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

e-Procurement in Georgia Everyone sees ev e rything Tbilisi , May , 2011. Georgian e-Procurement System. Decentralized - 2500 Procuring entities Procurement budget (annual) - $ 1.8 bln State Procurement Ag e ncy (SPA) - policy making/ monitoring

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

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

  2. 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

  3. Georgian e-Procurement System – main features • Transparency • Non-discrimination • Fair evaluation • Streamlined and easy to follow procedures

  4. 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

  5. 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)

  6. 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

  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 everything!!!

  8. Before • Number of procuring entities 3 000 approx • Number of suppliers N/A • Number of tenders • 2010 2300 • 2009 1950

  9. 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

  10. 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

  11. 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

  12. 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

  13. After • 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

  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.ge

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