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

2. Georgian e-Procurement System Decentralized - 2500 Procuring entities Procurement budget (annual) - $ 1.8 bln State Procurement Ag e ncy (SPA) - policy making/ monitoring SPA financing (through state budget) $ 295 000 Staff – 35 employees

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

4. 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

5. 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)

6. 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

7. 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!!!

8. Befor e  Number of procuring entities 3 000 approx  Number of suppliers N/A  Number of tenders  2010 2300  2009 1950 Incomplete and overdue data incomplete and overdue monitoring

9. Aft e r  Number of procuring entities 2 500  Number of suppliers 5 105  Number of e-tenders 13 574 Estimated value 347 751 348 Contractual price 295 844 592 Savings ($) 51 906 755 Savings (%) 14.92 Singl e electronic portal for all procurement related activities

10. 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 15 000 000 pages of tender documentation

11. 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

12. 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

13.  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

14. 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

15. Biggest savings (in thousands $)

16. Top 10 procuring entities

17. Top 10 tenders with maximum bidders

18. Top 10 active bidders

19. Top 5 procurement objects

20. Most expensive tenders

21. We did IT !!!

22. Thank you for your attention! 28 Pekini Ave., Tbilisi 0160, Georgia tel.: (+99532) 382184, e-mail: info@procurement.gov.geinfo@procurement.gov.ge