What is ATC in GeM : GeM Tender

Military-style public procurement operations in India received radical transformation through the Government e-Marketplace (GeM) which established a platform for transparent efficient procurement between government buyers and registered sellers at reduced costs. Additional Terms and Conditions in GeM system stands as one of the multiple vital elements that facilitate smooth operations on the platform. The GeM platform features an instrument called ATC which requires further explanation along with its essential function. This article presents an in-depth look at ATC as well as its importance and usage in GeM while explaining its consequences for both platform users.

Understanding ATC in GeM

The standard GeM terms receive supplementary contractual requirements through ATC which stands for Additional Terms and Conditions applied by buyers. Such procuring conditions let government buyers describe special purchase requirements that match their acquisition needs.

standard procurement guidelines but government organizations retain authority over their required specifications and scheduling requirements and payment options along with warranty standards and additional factors. To accommodate such needs, GeM allows buyers to define additional clauses under ATC.

Significance of ATC in GeM

Customization of Procurement – ATC allows buyers to define specific requirements related to delivery timelines, quality standards, penalties, and warranties.

Legal Clarity – By outlining additional obligations, ATC ensures that both buyers and sellers clearly understand their roles and responsibilities.

Risk Mitigation – ATC helps buyers safeguard their interests by imposing conditions related to penalties, refunds, and dispute resolution.

Better Compliance – It enables better compliance with departmental or ministry-specific procurement policies and regulations.

Key Elements of ATC in GeM

ATC in GeM can include various conditions, depending on the nature of procurement. Some commonly used clauses in ATC include:

1. Delivery Terms & Conditions

• Delivery timelines must be strictly followed.

• The supplier must ensure packaging as per industry standards.

• Specific delivery locations, including remote areas, must be covered.

2. Payment Terms & Conditions

• Advance payments may or may not be applicable.

• Partial payment release upon successful milestone completion.

• Deductions for late deliveries or unsatisfactory service.

3. Warranty and Guarantee Clauses

• Minimum warranty period as per government procurement standards.

• Extended warranty requirements.

• Warranty support to be provided by authorized service centers.

4. Performance Security Deposit (PSD)

• Security deposit requirement as a percentage of contract value.

• Conditions under which the deposit is forfeited.

• Refund process and timeline.

5. Liquidated Damages (LD) Clause

• Penalty for non-performance or delayed delivery.

• Calculation of liquidated damages (percentage of order value per week of delay).

• Exemptions in case of force majeure situations.

6. Inspection and Testing Requirements

• Pre-shipment inspection criteria.

• Random sample testing methodology.

• Acceptance criteria for goods and services delivered.

7. Force Majeure Clause

• Situations such as natural disasters, strikes, or pandemics where penalties may not apply.

• Documentation required to claim relief under force majeure.

8. Dispute Resolution Mechanism

• Procedure for handling disputes between buyer and seller.

• Arbitration clauses and jurisdiction.

• Escalation process for unresolved disputes.

How ATC Affects Sellers on GeM

For sellers on GeM, ATC can significantly impact the bidding process and order execution. Here’s what sellers should keep in mind:

• Review ATC Carefully: Before bidding, sellers must thoroughly read and understand the ATC clauses specified in the bid document. Failure to comply with ATC can result in penalties or cancellation of orders.

• Ensure Capability Compliance: Sellers must ensure that they can meet the specified conditions related to delivery, warranty, and payment terms before participating in tenders.

• Clarify Ambiguities: If any clause seems unclear, sellers should seek clarification from the buyer before placing their bid.

• Pricing Strategy: Sellers should factor in the additional costs arising from ATC requirements while quoting their prices to avoid financial losses.

How Buyers Can Effectively Use ATC in GeM

Government buyers must ensure that ATC clauses are drafted clearly and fairly. Here are some best practices:

Avoid Unnecessary Clauses: ATC should only include conditions that are necessary for the specific procurement requirement.

Ensure Fair Competition: The clauses should not be too restrictive, limiting participation to a select few vendors.

Provide Clarity: The conditions should be explicit, leaving no room for misinterpretation.

Balance Stringency with Practicality: While ATC should protect the buyer''s interests, it should also be reasonable to encourage more participation from suppliers.

Common Challenges with ATC in GeM

While ATC is a valuable feature, both buyers and sellers may encounter challenges:

• Overly Complex ATC Clauses: Some buyers may include excessively stringent conditions, discouraging potential suppliers from bidding.

• Misinterpretation of ATC Terms: Sellers may misinterpret clauses, leading to disputes later.

• Inconsistent Implementation: Different departments may have varying interpretations of ATC, leading to confusion.

To address these challenges, training sessions and clear guidelines should be provided by GeM authorities to standardize the implementation of ATC.

Conclusion

ATC in GeM functions as a critical system which allows government buyers to modify procurement needs through fair seller participation frameworks. The system plays an essential role both during contract processes and risk management tasks and dispute resolution activities. The comprehensive knowledge of ATC systems helps all GeM platform users to optimize their transactions which leads to successful procurement outcomes.

Businesses can obtain dependable tender alerts along with expert consultancy services and bidding support from Tender Detail while monitoring GeM tenders and ATC clauses and procurement trends. Visit our website to explore more insights and stay ahead in the government e-marketplace.

For any assistance related to GeM registration, bid preparation, or ATC compliance, feel free to contact Tender Detail – your trusted partner in government tenders!