Law of Georgian on State Procurement

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Chapter I General Provisions

Article 1. Scope of Application of the Law

1. Present Law establishes general legal, organizational and economic principles of state procurement.

2. Rules established by the present Law extend to all types of state procurement except for the procurement related to the state secret determined by the Law of Georgia on the State Secret.

3. List of the objects of the state procurement related to the state secret determined by the Law of Georgia on State Secret and the regulation of the procurement shall be elaborated by the National Security Council of Georgia and approved by the President of Georgia.

3(1). Present Law does not apply to the following procurements: (2.12.2008 627 to be enacted from December 15, 2008)

a) state procurement related to implementation of fiscal-monetary and exchange policy by the National Bank of Georgia according to the Organic Law of Georgia on the National Bank of Georgia;

(a) state procurement related to implementation of fiscal-monetary and exchange policy by the National Bank of Georgia according to the Organic Law of Georgia on the National Bank of Georgia, except for the procurements derived from the budget for administrative and capital expenditures approved by the Board of the National Bank of Georgia, which is regulated by this Law; (24.09.2009 1690 to be enacted from January 1, 2010));

b) state procurement to be implemented by those legal persons of public law, which under Georgian legislation are considered as religious organizations;

c) state procurement of electricity, natural gas and water supply; (from September 1)

d1) procurement related to purchase or acquisition of the right of use of the immovable property for the Georgian diplomatic representation or consular entity abroad, as well as for the defense attaché and representative of the Ministry of Defense, also state procurement of auto transportation means, except for the cases envisaged by sub-paragraph “e” of paragraph 3 of Article 101 of this Law (from March 1).

e) state procurement for the meetings and visits of the President of Georgia, Chairman of the Parliament of Georgia, Government of Georgia and/or Mayor of Tbilisi, for the reception of the delegations in the Parliament of Georgia or organization of the visits of the delegations of the Parliament of Georgia abroad, for the reception of the delegations in the Ministry of Foreign Affairs of Georgia and organization of the visits of the Ministry of Foreign Affairs of Georgia abroad, also to the state procurement to be implemented by the funds allocated from the reserve funds of the Government of Georgia and Tbilisi Mayor’s Office;

f) state procurement for the services of the non-staff workers envisaged by the budget classification item “goods and services”, as well as state procurement to be implemented in the course of business trip; (from January 1)

h) state procurement of expert services, if referred services are being procured in accordance with the Chapter XLIV of the Criminal Procedure Code of Georgia;

i) state procurement of immovable property, also state procurement related to receipt of the immovable property with the right of use.

j) financing of the corresponding health and social insurance services/goods by using voucher, also voucher redemption or operations related to voucher redemption.

k) financing of the corresponding education, health and social insurance services/goods by using voucher, also voucher redemption or operations related to voucher redemption.)(on 15th day)

l) state procurement related to procurement of television/radio broadcasting time; (on 15th day)

m) procurement of tele radio production (programs, shows, films, news, cultural events) and/or related services, also services related to broadcasting of the tele radio production (programs, shows, films, news, cultural events) by means of satellite by a legal person of public law – Public Broadcasting from non-resident person. (on 15th day)

4. In the course of implementation of the state procurement procedures of procurement determined by the World Bank, United Nations Organization, European Reconstruction and Development Bank, German Reconstruction Credit Bank (KfW) and European Investment Bank may be used if these organizations are participants of the legal relationship related to implementation of the procurement. If the referred organizations are not participants of the legal relationship related to implementation of the procurement, their as well as other organizations’ procurement procedures may be used only based on the Decree of the Government of Georgia. (from January 1)


Article 2. Purpose of the Law

Purpose of this Law is:

a) to ensure rational expenditure of financial resources designated for state procurement;

b) development of healthy competition in the areas of production of goods, supply of services and construction works necessary for the state needs;

c) to ensure fair and non-discriminiatory approach towards participants of the procurement in the course of implementation of the state procurement;

d) to ensure publicity of the state procurement;

e) to establish uniform system of state procurement and to promote public confidence towards such system.


Article 3. Definitions of the Terms used in the Law

1. Terms used in this Law shall have following meanings:

a) State procurement (further – procurement) – acquisition of any goods, services or construction works by a procuring organization by following funds:

a.a) funds of the Georgian state budget or those consolidated into the State budget;

a.b) funds of the budgets of the Autonomous Republics of Abkhazia and Adjara;

a.c) funds of the budget of a local self-governance unit;

a.d) funds of the organizations and the entities which are financed from the Georgian state budget, budgets of the Autonomous Republics of Abkhazia and Adjara and local self-governance units;

a.e) from foreign states and international organizations based on the international agreements, also funds received in the form of grants and credits from non resident persons of Georgia;

a.f) credit and investment funds received under the state guarantee;

a.g) funds of the legal person of public law (except for the membership based legal person of public law) regardless of the sources of the funds, except for the exceptions envisaged by sub-paragraphs “a” and “b” of paragraph 31 of first Article of this Law;

a) State procurement – acquisition of any goods, services and construction works by a procuring organization in cases envisaged by this Law by using electronic or other means by the following funds:

a.a) funds of the Georgian state budget or those consolidated into the State budget;

a.b) funds of the budgets of the Autonomous Republics of Abkhazia and Adjara;

a.c) funds of the budget of a local self-governance unit;

a.d) funds of the organizations and the entities which are financed from the Georgian state budget, budgets of the Autonomous Republics of Abkhazia and Adjara and local self-governance units;

a.e) from foreign states and international organizations based on the international agreements, also funds received in the form of grants and credits from non resident persons of Georgia;

a.f) credit and investment funds received under the state guarantee;

a.g) funds of the legal person of public law (except for the membership based legal person of publicl law) regardless of the sources of the funds, except for the exceptions envisaged by sub-paragraphs “a” and “b” of paragraph 31 of the first Article of this Law;

a.h) funds of such enterprise, more than 50% of the stocks or equity of which is owned by the state or local self-governance body, except for those cases, where referred enterprise in the course of procurement of the goods or services related to the specifics of its activities, is guided by a special rule determined by the Government of Georgia for the procurement of these goods or services, the term of which may not be exceeding 2 years. Special rule to be established by the Government of Georgia shall be elaborated and submitted for approval to the Government of Georgia by the Ministry of Economic Development of Georgia or the Ministry of Regional Development and Infrastructure based on the suggestions of the corresponding enterprises and local self-governance bodies. If the special rule is not determined by the Government of Georgia, procurement should be implemented in compliance with this Law (from March 1, except for “a.h” which shall be enacted from January 1)

b) Procuring organization – person implementing procurement by the funds determined by sub-paragraph “a” of this paragraph;

c) Procurement object – goods, services or construction works to be procured;

