Navigating Gujarat Stringent Public Procurement Guidelines 2025 [100% Official Sources!] Other Services

Gujarat is one of India's leading states, aiming to achieve₹29.8 lakh crore of GSDP in 2025-26 with a growth rate of 12% and making notable contributions to India's overall GDP. 

The state is growing across various sectors, including infrastructure, renewable energy, manufacturing sector, IT, etc., which is also creating many tendering opportunities. The Gujarat government has outlined several guidelines and procedures to regulate procurement. 

In this blog, we'll discuss all the essential guidelines and procedures that every contractor or bidder must be aware of. Let's dive straight into the blog!

Understanding Public Procurement Processes in Gujarat

Public Procurement in Gujarat is a standard process used by state government, local authorities, and public sector enterprises to acquire goods, services, and work from private contractors and suppliers. The state government has designed a complete step-by-step process to award contracts for public projects while ensuring fairness, transparency, competition, and accountability. 

Below, we've mentioned Gujarat's step-by-step public procurement process that utilizes e-procurement platforms. 

Step 1: Tender Preparation and Issuance 

First, the procurement entity prepares a Tender Document outlining project requirements, technical specifications, eligibility criteria, and timelines. 

Once prepared, the concerned authorities will advertise tender opportunities on e-tendering platforms like GeM (Government e-Marketplace) and the Gujarat e-Tendering Portal, aiming to inform all potential suppliers and contractors while allowing them to participate. 

Step 2: Bid Submission and Evaluation 

Interested bidders must register on e-tendering platforms by creating an account, submitting company details, and providing a digital signature certificate (DSC) to authenticate bid submission. 

Now, contracts shall submit technical and financial bids separately through the e-tendering portal, including details like qualifications, experience, project approach, and price. 

The Procurement authorities evaluate technical bids based on the lowest evaluated cost (L1), technical expertise, and feasibility of the proposal. 

Step 3: Award Contract 

Once the bids are evaluated, the procurement authorities issue a Letter of Acceptance (LoA) to the winning bidder while signing a formal contract that outlines the project scope, timelines, penalties, and payment terms. Plus, the selected contractor may also need to submit a performance security deposit as a guarantee to fulfill the contract. 

Step 4: Contract Management

Once the contract is awarded to the selected tenderer, the procurement agency monitors the progress while ensuring adherence to the required timelines and quality standards. Tenderers are required to submit reports regularly to the authority, and payments are made based on project milestones. After the completion of the final inspection before closing the contract, performance security is released. 

Standard Procurement Guidelines of Gujarat Government

Below, we’ve highlighted some of the standard public procurement guidelines in Gujarat. To learn everything in detail, you can download the state's official document. 

Related to Tender Fees and Earnest Money Deposit 

• To participate in tenders, enterprises have to pay tender fees or Earnest Money Deposits, which may be as follows. 

(i) ₹1,500 fees for tender value up to ₹25 lakhs 

(ii)₹2500 fees for tender value more than ₹25 lakhs and up to 50 lakhs 

(iii)₹5000 fees for tender value more than ₹50 lakh and up to 1 crore, and ₹15,000 fees for tenders above ₹1 crore. 

• Once the successful bidder is identified, the END of all unsuccessful bidders must be returned by procuring authorities within seven working days. EMD should not be deposited directly into a bank account, but in the form of Demand Draft, Pay Order, and Bank Guarantee, and that too only from the banks approved by the Finance Department. 

• Micro and Small-Scale Enterprises participating in the tendering process for the products they manufacture or services they provide, have Udyam registration for items or services under procurement, and have registration with CSPO or National Small Industries Corporation are exempted from Tender Fee or Earnest Money Deposit.

• Boards/Corporations/PSUs of the Central or State government for their own manufactured items are exempted from the Tender Fee and Earnest Money Deposit. 

• Startups participating in the tendering process for the products they manufacture or services they provide, recognized by DIPIT under the Startup India Program, and have obtained Udyam registration & CSPO/NSIC registration as MSE are also exempted from the Tender Fee and Earnest Money Deposit. 

• Security Deposit for L-1 (Lowest Bidder) will be exempted for organizations and enterprises exempted from Tender Fees and END up to the purchase of ₹5 lakh and 3% of order value up to the purchase ₹5+ lakh. For all other enterprises, the security deposit will be 5% of the order value for any amount. 

Related to Purchase Preference for Items that are not Divisible in Nature 

• For the procurement of goods or services that are not divisible in nature or procurement of services where the bid is evaluated on the price alone, the Class-I Gujarat MSE and Class-I Local Suppliers should get preference over Class-II Gujarat MSE and Class-II Local Suppliers. 

