Quick Answer: How to bid on GeM portal as an MSME depends on the type of bid the buyer has published. A PAC bid is a tender where the buyer has obtained a Proprietary Article Certificate under GFR 2017 to procure a specific Original Equipment Manufacturer make or model. Only sellers who hold that exact make or model can participate. The final winner is decided on L1, which is the lowest valid price among the qualified sellers.
Most MSMEs already know how to bid on GeM portal for an open tender. A PAC bid is different. The buyer has already named the exact make or model they need, which means the seller pool is restricted from the start. For an MSME holding the right Original Equipment Manufacturer (OEM) authorisation, a PAC bid is one of the cleanest tender categories to win because the competition is naturally smaller. For an MSME without that authorisation, the same tender is a walk-away on day one.
This article explains what a PAC bid is, how it sits inside the gem bidding process, how an MSME participates in one and how the L1 winner is decided after the bids come in. The aim is a plain-language walkthrough rather than a deep technical brief, since the workflow itself is simpler than the policy framework around it.
Before responding to any PAC bid, the seller should also be confident on the basics of tender document reading and the standard how to bid on GeM step-by-step walkthrough workflow, because a PAC bid uses the same submission steps with a few added restrictions on who can participate.
What is PAC Bid on GeM?
A PAC bid in GeM is short for a Proprietary Article Certificate bid. The buyer issues this kind of tender only after getting approval from a competent authority under Rule 166 of the General Financial Rules (GFR) 2017. The approval allows the buyer to procure a specific OEM product without opening the tender to general competition. The tender names the exact make and model in the bid document.
For example, a research lab that needs a specific brand of high-precision instrument can issue a PAC bid for that brand only. A general office supply buyer cannot use this mode for items like printers or toner because GFR Rule 149 restricts PAC to genuinely proprietary articles. The EMD exemption and the MSE policy levers still apply on a PAC bid where the seller is an MSE registered under Udyam.
The seller pool on a PAC bid is small by design. Only the OEM that holds the make or model along with the resellers the OEM has authorised are allowed to participate. An MSME without the right OEM authorisation cannot submit a valid bid, which means the first decision on a PAC tender is whether the company holds the named make or model in its offerings at all.
When Buyers Use a PAC Bid Instead of an Open Tender
PAC bids are not the default mode of GeM procurement. The buyer must justify why an open tender would not work. Three situations cover most of the use cases. The first is a technical requirement that only one OEM meets. The second is interoperability with existing equipment, where a different make would fail to integrate. The third is a service or warranty continuity requirement on equipment already in use.
Each of these reasons is documented by the buyer in the PAC approval note before the tender goes live on GeM. The seller does not see the approval note itself. The bid page lists the exact make and model the PAC covers. Reading that line first tells the seller whether the bid is open to them or closed.
How an MSME Participates in a PAC Bid Step by Step
To bid on GeM portal on a PAC tender follows the same submission steps as any other bid, with one additional check at the start. The seller's catalogue listing must match the make and model the buyer has named in the PAC bid.
1. Confirm the make and model match. Open the bid page on GeM and read the make and model the buyer has named. Compare it against the catalogue listing the seller has saved on GeM. If the catalogue listing carries the exact make and model, the seller is eligible. If not, the bid is a walk-away.
2. Check the OEM authorisation status. Where the seller is a reseller rather than the OEM itself, the OEM authorisation letter must be current at the time of bid closing. The letter sits inside the technical proposal upload section in the exact template the tender specifies, complying with letterhead and signature requirements.
3. Read the eligibility and ATC sections. Even though the make and model are fixed, the buyer can still add pre-qualification criteria such as turnover floor or past supply experience. The Additional Terms and Conditions (ATC) section carries payment timelines, delivery locations and penalty clauses. Reading both before pricing the bid avoids commercial surprises after award.
4. Submit the technical and financial bid before closing time. Sign in at gem.gov.in with the registered seller account and a valid Digital Signature Certificate. Upload every named document against its required field, enter the technical and financial response and submit before the closing deadline. The submission triggers technical evaluation.
5. Wait for technical evaluation and financial opening. Only sellers whose make and model match are technically qualified. The financial bids of the technically qualified sellers are then opened. The buyer identifies L1 based on the lowest valid price.
How L1 Is Decided on a PAC Bid
L1 means the lowest qualified price after technical evaluation. On a PAC bid, the technical qualification check is narrow because the seller pool is already restricted to those holding the right make and model. The financial evaluation reads each qualified seller's price and ranks them from lowest to highest. The lowest price that meets the buyer's terms wins.
In most cases, L1 is followed by a Reverse Auction in GeM, where the technically qualified sellers compete to bid lower than the visible lowest price. The auction pushes the final award price down further. The seller who holds the make and model at the lowest auction price wins the contract.
