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Everyone Sees Everything e-Procurement in Georgia By David Marghania SPA, Istanbul 2014

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Presentation on theme: "Everyone Sees Everything e-Procurement in Georgia By David Marghania SPA, Istanbul 2014"— Presentation transcript:


2 Everyone Sees Everything e-Procurement in Georgia By David Marghania SPA, Istanbul 2014

3 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

4 How we started? Our Office in 2010

5 Georgian Electronic Government Procurement System - Ge-GP 100% e-tenders - since December 2010, more 100 000 e-TendersDeveloped in-house…in one yearMore than 5 billion GEL went through Ge-GPMore than 640 million GEL public funds savingsMore than 21 700 registered users

6 Some features of Ge-GP No local preference/ No local presence/ more than 330 foreign bidders/ contracts won more than 60 Non discrimination Deadlines / Thresholds / Homogeneity / Abnormally low price / Documents Smart system preventing mistakes / warning Topics of interest / News / Updates / Legal and procedural amendments / Questions &Answers/ more than 30 million internal messages and more than 250 000 SMS sent Internal/SMS 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/ Electronic Payment Minimum administrative barriers More than 640 million GEL public funds savings Rational expenditure of funds

7 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 regime Everyone sees everything Any registered Ge-GP user can question any tender using Q&A module. CA tender commission is obliged to answer Everyone 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 form Everyone 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

8 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.geInteresting It is possible to track every transaction, every procuring officer, every supplier, to produce indicators, look for behavioral patterns, integrate with other systems, etc…

9 Number of e-Tenders by the price groups

10 Direct contracts VS e-Procurement 2013 Annual Procurement Budget 2 791 085 439 Gel

11 Successful VS Unsuccessful e-Tenders

12 e-DRB module 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

13 e-DRB module

14 e-DRB module dynamics of complaints in 2012 and 2013

15 e-DRB module Complaints in 2013 by status Totally 393 Complaints

16 What they say about Ge-GP..most integrity safeguards and procurement efficiency instruments recommended by international best practice were adopted in Georgia in 2010 - EBRD The official electronic procurement system through which the government does its contracting is state of the art and among the most transparent and efficient systems in the world – TI-Georgia The e-Procurement system implemented in Georgia may serve as a good example for Asia and other Pacific countries. The countries, which have not yet introduced the e-Procurement system, are particularly interested in the reforms implemented in Georgia - ADB The European Parliament Welcomes Georgias new procurement system, Georgia should also serve as an example for the EU Member States in this area – The European Parliament

17 Evaluation of Ge-GP


19 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

20 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

21 Main Findings High quality Cheap Fast Expensive Low quality Long time Utopia.

22 Thank you for your attention! 28 Pekini Ave., Tbilisi 0160, Georgia e-mail:

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