In Case Where Tenders are Awarded to Multiple Bidders

• When tenders can be awarded to multiple bidders, the L-1 rates order of preference must be Class-I Gujarat MSE, Class-I Local Supplier, Class-II Gujarat MSE, Class-II Local Supplier, and Non-local Supplier. The procurement authority must clearly mention order splitting quantity in tender documents prior. 

Related to Purchases

• The financial bid from a single supplier and/or single tender can be qualified only in the following cases. 

(i) When the qualification criteria were not unduly restrictive. 

(ii) When prices are reasonable as compared to market values. 

(iii) When the procurement was properly advertised and enough time was provided for the submission of bids.

• The bidder firm may receive repeat orders against the original order without following the tender process following the conditions mentioned below. 

(i) The same procuring authority that has issued the tender has the right to purchase the order of 25% or less quantity of the original order (tender acceptance letter). 

(ii) Repeat orders can only be placed within 6 months from the date of the original order. 

(iii) The purchasing office 

• When the tender is published outside the GeM Portal for less than 15 days, it should be considered an emergency purchase during extraordinary circumstances, such as epidemics, natural disasters, riots, etc. However, if the procurement process is conducted on a GeM portal, the tender duration of emergency purchase must follow the instructions prevailing on GeM. 

General Provisions

• All procuring entities must procure goods and services in GeM (Government-e-Marketplace). However, in the case of procuring goods and services on another platform, the GeM portal would require prior approval from the Industries and Mines Department or Industries Commissionerate as per GR dated 03/02/2021 read at (9) and amended from time to time.

• The procurement of goods and services above ₹1,00,000 must be made through e-tender only, which involves the procurement via the GeM portal. 

• The procurement authorities must not split the total approved quantity of goods, as mentioned in the administrative approval of the financial year. Simply put, bunch bids should be avoided during the procurement of goods/items because it restricts competition. For instance, the bids for computers and stabilizers must be invited separately to get the benefit of competition. 

• It is mandatory for procuring entities to adopt BIS product specifications for the procurement of goods. 

How to View Gujarat Tenders on TendersOnTime?

Here, we’ve mentioned several steps to define how you can view Gujarat Tenders on TendersOnTime. 

Step 1: Log In or Register 

First, you need to visit the TendersOnTime page via http://www.tendersontime.com. Click on the Log In or Register icon located in the top right corner of the display. 

Step 2: Search for Tenders 

After logging in, you will be redirected to a homepage or dashboard. Tap on the search bar and type Gujarat to see the relevant tender opportunities. 

Step 3: Filter Search Results 

Once you search for the Gujarat tenders, you may even apply various filter options, including tender type, industry type, and publication date, to refine search results. 

Step 4: Review Tender Details 

If you find any interesting tendering opportunity, click on the tender title to view detailed information. It may include information like: 

• Tender Description
• Contact Information
• Project Timeline
• Eligibility Criteria
• Bid Submission Guidelines
• Bid Submission Date
• Tender Documents

Plus, you can directly visit TendersOnTime's Gujarat page: 

https://www.tendersontime.com/india/gujarat-tenders/

Frequently Asked Questions

Q1. What is the Gujarat government's new purchase policy?

The Gujarat Procurement Policy 2024 clearly showcases prioritizing procurement from Gujarat-based MSMEs, startups, and women-led enterprises in alignment with national initiatives like Make in India and Atma Nirbhar Bharat. 

Q2. What is government procurement policy?

Government procurement policy refers to the principles and procedures to purchase goods and services for government entities. The procurement process promotes transparency, fairness, and accountability while enabling tenders to adhere to quality standards and promote competition. 

Q3. What are the penalties or consequences for non-compliance with the procurement policy?

In Gujarat Procurement Policy 2024, standard procurement practices and contractual agreement includes the following provision for penalties in case of non-compliance. 

• Termination of Contract 
• Forfeiture of Performance Security
• Legal Action
• Blacklisting 

Q4. What is the minimum time for tendering in Gujarat?

The minimum time duration, in general cases, for e-tenders must be 15 days, except in emergency cases. While purchasing goods through the Government e-Marketplace (GeM) portal, you should follow GeM's provision. 

Q5. Who is eligible for government tenders?

Below, we've mentioned several entities eligible for government tenders. 

• Class-I Gujarat MSEs and Class-I Local Suppliers
• Class-II Gujarat MSEs and Class-II Local Suppliers
• Startups
• Micro and Small Scale Enterprises
• Startups 
• Women-led Enterprises