Buying IT Services on GeM: A Guide for Departments

For central government ministries, departments and many public bodies, the Government e Marketplace (GeM) is now the default route for buying goods and services. Buying a laptop on GeM is simple. Buying a web portal, a data centre upgrade or a year of managed IT support is not. The platform handles the bidding, but it cannot write your requirements for you, and a vague requirement tends to produce a disappointing project.

This guide is for procurement officers, IT nodal officers and heads of offices who need to buy IT services through GeM. It covers the rules, the main steps, and the practical checks that help you get a working system at the end, not just a completed purchase order.

What the Rules Say

Rule 149 of the General Financial Rules (GFR) 2017 makes it mandatory for ministries and departments of the central government to procure goods and services on GeM when those items are available there. The rule sets out different methods by value:

• Up to Rs 25,000: direct purchase from any available seller who meets the requirement.
• Above Rs 25,000 and up to Rs 5 lakh: purchase from the seller with the lowest price among at least three sellers or manufacturers who meet the requirement.
• Above Rs 5 lakh: purchase through the bidding or reverse auction facility on GeM.

Most IT service projects cross the Rs 5 lakh mark, which means you will usually be running a bid or reverse auction. State governments are not bound by the GFR directly, but many have issued their own orders that make GeM use mandatory or preferred. Always check your own department's current orders and any recent office memorandums before you start, because procedures and thresholds are revised from time to time.

Step 1: Check What Is Available on GeM

Start by searching GeM for a service category that matches your need. Many common IT services have standard categories, such as manpower outsourcing for IT roles, cloud services, website development and maintenance, and hardware maintenance. A standard category is easier to use and compare.

If your requirement does not fit a standard category, GeM allows a custom bid for services. This gives you more room to describe the work, but it also puts more responsibility on you to write the scope clearly. Keep a record of your availability search and the reason for your chosen route. It will help during audit.

Step 2: Write a Scope That Vendors Can Price Accurately

The scope of work is where most IT procurements succeed or fail. If it is vague, vendors either quote high to cover the unknowns or quote low and argue about every change later. A good scope for an IT service should cover:

• Background: what problem you are solving and who will use the system.
• Functional requirements: the modules, workflows, reports and user roles you need.
• Technical requirements: hosting location, integration with existing systems, supported browsers and devices, languages (for example English, Hindi and Marathi).
• Security and compliance: security audit before go-live, data protection duties, access controls and log retention.
• Deliverables: source code, documentation, training material, admin credentials and hand-over steps.
• Support period: warranty support after go-live, followed by any maintenance period.

If you are not sure how to describe a technical requirement, describe the outcome you need instead. "Citizens must be able to apply and track their application status on a mobile phone" is clearer than a list of technologies.

Step 3: Set Milestones, SLAs and Payment Terms

Break the project into milestones that can be checked: requirement sign-off, design approval, user acceptance testing, security audit, go-live and stabilisation. Link payments to these milestones rather than to time spent.

For ongoing services such as hosting, helpdesk or maintenance, write service levels in measurable terms. Examples include system uptime percentage, response time for critical issues, and resolution time for different priority levels. Add a simple penalty structure for repeated failures, and make sure it is realistic. Penalties that are too harsh discourage good vendors from bidding at all.

Step 4: Set Fair Eligibility and Evaluation Criteria

Eligibility criteria such as turnover, past experience and certifications help filter out vendors who cannot deliver. But criteria that are too narrow reduce competition and can draw objections. Keep them proportionate to the size and risk of the project.

For simple, well-defined services, L1 (lowest price) evaluation can work well. For complex projects where quality matters, consider whether a quality and cost based selection method is permitted and appropriate under your department's rules. Where you use L1, a detailed scope and clear technical qualification become even more important, since price will be the only deciding factor after that stage.

Step 5: Manage the Contract After Award

Many procurement guides stop at the purchase order. In practice, the real work starts there. Plan for the following:

1. Kick-off meeting: confirm the scope, timelines, points of contact and reporting format.
2. Requirement sign-off: get a written, detailed requirement document from the vendor and review it carefully before development starts.
3. Regular reviews: weekly or fortnightly progress meetings with minutes.
4. Testing: involve real users in acceptance testing, not only the IT cell.
5. Security audit: for public-facing applications, arrange a security audit before go-live as required by your department's policy.
6. Hand-over: collect source code, documentation and credentials, and store them where your department controls them.

Common Pitfalls to Avoid

Copying an old tender. Reusing a scope written for a different project, or several years ago, often carries over outdated technology choices and missing requirements. Use old documents as a reference, not a template.

Leaving out ownership terms. If the bid does not say that source code, data and domain names belong to the department, you may find it hard to change vendors later.

Ignoring the support period. A portal needs updates, security patches and user support long after launch. Budget for this in the same procurement or plan a separate one early.

A Quick Checklist for Government Buyers

• Availability on GeM checked and recorded
• Correct procurement route chosen for the estimated value
• Latest department orders and office memorandums reviewed
• Scope covers functional, technical, security and hand-over needs
• Milestones and payment terms linked to measurable deliverables
• SLAs and penalties defined for ongoing services
• Eligibility criteria proportionate to project size
• Plan for acceptance testing, security audit and hand-over

Frequently Asked Questions

Is GeM mandatory for state government departments?

GFR Rule 149 applies to central government ministries and departments. Many states have issued their own orders making GeM mandatory or preferred. Check the current orders from your state's finance or industries department.

Can we buy a custom software project on GeM?

Yes. If no standard category fits, GeM supports custom bids for services. The quality of your scope document matters even more in this case.

What if the lowest bidder cannot deliver?

This risk is best handled before the bid, through clear technical eligibility, a detailed scope and realistic milestones. After award, use the contract's review, penalty and termination terms, and document every issue in writing.

Should the vendor handle hosting as well?

It depends on your department's hosting policy. Some departments must host on government or empanelled cloud infrastructure. State the hosting requirement clearly in the bid so vendors quote on the same basis.

How Affix Center Can Help

Affix Center builds and supports e-governance platforms for public sector bodies, including G2C, G2B and G2E portals, workflow automation and secure hosting. We can help departments turn a need into a clear technical scope, plan realistic milestones, and deliver and support the system after award. For projects that need wider planning, our enterprise advisory team can help map the roadmap first.

If your department is preparing an IT procurement, get in touch with our team to discuss your requirement.