
e. Performance Bank Guarantee required (if any) from successful
bidder i.e. quantum and validity,
f. Date and time of start of e-bidding:
g. Last date and Time for submission of e-bid:
h. Date and Time for opening of e-bid(s)

6. The Seller participating in the e-bidding shall furnish the stipu-

lated EMD (if any) (EMD shall not be demanded during pilot phase), of-
fer one of its product listed on GeM meeting product specifications for
e-bidding and quote price (all inclusive basis) for the total quantity re-
quired and the same shall be inclusive of all taxes and duties such as
excise duty, custom duty, sales tax/VAT, service tax, local taxes, oc-
troi/ entry tax including loading/unloading etc. for delivery at consig-
nee location(s) as per the stipulated terms of delivery i.e. free delivery
to consignee’s end/site. For this purpose, the price bid format pro-
vided under e-Bidding of GeM, selected by the Buyer shall be used by
the bidder to submit his price bid.

7. The bid opening will be conducted at GeM on scheduled date

and time by the Buyer. The Buyer reserves the right to post-
pone/cancel the e-bidding and intimation thereof will be sent by e-
mail/GeM to the Sellers/bidders. Any amendment/corrigendum to the
e-bid invitation issued by the Buyer will be made online and the same
shall be uploaded on the GeM and CPP also. The participation by the
GeM Seller as bidder in e-bidding shall be construed as his compliance
for all the technical as well as commercial parameters as outlined in
the e-bidding and accordingly the contract with the lowest acceptable
bidder shall be entered by the Buyer. After e-bidding, the lowest ac-
ceptable bid shall be decided on the basis of lowest total bid price
for the total tendered requirement.

8. The payment terms will be as per the General Terms and Condi-
tions for sale/purchase of the item category in GeM.

9. The Buyer reserves the right to accept/reject any bid including

the lowest bid received through e-bid and/or annul the e-bidding
process, without assigning any reasons.

10. The participating bidders in the e-Bidding shall be required to

submit bid(s) in adherence of the Information Technology Act, 2000
read along with amendment thereof, duly signed by valid Class–III digi-
tal signature certificate issued to their respective authorised represent-
ative who participate in e-Bidding on their behalf.

11. The participating bidders shall not disclose details of their bids
or other details of their e-bids to other bidders or indulge in any anti-
competitive behaviour including price manipulation in violation of Com-
petition Act, 2002.

12. The Buyer/GeM will not be held responsible for consequential

damages such as no internet connection, no power supply, system
problems, loss of electronic information, power interruption etc.

Undertaking/Certificate
On behalf of the bidder as duly constituted and authorised authority, I
confirm to have carefully read all the aforesaid terms and conditions
of e-bidding and unconditionally accept the same.

Digitally signed for Bidder

 CHAPTER – 6

Process Flow Reverse Auction - for Pilot Phase

(For procuring one or more consignees with same rate of applicable
VAT) based demands being procured through RA)
1. The Buyer on GeM, shall make Search giving the details such as
technical parameters, warranty period, consignee location(s) etc. and
short-list items along with sellers details meeting these requirements.

2. Based upon the above search, GeM platform will indicate L-1 price
which is taken as reference price for reverse auction (RA)

3. RA shall be conducted taking the technical parameters and warranty

same as used for making above search, as base parameters of RA.
In addition to the above, the Purchaser will provide the following
parameters in online RA module:
a) Total quantity required
b) Distribution of quantity among the consignee locations
c) Delivery period
d) Quantum of EMD (to be given by bidder under RA)
e) Warranty
f) Performance Bank Guarantee required from successful bidder un-
der RA (quantum and validity)
g) Time/date and duration of RA (giving at least 7 days from the
date of publication of RA notice on GeM site**)
h) Step value for decrement over the reference price/bid price dur-
ing RA period.
i) Validity period for the bids given on RA:
** The notice for RA should also be put on GEM and CPP
portal for wider publicity, so that vendors not yet empa-
nelled on GeM have opportunity to list their products on
GeM.
4. Subsequently automatic alerts (listing Models offered by the individ-
ual Sellers, which are meeting the base parameters of RA) from
GeM will be issued to all those Sellers who have listed products
matching to the base parameters of RA, giving them opportunity to
participate in RA and bid with one package price (all inclusive basis)
for total quantity required at diverse consignee locations. This
should be a dynamic system, and should take in to account any
new enlisted product meeting the base parameters, 48 hrs prior to
start of RA and automatic alerts/invites to such Suppliers are also
be triggered by GeM.

