The Government e-Marketplace (GeM) offers multiple procurement options for government buyers and sellers to transact seamlessly. Depending on the order size, type of product/service, and buying strategy, different procurement modes can be used.
In this guide, we explain all GeM Procurement Options 2025 in a simple way so sellers and buyers can understand when and how each method is applied.
Understanding the GeM Procurement Options is key for sellers and buyers. If you are also exploring tenders, check our detailed guide on How to Search Tender on GeM Portal
GeM Procurement Options Explained
1. Direct Purchase on GeM
- For orders up to ₹50,000.
- Buyers can directly purchase from any available seller.
- Simple, fast, and ideal for low-value orders.
2. L1 Procurement (Low Price Selection)
- For orders above ₹50,000 and up to ₹10 lakh.
- Buyer selects the lowest priced seller (L1) who meets all requirements.
- Ensures competitiveness while keeping process simple.
3. Push Button Procurement (PBP)
- A sub-option under L1 procurement.
- Buyers can compare and buy up to ₹5 lakh.
- Useful for repeat or routine purchases.
4. Bid / Reverse Auction (RA)
- Procurement via open bidding or reverse auction.
- Single packet (price only) or double packet (technical + price) options.
- Buyers get best competitive pricing.
5. PAC Procurement (Proprietary Article Certificate)
- For cases where only one specific product/brand can meet requirements.
- Used for proprietary or exclusive items.
- Requires buyer justification and PAC approval.
6. Custom / BOQ Bids
- For goods/services not available on GeM catalogue.
- Buyer uploads Bill of Quantity (BOQ) or custom specifications.
- Allows vendors to quote based on detailed requirements.
FAQs on GeM Procurement Options
Q1. What is the easiest procurement option on GeM?
Direct Purchase is the simplest, used for orders under ₹50,000.
Q2. When is Reverse Auction used?
When buyers want the most competitive pricing through live bidding.
Q3. Can startups participate in PAC procurement?
Generally no, since PAC is brand-specific, but they can participate in BOQ or RA.
Q4. Which procurement option benefits MSMEs the most?
L1 and RA with purchase preference (L1+15%) help MSMEs secure orders.
Conclusion
The GeM Procurement Options provide flexibility for both buyers and sellers. From Direct Purchase for quick buys to Reverse Auctions for competitive pricing and PAC for exclusive items, GeM ensures that all types of procurement needs are covered.
Once you know the different GeM Procurement Options, the next step is finding opportunities. Learn how in our complete guide on How to Search Tender on GeM Portal
For sellers, understanding these options is critical to prepare catalogues, participate in bids, and maximize opportunities on GeM.
1 thought on “GeM Procurement Options 2025: Complete Guide for Sellers & Buyers”