How to Fill a Bid Security Declaration for GeM Tenders (Format & Rules)
What is a Bid Security Declaration on GeM? Under Rule 170 of General Financial Rules (GFR) 2017 and Ministry of Finance Office Memorandum, procuring entities on the Government e-Marketplace (GeM) can permit bidders to submit a **Bid Security Declaration** in lieu of depositing physical Earnest Money Deposit (EMD) or Bank Guarantees.
By signing this declaration, you formally agree that if you withdraw or modify your bid during the period of validity, or fail to sign the contract when awarded, your firm will be suspended from bidding in any government tender for a specified duration (typically 1 to 2 years).
Who is Eligible for EMD Exemption? 1. **Micro and Small Enterprises (MSEs)**: Registered under Udyam Registration for the relevant category/manufacturing activity. 2. **Startups recognized by DPIIT**: For products/services verified in their DPIIT certificate. 3. **Vendors where the Buyer specifically allows declaration**: Many GeM buyers enable the "Bid Security Declaration" checkbox in ATC (Additional Terms & Conditions).
Step-by-Step Instructions to Fill the Declaration 1. **Print on Firm's Official Letterhead**: Ensure firm name, GSTIN, PAN, and registered address are clearly printed at the top. 2. **Specify the Exact Bid Number**: Copy the complete bid number (e.g. `GEM/2026/B/7998271`). 3. **Mention Bid Due Date & Tender Title**: Avoid abbreviations; match the exact title given on GeM. 4. **Sign by Authorized Signatory**: Must be signed by the Proprietor, Partner, or Managing Director with firm seal. 5. **Upload in GeM ATC Documents**: Upload the scanned PDF under the designated EMD Exemption document slot.
📋 Compliant Bid Security Declaration Template
Copy and print this template on your company letterhead. Fill the bracketed details.
Date: [Date of Submission]
To:
[Buyer Name / Designation]
[Department / Ministry Name]
[Government of India / State Government]
Sub: Bid Security Declaration in Lieu of EMD
Ref: GeM Bid Number: [Enter GeM Bid Number, e.g. GEM/2026/B/XXXXXX]
Dated: [Bid Publish Date] for [Tender Item / Service Description]
Dear Sir/Madam,
I/We, the undersigned, declare that:
1. I/We understand that, according to your bid conditions, bids must be supported by a Bid Security Declaration in lieu of Earnest Money Deposit (EMD).
2. I/We accept that I/We may be disqualified and suspended from bidding for any contract with any Government Department, GeM, or Public Sector Undertaking for a period of 1 (one) year to 2 (two) years from the date of notification if I am / We are in a breach of any obligation under the bid conditions, because I/We:
(a) Have withdrawn/modified/amended, impairs or derogates from the tender, my/our Bid during the period of bid validity specified in the Notice Inviting Tender (NIT); or
(b) Having been notified of the acceptance of our Bid by the Buyer during the period of bid validity:
(i) Fail or refuse to execute the Contract / Agreement within the specified timeframe, or
(ii) Fail or refuse to furnish the Performance Security / Performance Bank Guarantee (PBG) in accordance with the Instructions to Bidders.
3. I/We understand that this Bid Security Declaration shall cease to be valid if I am / we are not the successful Bidder, upon the earlier of (i) the receipt of your notification of the name of the successful Bidder; or (ii) thirty days after the expiration of the validity of my/our Bid.
Authorized Signatory Name: _________________________
Designation: _____________________________________
Name of Firm / Company: __________________________
Udyam Registration No. (if MSE): ____________________
GSTIN: ___________________________________________
Official Stamp & Seal: [AFFIX SEAL HERE]Frequently Asked Questions
Is stamp paper required for Bid Security Declaration on GeM?
In most standard GeM tenders, a Bid Security Declaration printed on the official company letterhead with signature and rubber stamp is fully valid, unless the buyer's custom ATC explicitly specifies non-judicial stamp paper of ₹50 or ₹100.
What happens if a bidder breaches the declaration?
The buyer will report the default to GeM administrative authorities. The firm's GeM seller ID is flagged, and the vendor is debarred from government procurement for 12 to 24 months across Central and State portals.
Can Trader MSEs submit a Bid Security Declaration?
As per GeM procurement guidelines, MSE benefits (EMD exemption and purchase preference) are strictly granted to Manufacturers of goods and Service Providers. Traders or resellers holding Udyam are typically not entitled to EMD exemption unless explicitly permitted in ATC.
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