Guides · The bid process
What does L1 mean in a tender?
L1 is the lowest evaluated price among the bidders who passed technical evaluation; L2 is the next, and so on. Most GeM bids are awarded to L1, but "evaluated" matters: the price is compared after the terms of the bid — taxes, freight, inclusions — are applied, not on the raw figure typed in.
How the ranking is built
- Bidders who fail technical evaluation are out before prices are compared.
- Each remaining price is evaluated on the basis the bid states: inclusive of GST, delivered to the consignee, for the full quantity, or per the bid's own formula.
- The lowest evaluated price is L1. The others are ranked L2, L3 and onward.
When L1 does not simply win
- Purchase preference: an MSE or a Class-I local supplier within the margin the policy sets can be asked to match L1 and take a share, where the bid applies the preference.
- Bid splitting: some bids split quantity between L1 and L2 at L1's price, when the bid document allows it.
- Reverse auction: where enabled, L1 is decided at the end of the auction, not from the sealed prices.
Where iBid.Win helps
For closed bids on record, the platform keeps the buyer, category and closing date as a public record so you can study which categories and buyers your competitors win, and how often a buyer repeats a purchase.
Frequently asked
Does L1 always get the contract?
Usually, but purchase preference, bid splitting and reverse auctions can change who receives the award or how the quantity is shared. The bid document sets the rule.
Is L1 decided on price including GST?
The bid states the basis of comparison. Many GeM bids compare on the total price including taxes, delivered to the consignee.
What is H1?
The highest price, used in the opposite direction in sale auctions. Purchase bids rank from L1 upward.
Last checked 08 September 2026. Written from GeM's published process and this platform's own rules; the bid document and the GeM portal are the authority on any date or amount.