FinMin asks govt entities against setting high turnover, payroll criteria in GeM consultancy tenders
The Finance Ministry has advised central government entities against strict turnover and payroll criteria. These requirements on the GeM portal can unnecessarily restrict competition for consultancy services. A study revealed high turnover and staff strength requirements exceeding project needs. The department emphasizes adhering to procurement manual guidelines for eligibility criteria.
The Finance Ministry has cautioned central government agencies against setting excessively high staff turnover and payroll requirements in consultancy tenders issued through the GeM portal, arguing these criteria could unnecessarily limit competition. The Department of Expenditure issued an office memorandum explaining that procurement agencies should ensure the minimum staff strength stipulated in a tender is proportional to the manpower needed for the successful completion of the consultancy project.
The memorandum, released on July 22, highlights how a sample study of GeM consultancy procurement tenders over the past three years uncovered issues with eligibility and qualification criteria. These issues included surprisingly high turnover expectations and a greater emphasis on a consulting firm's experience over the qualifications and experience of its key personnel.
Additionally, the study found that minimum staff strength requirements on the bidding company's payroll were often set far higher than the actual manpower required to execute the project. The Expenditure Department, under the Finance Ministry, advised procurement entities to follow the provisions of the Manual for Procurement of Consultancy Services, Second Edition, 2025 when setting eligibility and qualification criteria for GeM tenders.
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