L1 means lowest among the qualified
L1 is the seller with the lowest evaluated price among those who passed technical evaluation. A bid that is cheaper but technically disqualified — a missing document, a non-compliant specification, an expired certificate — is never ranked. That is why many sellers who "quoted the lowest" are surprised not to win: the price was never opened.
Evaluation basis: total, item-wise or group-wise
The bid document states how prices are compared. In a total-value bid, L1 is decided on the grand total of all items, so you must quote for everything. In item-wise evaluation, each item can have a different L1. Some bids group items. Read this line before pricing: a strategy that works for item-wise evaluation can fail on total value, and vice versa.
What the price includes
Quote the all-inclusive price the bid asks for — typically including taxes, delivery to the consignee and any installation or warranty the bid requires. If you leave something out and win, you still have to deliver it. If the bid has a BoQ, check each line's unit and quantity; a unit mismatch (per piece vs per box) is a common, expensive mistake.
When a reverse auction is enabled
If the bid goes to RA, the sealed prices set the starting position and the RA decides the final ranking. The seller with the lowest price when the RA closes becomes L1. Decide your minimum acceptable price before the RA starts, and do not let the pressure of the live round push you below it.
Ties and purchase preference
If two or more sellers have the same lowest price, the tie is resolved as per the bid terms and GeM's rules. Purchase-preference policies can also change who supplies: under the MSE policy and the Make in India order, eligible sellers who are within a stated margin of L1 may be offered part or all of the quantity if they match the L1 price. The margin and share are in the bid.
Quantity split among sellers
Where the bid allows it, the buyer can split the quantity: L1 gets a share and the next-ranked sellers are offered the rest at the L1 price. If you are L2 or L3 in such a bid, watch for the offer to match — you may have only a short time to accept.
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Frequently asked questions
I quoted the lowest price. Why am I not L1?
Only technically qualified sellers are ranked. If your bid failed technical evaluation, or the bid is evaluated on total value and another seller's total is lower, you will not be L1. Check the evaluation result on GeM for the reason.
Is L1 decided item-wise or on the total?
It depends on the bid. The bid document states whether evaluation is on total value, item-wise or group-wise.
Can a seller who is not L1 get an order?
Yes, in some cases: purchase preference for MSEs or local suppliers, or a bid with quantity splitting, can offer part of the quantity to other qualified sellers who match the L1 price.
Does GST count when deciding L1?
Compare prices the way the bid asks them to be quoted — usually all-inclusive. Read the price break-up instructions in the bid to see how taxes are treated.
What is L2 or L3 in a GeM bid?
They are the second- and third-lowest technically qualified sellers. They may be offered part of the quantity at the L1 price where the bid allows quantity splitting or purchase preference.
Related guides
Rules change. Always confirm the details in the bid document and on gem.gov.in before you bid. · Updated 2026-11-02
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