e-Procurement in Georgia Everyone sees ev e rything Tbilisi, May, 2011

Georgian e-Procurement System Decentralized Procuring entities Procurement budget (annual) - $ 1.8 bln State Procurement Ag e ncy (SPA) - policy making/ monitoring SPA financing (through state budget) $ Staff – 35 employees

Georgian e-Procurement System – main features Transpar e ncy Non-discrimination Fair evaluation Str e amlined and easy to follow procedures

Transparency All procurement related information is open and available online Annual procurement plans Tender notices Tend e r documentation Bids and bidding documents All decisions of tender commission All relevant correspondence Contracts (including amendments) Bidding process is open as well and available online…. Identity of bidders is anonymous

Non-discrimination No local preferences No need for local presence (online payments and online submission of guarantees) Free and simple r e gistration (username/password instead of e-signature)

Fair e valuation Objective and quantifiable criteria - price Pass/fail for others (delivery time; relevant experience, etc.) vs. scoring system Availability of bidding documents and immediate publication of evaluation documents & right of appeal guaranteed

Streamlined and easy to follow procedures  No need for physical visits (only when signing the contract)  Minimization of tender participation costs  Web-payment of tender participation fee/ online submission of guarantees  Less formalities: no need to obtain/submit documents from other state bodies in advance  Online submission of appeals to Dispute Review Board & 10 days standstill  Easy access to procurement related information Everyone sees ev e rything!!!

Befor e  Number of procuring entities approx  Number of suppliers N/A  Number of tenders   Incomplete and overdue data incomplete and overdue monitoring

Aft e r  Number of procuring entities  Number of suppliers  Number of e-tenders Estimated value Contractual price Savings ($) Savings (%) Singl e electronic portal for all procurement related activities

B e fore Everything based on paper Limited access to information High number of procedural mistakes High number of physical visits & logistical expenses Non-transparent procedures High risk of collusive practices pages of tender documentation

Aft e r  Tender fee decreased 4 times – GEL 50 (instead of GEL 200)  Tender threshold decreased 20 times  Non-competitive procurement procedures are merely used  Significant decrease of administrative and logistic expenses  Efficient and transparent use of public funds  Fair and unbiased evaluation process  Increased competition

Aft e r  Annual plans and quarterly reports available online  Active involvement of stakeholders in e-procurement system development (meetings, working groups)  Electronic dispute review board/Civil society participation in decision making  Introduction of HR management system/ restructuring of SPA  E-notification of subscribed users  Training of trainers/ User manualUser manual

 SPA – more service oriented  Ex ante prevention vs. ex post enforcement;  Constituent part of Anti-corruption Strategy  Business Intelligence module for better mon IT oring E-Treasury linked to e-procurement system to streamline public expenditures Aft e r

Planned Activities  Trainings using Distance Learning Technologies  Linking to Civil and Company Registries  Mobile payments/Point-of-sale (POS) terminals  Framework contracts  Monitoring and supervision methodologies and guidelines  Quality based evaluation - two-staged e-tender

Biggest savings (in thousands $)

Top 10 procuring entities

Top 10 tenders with maximum bidders

Top 10 active bidders

Top 5 procurement objects

Most expensive tenders

We did IT !!!

Thank you for your attention! 28 Pekini Ave., Tbilisi 0160, Georgia tel.: (+99532) ,