d) Like objects of procurement – identical procurement objects, also non identical but substitutable procurement objects with similar components, technical parameters (characteristics) and/or function; (from January 1)

e) Goods – property of any type and description (except for immovable property), in solid as well as in liquid or gas condition, also services accompanying supply of the goods if the cost of such services does not exceed the cost of the goods;

f) Construction works (further – the works) – any work related to construction, reconstruction, deconstruction, remodeling or renovation of a building, construction or other object (including installment of construction ground, extortion of the ground, building of the building, installment of the equipment, furnishing and furnishing works, works related to communication networks involved in construction), also services accompanying construction such as drilling, geodesy works, space and air photo-shooting, seismic research and other analogous works envisaged by the state procurement contract, if the cost of such work does not exceed the cost of construction work;

g) Service – any object of procurement except for the goods and works;

g1) Person willing to participate in procurement – person who wishes to participate in the procedures of procurement;

h) Contestant – Georgian or foreign state natural or legal person who has paid tender fee;

h) Contestant – Georgian or foreign state natural or legal person who has paid charge and fee (if fee exists) for the purposes of participation in the state procurement procedures. (on 15th day)

i) Supplier – Georgian or foreign state natural or legal person, who has entered into an agreement on state procurement with the procuring organization;

j) Urgent necessity – circumstances which cause real threat to functioning of the procuring organization, or which may cause significant damage to the Georgian state and /or public interests or property of the procuring organization, or restrict competitiveness of an enterprise;

j) Urgent necessity – circumstances which cause real threat to functioning of the procuring organization, which could not have been predetermined and/or are not caused by the action of the procuring organization, or which may cause significant damage to the Georgian state and /or public interests or property of the procuring organization, or restrict competitiveness of an enterprise. (from March 1)

k) Register of non-diligent persons, contestants and suppliers – register which is maintained by the State Procurement Agency and in which the data on those non-diligent persons, contestants and suppliers participating in the procurement who within two years from the entry into the register have no right to participate in the procurement of the same goods, works or services. Register is accessible for any procuring organization.

(k) Register of non-diligent persons, contestants and suppliers – register which is maintained by the State Procurement Agency electronically and places on the official web-site of the Agency. Register reflects the data on those non-diligent persons, contestants and suppliers participating in the procurement who within 1 year from the entry into the register have no right to participate in the state procurement. Register is accessible for any person. Rule of maintenance of the register by the sub-legislative normative act approved by the Chairman of the Agency (further – sub legislative normative act) (on 15th day). (from September 1)

l) Unconscientious Person Roll – an electronic roll processed and displayed on the official web-site of the entity authorized by the Law. Unconscientious persons, contenders and applicants who participated in procurement and whose data is given in the roll are not allowed to participate in State procurement during one year after been added to the Roll. The Roll is available for everybody. Rules and conditions of the Roll constitution shall be determined by the Legislative Statutory Act affirmed by the head of the entity authorized by the Law (hereinafter referred to as “Legislative Statutory Act”). (The Law N2760-Is, March 12, 2010)

m) Charge – nonrefundable mandatory fee to be paid to the account of the State Procurement Agency in the amount prescribed by this Law for submission of the tender documentation (on 15th day)

n) Electronic means – means through which processing (including digital processing), receipt, transfer, dissemination and storage of information is possible through cable, fiber, broadcasting and/or other electronic possibilities.

n) The Fee – is an obligatory non-reimbursable bid issue payment stated by the Law and transferred to the account of the entity authorized by the Law. (The Law N2760-Is, March 12, 2010)

n) Consolidated on-line tender – is an on-line tender conducted by the entity authorized by the Law for procurement of similar products exclusively in cases determined by the Government of Georgia, correspondent information about the winner of the consolidated on-line tender shall be displayed by means of the united on-line system. (The Law N2760-Is, March 12, 2010)

o) Electronic tender – means of state procurement of goods and services with the value exceeding 100 000 Lari and works with the value exceeding 200 000, which includes electronic tender procedures envisaged by this Law and sub legislative normative act.

p) Simplified electronic tender – means of state procurement of the goods and services with the value less than 100 000 Lari and works with the value less than 200 000 Lari, which includes simplified electronic tender procedures envisaged by this Law and sub legislative normative act. Term for procurement to be implemented under simplified electronic tender shall not be less than 3 days;

q) Simplified procurement – state procurement to be implemented in cases envisaged by paragraph 3 of Article 101 of this Law, or means of state procurement of the goods and services with the value up to 2000 Lari and works with the value up to 5 000 Lari (in case of procurement related to defense, security and public order – of the goods and services with the value up to 5 000 Lari and works with the value of up to 10 000) which may be implemented through execution of direct state procurement agreement with the supplier without using electronic means, or under simplified electronic tender or electronic tender procedures.

r) Electronic trading – procedures constituting electronic tender and simplified electronic tender in the course of which contestants may within the timeframe established by the legislation change submitted offer for the purposes of winning in the procurement procedures, however in case of change of the submitted offering the price may not be increased, except for the case when the quantity or volume of the procurement object, or quality is changed by the procuring organization;

s) Two stage tender – a type of electronic tender which may be conducted in such case, when based on the specifics of the procurement object it is impossible to determine in advance all economic and technical parameters and at the first stage of the electronic tender procuring organization deems necessary to negotiate with the persons willing to participate in the electronic tender procedures with the aim to clarify technical, economic and other parameters;

t) Consolidated electronic tender – electronic tender implemented by the State Procurement Agency for the purposes of procurement of like goods in cases determined by the Government of Georgia, as a result of which the winner is established and the respective information about the winner is published through the uniform electronic system. (from 1st of March)

2. Removed.


Article 4. State Procurement Agency – The Authorized Entity (The Law N2760-Is, March 12, 2010)

1. Coordination and monitoring of the activities related to procurement are implemented by the permanent independent body, legal person of public law – the State Procurement Agency (further – the Agency), the chairman of which is appointed and removed from the office by the Prime Minister of Georgia.

1.The President of Georgia authorizes an entity on performing activities prescribed by the Law. The authorized entity (hereinafter referred to as “the Agency”) is independent and is subject to the Public Law; the Head of the Agency is appointed and may be released from his/her duties by the Prime-minister of Georgia. (The Law N2760-Is, March 12, 2010)

2. Legal basis of the activities of the Agency is constituted by the Constitution of Georgia, international contracts and agreements, present Law and by-laws of the Agency elaborated based on these.

