New Delhi: The Department of Economic Affairs (North Block) has opened a significant fleet requirement on the GeM portal. Bid Number GEM/2026/B/7164709 calls for the deployment of 22 commercial vehicles—specifically 20 Sedans and 02 Premium Sedans—on a monthly hiring basis.

Unlike standard annual contracts, this tender is explicit about fleet quality: only vehicles manufactured in 2023, 2024, or 2025 are eligible. This effectively disqualifies vendors relying on older, depreciated fleets. The contract is valued at approximately ₹1.2 Crore for one year, with a possible six-month extension based on performance.

1. Critical Dates & Financials

The submission window is tight. Vendors must ensure their EMD reaches the DDO Cash (DEA) before the cutoff.

2. Fleet Composition: What is Required?

The Ministry has split the requirement into two tiers. Note that CNG is not explicitly mentioned for the Premium segment, implying a preference for Petrol given the vehicle models listed.

3. Administrative Analysis: The “Salary First” Trap

Bidders must pay close attention to the payment terms. The contract mandates that the Service Provider must pay driver salaries first and then claim reimbursement. In government contracts, bill processing can take 30-45 days. This creates a cash flow gap of nearly two months (Salary Month + Processing Time). If your agency does not have the liquidity to sustain a payroll of 22 drivers for two months without incoming payments, you risk default and blacklisting. This is not a contract for vendors operating on a “hand-to-mouth” rotation of funds.

4. Practical Vendor Analysis: Delhi Traffic Reality

The tender asks for 2400 km and 300 hours per month. In Delhi’s bumper-to-bumper traffic (especially around Central Secretariat/North Block), achieving this utilization puts immense stress on the vehicle’s clutch and fuel efficiency. A sedan that gives 18 km/l on highways might drop to 12-13 km/l in this duty cycle. Since the contract is fixed-rate, any hike in petrol prices during the year will eat directly into your profit margin. Bidders should quote a rate that buffers for at least a 5-10% fuel price fluctuation and heavy maintenance costs due to city driving conditions.

5. Mandatory Checklist Before Applying

Ensure you have these specific documents ready to avoid technical rejection:

• Local Presence: Proof of Registered Office in Delhi/NCR.
• Past Performance: 3 Completion Certificates from Govt/PSU clients (Last 3 Years).
• Turnover Proof: CA Certificate showing ₹30 Lakh average turnover.
• Legal Clean Chit: Notarized affidavit (₹100 Stamp) stating no criminal cases/blacklisting.