5. The all inclusive price quoted by Seller in reverse auction shall be

construed to be inclusive of applicable ED and/or Service tax and
CST/VAT in terms of %ages given in their offer prices on GeM for
different consignee locations.

6. Individual Seller shall be allowed to participate in RA subject to his

compliance for parameters at Para 3 above, and in the beginning of
RA he will indicate Model/Make (if any) [to be kept masked till the
end of RA] of their quoted product in RA.

7. After conclusion of RA, GeM will automatically generate a Reverse

Auction report describing its outcomes for necessary decision/action
by the Buyer and for placement of Order on successful bidder
quoting lowest package price for the complete requirement through
GeM within the validity period of the bid.
Seller entering RA shall
Make selection of offered Model for RA:
Seller to select any one among the Models
mentioned in Alert generated by GeM
(To auto populate brand/model, product
listing tax structure and MRP etc. of se-
lected model)
Dash board for individual Seller
This should show the following apart
Reference Price:
Decrement step value in Rs.:
Product Name:
from other vital para of RA:
To be auto populated
To be auto populated
To be auto populated

Offered Brand: To be auto populated

Offered Model: To be auto populated

Consignee(s)* wise quantity distri- Consignee Quantity

bution:

Delivery period (effective from the To be auto populated

date of issue of the contract to
the successful bidder)
His quoted Package Price for total
quantity (all inclusive basis) in Rs.
Quoted Lowest Package Price for
total quantity (all inclusive basis)
in Rs.
 CHAPTER – 7

Special Terms and Conditions for Reverse Auction on GeM under Pilot
phase

1. The following terms and conditions shall be applicable to the re-

verse auctions (hereinafter to be refereed as “RA”) conducted by
the Buyers on GeM platform, in addition to laid down General
Terms and Conditions for enrolment of Seller on GeM (Govern-
ment e-Marketplace) AND General Terms and Conditions for Sale
/ Purchase in GeM (Government e-Marketplace) already agreed by
the Seller who wish to participate in the RA. In case of any dis-
crepancy/conflict in terms and conditions in the aforesaid, ibid
special terms and conditions for reverse auction shall have pre-
cedence over the terms/conditions given in any other document.

2. The RA module of GeM is meant for conducting bidding among

the pre-identified Sellers (empanelled on GeM) for the requirement
involving supplies of Goods (one item category per RA) for con-
signee location(s) involving same CST/VAT rate. The Buyer shall
conduct RA after carefully considering this aspect.

3. For conducting RA, the Buyer shall shortlist items and their Sel-
lers, after making search using details such as technical parame-
ters, warranty period, consignee location(s) etc. among the items
listed on GeM. Based upon the search, the technical parameters
and warranty of the lowest priced item identified by the individual
Buyer shall be base parameters (technical parameters and war-
ranty requirements) of the item for which RA is to be conducted.
The price of the shortlisted item (with lowest price) will be noti-
fied as start/reference price for conducting the RA.
4. RA will be conducted by the Buyer on GeM stipulating the re-
quirements such as Quantity, distribution of quantity among the
consignee locations, Delivery period, Quantum of EMD (to be giv-
en by bidder under RA), Performance Bank Guarantee required
from successful bidder under RA (quantum and validity),
Time/date and duration of RA (giving at least 7 days from the
date of publication of RA notice on GeM site**), step value for
decrement over the reference price/bid price during RA period
and validity period for the bids given on RA. The reverse auction
will be conducted at GeM on scheduled date and time by the
Buyer. However, EMD shall not be demanded during pilot phase.

5. The notice for RA should also be published on GEM and also at

CPP portal for wider publicity, giving atleast clear 7 days time for
conducting RA after publication of the Notice. Any change in this
regard will be intimated to eligible bidders through e-mail/GeM.
All Seller(s) with listed products on GeM meeting the base para-
meters of the item under consideration for RA, shall be notified
by GeM platform inviting them to participate in the upcoming RA.
The purchaser reserves the right to postpone/cancel the reverse
auction and intimation thereof will be sent by e-mail/GeM to the
Sellers/bidders.

6. After publication of RA notice, the vendors who are not yet em-
panelled/existing Seller on GeM shall also have opportunity to
enlist their products on GeM, meeting the base parameters and
consignee location(s) given in RA. Such Sellers shall be automati-
cally invited by GeM to participate in the RA, subject to the en-
listment of the products not later than 48 hours prior to, the ap-
pointed date and time for start of RA. The decision of the Pur-
chaser/GeM regarding technical/commercial acceptability of the
individual Seller to be invited for RA shall be final. The identity of
 Seller(s) participating in RA shall be masked with dummy identity
during the RA session.