3. Structure and the by-laws of the Agency are approved by the Government of Georgia.

3(1). The restructuring and dissolution of the Agency to be performed under Presidential Edict. (The Law N2760-Is, March 12, 2010)

4. State control over the activities of the Agency is implemented by the Government of Georgia.

5. The Agency is financed:

a) by the targeted funds allocated from the state budget of Georgia;

b) other revenues allowed by the Georgian legislation;

6. Main functions of the Agency are:

a) elaboration and issuance of the normative acts and standard tender documentation needed for the operation of this Law, their harmonization with international norms;

b) systematic study and analysis of the existing situation in the country in the area of procurement based on the reports received form procuring organizations and presentation of the suggestions to the Government of Georgia for adoption of the corresponding decisions;

c) preparation of the special educational programs, educational-methodological material and standard forms of documentation, conduct of seminars and trainings for the central and local self-governance bodies of the government, representatives of mass media and other interested parties;

d) formation and refinement of the uniform information base of the implemented procurements;

e) provision of consultation recommendation services to the procurement organizations;

f) maintenance of the register of potential suppliers (register of potential suppliers is formed for the informational support of the procurers and does not assign preference to anyone);

g) support for the implementation of the modern information and communication technologies into the procurement system;

h) publication of relevant normative acts for the publicity of the procurements, issuance of special guideline bulletin;

i) resolution of the dispute arising in the course of procurement under administrative procedure;

j) oversight over the lawfulness of the procurement procedures and determination of the policy of the procurement process;

k) maintenance of the register of non-diligent persons, contestants and suppliers;

5. The Agency is financed:

a) by the targeted funds allocated from the state budget of Georgia;

b) other revenues allowed by Georgian legislation;

6. Main functions of the Agency are:

a) elaboration and issuance of the normative acts and standard tender documentation needed for the operation of this Law, their harmonization with international norms;

b) systematic study and analysis of the existing situation in the country in the area of procurement based on the reports received form procuring organizations and presentation of the suggestions to the Government of Georgia for adoption of the corresponding decisions;

c) preparation of the special educational programs, educational-methodological material and standard forms of documentation, conduct of seminars and trainings for the central and local self-governance bodies of the government, representatives of mass media and other interested parties;

d) formation, refinement and supervision of the uniform information base of the implemented procurements;

e) provision of consultation-recommendation services to the procurement organizations;

f) maintenance of the register of potential suppliers (register of potential suppliers is formed for the informational support of the procurers and does not assign preference to anyone);

g) support for the implementation of the modern information and communication technologies into the procurement system;

h) ensuring access to the relevant normative acts and special guideline bulletin for the publicity of the procurements;

i) resolution of the dispute arising in the course of procurement under administrative procedure;

j) oversight over the lawfulness of the procurement procedures and determination of the policy of the procurement process;

k) maintenance of the register of non-diligent persons;

l) maintenance of the register of qualified suppliers, the rule and conditions of which shall be determined by the sub-legislative normative act (on 15th day)


Article 5. Rights and Duties of the Chairman of the Agency

1. Chairman of the Agency;

a) issues normative acts (orders) under the rules established by Georgian legislation, observance of which is mandatory for the procuring organizations and other persons parties to the procurement;

b) issues orders on internal organizational matters;

c) settles issues within the competencies of the Agency;

d) monitors performance of the duties by the structural units of the Agency, controls activities of the staff under established rules;

e) within the scope of its competencies appoints and removes from the position members of the Agency staff;

f) disposes of the Agency funds and controls their use;

g) under the established rule submits to the Government of Georgia for adoption of respective decisions suggestions on the matters within the governance of the Agency;

2. Chairman of the Agency is responsible for the activities of the Agency under the rule established by law.


Article 6. Supervisory Board of the Agency

1. For the transparency of the state procurement system, publicity of the Agency work and governance by democratic principles a supervisory board shall be formed with the Agency with the composition of 7 members (including the chairman of the supervisory board) who are appointed for the term of 4 years by the Government of Georgia. By-laws of the Supervisory Board of the Agency is approved by the Government of Georgia. Supervisory Board is composed of the officials from governance and controlling bodies (representatives of the Ministry of Economic Development of Georgia, Ministry of Finance and Ministry of Justice of Georgia), also of the representatives of the public organizations and mass media. Supervisory Board is functioning on public basis.

2. Supervisory Board of the Agency:

a) reviews on its meetings drafts of the normative acts to be issued by the Chairman of the Agency, by-laws of the structural units of the Agency and results of their activities;

b) envisages main principles of state policy in relation to procurement and provides the participants of the state procurement on the meetings with the opportunity to represent their interests without impediment;

c) prepares annual report about its activities and presents it to the Government of Georgia until April 1 of the following year. Report should be accessible for the public;

d) within its competencies requires from the procuring organizations any information related to procurement and inspects its correctness;

3. Meeting of the Supervisory Board of the Agency is public and its decisions are published under the rule established by Georgian legislation. Rule of maintaining confidentiality of the information within the Supervisory Board is determined by the Georgian legislation.

4. Rule of activities of the Supervisory Board of the Agency is determined by the by-laws of the Supervisory Board.


Article 7. Rights and Duties of the Procuring Organizations

1. Procuring organization is authorized:

a) in observance of the rules established by this law and corresponding normative acts to select supplier and execute with it an agreement on the state procurement (further – the Agreement);

b) to affect disqualification of the contestants under the rule established by this Law;

c) prior to executing an agreement suspend or terminate procurement procedure if this shall become necessary due to the independent unforeseeable and objective circumstances, also deriving from the Georgian state and/or public interests;

d) implement control and supervision of performance of the terms of the contract by the supplier;

e) suspend or terminate operation of the contract, if the qualification data provided by the supplier shall turn out to be false, also in other cases envisaged by Georgian legislation.

2. Procuring organization is obliged: a) to implement procurement rationally and in consideration of the Georgian state interests within the scope of the allocated assignations, in observance of the rules established by this Law and respective normative acts;

b) to observe confidentiality of the submitted information in compliance with the General Administrative Code of Georgia prior to concluding agreement;

c) to submit to the Agency reports on implemented procurements within the timeframe established by Article 22 of this Law;

c) to submit to the Agency reports on implemented procurements under the rule established by Article 22 of this Law (from March 1)

d) immediately upon supply of the goods, implementation of the work and performance of the services to reimburse supplier the price of the goods, work and the services unless otherwise envisaged by the agreement;

e) in case of suspension of the procurement procedure according to paragraph “c” of this Article to implement this procurement only by way of continuing suspended procurement procedure;

f) in case envisaged by paragraph “c” of this Article not later than in 3 business days from adoption of the decision communicate this decision and its grounds to the Agency and contestants. Furthermore, procuring organization is not obliged to present to the contestants concrete evidences or detailed information, based on which the decision was adopted, also to reimburse them expenses related to participation in the procurement, except for the tender fee.

f) in case envisaged by paragraph “c” of this Article not later than in 3 business days from adoption of the decision communicate this decision and its grounds to the Agency and contestants. Furthermore, procuring organization is not obliged to present to the contestants concrete evidences or detailed information, based on which the decision was adopted, also to reimburse them expenses related to participation in the procurement. (from September 1)

2(1). If after suspension of the procurement procedure procuring organization adopts decision on the procurement of the same object, it is obliged to implement such procurement (if this is implemented within the assignations of the same year) by way of continuing suspended procedure. For these purposes, procuring organization shall approach all persons participating in the suspended procurement with the request of repeated confirmation of qualification parameters, suggestion of filing tender offers and accompanying documentation and bill of payment of tender fee.

