Analysis of the State Procurement Policy of Georgia
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Transcript of Analysis of the State Procurement Policy of Georgia
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8/12/2019 Analysis of the State Procurement Policy of Georgia
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Project objectives
Brief history of public procurement system of Georgia
Analysis of public procurement system
Conclusion and recommendations
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Improvement of public procurement system and policy ofGeorgia
Analysis of public procurement system
Analysis of best foreign practices
Preparing recommendations in order Georgian
procurement system to be in correspondence tointernational standards and best practice
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Table 1. General government expenditure on goods and services
2007 2008 2009 2010 2011 2012 2013 2014
Goods and services
(million GEL) 1591 1606 1105 1139 1211 1298 985 1079
As percent of budget
Expenditures 36.3 29.7 20.5 20.8 21.7 21.4 15.4 15.0
As percent of GDP 9.4 8.4 6.1 5.5 5.0 5.0 3.6 3.7
Source: Ministry of Finance of Georgia
In 2007-2013 total expenditure of the budget on public procurement was almost 9billion GEL.
Including non budgetary public organizations, in 2012 the indicator of totalprocurement is 2.8 billion GEL
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Expanses on public procurement tax payers money/publicproperty
Main principles of spending:
Transparency Econom
Efficiency
Quality of the procured goods and services - one of the key
factor of public institutions efficiency
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Procurement system reform began in January 2010
Before the reform:
- Unsuccessful system
- Lack of transparency
- Limited competition
- Bureaucratic procedures
- High risk of corruption
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The reform had five main goals:
Transparency Non discrimination Fair selection
Easy procedures
Electronic system of state procurement start functioningSince October 2010
Paper based tenders were completely substituted by theelectronic tender within two months
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By the end of 2012, electronic system had 14 801 registered users,among them 3 927 were procuring entities and 10 847 suppliers
In 2011, number of suppliers were 7 400
In 2011-2012 , 300 million GEL was saved
White and black lists of suppliers
Dispute resolution board, which consists of 3 representatives of state
procurement agency and 3 representatives of civil society
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Number of contracts in 2012
Goods
9984
Services
4614
Cost (mln GEL)
Goods 437
Constructions 702
Services 253
Source: Competition and State Procurement Agency
Constructions
3890
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The method of state procurement:
Electronic tender for 200 000 GEL or more value goods andservices in a year
Simplified electronic tender for under 200 000 GEL value goodsand services in a earSimplified procurement
Design contest
Electronic tender
Simplified electronic tender Simplified procurement for under 5 000 GEL value goods andservices or for specific cases
Design contest alternative procurement method for design(project) services
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Public procurement by means of procurement, 2012
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55
Simplified procurements
45 percent of public money is spent in less competitive environmentSource: Competition and State Procurement Agency
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Contract value Number of contracts Cost (GEL)
Under 5 000 GEL 443670 1.1 billion
5 000 - 50 000 GEL 24947 0.4 billion
50 000 - 500 000 GEL 4712 0.7 billion
Statistics of simplified procurements, sum of 2011-2013 indicators
1 - 10 mln GEL 315 0.9 billion
10 - 50 mln GEL 20 0.3 billion
Above 50 mln GEL 7 1.5 billion
Total 473671 5 billion
Source: Competition and State Procurement Agency
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Advantages of a systemAdvantages of electronic system of state procurement:
-Transparency
- Competition
- Easy procedures
- Low risk of corruption
- Savings
- Technically well designed
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Problems of a systemProblems:
- Quality of procured goods and services, especially in constructionservices
- Quality of preparing technical requirements
- ua y o prepar ng ec n ca sen ences
- Planning of procurements
- High share of simplified procurements
- Consolidated tenders and small business
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RecommendationsTo improve the quality of procured goods and services:
Standardization of the most frequently procuredgoods and services
Ca acit buildin in re arin technical re uirements
Capacity building in preparing technical sentences
To reduce the list of those procurements, which arenot covered by the state procurement low
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To minimize the simplified procurements
To improving planning of procurements by procuringagencies
Desired:
Recommendations
To prepare catalogues for available goods and services
To improve the qualification of the members oftender commission of procuring entities
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Further goals of researchTo study the best international practices of state
procurements
To study the environment and ways how toimplement international best practices in Georgia
To prepare final recommendations for increasing thequality of procured goods and services significantly
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Thank you for your attention!
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