e-Procurement in Georgia

Everyone sees everything

Tbilisi, May, 2011

Georgian e-Procurement System

Decentralized - 2500 Procuring entities

Procurement budget (annual) - $ 1.8 bln

State Procurement Agency (SPA) - policy making/ monitoring

SPA financing (through state budget) $ 295 000

Staff – 35 employees

Georgian e-Procurement System – main features

Transparency

Non-discrimination

Fair evaluation

Streamlined and easy to follow procedures

Transparency

All procurement related information is open and available online

Annual procurement plans

Tender notices

Tender 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 registration (username/password instead of e-signature)

Fair evaluation

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 everything!!!

Before

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

After

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

Single electronic portal for all procurement related activities

Before

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

After

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

After

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 manual

SPA – more service oriented

Ex ante prevention vs. ex post enforcement;

Constituent part of Anti-corruption Strategy

Business Intelligence module for better monIToring

E-Treasury linked to e-procurement system to streamline public expenditures

After

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

SPA110006378 SPA110007452 SPA110006047 SPA110009355 SPA110006972 SPA110008602 SPA110003359 SPA110004446 SPA110005285 SPA1100069700

2000

4000

6000

8000

10000

12000

14000

16000

2012 1817

3333

21121340 1118

1759

3550

10651

5376506 518

554

603

748 867

872

1598

3077

3158

Estimated Cost Saving

Biggest savings (in thousands $)

Tbilis

i City

Hall

Reven

ue Serv

ice

Secu

rity P

olice Dep

artmen

t

Kutaisi C

ity Hall

Ilia St

ate Unive

rsity

Roads D

epart

ment

Ministry

of Finan

ce

Batumi C

ity Hall

Ministry

of Inter

nal Affair

s

Depart

ment o

f Speci

al Ta

sks0

20

40

60

80

100

120

140

127

95

8480

77 7570 70

67 66

Number of Contracts

Top 10 procuring entities

Gardab

ani M

unicipali

ty

Qutaisi C

ity Hall

Ilia St

ate Unive

rsity

State

Academ

y of F

ine Arts

Georgi

an Fi

lm

National

Exam

ination Cen

ter

Tbilis

i City

Hall

Martvil

i Municip

al Cultu

ral Cen

ter

Old Tbilis

i Dist

rict

Tbilis

i City

Hall0

2

4

6

8

10

12

14

16

18

16

14 14 14

13 13

12 12

11 11

Number of bidders

Top 10 tenders with maximum bidders

WISSOL Petro-leum Georgia

Silknet TEGETA MOTORS Format Ltd New Moon Esabi GPI Holding Aldagi BCI Centre House Caucasus Online ltd

0

50

100

150

200

250

213

201196

129

112

9588 86 83

79

171

118 117

4147

28 27

47

29

40

Number of tenders Number of contracts

Top 10 active bidders

09000000 - Fuels 45000000 - Building completion work

1500000 - Miscellaneous food products

50000000 - Repair, maintenance services

30000000 - Office and Computer Equipment

0

50000

100000

150000

200000

250000235527

135754

2431317527 16526

2437 879 942 748 1159

Estimated Cost Volume

Top 5 procurement objects

SPA110006970 SPA110010312 SPA110008558 SPA110005285 SPA1100081570

2000

4000

6000

8000

10000

12000

14000

16000

5376

84328893

10651

13609

2218

83048893

7574

13109

Estimated Cost Contractual price

Most expensive tenders

We did IT !!!

Thank you for your attention!

28 Pekini Ave., Tbilisi 0160, Georgia tel.: (+99532) 382184, e-mail: info@procurement.gov.ge