2(1). If after suspension of the procurement procedure procuring organization adopts decision on the procurement of the same object, it is obliged to implement such procurement (if this is implemented within the assignations of the same year) by way of continuing suspended procedure. For these purposes, procuring organization shall approach all participants of the procurement with the request of repeated confirmation of qualification parameters and suggestion of filing tender offers and accompanying documentation. (from September 1)

3. Responsibility for violation of the rules and norms established by this Law and respective normative acts, for rational implementation of the procurement is wholly vested with the procuring organization.


Article 8. Conditions and Rules of Preventing Conflict of Interests

1. Conditions and rules of preventing conflict of interests concern following activities related to implementation of the procurement:

a) preparatory works for procurement, including establishing characteristics and estimated costs of procurement object;

b) selection of the members of the tender commission, other persons responsible for implementation of the procurement;

c) preparation of the announcement on the conduct of the tender, tender documentation and other materials;

d) review and assessment of the qualification parameters and tender offers;

e) conduct of the negotiations in cases envisaged by this Law;

f) control and supervision over implementation of the agreement;

g) other activities related to the implementation of the procurement.

2. In the course of procurement, person willing to participate in the procurement and/or participant of the procurement may not approach procuring organization (its director, employee) or state governance structures and their representatives with the request to solicit, or influence them directly or discreetly by any means with the aim to procure right to conclude preferential agreement.

3. Procuring organization may not obligate to prepare, implement and/or supervise procurement or invite as a consultant (expert) a person if he/she:

a) is a natural person and a close relative of a director, employee of any participating legal person or actual participant;

b) has worked for last three years in the organization participating in the procurement;

c) is related to the organization participating in the procurement by personal or business interest or conducts negotiations for achieving such relation.

c) personal or business interest

4. Legal or natural persons who participated in the preparatory works are not allowed to participate in the procurement.

5. Requirements of paragraphs 3 and 4 of this Article also apply to:

a) participants of control implementation over performance under the agreement; (from September 1) b1) participants of the negotiations related to implementation of simplified tender (from March 1)

6. Upon expiration of the time for receipt of the tender documentation and the tender offers and immediately upon opening of the envelopes each member of the tender commission, invited consultant (expert) and all employees of the procuring organization who are related to implementation of this procurement are obliged to confirm in writing that their participation in the activities related to implementation of this procurement do not contradict above listed requirements.

6. Upon expiration of the time for receipt of the tender documentation and the tender offers and/or afterwards immediately upon getting familiar with them, prior to commencing reviewing them, each member of the tender commission, invited consultant (expert) and all employees of the procuring organization who are related to implementation of this procurement are obliged to confirm in writing that their participation in the activities related to implementation of this procurement do not contradict above listed requirements. (from March 1)

7. Removed.


Article 9. Planning Procurement

1. Procuring organization implements procurement based on the preliminarily determined and approved annual plan. After receiving consent of the Ministry of Finance and/or finance body of the corresponding local self-governance unit, the issue of implementation of multiyear procurement should be agreed with the Agency. Multiyear procurement is annually reflected in the respective budget (finance) year procurement plan.

(1. Procuring organization implements procurement based on the preliminarily determined and approved annual plan. After receiving consent of the Ministry of Finance and/or finance body of the corresponding local self-governance unit, the issue of implementation of multiyear procurement should be agreed with the Agency. Multiyear procurement is annually reflected in the respective budget (finance) year procurement plan. National Bank of Georgia implements multiyear procurement without agreeing with the Ministry of Finance and the Agency (24.09.2009 N 1690 to be enacted from January 1, 2010))

1. Procuring organization implements procurement based on the preliminarily determined and approved annual plan. After receiving consent of the Ministry of Finance and/or finance body of the corresponding local self-governance unit, the issue of implementation of multiyear procurement should be communicated to the Agency. Multiyear procurement is annually reflected in the respective budget (finance) year procurement plan. A procurement is not deemed to be a multiyear procurement if it is implemented only within the assignations envisaged by the current budget year while the supply is implemented during the next budget year. National Bank of Georgia implements multiyear procurement without agreeing with the Ministry of Finance and the Agency (from January 1)

2. Project of the annual procurement plan should not contradict the Law on the State Budget of Georgia of the corresponding year.

3. Procurement of the like goods, services or works by a procuring organization during a budget (financial) year shall be deemed as one procurement, if it is financed from one source.

4. Annual plan of procurement is approved by the director of the procuring organization and submitted to the Agency no later than within 20 calendar days from the enactment of respective normative acts on the state budget, budgets of the Autonomous Republics of Abkhazia and Adjara and local self-governance units, except for the persons implementing procurement by the funds envisaged by paragraph “a.g” of first paragraph of Article 3 of this Law who submit procurement plan to the Agency no later than February 20.

4. Annual plan of procurement is approved by the director of the procuring organization and submitted to the Agency no later than within 20 calendar days from the enactment of respective normative acts on the state budget, budgets of the Autonomous Republics of Abkhazia and Adjara and local self-governance units, except for the persons implementing procurement by the funds envisaged by paragraphs “a.g” and “a.h” of first paragraph of Article 3 of this Law who submit procurement plan to the Agency no later than February 20. (from January 1)

5. If a procuring organization is being established (founded), or under a state guarantee a credit or based on international agreement, also by non resident person of Georgia grant or credit is issued during a calendar year, annual procurement plan is submitted to the Agency in the course of establishing (founding) a procuring organization or no later than 20th day of the month following the month of enforcement of the respective international agreement and/or agreement concluded with other state financial organization.

6. In the course of elaboration of the project of annual procurement plan following should be envisaged:

a) necessity of implementation of the procurement;

b) likeness of procurement objects and possibility of their separation into the batches;

b) likeness of procurement objects (from September 1)

c) experience of implementing similar procurement;

d) definition of procurement object (goods, work, services), their technical and qualitative parameters, such as quality, functionality, safety, sizes, packaging, labeling and marking, methods of production and processes, symbols, terminology, compliance requirements established by the procuring organization etc.), also time and place of delivery;

e) results of the market survey for the purposes of revealing potential suppliers and determination of the acceptable agreement terms for the procuring organization;

e1) procurement object, in case such exists, which a procuring organization would like to procure through consolidated electronic tender means (form March 1);

f) basis for selecting procurement means, estimated timeframe for procurement procedures;

g) quantity of the goods to be supplied, volume of the work to be implemented or services to be performed in consideration of the existing stock;

h) estimated price of the procurement object;

i) costs associated with implementation of procurement;

j) financial liabilities envisaged by long-term agreements or agreements concluded in previous year for the current year;

k) estimated timeframe for performance of the agreement to be concluded;

l) other circumstances related to procurement.


