ENI East Regional Conference Public Procurement Everyone Sees Everything Georgia English

1. Everyone Sees Everything
e-Procurement in Georgia
By David Marghania SPA, Paris 2014
dato@spa.ge

2. Why we reformed procurement system?
High risk of corruption
Lack of transparency
Non-reliable data
Restricted competition
Geographical inequality
High compliance costs
Negative side of paper tenders in Georgia

3. Georgian Electronic Government Procurement System - Ge-GP
100% e-tenders - since December 1, 2010, 100 000 < e-Tenders
Developed in-house…in one year
More than 5 billion GEL went through Ge-GP
More than 620 million GEL public funds savings
More than 21 000 registered users

4. Some features of Ge-GP
• No local preference/ No local presence/ more than 330 foreign bidders/ contracts won
more than 60Non discrimination
• Deadlines / Thresholds / Homogeneity / Abnormally low price / DocumentsSmart system preventing mistakes /
warning
• Topics of interest / News / Updates / Legal and procedural amendments / Questions
&Answers/ more than 20 million internal messages and more than 150 000 SMS sentInternal/SMS messaging system
• E-submission of complaint/ Free of charge / Standstill Period/ Very fast -10 days / Civil
society equally involved in decision makingFast and transparent dispute resolution
• No administrative documents in advance / No physical visits / Electronic bid bonds/
Electronic PaymentMinimum administrative barriers
• More than 630 million GEL public funds savings
Rational expenditure of funds

5. Basic logic of Ge-GP
•Any interested person, including suppliers, CSOs, journalists, law enforcement
bodies, etc. can see anything, related to public procurement in a real time regimeEveryone sees everything
•Any registered Ge-GP user can question any tender using Q&A module. CA
tender commission is obliged to answerEveryone can question a tender
•Any registered Ge-GP user can appeal any decision of CA tender commission and
“freeze” any ongoing tender. No more than two minutes to fill the appeal formEveryone can freeze a tender
•Civil society equally involved in decision making as everyone can elect the eDRB
member
Everyone can participate in
dispute resolution
•If CSOs will be active public oversight will prevail over the state oversight.Public oversight over PP is
encouraged

6. Some facts about Ge-GP
• Two basic procurement methods – direct contracts and open tenders
• Estimated value of contract is disclosed
• Evaluation criteria is disclosed – criteria is objective and quantifiable
• Risk based bid rigging methodology
• Debarment system – black list – one year prohibition
• Data is centralized – not the procurement/ decentralized 4298 CAs
• Business Intelligence – online real-time reports – Interesting numbers;
TI+SPA Tendermonitor.ge
It is possible to track every transaction, every procuring officer, every supplier,
to produce indicators, look for behavioral patterns, integrate with other
systems, etc…

7. Evaluation of Ge-GP

9. Thank you for your attention!
28 Pekini Ave., Tbilisi 0160, Georgia
e-mail: dato@spa.ge

10. e-DRB module

11. e-DRB module
• Dispute Resolution Board was created on 10th of December, 2010
• Equal representation of public and state representatives in decision making
• Everyone can “freeze” a tender with just a single click of a button. Submission of appeal takes
less than two minutes
• An appealed tender will be “frozen” for a period of 10 business days. During this period the
eDRB will review the appeal and the results will be published in the Ge-GP

12. e-DRB module
dynamics of complaints in 2012 and 2013

13. e-DRB module
Complaints in 2013 by status
Totally 393 Complaints

14. Thank you for your attention!
28 Pekini Ave., Tbilisi 0160, Georgia
e-mail: dato@spa.ge

15. Challenges and problems
• Lack of competences of all stakeholders
Elaboration of guidelines; Trainings for representatives of public and private sector;
elaboration of recommendations derived from the empirical analysis.
• Non-active CSOs
Extension of analytical work in the Agency, aggregation of information from previous
tenders, make aggregated information accessible.
• Absence of standardized description of goods and services, checklists, toolkits, etc.
Cooperation with private sector for elaboration of neutral product descriptions.
• What is high quality? No agreed vision, Subjective perception; weak and nonsufficient
national norms/standards; no-self regulating business associations

16. Challenges and problems
• Overload of e-DRB
Number of appeals are increasing – resources should not remain the same.
• Low Salaries of Procurement officers
The profession of procurement officer needs to be promoted and protected
• Not enough analytics
Constant need of conducting in depth analyses of PP market, behavior of
suppliers and contracting authorities

17. Main Findings
High quality
CheapFast
Expensive
Low quality
Long time
Utopia
.

18. Thank you for your attention!
28 Pekini Ave., Tbilisi 0160, Georgia
e-mail: dato@spa.ge