Walking away during the auction is a valid choice. A seller who has set a verified floor on the company's cost structure should not bid below that floor regardless of how the auction develops. Winning a PAC contract at a loss-making price is worse than walking away with the OEM authorisation intact for the next bid.
How ClearBid Helps an MSME Identify and Respond to PAC Bids
Filtering PAC bids out of the daily GeM tender search feed is the first step. ClearBid's Tender Search reads the live feed across roughly forty thousand GeM tenders and surfaces the bids that match the seller's saved make and model offerings, which means the seller sees only the PAC tenders that are open to them in the first place.
The Tender Summary covers Key dates, Scope of work or supply, Eligibility criteria and Documents required for each bid on one page. For a PAC tender, this includes the exact make and model the buyer has named, the OEM authorisation requirement and the ATC clauses the seller needs to confirm before bidding. MSE Purchase Preference eligibility is also flagged where it applies.
For an MSME based in Maharashtra holding OEM authorisation for a specific scientific instrument, the daily scan returns only the PAC tenders for that instrument across all buyer departments. The half-day of manual filtering against the make and model is removed before bid prep begins. AI proposal generation for the technical response is on the ClearBid roadmap and is released to existing users on a waitlist basis as a coming-soon feature. The entire workflow of Bidding on GeM Tenders becomes a structured decision view rather than a half-day manual read. Sellers who also use GeM registration updates to keep their catalogue current see faster eligibility results on every PAC tender they view.
Conclusion
A PAC bid on GeM is a restricted tender where the buyer has named a specific make and model in advance. The MSMEs that win at bidding on GeM PAC bids are the ones that already hold the OEM authorisation and can verify the match against the catalogue in minutes. The L1 winner is decided on the lowest valid price after technical qualification, often through a Reverse Auction. Walking away on day one is the right call when the make and model do not match, which keeps the team's preparation time on the bids the company can actually win.
ClearBid's Tender Search filters PAC bids by saved make and model in seconds. The Tender Summary lists every named document the buyer requires and the ATC clauses for the tender on one page. Register on ClearBid today to filter the GeM live pile for PAC bids the company can actually win rather than reading every tender by hand.
Frequently Asked Questions
Q1. How to bid on GeM portal when the tender is a PAC bid?
To bid on GeM portal on a PAC bid, the seller's catalogue listing must carry the exact make and model the buyer has named. Confirm the match first, upload the OEM authorisation letter inside the technical proposal section in the mandated template and submit the technical and financial bid before closing time. The submission triggers technical evaluation.
Q2. What is a PAC bid in GeM and how is it different from an open tender?
A PAC bid in gem is a tender where the buyer has obtained Proprietary Article Certificate approval under GFR 2017 Rule 166 to procure a specific OEM make or model. The seller pool is restricted to sellers holding that exact product. An open tender, by contrast, accepts bids from any seller whose catalogue covers the buyer's broader item category.
Q3. How to participate in GeM bid by seller when the tender names a specific OEM?
To participate in GeM bid by seller on a tender that names a specific OEM, the seller must either be the OEM itself or hold a current OEM authorisation letter as a reseller. The catalogue listing on GeM must carry the exact make and model. Without the authorisation or the matching catalogue listing, the bid response is not technically valid.
Q4. How to submit a bid in GeM as an MSME on a PAC tender within the closing deadline?
To submit a bid in GeM on a PAC tender, sign in at gem.gov.in with a valid Digital Signature Certificate, open the live PAC tender, upload every named document including the OEM authorisation letter, enter the technical and financial response and submit before closing time. Late submissions are not accepted.
Q5. How does L1 work on a PAC bid after the technical evaluation closes?
L1 means the lowest valid price among technically qualified sellers. On a PAC bid, the technical qualification check is narrow because only sellers holding the right make and model are eligible. The financial bids are then opened. The lowest qualified price wins after ranking from lowest to highest. In most cases L1 is followed by a Reverse Auction.
Q6. Does the MSE EMD exemption apply on a PAC bid in GeM?
The MSE EMD exemption applies on a PAC bid where the buyer has allowed it in the tender. The seller claims it by attaching a current Udyam Registration certificate. The exemption is not automatic on every PAC tender. The seller reads the ATC section first to confirm whether the buyer has extended the exemption.
Q7. How does ClearBid help an MSME find and respond to PAC bids?
ClearBid's Tender Search reads the live GeM feed and surfaces PAC bids that match the seller's saved make and model offerings. The Tender Summary lists the named make, the OEM authorisation requirement and the ATC clauses on one page. The eligibility check matches the saved company profile against the tender's pre-qualification criteria in seconds