Chapter II Means of Procurement (from 1st of September)

Article 101. Electronic Means of State Procurement (from March 1st)

1. Electronic State Procurement is implemented through simplified electronic tender or electronic tender.

2. Under the decision of the procuring organization, simplified procurement may be implemented electronically.

3. State procurement may be implemented through simplified procurement if:

a) supply of goods, performance of works and services is an exclusive right of only one person and there is no reasonable alternative for substitution of procurement object;

b) there is an urgent necessity, in such cases quantity of the goods to be procured, volume of the work or services should not exceed the timeframe necessary for resolution of the problem caused by urgent necessity;

c) by the decision of the procuring organization, for the purposes of preventing deterioration of the quality of the procurement object procured from the supplier and/or for ensuring its further utilization it is necessary to implement procurement from the same supplier, or sub-contractors envisaged by the agreement concluded with the same supplier, except for the cases when estimated price of the procurement object exceeds the price of the initially procured object.

d) for the purposes of unimpeded implementation of the events of the state and public importance within restricted timeframe by the legal act of the President of Georgia and/or the Government of Georgia implementation of procurement has been determined;

e) substitution of one or more than one purchased auto transport means and computer technology with one or more than one new auto transport means or computer technology with the same or upgraded parameters is being implemented; in such case part of the price of the new auto transport means and computer technology shall be compensated by return of the auto transport means and computer technology purchased earlier to the supplier or by transfer to other natural or legal person, who is engaged in selling similar products (goods);

4. Artificial division of the procurement means for the purposes of avoidance of monetary limits established by this Law is not allowed.

5. By the decision of procuring organization within one budget (financial) year procurement of uniform procurement object may be implemented in stages, by multiple use of electronic state procurement means within monetary limits established by this Law for the aggregate price of the procurement object.

6. For procurement of the goods and services with value of up to 100 000 Lari and works with the value of up to 200 000 Lari by the decision of the procuring organization procedures established for electronic tender may be used.

7. Provision envisaged by sub-paragraph “b” of paragraph 6 of Article 9 of this Law on batches does not apply to the electronic state procurement means envisaged by this Article.

8. With the funds remaining after conclusion of the procurement agreement procurement may be implemented with observance of the monetary limits established by this Law.


Chapter III Tender

Chapter III Electronic Tender (from 1st of September)

Article 11. Formation of Tender Commission and Rule of its Conduct (from September 1)

1. Electronic tender is conducted by the tender commission which is commissioned by the director of the procuring organization with the composition of at least 5 members. In cases when the number of the respective candidates is not sufficient, the commission may be constituted by 3 members. (from March 1)

2. Director of the procuring organization and or his/her deputies, heads of structural sub-divisions of such organization may be appointed as the members of the tender commission. If the number of the corresponding candidates is not sufficient, other employees of the procuring organization may also be appointed as the members of the commission.

3. Tender commission is chaired by the director of the procuring organization or a person appointed by him/her.

4. A person, who is a close relative of the contestant natural person or a director of the contestant legal person, or a founder or member of the contestant non-entrepreneurial (non-commercial) legal person, or a member who has a share in the charter capital of the contestant legal person may not be in the composition of the tender commission.

5. Based on the decision of the tender commission specialists of relevant fields may be invited as experts and consultants with the counsel vote.

5(1). Restrictions envisaged by paragraph 4 of this Article apply to the members of the tender commission administration.

6. For the purposes of technical and organizational support of the tender commission work, under the order of the director of procuring organization, an administration of the tender commission is formed from the employees of such organization and is headed by the chairman of the tender commission.

7. Tender commission adopts decisions by the majority of the listed composition of the commission members. Tender commission member who does not agree with the decision of the tender commission has a right to submit written opinion which should be appended to the decision of the tender commission decision. In case of equal distribution of the votes the vote of the chairman of the tender commission is decisive.

8. A protocol of the tender commission meeting is compiled and signed by the members attending the meeting.


Article 12. Announcement on the Conduct of Tender (to be removed from September 1)

1. In the course of conduct of the tender, the tender commission makes an announcement about the conduct of the tender on behalf of the procuring organization:

a) by information means determined by the sub-legislative normative act approved by the Head of the Agency;

b) on one of the languages accepted in international trade practice in those periodic issues of the foreign countries, which are widely distributed on international scale and sends such announcement to the diplomatic and consular representations accredited in Georgia, if the estimated value of the goods or services to be procured exceeds 600,000 Lari and estimated value of the works – 800,000 Lari

2. Georgian diplomatic entities abroad publish announcement on the conduct of the tender in those periodic issues of foreign countries which are widely disseminated on international scale and/or on the internet-sites of these diplomatic entities.

3. In the course of the conduct of the tender, the tender commission uses additional means of disseminating the announcement on the conduct of the tender. Furthermore, the announcement on the conduct of the tender should be initially published by information means determined by the sub-legislative normative act approved by the Chairman of the Agency. Respectively, the timeframe envisaged by the announcement is counted from the date of publication of the announcement on the conduct of the tender in the information means determined by the abovementioned normative act.

4. Announcement on the tender should indicate:

a) requisites of the procuring organization;

b) type of the goods to be procured, quantity and the quality, place and form of delivery, type of the works or the services to be procured and place of performance or delivery, also other data which are deemed necessary by the procuring organization for the proposes of description of the procurement object.

b) type of the goods to be procured and supplied, quantity, quality and estimated price, if the price of the procurement object due to its specificity depends on the changeable prices prevailing on the international commodity market, (oil products and other similar goods) the procuring organization may in the course of establishing an estimated price of the procurement object for a moment determined by the procurer envisage an indicator prevailing on the specific international commodity market. In such case for determination of an estimated price of the procurement object a rule envisaged by sub-legislative normative act shall be applied, place and form of delivery, type of the works or the services to be procured and place of performance or delivery, also other data which are deemed necessary by the procuring organization for the proposes of description of the procurement object (form January 1)

c) preferable or required timeframe for supply of the goods, performance of services or work to be procured;

d) timeframe and place for submission and the language of the documentation verifying qualification parameters and the tender offer;

e) documentation verifying qualification parameters;

f) rule, timeframe, place and language for taking out tender documentation;

f1) volume of the guarantee as security of the tender offer (if used);

g) rate of the tender fee;

h) rate of the tender charge and fee; (on 15th day)

i) prior to paying tender fee opportunity to get acquainted with the tender documentation at the procuring organization;

j) requirements which shall not be subject to clarification in the process of selection (except for those cases when it is necessary to repeatedly confirm qualification parameters and in cases envisaged by Article 20 of this Law);

k) alternative rule of presentation and opening of the envelopes of the tender offers of the contestants by the procuring organization (if such exists).

