Friday, 21 August 2026

Consultancy Contracts

A sample study of consultancy procurement tenders floated by central government procuring entities on GeM during the last three financial years revealed issues with the eligibility and qualification criteria for consultancy tenders. GeM (Government e-Marketplace) is a digital platform for procurement of goods & services by central/state ministries/departments and public sector units. The Govt has made it easier for domestic consultancy firms to bid for government contracts, giving them a level playing field under the Atmanirbhar Bharat initiative.

In their memorandum dated July 22, the Department of Expenditure (DoE) has relaxed key conditions including high turnover requirements (presently 5-10 times the assignment value), weightage assigned to experience and minimum payroll staffing for a project. The revised norms discourage procuring entities from setting excessively high turnover thresholds and stipulate that minimum payroll staff requirements maybe proportionate to the manpower actually needed for an assignment. These guidelines reiterate and clarify provisions under existing procurement manuals and the General Financial Rules.


The advisory addresses bottlenecks that historically favored major multinational entities (such as the "Big Four" - Ernst & Young, PwC, Deloitte and KPMG), opening complex government mandates to specialized domestic firms under the Atmanirbhar Bharat framework.The DoE’s advisory to all central government departments and ministries for easing of eligibility criteria in government consultancy tenders is a measure that would pave the way for domestic consultancies to be on an equal footing with multinational consulting firms.


Read more here: https://www.newindianexpress.com/business/2026/Aug/14/govt-depts-asked-to-ease-eligibility-norms-for-consultancy-firms


Hope the impact is felt soon



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