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Slide 2 e-Procurement in Georgia Everyone sees everything Tato Urjumelashvili, CSPA Tbilisi, September, 2012 Slide 3 Where we started SPA office. January 2010 Slide 4 Collection of documents from state bodies (paper tenders) SERVICE AGENCY OF MIA TAX DEPARTMENT NATIONAL AGENCY OF PUBLIC REGISTRY OTHER STATE AGENCIES NOTARY COURTS Procuring Entity Tender proposal Qualification docs Waste of time Bidder Waste of money Waste of administrative resources Waste of paper Slide 5 Paper tenders and geographical inequality Procuring entity Bidders had to make at least 4 physical visits to procuring entity, and the winner an additional 5 th visit to sign a contract 20 mln paper copies in last 5 years High transaction costs Limited access to information High compliance costs Slide 6 Side effects of paper tenders Lack of transparency High risk of corruption Non-reliable data Restricted competition Geographical inequality High compliance costs Slide 7 What we wanted Transparency Non- discrimination Fair evaluation Streamlined and easy to follow procedures..and get rid of papers!!! Slide 8 In-house development Off-the-shelf solutions Cost Less than $ 1 mln Approx. $ 10 mln Two options Slide 9 Second option: Georgian alternative S/W $ 150 000 H/W $ 500 000 BI $ 70 000 Website $ 10 000 Communication campaign $ 30 000 Sleepless nights not counted Slide 10 Pace of the reforms Slide 11 Geographical inequality eliminated What we got Procuring entity Bidders do not make physical visits to procuring entity. Only the winner once visit procuring entity to sign a contract Minimum paperwork Minimum transaction costs Everyone sees everything No physical visits Increased competition Maximum efficiency Fair evaluation Electronic dispute resolution Slide 12 Georgian Electronic Government Procurement - Ge-GP 100% e-tenders - since December 1, 2010Developed in-housein one year$1.3 billion went through Ge-GP$198 million public funds savings14462 registered users Slide 13 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 Slide 14 Ge-Gp business process in brief Publication of Annual Plan Needs 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 Slide 15 Yes No System prevents mechanical and procedural mistakes System provides subscription and internal messaging options Electronic payments module/ linkage with State Treasury All activities are logged Bilingual system. Georgian - English Integrated appeal mechanism Slide 16 Everyone sees everything Annual Procurement Plan Tender 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 Slide 17 DRB Business Process Slide 18 Data on DRB activities Slide 19 Slide 20 Slide 21 CPV Codes Slide 22 Slide 23 Clear and well articulated political will Visionary approach no special rigid strategy Consolidated team unified views and values Correction during the implementation return to the reforms several time Unilateral liberalization of procurement market for foreign bidders Streamlined, easy-to-follow procedures Non-discrimination & fair evaluation Maximum transparency everyone sees everything How we built it Transparent & Efficient System of State Procurement (in 1 year !!!) Mainstream Alternative: Elaboration of a strategy (1 year) Dialogue with the interested parties Elaboration of an action plan/introduction (1 year) Implementation (3 years) Too long and too expensive for us (what about you ?) Slide 24 What we learned Slide 25 Assessment by Others UN- United Nations Public Service Award, 2nd place, in the category of Preventing and Combating Corruption in the Public Service,2012 EBRD - In the Eastern European countries, including Georgia and Russia, the basic policy features of public procurement are in place. However, only Georgia scored a high compliance rate, as most integrity safeguards and procurement efficiency instruments recommended by international best practice were adopted in Georgia in 2010 Transparency International Georgia - "In the past year, we have seen the successful introduction of an electronic, transparent procurement system, which has been a very positive development. European Parliament, Committee on International Trade - Welcomes Georgias new procurement system, enabling e-auctions for all types of contracts, irrespective of their size or nature; points out that Georgia should also serve as an example for the EU Member States in this area. Slide 26 Thank you for your attention! 28 Pekini Ave., Tbilisi 0160, Georgia e-mail: info@procurement.gov.geinfo@procurement.gov.ge