Now Reading: Finance Ministry cautions against high barriers in GeM consultancy tenders
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Finance Ministry cautions against high barriers in GeM consultancy tenders
Finance Ministry cautions against high barriers in GeM consultancy tenders
The Story in Brief
The Finance Ministry has advised central government entities not to set excessively high turnover or payroll requirements in consultancy tenders floated on the Government e-Marketplace. The Department of Expenditure said a review of tenders issued over the past three financial years found that such conditions could restrict competition.
The department also found that some tenders gave more weight to a consultancy firm’s past experience than to the qualifications of proposed key personnel. In a July 22 memorandum, it asked procuring entities to follow the Manual for Procurement of Consultancy Services, Second Edition, 2025. Industry representatives told Business Today that the move could give specialised Indian firms a fairer chance to compete.
The Indian Opinion
The lazy version is that bigger firms are automatically safer, while the opposite claim is that every smaller firm deserves a contract. Neither follows from the ministry’s findings. Turnover and payroll filters should match the assignment, while teams must still show relevant skills and delivery capacity. The real test is whether future GeM tenders explain each threshold and give proper weight to the people doing the work. Will more qualified domestic bidders actually reach the final shortlist?
Sources (3): businesstoday.in, thehindubusinessline.com, economictimes.indiatimes.com
This story was synthesised by AI from the 3 sources linked above. Methodology and corrections.
Updated: this story now draws on 3 sources.
