Deemed OEM (Original Equipment Manufacturer) is a designation granted to vendors who are not the direct manufacturers but hold exclusive rights to sell specific products on the Government e-Marketplace (GeM) platform. This status allows vendors to offer products under the “OEM” category, increasing their credibility and enabling them to participate in high-value government procurements. Vendors who obtain Deemed OEM status must meet stringent criteria and undergo a detailed vendor assessment to verify their capacity, product quality, and authorization from the actual manufacturer.
The process ensures that only legitimate and capable vendors can list their products as OEMs, promoting transparency and quality in government procurement. The vendor assessment is a critical part of this process, where third-party agencies evaluate the vendor’s financial and operational capabilities. Being a Deemed OEM on GeM opens up vast opportunities for businesses, particularly in government contracts.
What is Deemed OEM?
Deemed OEM (Original Equipment Manufacturer) refers to a vendor or seller who is recognized as the original manufacturer of a product, even if they are not the direct creator but have a significant role in its production or distribution. On the GeM (Government e-Marketplace) portal, Deemed OEM status is granted to those sellers who have exclusive rights to sell certain products or services and are authorized by the actual manufacturer. This designation allows such sellers to list and offer products under the “OEM” category, thus enabling them to compete for government tenders reserved for original manufacturers.
Deemed OEM status is important for vendors who manufacture products under contract or distribute branded items and want to participate in larger government procurements. It provides a level of authenticity and credibility on the GeM portal.
What are the Requirements for Deemed OEM on GeM Portal?
To obtain Deemed OEM status on the GeM portal, vendors must meet specific criteria, including:
- Exclusive Selling Rights: The vendor must have exclusive rights to distribute or manufacture products in a specific region or category.
- Authorization from the Original Manufacturer: A formal agreement or authorization letter from the original equipment manufacturer (OEM) is required, confirming that the vendor has the rights to sell the product as a Deemed OEM.
- Compliance with Product Standards: The products listed under the Deemed OEM category must meet government standards and quality requirements.
- Vendor Assessment: The vendor must undergo a rigorous assessment process to verify their capacity and legitimacy.
- Trademark or Brand Registration: If selling branded items, the vendor must provide proof of trademark or brand registration.
These requirements ensure that Deemed OEMs can meet the expectations and standards set by the government for procurement.
Process of Vendor Assessment for Deemed OEM
The vendor assessment process for Deemed OEM status on GeM involves the following steps:
- Vendor Registration: The seller must first complete the basic registration process on the GeM portal.
- Application for Deemed OEM Status: The vendor applies for Deemed OEM recognition by submitting the necessary documents, including authorization letters and product details.
- Third-Party Assessment: A third-party agency, approved by GeM, conducts a detailed assessment of the vendor’s operational and financial capabilities.
- Document Verification: The assessing agency verifies the vendor’s submitted documents to confirm their authenticity and accuracy.
- Product Evaluation: The agency evaluates the listed products to ensure they comply with the required quality standards.
- Final Report and Certification: Upon successful completion of the assessment, the vendor receives certification as a Deemed OEM, which is valid for a specified period.
Documents Required for Vendor Assessment of OEM
The following documents are typically required for the vendor assessment of an OEM on the GeM portal:
- Company Registration Documents: Certificate of incorporation, PAN, and GST registration of the company.
- Authorization Letter: Formal authorization from the original equipment manufacturer (OEM) if applying for Deemed OEM status.
- Product Details: Specifications, quality certifications, and any applicable patents or trademarks related to the products.
- Financial Statements: The company’s financial health, including profit and loss statements and balance sheets for the last three years.
- Manufacturing Capabilities: Documentation outlining the vendor’s manufacturing or production capacity, including factory setup, machinery, and workforce.
- Bank Account Details: Account statements or a canceled cheque for the company’s business account.
- Compliance Certificates: Certifications like ISO, BIS, or any other relevant quality and safety standards for the products.