e-Procurement in Georgia

Everyone sees everythingMore than anywhere else…

Tirana, May, 2012

Georgian Electronic Government Procurement - Ge-GP

100% electronic tenders since December 2010

Developed in-house…in one year

$1.2 billion went through Ge-GP

$167 million public funds savings

13362 registered users

Some features of Ge-GP

• No local preference/ No local presence/ ~100 foreign bidders/ contracts won > 30 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 2 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

Ge-Gp business process in briefPublication of Annual PlanNeeds assessment•Budget planning

Preparation of Tender Documentation• Needs assessment• Market research• Neutral description

Publication of Tender Notice/Tender Documentation• Estimated value• Deadlines• Clarifications

Registration on Ge-GP

• One step registration• Free of Charge• Easier than in Facebook• Subscription to news

Submission of Tender Proposal• Web-payments• Technical Description• Price• Minimum documents required

Participation in e-Auction (not obligatory)• Decrease price• 3 rounds• Full anonymity

Evaluation of Bids• Transparent• Conflict of interest• Minutes of evaluation committee• All correspondence• Immediate upload

Awarding contract• Award notice• Standstill – minimum 3 days

Contract implementation• Online Contract• E-payment/E-Treasury• Reporting• Monitoring

Everyone sees everything

Annual Procurement

PlanTender Notice Tender

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

DRB Business Process

Full cycle of the review of disputes by the Board

1 2 3 4 5 6 7 8 9 10

Examine the fi led complaint and where a defi ciency is found instruct a complainant to fi x it.

DRB Office

Fix the defi ciency in the complaint and upload to the system

Complainant

Upload a complaint into the system

Complainant

DRB Office

Draft a decision about admissibility of the fi led complaint

DRB Chairman

Take fi nal admissibility decision

DRB Office

Upload the admissibility decision into the System

DRB Office

Suspend the challenged procedure in the Electronic Procurement System

DRB Office

Noti fy Board members by phone, SMS and/or e-mail about thr complaint declared admissible

Send a noti ce to the respondent about the challenged and suspended procurement procedures

DRB Office

Appoint the hearing of the case based on the submission of the DRB Offi ce

DRB Chairman

Send a noti ce to the parti es about date and venue of the Board hearing

DRB Office

Substanti al review of the dispute at the Board hearing

DRB members, parties

Keeping minutes of Board hearing

DRB Office

Meeti ng and taking a decision on allowing the

complaint parti ally or fully or

disallowing the complaint

DRB members

Draft the Board decision

DRB Office, DRB members

Review the DRB draft decision and sign thereof

DRB Members

DRB Office

Upload the DRB decision nto the Integrated State Procurement System

DRB Office, DRB Chairman

Send a noti fi cati on to the complainant about

the admissibility decision over his/

her complaint

The Study of Processes and Procedures of and Strengthening the Communications Function of the Dispute Review Board of the Competition and State Procurement Agency

• in the opinion of current and former DRB members’ participation of civil society representatives in the Boards’ work ensures a high degree of independence of the DRB.

The inquiry performed by the PMC Research Center has not identified essential risk factors that:o Have an impact on decision making by the Board

members;o Exert some type of pressure on the Board and

respectively ensure bias of the review of disputes and decisions by the Board in favor of any party or sector.

Data on DRB activities

Some data on Ge-GP

Number of e-Tenders

Number of Contracts

№ Procuring entity Number of contracts

Number of e-Tenders

1 Tbilisi City Hall 641 922 2 Revenue Service 630 920 3 Ministry of Internal Affairs 455 749 4 Tbilisi State Medical University 431 731 5 Department of Special Tasks, Ministry of Internal

Affairs 428 736

6 Tbilisi Transportation Company 395 791 7 Department of Security Police, Ministry of Internal

Affairs 364 505

8 Ivane Javakhishvili Tbilisi State University

341 771

9 Batumi City Hall 333 504 10 Ilia State University 333 481

7110 4351

Top 10 Bidders

Number of contracts

№ Bidders Number of contr.

Number of tenders

Contract price

1 Tegeta Motors 499 626 16,240,231

2 Silknet 335 421 5,192,583

3 Wissol Petroleum Georgia 274 318 33,753,644

4 New Moon 220 372 6,925,029

5 Ultra 175 301 2,129,590

6 Alta ltd 150 241 3,837,686

7 Esabi 140 248 5,640,668

8 Algorythm ltd 130 191 4,924,341

9 Dio 122 132 1,769,058

10 Insurance company Aldagi BCI 118 214 19,125,060

2163 3064 99,537,890

Comparison of estimated value and Contract Price

Est. Value

Contract Price

Ann. date Est. Value Contract Price Savings % 12.2010 6,354,053 5,785,467.75 568,585.25 9.0 1.2011 29,758,291 26,218,011.35 3,540,279.65 11.9 2.2011 80,309,577 70,033,126.90 10,276,450.10 12.8 3.2011 141,974,538 122,067,022.01 19,907,515.99 14.0 4.2011 119,595,934 101,051,358.29 18,544,575.71 15.5 5.2011 186,567,768 148,469,786.00 38,097,982.00 20.4 6.2011 133,543,594 114,311,302.00 19,232,292.00 14.4 7.2011 93,988,461 78,398,506.00 15,589,955.00 16.6 8.2011 120,641,698 106,239,869.00 14,401,829.00 11.9 9.2011 97,244,031 84,428,655.00 12,815,376.00 13.2 10.2011 84,832,849 74,633,994.00 10,198,855.00 12.0 11.2011 71,863,446 61,927,124.00 9,936,322.00 13.8 12.2011 181,314,914 162,914,318.00 18,400,596.00 10.2 1.2012 167,330,262 152,256,994.00 15,073,268.00 9.0 2.2012 185,694,683 165,209,867.00 20,484,816.00 11.0 3.2012 186,536,854 163,299,904.00 23,236,950.00 12.5 4.2012 109,751,661 95,581,160.00 14,170,501.00 12.9

1,997,302,614 1,732,826,465.30 264,476,148.70 13.2%

Ge-GP Demographics

ACTION PLAN – 2011, 7th Public Procurement Forum, May 16-19, 2011, Tbilisi, Georgia

Translation of e-GP system into English

Translation of User Manual into English

Finalization of BI Module

Creation of analytical department within SPA

Two-years contract with consulting company to optimize organizational structure and introduce HR management system.

Job descriptions developed

• Functional descriptions of jobs

• Procedural description of jobs

new structure and HR system created

• New Agency - CSPA • New structure• New competitive

recruitment system

performance management and evaluation system

• based on the Management by Objectives (MBO)

• and Competency Based Appraisal System

Improvements in HR system in SPA

According to the Order No. 289 of the President of Georgia from December 11, 2011 State Procurement Agency and Free Trade and Competition Agency have been merged from January 1, 2012

Collaboration with Competition Agency

Introduction of online procurement plans

Good news for us

Last time in TbilisiNext time in… Batumi