5. Announcement on the conduct of the tender is approved by the tender commission.

6. Tender commission publishes announcement on the conduct of the tender within at least 20 calendar days in advance of the commencement of the receipt of the documents verifying qualification parameters and the tender offers.

7. Tender commission has a right to change information in the announcement on the conduct of the tender (except for the procurement object). These changes should be published by same information means which were used for publication of the announcement on the conduct of the tender.

8. Changes entered into the announcement on the conduct of the tender should be published within no more than 5 calendar days from the deadline on receipt of the documents verifying qualification parameters and the tender offers.


Article 121. Announcement on the Conduct of Electronic Tender and Tender Documentation (from March 1)

1. In the course of conduct of the electronic tender, the tender commission publishes an announcement about the conduct of the electronic tender and the tender documentation on behalf of the procuring organization by means of unified electronic system in Georgian language. Announcement on the conduct of electronic tender may also be published subject to the decision of the procuring organization in English language. If the estimated value of the goods and/or services to be procured exceeds 500,000 Lari, publication of the announcement on the conduct of the electronic tender in English language is mandatory.

2. In the course of the conduct of electronic tender, in case of necessity, tender commission uses additional means of disseminating the announcement on the conduct of the electronic tender and the tender documentation. Furthermore, the announcement on the conduct of the electronic tender and the tender documentation should be initially published by means of unified electronic system. Respectively, the timeframe envisaged by the announcement is counted from the date of publication of the announcement on the conduct of the tender by means of the above mentioned system.

3. Announcement on the conduct of the electronic tender should contain:

a) requisites of the procuring organization;

b) type of the goods to be procured and supplied, quantity, quality and estimated price, if the price of the procurement object due to its specificity depends on the changeable prices prevailing on the international commodity market, (oil products and other similar goods) the procuring organization may in the course of establishing an estimated price of the procurement object for a moment determined by the procurer envisage an indicator prevailing on the specific international commodity market. In such case for determination of an estimated price of the procurement object a rule envisaged by sub-legislative normative act shall be applied, place and form of delivery, type of the works or the services to be procured and place of performance or delivery, also other data which are deemed necessary by the procuring organization for the proposes of description of the procurement object;

c) preferable or imposed timeframe for supply of the goods, performance of services or work to be procured;

d) rules, conditions and timeframe for the conduct of the electronic tender;

e) documents verifying qualification parameters;

f) volume of the guarantee as security of the tender offer (if used);

g) rate of the tender charge.

4. The announcement on the conduct of the electronic tender and the tender documentation is approved by the tender commission.

5. Tender documentation should contain:

a) requirements which should be met by the contestants in the course of selection;

b) instruction on preparation of the tender offer of the contestants;

c) rules and criteria for evaluation of the tender offers of the contestants, with indication of the priorities of these criteria;

d) quantity of the goods to be procured, volume of the work or services, preferable or imposed timeframe and place for supply of the goods, implementation of work or performance of the services, also other data indication of which is deemed necessary by the procuring organization in relation to the procurement object;

e) full description of the technical and qualitative parameters of the procurement object, including, respective technical specifications, plans, drafts and sketches, also alternative technical and qualitative parameters of the procurement object if this shall be accepted by the procuring organization;

f) those necessary terms of the agreement, which are preliminarily known to the procuring organization, also indication as to the form of the agreement and the guarantee of the agreement security (if such exists);

g) method which should be used for calculation of the value of the tender offer with indication whether other than the price of the goods, work or service it should also include other expenses (transportation, insurance, taxes etc.);

h) indication of the currency in which the value of the tender offer should be calculated;

i) means and procedures of requesting additional information and explanations by the contestants on the tender documentation;

j) identity and contact address of those officers of the tender commission administration, who have a right to be in contact with the contestants and provide them with information and explanations on procurement procedure.

6. Procuring organization is obliged to bring text material, technical specifications, plans, drafts, sketches and other material used for description of technical and qualitative parameters of the procurement object in compliance with the with the standards recognized in Georgia and in international practice, technical parameters, terminology and conditional indications. Procuring organization is obliged to indicate applied standard if such exists. Description of the procurement object may not indicate a trade mark, patent, model, source of origin or producer.

7. Documents verifying qualification parameters may be submitted in Georgian as well as in foreign language subject to decision of the procuring organization. In case of submission of the documents in foreign language, they should be appended with the Georgian translations prepared in compliance with the rule established by Georgian legislation. In the course of resolution of the disputable matters the issue of assigning priority between the documents executed in foreign language and their Georgian translation shall be decided by the procuring organization.

8. Tender commission publishes announcement on the conduct of the electronic tender within at least 20 calendar days in advance of the completion of the receipt of the documents verifying qualification parameters and the tender offers.

9. Tender commission has a right to change information in the announcement on the conduct of the electronic tender (except for the procurement object). These changes should be published by same information means which were used for publication of the announcement on the conduct of the electronic tender and the tender documentation.

10. Changes made to the announcement on the conduct of electronic tender and tender documentation should be entered into the system at least 5 calendar days in advance of the expiration of the deadline for receipt of documents verifying qualification parameters and the tender offers.


Article 13. Qualification Requirements

Requirements, which should be satisfied by the qualification parameters of the contestants for participation in the procurement are determined by the procuring organization for each concrete procurement. Rule of selecting qualification parameters are determined by the sub-legislative normative act. Requirements of qualification parameters should be fair, nondiscriminatory and should promote development of healthy competition (on 15th day)


Article 14. Tender Documentation (to be removed from September 1)

1. Tender commission approved tender documentation immediately upon publication of the announcement on the conduct of the tender.

2. After payment of the tender fee (if such exists) by a person, the tender commission transfers tender documentation to the contestant immediately upon request.

3. Tender documentation should include:

a) requirements which should be met by the contestants for participation in the procurement;

b) instruction on preparation of the tender offer of the contestants;

c) rules and criteria for evaluation of the tender offers of the contestants, with indication of the priorities of these criteria;

d) quantity of the goods to be procured, volume of the work or services, preferable or imposed timeframe and place for supply of the goods, implementation of work or performance of the services, also other data indication of which is deemed necessary by the procuring organization in relation to the procurement object;

e) full description of the technical and qualitative parameters of the procurement object, including, respective technical specifications, plans, drafts and sketches, also alternative technical and qualitative parameters of the procurement object if this shall be accepted by the procuring organization;

f) those necessary terms of the agreement, which are preliminarily known to the procuring organization, also indication as to the form of the agreement;

g) method which should be used for calculation of the value of the tender offer with indication whether other than the price of the goods, work or service it should also include other expenses (transportation, insurance, taxes etc.);

h) indication of the currency in which the value of the tender offer should be calculated;

i) time, place and language for submission of the documents verifying qualification parameters and the tender offers;

j) means and procedures of requesting additional information and explanations by the contestants on the tender documentation, and in case of conduct of two-stage tender – also an opportunity of the conduct of negotiations;

k) time, place and rule of opening of the envelopes of the contestants’ tender offers;

k1) time and place of the conduct of oral trading. Rule and conditions of the conduct of oral trading are defined by sub-legislative normative act (from January 1) l) identity and contact address of those officers of the tender commission administration, who have a right to be in contact with the contestants and provide them with information and explanations on procurement procedure. m) requirements, which are not subject to further clarification in the course of selection.

