Second year’s results of Ge-GP operation Second year’s results of Ge-GP operation Everyone Sees Everything By David Marghania CSPA Skopje, May, 2013

Georgian Electronic Government Procurement System - Ge-GP 100% e-tenders - since December 1, 2010Developed in-house…in one year$2.0 billion went through Ge-GP$230 million public funds savingsMore than registered users

Some features of Ge-GP No local preference/ No local presence/ ~200 foreign bidders/ contracts won > 50 Non discrimination Deadlines / Thresholds / Homogeneity / Abnormally low price / Documents Smart system preventing mistakes / warning Topics of interest / News / Updates / Legal and procedural amendments / more than 5 million messages sent Internal messaging system E-submission of complaint/ Free of charge / Standstill Period/ Very fast -10 days / Civil society equally involved in decision making Fast and transparent dispute resolution No administrative documents in advance / No physical visits / Electronic bid bonds Minimum administrative barriers

Everyone sees everything Annual Procurement Plan Tender NoticeTender Documentation Tender Proposal/Bids Minutes of evaluation Committee All related documents and correspondence All data on disputes, including application and decision Contracts and amendments Payments under the contracts

Distribution of the estimated value of electronic tenders The majority of announced tenders is of relatively small value and particularly attractive for SMEs. in 48% cases, the estimated value of the announced tenders does not exceed GEL 10,000, and in 81% the estimated value is less than GEL 50,000

Quantitative statistics of tenders announced during a year In 2012 the largest number of tenders was announced in January, while in in March. The least active period was the fall season both in 2011 and 2012

Number of awarded contracts according to procurement objects

Net value indexes according to procurement objects

Top 10 procurement categories according to savings Calculated according to sectors, proportional to estimated value of e-tenders, approximately 36% of saved amounts account for e-tenders held for the purpose of procurement of construction works.

Top 10 procurement categories according to average participation Diagram Below depicts top 10 CPV categories according to average number of tender participants. Compared with 2011, the intensity of participation particularly increased in service fields (e.g. insurance and pension services, services related to planting of greenery, cleaning and sanitation).

Distribution of accomplished state procurement according to procurement methods

The registration of the suppliers increases at the beginning and the end of a year, when the number of the announced electronic tenders is also high.

Compared with 2011, the rate of increase of the number of sole entrepreneurs and natural persons registered in the Ge-GP was higher than the similar index of limited liability companies, resulting in the decrease of the LLCs from 66% to 62% The number of the LLCs in the Ge-GP increased by 42% - from 4,839 to 6,893 The number of individual entrepreneurs registered in the Ge-GP increased by 52% - from 1,830 to 2,800, showing the increased interest of SMEs in state procurement Approximately 80% of contracts are awarded to LLCs Correlation between the LLCs and suppliers of other legal forms in the Ge-GP by the end of 2012

Dispute resolution board Dispute Resolution Board was created on 10 th 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

Number of appeals filed with the eDRB

Statuses of appeals, filed with the eDRB

User demographics overview by locations

Visitors Overview

OUR EVALUATION December 2012 Georgia moved from 68 th to 51 st place in 2012 TI CPI thanks to the Ge-GP November 2012 Georgia was highly appraised amongst the Eastern Partnership Countries in the field of state procurement May 2012 The UN recognized the Ge-GP as one of the best worldwide

Challenges Lack of competencies of all involved parties Non-active CSOs – not using all features of Ge-GP Absence of standardized description of goods and services, checklists, toolkits, etc. Integrity issues – contract management module is being developed and will be launched in June 2013.

Thank you for your attention! 28 Pekini Ave., Tbilisi 0160, Georgia