GeM 4.0 Security Guard Procurement: Navigating the 3.85% Service Charge Floor
Tender Operations Cell
B2G Strategic Bidding Unit, ACS
Why Zero-Percent Bidding Failed
Historically, unorganized contractors bid 0.01% or zero service charges to capture L1 status on the Government e-Marketplace (GeM), intending to recover profits by illegally deducting uniforms, PF shares, and statutory allowances from guards' earnings.
This caused high attrition, post abandonment, strikes, and widespread audit objections from CAG and vigilance departments.
Current Evaluation Matrix
Under the revised GeM 4.0 framework, any bid quoting below 3.85% is auto-rejected by the portal algorithm as non-responsive.
Procurement committees are encouraged to deploy quality-cum-cost-based selection (QCBS) or enforce rigorous pre-qualification parameters: minimum 5 years of PSARA operational history, CA-certified turnover with valid UDIN, and proven experience managing 500+ personnel.
Key Audit Checklist:
- •Bids below 3.85% service charge are void ab initio.
- •PSUs must verify valid state-specific PSARA Form V licensing during technical envelope evaluation.
Verify Your Vendor's Compliance Status
Advance Corporate Security provides comprehensive statutory indemnification backed by monthly ECR challan proofs, verified TRRN settlement receipts, and direct Form-V PSARA licenses.