4. Text material, technical specifications, plans, drafts, sketches and other material used for description of technical and qualitative parameters of the procurement object should comply with the standards recognized in Georgia and in international practice, technical parameters, terminology and conditional indications. Description of the procurement object may not indicate a trade mark, patent, model, source of origin or producer.

5. Tender commission interprets and/or clarifies information related to procurement procedure and procurement object based on written request of the contestant or on its own initiative, which is formalized as an addition to the tender documentation and is sent to all contestants simultaneously at least 5 calendar days in advance of expiration of the deadline for receipt of the documents verifying qualification parameters and tender offers. Addition to the tender documentation should not alter the content of the documentation.


Article 15. Rule of Submission and Review of the Contestants’ Tender Offers (removed from September 1)

1. Tender offers are submitted to the tender commission in closed envelopes. Envelopes are opened together, in presence of the contestants, on the meeting of the tender commission immediately upon expiration of the time for submission of the tender offers. After opening envelopes commission establishes timeframe for qualification selection, review of tender offers and adoption of the final decision.

2. Contestants have a right to withdraw in writing or change the tender offer at any time prior to opening the envelopes.

2. Contestants have a right to withdraw in writing or change the tender offer at any time until expiration of the time for receipt of qualification parameters and tender offers (from January 1)

3. After opening envelopes, at first place selection should be implemented. Aim of the selection is to establish consistency of the submitted qualification parameters, tender offers and accompanying documents with the requirements of the tender documentation and the announcement on the conduct of the tender. Tender commission does not disqualify contestant if its tender offer contains such inaccuracy which does not essentially contradict requirements determined by the tender documentation and/or the announcement on the conduct of the tender, or which can be cured without altering the content of the tender offer, except for the cases of requirements defined by sub-paragraph “i” of paragraph 4 of Article 12 and sub-paragraph “m” of paragraph 3 of Article 14 of this Law.

4. If qualification parameters and/or the tender offer submitted by a contestant is not consistent with the requirements defined by sub-paragraph “i” of paragraph 4 of Article 12 and sub-paragraph “m” of paragraph 3 of Article 14 of this Law, tender commission disqualifies contestant.

5. If under case envisaged by paragraph 4 of this Article mechanic errors are made, tender commission shall approach the contestant with the requirement to clarify qualification parameters and/or tender offer. Tender commission may also correct mechanic errors itself.

6(1). Tender commission is obliged to invite to the oral trading those contestants, which are admitted to the evaluation after completion of selection procedures. Furthermore, in the course of oral trading only the price submitted by the tender offer may be subject to change (from January 1)

7. Tender commission adopts decision on the winning contestant based on the conclusion presented by the commission members envisaging the evaluation criteria indicated in the tender documentation and the priority of these criteria.

7. Tender commission adopts decision on the winning contestant as a result of evaluation procedure. Evaluation procedure and rule is determined by the sub-legislative normative act (from January 1)

8. Conclusion of the member of the tender commission should indicate a contestant to whom commission member assigns preference as well as the bases for assigning such preference.

9. Contestant shall be deemed a winner if it is assigned preference by conclusions of the majority of the listed composition of commission members. In case of equal distribution of the votes conclusion of a chairman of the tender commission is decisive. 9. Contestant shall be deemed a winner if it is assigned highest aggregate score based on the conclusions of the members of tender commission. In case of equal distribution of the scores the points assigned by the chairman of the tender commission are decisive. (from January 1)

10. Decision of the tender commission on the winning contestant is formalized by a protocol of the commission meeting, which is appended with the conclusions of the commission members. Protocol should indicate information about the persons participating in the review of the tender offers and the contestants, also it should briefly describe tender offers submitted by the contestants.

11. Contestants have a right to file a complaint about any issue related to the conduct of the tender in the court.

12. Alternative rule of submission of the tender offers and opening of the envelopes envisaged by sub-paragraph “j” of paragraph 4 of


Article 12 of this Law is determined by sub-legislative normative act.

15(1). Rule of Submission and Review of the Qualification Parameters and Tender Offers of the Contestants in the Course of Electronic Tender (from March 1)

1. Qualification parameters and tender offers are submitted to the tender commission electronically – be means of internet. Upon expiration of the time for submission of qualification parameters and tender offers commission establishes timeframe for qualification selection, review of tender offers and adoption of the final decision.

2. From the publication of the announcement on the conduct of electronic tender and tender documentation until expiration of the deadline for receipt of qualification parameters and tender offers a contestant has a right to electronically at any time by means of electronic trading change its qualification parameters and tender offer.

3. After expiration of the deadline for receipt of qualification parameters and tender offers contestants have a right to change data submitted according to the evaluation criteria established by the tender documentation within additional time by means of electronic trading in compliance with the procedure determined by sub-legislative act. Final deadline for receipt of qualification parameters and tender offers is considered expired upon expiration of the additional deadline determined by the sub-legislative normative act.

4. Issues of accessibility of the information and documentation submitted by the contestant electronically is determined by the sub-legislative normative act.

5. Rule of receipt, selection and evaluation of the tender offers and qualification parameters is determined by the sub-legislative normative act.

6. Upon expiration of the time for submission of the qualification parameters and tender offers, at first place selection should be implemented. Aim of the selection is to establish consistency of the submitted qualification parameters, tender offers and accompanying documents with the requirements of the tender documentation and the announcement on the conduct of the electronic tender.

7. If qualification parameters and/or the tender offer submitted by the contestant is not consistent with the requirements defined by the tender documentation and the announcement on the conduct of the electronic tender, tender commission disqualifies contestant.

8. If under case envisaged by paragraph 7 of this Article mechanic errors are made, tender commission shall approach the contestant with the requirement to clarify qualification parameters and/or tender offer which the latter should accomplish electronically – by means of internet.

9. Tender offers are evaluated in consideration of the criteria indicated in the tender documentation and priority of these criteria.

10. Tender commission adopts decision on the winning contestant of the electronic tender based on the conclusion presented by the commission members envisaging the evaluation criteria indicated in the tender documentation and the priority of these criteria.

