2 weeks ago
Finance Ministry Warns Against Excessive Turnover, Staff Criteria on GeM
The government in India has a special online shopping website called GeM, where government offices buy things and hire expert consultants.
Sometimes, when they ask for help, they make rules about which companies can apply.
The rules might say a company must earn a lot of money or have many workers.
The Finance Ministry noticed that some of these rules are too strict.
If the rules are too strict, only big companies can apply, and smaller good companies cannot compete.
That is not fair, and the government might not get the best deal.
So the Finance Ministry told government offices to keep the rules fair.
They should only ask for as many workers as the job really needs.
They should also look at the skills of the people doing the work, not just the size of the company.
This way, more companies can compete and the government can pick the best one.
India's Union Finance Ministry advised central government entities against prescribing excessively high turnover and payroll requirements in consultancy tenders on the GeM portal.
The Department of Expenditure warned that disproportionately high staff strength requirements may unnecessarily restrict competition.
A sample study of consultancy tenders floated on GeM over the last three financial years revealed issues with eligibility and qualification criteria.
The study found instances of comparatively high turnover requirements and higher weightage on firm experience rather than on key personnel qualifications.
Minimum staff strength on bidders' payrolls was sometimes prescribed as an eligibility criterion far exceeding the actual manpower needed for project execution.
- Who
- The Union Finance Ministry, through its Department of Expenditure, advised central government entities.
- What
- Not to set excessively high turnover and staff payroll requirements in consultancy tenders on the GeM portal.
- Where
- New Delhi, India, where the directive was issued regarding the GeM portal used by central government entities.
- When
- Not specified in the article; the office memorandum followed a sample study covering the last three financial years.
- Why
- To prevent eligibility criteria from unnecessarily restricting competition in public procurement of consultancy services.
Key facts
- Issuing Authority
- Department of Expenditure, Union Finance Ministry
- Directive
- Avoid excessive turnover and payroll criteria in consultancy tenders
- Platform
- Government e-Marketplace (GeM)
- Basis
- Sample study of GeM consultancy procurement tenders
- Study Period
- Last three financial years
- Key Finding
- Staff strength criteria far exceeded actual project manpower needs
- Location
- New Delhi