7. Upon being notified/ invited for RA, the Seller shall have discre-
tion to participate in the same. For participation in RA, the Seller
shall furnish the stipulated EMD, offer one of these shortlisted
model(s) and quote one package price (all inclusive basis) for the
total quantity required i.e. the quoted package price shall be in-
clusive of all taxes and duties such as excise duty, custom duty,
sales tax/VAT, service tax, local taxes, octroi/ entry tax including
loading/unloading etc. at consignee location for the stipulated
terms of delivery as free delivery to consignee’s end/site.

8. The all inclusive price quoted by Seller in RA shall be construed

to be inclusive of applicable ED and/or Service tax and CST/VAT
at par with the tax/duty structure already given in the price of
enlisted product on GeM. The participation by the Seller as a
bidder in the RA shall be considered as his compliance for all
the technical as well as commercial parameters as outlined in
the RA and accordingly the contract with the successful bidder
shall be entered by the Buyer.

9. All the bids made by the participating Sellers in RA shall be

deemed to have been made by the eligible bidder. Any such bid
cannot be cancelled/withdrawn by the bidder(s). They shall have
to honour the commitments arising out of such bids. Failure to
honour such commitments shall be liable for deregistration from
GeM and or any other administrative action including forfeiture of
EMD, debarring from future reverse auctions on GeM for a period
three (3) years.
10. Minimum Bid Decrement: The minimum Bid decrement shall be
available to the Bidders at the start of the auction. The bidder
can bid lower than the Lowest Bid in the auction by a decre-
ment, in multiple of the minimum Bid decrement or at least of
minimum bid decrement plus multiples of Bid Decrement. The
start price/reference price of the total quantity of an item in-
cluded in RA package in online reverse auction is open to all the
participating bidders. Any bidder can start bidding, in the online
reverse auction, from the start price itself. If the start price is the
bidder’s own price, he would still need to bid in the online re-
verse auction. Also, please note that the first online bid that
comes in the system during the online reverse auction can be
equal to the auction's start price, or lesser than the auction's
start price by one decrement, or lesser than the auction's start
price by multiples of decrement. The second online bid and on-
wards will have to be lesser than the L1 rate by one decrement
value, or lesser than the L1 rate by multiples of the decrement
value.

11. Visibility To Bidder during RA: The Bidder shall be able to view
the following on his screen along with the necessary fields during
RA:
- Leading Bid in the Auction
- Bid Placed by him
- His Own Rank
- Start Price & Bid Decrement Value

12. The bidder in the RA, which quotes the lowest package price (all
inclusive) by the end of RA session shall be construed by GeM
as the winner bidder/successful bidder for the Reverse Auction.
However, the purchaser reserves the right to accept/reject any
bid received through RA without assigning any reasons.
13. The bid submitted under RA shall remain valid for 15 days from
the RA date (till 24.00 Hrs IST) which can be further extended for
15 days with mutual consent, for acceptance by the Buyer.

14. Immediately after successful conclusion of RA session, GeM will

automatically generate a Reverse Auction report describing its
outcomes including the lowest bidder and the quoted lowest
package price (all inclusive) for necessary decision/action by the
Buyer and for placement of Order on successful bidder quoting
lowest package price for the complete requirement through GeM
within the validity period of the bid.

15. GeM/Purchaser shall not have any liability to bidders for any in-
terruption or delay in access to the GeM site
(gem.gov.in)/Reverse Auction link etc, irrespective of the cause.

16. All the participating Sellers in the RA shall be required to submit

bid(s) in adherence of the Information Technology Act, 2000 read
along with amendment thereof, duly signed by valid Class–III digi-
tal signature certificate issued to their respective authorised rep-
resentative who participate in RA on behalf of the bidder in the
reverse auction.

17. The Sellers participating in RA shall not indulge in any anti-

competitive behaviour including price manipulation in violation of
Competition Act, 2002 and also not disclose details of their bids
or other details of the reverse auction to other bidders.

Undertaking/Certificate
For and on behalf of the bidder as duly constituted and authorised authori-
ty, I confirm to have carefully read all the aforesaid terms and conditions of re-
verse auction and unconditionally accept the same.

Digitally signed for Bidder