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DGS&D is tasked primarily with fixing Rate Contracts (RC) for common user items required by various Government organizations through an online e-procurement portal. Presently, it is being managed by two organized Group 'A' Services namely Indian Supply Service and Indian Inspection Service. DGS&D Rate Contracts are used by Central Government Ministries / Departments, PSUs and State Governments.

Based on recommendations of Group of Secretaries made to Hon'ble Prime Minister, DGS&D has created a one stop Government e-Marketplace (GeM) to facilitate on line procurement of common use Goods & Services required by various Government Departments / Organizations / PSUs. GeM has enhanced transparency, efficiency and speed in public procurement. It will also provide the tools of e-bidding and reverse e-auction as well as demand aggregation to facilitate the government users to achieve the best value for the money.

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