New mechanisms have been introduced in Georgia’s public procurement system, including an electronic catalogue, framework agreements and the ability for companies to combine their own experience with that of subcontractors. Meanwhile, new rules require procuring organizations to define quality requirements in advance for construction tenders, with the winner selected based on price only after meeting those requirements.
Guram Dumbadze, Head of the Efficiency Department of the Government Administration, said under Government Resolution No. 281, procuring entities must clearly specify the quality standards companies are required to meet. These may cover paint, laminate, finishing materials, concrete grades and other construction components. “We first check whether these requirements are met, and then the price becomes important, with the winner selected based on price,” he said.
Dumbadze also explained that the electronic catalogue introduced as part of the procurement reform is an electronic format for submitting offers and can also be used for procurements based on price lists. Another new mechanism is the framework agreement, which allows procurement to be conducted over a period of three to four years or longer and can involve more than one winning company.
From September 1, companies can also combine their own experience with that of a subcontractor to meet experience requirements in tenders. For example, if a tender requires GEL 5 million in relevant experience, a company can demonstrate GEL 2 million of its own experience and GEL 3 million through a subcontractor. Dumbadze said this allows companies lacking sufficient experience to involve another company and jointly fulfill the contract.
