The Finance Ministry has advised central government entities procuring consultancy services through the GeM portal against prescribing excessively high turnover and payroll requirements, saying such criteria could unnecessarily restrict competition.

In an office memorandum, the Department of Expenditure said that procurement agencies should ensure that the prescribed minimum staff strength in a tender is commensurate with the manpower required for the satisfactory execution of the consultancy assignment.

"... Disproportionately high staff strength requirements, without adequate justification, may unnecessarily restrict competition," said the memorandum issued by the Procurement Policy Division of the Expenditure Department.

The department said a sample study of consultancy procurement tenders floated on the Government e-Marketplace (GeM) over the last three financial years had revealed certain issues about eligibility and qualification criteria.

The study revealed instances of comparatively high turnover requirements and of higher weightage being assigned to the consulting firm's experience rather than to the qualifications and experience of the proposed key personnel.

The study also found that minimum staff strength on the bidder's payroll was prescribed as an eligibility criterion, far exceeding the actual manpower required for execution of the project.

"The findings indicate that such eligibility and qualification criteria may unduly restrict competition in the procurement of consultancy services," the Expenditure Department under the Finance Ministry said.

In the office memorandum dated July 22, the department has advised procuring entities to adhere to the provisions of the Manual for Procurement of Consultancy Services, Second Edition, 2025, while formulating eligibility and qualification criteria.

The memorandum was issued to the Secretaries of all Central Government Ministries and Departments.