Last updated: December 17th, 2019 5:20 PM

GeM Incident Management

The Government of India (GoI) introduced Government e-Market (GeM), an online portal to procure goods and services from different government departments, organisations, companies and Public Sector Undertakings (PSUs). The portal aims at providing products with increased transparency and efficiency, e-bidding and reverse e-auction options and speedy delivery service. The Ministry of Finance will monitor the GeM portal as per rule No. 149 of the General Financial Rules, 2017.

Incident Management

To avoid incidents that lead to loss of products, providing damaged goods and services, GoI adopted Incident Management. Incident Management is an automated process that aims to create trust from buyers and sellers and penalise any deviant behaviour during or after transacting products. The process and describing the terms and conditions of purchasing the products, general terms and conditions, additional terms and conditions or any other government rules and guidelines prescribed for the Incident Management has been termed as 'deviation' by the GoI. The deviation can take place during the pre-order or post-order of placement on the GeM portal. Incident Management also helps to identify, analyse and rectify issues to prevent occurring any significant damages. Since the initiation of GeM, GoI has updated deviation to increase transparency and reliability. The Ministry of Finance has released the updates through the GeM portal and the current version released in 2019 was 3.0. Click here to know more about GeM

Purpose of Incident Management

• The purpose of the Incident Management is to recover from any issues and regain normal operations to ensure the issue does not create an impact on business operations
• It ensures that the methods and procedures are updated frequently for efficient and quick response, documentation, management and reporting of incidents
• Increase transparency, liability and communication between buyers and sellers
• Enhance resolution through IT services
• Increase the activities of Incident Management with business transactions
• Prioritise Incident Management with business transactions

Categorisation of Deviations on GeM

The deviations on GeM are classified into three categories:

• Category I: Mild Deviation
• Category II: Serious Deviation
• Category III: Severe Deviation

Category I: Mild Deviation

Mild Deviations are related to incomplete documentation from the seller or buyers side.

Category II: Serious Deviation

Serious deviations are categorised as misleading the transaction with intention. The seller or the buyer will be given 15 days to rectify the deviation. If the deviation is not rectified, the reporter can intimate to the GeM administrator. The GeM administrator shall send a show-cause notice on the user's dashboard intimating to respond within seven calendar days.

• The product or service is not delivered after a contract is placed for direct purchase

• Misdeclaration of Government Transaction, Financial Information and turnover and profit
• Failing to update the change of information in GeM within the prescribed time limit
• Denying or refusing to deliver products after the placement of the contract for direct purchase
• Delivering products with inferior quality
• Not following the ethics and Service Level Agreement (SLA)
• Change of pricing in products while selling to buyers other than GeM
• Failing to submit required documents, information, certificates and test reports
• Providing products with misleading authorisation
• Delay in generating CRAC
• Delay in payment after generating CRAC

Category III: Severe Deviation

The seller or the buyer will be given ten days to rectify the deviation. If the deviation is not rectified, the reporter can intimate to the GeM administrator. The GeM administrator shall send a show-cause notice on the user's dashboard intimating to respond within ten calendar days.

• The product or service is not delivered after successful bidding
• Violation of Integrity Pact
• Withdrawing or modifying the bid within the validity period
• Failing to conduct performance security as stipulated by terms and conditions
• producing fake certificates
• Promoting corrupt influence on the buyers
• Quoting wrong MRP

Potential Areas of Deviation as Identified on GeM

The following are the deviation areas that can occur on GeM

Registration

Furnishing misleading or incorrect information, such as:

• Experience in Government Transactions
• Financial information including turnover and profit
• Registering with Benami or fake identity or credentials

Product Listing

• Misrepresentation about authorisation
• Fake, counterfeit or refurbished products
• Mismatch in quoting of MRP
• Fake certificates or misdeclaration related to the availability of required certifications
• Inaccurate submission to mislead the buyers
• Listing the products or services, not in relevant categories with vague or conflicting product specifications/details and irrelevant product photographs

Procurement Process

Seller side

• Withdraws, modifies, impairs or derogates from the bid, within the validity period
• Furnishing information or document in the bid which is inaccurate, false, misleading or forged
• Indulgence in any anti-competitive behaviour or cartel formation
• Violating the integrity pact
• Exercising corrupt influence on the stakeholder.

Buyer side

• Splitting of demands and making repetitive direct purchases or creating multiple bids
• Not finalising the bid within the stipulated time

Post Contract

Seller side

• Fails to furnish performance security
• Fails to submit the requisite documents, information, certificates or test reports
• Refuses to supply product or services after placement of contract for direct purchase
• Non-delivery of the product(s) after placement of contract
• Delivering wrong, inferior or sub-standard quality products
• Delay in contract fulfilment
• Not honouring – warranty obligations
• Poor performance of the workforce based on skillset
• Non-compliance of Service Level Agreements

Buyer side

• Cancelling the order after acceptance of the order by the seller
• Refusal to receive the consignment at the consignee place
• Delay in CRAC generation
• Rejecting the goods without any valid reasons
• Delay in payment post CRAC generation

Impact of Incident on an on-going bid

Ongoing Technical Evaluation

S. No.	On-going Technical Evaluation	Implication
1	Notified	The status of the seller will be notified to the buyer. The buyer can still proceed with technical evaluation unless the seller is suspended.
2	Watch-listed	The status of the seller will be notified to the buyer. The buyer can still proceed with technical evaluation unless the seller is disabled.
3	Suspended	The seller will be disqualified
4	Disabled	The seller will be disqualified

Ongoing Financial Evaluation

S. No.	On-going Financial Evaluation	Implication
1	Notified	The status of the seller will be notified to the buyer. Based on status, the buyer may place the order to the L1 seller unless suspended.
2	Watch-listed	The seller’s status will be notified to the buyer. Based on status, the buyer may place the order to the L1 seller unless disabled.
3	Suspended	Buyer is recommended to cancel the bid. In case the buyer does not want to cancel the bid
4	Disabled	Buyer is recommended to cancel the bid. In case the buyer does not want to cancel the bid

Please scroll down to know more on Annexure I For documentation and registration, click here