Vehicle hiring and transport tenders on GeM: what to check

How vehicle hiring is bought on GeM

Government offices hire cars, SUVs, buses and other vehicles through GeM service categories — for example on a per vehicle-day basis or a monthly basis — and transport of goods through separate categories. Each category has its own pricing structure and terms. Check the exact category and service model in the bid before you work out a price.

Vehicle conditions in the bid

• ✓Vehicle type and model or segment (hatchback, sedan, SUV, bus etc.), sometimes with seating capacity
• ✓Maximum age or minimum model year of the vehicle
• ✓Commercial registration and permit as required under motor vehicle law for vehicles let on hire
• ✓Valid insurance (commercial), fitness certificate and pollution certificate
• ✓Fuel type, air-conditioning, GPS tracking or other fittings the buyer asks for

Usage terms that decide your cost

Read how usage is measured: kilometres and hours included per day or per month, extra charges for excess km or hours, night halt and outstation terms, and who pays for fuel, tolls and parking. Small differences here change the economics completely. A vehicle that runs far more than the included kilometres on a flat monthly rate can turn a contract into a loss.

Driver requirements

• ✓Valid driving licence of the right class and experience the bid asks for
• ✓Police verification and, in some bids, uniform and conduct rules
• ✓Driver wages at least at the applicable minimum wage, with EPF/ESIC where applicable
• ✓Relief driver arrangements for weekly offs and leave

Pricing per day or per month

Build your price from the vehicle's cost (EMI or depreciation), insurance, permits and taxes, maintenance and tyres, the driver's wages and statutory costs, fuel if included, a buffer for downtime and replacement vehicles, and your margin. If the bid has penalties for non-availability, include the cost of keeping a standby vehicle.

Before you bid: a quick viability check

• ✓Can you put the exact vehicle type and model year in the bid on the road by the start date, with commercial registration, permit, insurance and fitness in place?
• ✓Do you have, or can you arrange, a standby vehicle near the reporting location for breakdowns and servicing days?
• ✓Is the duty pattern (hours per day, days per month, night and outstation duty) clear, and have you priced the extra-hour and extra-km rates you will actually earn?
• ✓Have you checked how many vehicles and locations the bid covers? A multi-vehicle bid spread across districts needs local drivers and backup at each site
• ✓Can you carry the costs for the first months, since monthly bills are processed only after the logbook and bill are verified?

Running the contract

Keep daily logbooks signed by the user officer — they are the basis of monthly bills and any extra-km claims. Replace a vehicle that breaks down within the time the contract allows. Keep all vehicle documents current; an expired permit or insurance can lead to penalties or termination.

Frequently asked questions

Related guides