Complete Guide for GeM L1 Purchase with Local Filters in Difficult Regions

GeM L1 Procurement is one of the most popular procurement models that involve the selection of technically eligible sellers who offer the lowest price. This model is essential in achieving maximum benefit in public procurement while meeting the quality requirements.

In case of difficult regions, geographically-based local filters in L1 purchase on GeM favor sellers who are close by in order to avoid delays and minimize logistics risks. There is also a special local filter tool on the GeM portal that is designed for the L1 to allow selecting sellers based on their geographical location. The vendor has to complete the GeM Registration to participate in the GeM L1 Purchase process.

Why Local Filters are Required for L1 Purchase on GeM in Difficult Regions?

• Better Logistics : Due to the presence of hills and other geographical obstacles, local suppliers have greater chances of delivering products in a timely fashion without any delays or cancellations.
• Better Order Execution : Local suppliers will be able to meet urgent requirements and perform maintenance, which increases the efficiency of order execution.
• Helping Local Sellers : The procurement policy aims at encouraging regional organizations to take part in the L1 Purchase on GeM.
• Regional Issues : Local procurement is helpful in dealing with issues like geographical terrain, adverse weather conditions, and connectivity problems where national suppliers might find it hard to operate.
• Two L1 Prices : There will be two L1 prices available in the system; one with the local filter and another without it, so that the buyer can analyze the price effect on the purchase decision.

Features of the Local Filter

The Local filters enable the buyers to take the product to a nearby seller that it could be easy to deliver. Here are some features of the local filters which are mentioned below:

• L1 Purchase on GeM - L1 purchases on GeM portal are location specific and vary according to the selection of locations. The L1 Prices are made ranging from ₹50,000 to ₹10 lakh.
• Local Filter Approval - The approval for the use of local filters by the DoE has been done for one year only. Further extension will depend on the assessment of its impact.
• GeM Local Filter Mechanism - The local filter can be used for making location-based L1 Purchase on GeM after comparing at least three different OEMs.
• GFR Rule 155 Compliance - According to GFR Rule 155, procurement can be made locally under the Purchase Committee procedure.
• Multiple Location Selection - Procurement locations can be chosen in multiples of districts or states, and accordingly, GeM L1 purchase items vary dynamically.
• Difficult Regions Eligibility - Local filters are applicable to Leh-Ladakh, J&K, Andaman-Nicobar Islands, Lakshadweep, North-East States, and Sikkim for efficient deliveries.
• Dual L1 Options - Two L1 purchase items are available; one with and another without local filter, which helps buyers take an appropriate decision considering price variation.
• OEM Requirement in GeM - A minimum of three OEMs and seller offers is mandatory for L1 purchase; otherwise, carting and procurement are restricted under the GeM portal guidelines.

GeM L1 Process with Local Filters

The vendors can follow the below process and apply the local filter on the GeM Portal.

1. Product Selection – The buyer must first log in to the GeM portal. Navigate to the Market section to select the required product category or search using relevant keywords to view available products.
2. Filter Selection - Select and apply the required product filters.
   • Difficult Area Local Filter - Select difficult Area in the Intent of Buying Filter. The system will confirm to enable Local Intent to reserve procurement amongst local sellers only. It will also show a message that the cost may go up due to reservation in procurement.
   • Location Details - The consignee can add the State, location and quantity. You can also use the Seller registered address to procure from the specific one or more state/district.
   • Other Filters - Apply Product Filters, Make in India, MSE filters as required.
3. Product Specification - The Product parameters include Golden Parameters (yellow) determining L1 price, while Market Search Filters (grey) don’t impact L1; results depend on applied buyer filters.
4. GeM L1 Comparison Process- The Buyers compare ₹50,000+ products by adding three OEM options. The GeM system identifies L1 automatically and displays the lowest price first, allowing specification comparison. The vendor can download the comparison sheet and add the product to the cart.
5. Buyer Confirmation - The buyer has to confirm for Direct Purchase or Bid/RA. If Buyer chooses any other product than system recommended L1, Bid/RA would be mandatory.
6. Approval Requirement – The buyer must clearly mention the reason for selecting the local filter and upload approval from the competent authority for the chosen filter and product.
7. Financial Details - The Buyer updates payment authority, approvals, GST, and other details. The buyer also needs to upload financial approval documents.
8. Order Summary - The buyer needs to review the order summary and accept terms. The buyer can download the financials, sanction and contract order after the submission.

L1 in tenders ensures selection of the lowest-priced technically qualified seller, delivering cost-effective procurement. Local filters further support procurement in difficult regions by prioritizing nearby vendors, enabling faster delivery and reliable fulfillment.

TendersPlus supports the GeM L1 process, GeM Registration, Product listing, Catalogue management and Information services for GeM Tenders. Contact our team at +91 9279921887 or email us @ contact@tendersplus.com to start the L1 Procurement journey on GeM Portal now!