11. Conclusion of the member of the tender commission should indicate a contestant to whom commission member assigns preference as well as the bases for assigning such preference.

12. Contestant shall be deemed a winner if it is assigned highest aggregate score based on the conclusions of the members of tender commission. In case of equal distribution of the scores the points assigned by the chairman of the tender commission are decisive. (from January 1)

13. Decision of the tender commission on the winning contestant is formalized by a protocol of the commission meeting, which is appended with the conclusions of the commission members. Protocol should indicate information about the persons participating in the review of the tender offers and the contestants, also it should briefly describe tender offers submitted by the contestants.

14. Tender commission publishes decision on the winning contestant of the electronic tender by means of electronic system within no more than 5 days from adoption of the decision.


Article 16. Conclusion of the Agreement with the Winning Contestant (removed from September 1)

1. Under the rule established by the Georgian legislation, based on the terms defined in the tender offer of the winning contestant a state procurement agreement is concluded between the procuring organization and winning contestant.

1(1). In case of change of the indicator prevailing on the international commodity market envisaged by sub-paragraph “b” of paragraph 4 of Article 12 of this Law by a percentage fraction determined by sub-legislative normative act, referred change should be envisaged in the agreement. (from January 1)

2. Removed.

3. In case of procurement of the works, if construction object is located on the Georgian territory, at least 70% of the engineering-technical personnel and workers participating in implementation of such works should be Georgian citizens.

4. In case of disqualification of the winning contestant or its refusal to conclude an agreement, tender commission shall approach other contestants about participation of the repeated review of the tender offers. If none of the contestants express consent to participate in the repeated review of the tender offers, new tender is conducted. If one or more contestants express consent to participate in the repeated review of the tender offers, their tender offers are reviewed and evaluated again.

5. If the work envisaged by the agreement is not completed until the end of the budget (financial) year for objective reasons, procuring organization has a right to prolong the term of the agreement until completion of such work.


Article 16(1). Conclusion of the Agreement with the Winning Contestant (from March 1)

1. Under the rule established by the Georgian legislation, based on the terms defined in the tender offer of the winning contestant a state procurement agreement is concluded between the procuring organization and winning contestant.

2. Agreement may be concluded in Georgian as well as foreign languages by the decision of the procuring organization. In case of conclusion of the agreement in foreign language, under the rule established by Georgian legislation it should be translated into Georgian language. In the course of resolution of the disputable matters related to the agreement the issue of assigning priority between the agreement executed in foreign language and its Georgian translation shall be decided by the procuring organization.

3. In case of change of the indicator prevailing on the international commodity market envisaged by sub-paragraph “b” of paragraph 3 of Article 121 of this Law by a percentage fraction determined by sub-legislative normative act, referred change should be envisaged in the agreement.

4. Agreement concluded with the winning contestant may envisage implementation of the settlement in national currency as well as in US Dollar or Euro.

5. In case of disqualification of the winning contestant or its refusal to conclude an agreement, procuring organization conducts negotiations for agreeing the terms of the agreement with the contestant on the next position or announces repeated electronic tender.

6. If the work envisaged by the agreement is not completed until the end of the budget (financial) year for objective reasons, procuring organization has a right to prolong the term of the agreement until completion of such work.

7. In case of procurement of the works of large volume, if construction object is located on the Georgian territory, additional conditions related to the agreement shall be determined by the order of the President of Georgia.

8. Necessary terms of the agreement to be concluded with the contestants who won electronic tender and simplified electronic tender procedures and with the suppliers selected in simplified procurement are determined by the sub-legislative normative act.


Article 17. Repeated Tender (from September 1)

1(1). If after the announcement of electronic tender none of the qualification parameters and/or tender offers are presented or none of the contestants’ qualification data and/or tender offers are compliant with the requirements of the tender documentation or the announcement on the conduct of the electronic tender, tender commission issues new tender documentation and conducts repeated electronic tender (from March 1) (from September 1)

2(1). In case envisaged by paragraph 11 of this Article procuring organization has a right to create new tender commission or change its composition. (from March 1)

(from September 1)


Article 181. Prohibition of the Conduct of the Negotiations in the Course of Electronic Tender (from September 1)

Tender commission has no right to conduct negotiations with the persons willing to participate in the electronic tender and contestants, except in case of conduct of two-stage electronic tender. (from September 1)


Article 19. Rate of the Charge and the Fee (on 15th day)

1. For receipt of tender documentation a tender fee in the amount of 150 Lari is established, and for the submission of the tender offer a charge in the amount of 50 Lari is established.

2. In cases of procurement to be implemented by the funds of the budgets of Autonomous Republics of Abkhazia and Adjara, also local self-governance unit budget funds as well as by the funds of the organizations and institutions financed from the budgets of the autonomous republics and local self-governance units, for receipt of the tender documentation a local tender fee may be endorsed under the rule established by the Georgian legislation and its rate should not exceed the rate of the tender fee established by the first paragraph of this Article.

3. Rule of payment of the charge and the fee is determined by the sub-legislative normative act.

4. In case of consolidated electronic tender for submission tender documentation a charge in the amount of 5000 Lari is established (from March 1)


Article 191. Rate of the Charge (from September 1)

1. In case of electronic tender and simplified electronic tender procedures a charge in the amount of 50 Lari is established for submission of the tender offer, and in case of consolidated electronic tender procedures a charge in the amount of 5000 Lari is established for submission of the tender offer.

2. Rule of the payment of the charge shall be determined by the sub-legislative normative act.”. (from September 1)


Article 201. Two-stage Electronic Tender (from March 1)

1. On the first stage of the two-stage electronic tender persons willing to participate in electronic tender procedures shall submit documents verifying qualification parameters and primary tender offers without indication of price.

2. On the first stage of two-stage electronic tender the tender commission has a right to conduct negotiations with the persons willing to participate in the electronic tender procedures with the aim to clarify any condition of the primary tender offer and to determine final requirements of the tender documentation.

3. As a result of review of the primary tender offers the tender commission shall establish the final version of the tender documentation and shall send it to the contestants by means of electronic system after payment of the charge.

4. In all other cases, for the conduct of two-stage electronic tender the rules established by this Law for the electronic tender are applied.


Article 202 Consolidated Electronic Tender (from March 1)

1. Under its decision the Government of Georgia may determine the conduct of electronic tender for procurement of like goods in consolidated form.

2. In cases envisaged by first paragraph of this Article the Agency based on the documentation and/or information provided by the Government of Georgia shall ensure placement of the announcement on the electronic tender and the tender documentation in the unified electronic system, selection of contestants and determination of the winner in compliance with the procedures envisaged by this Law for the electronic tender.

3. The Agency shall ensure placement of the information on the winning contestant and the conditions offered by the winning contestant under the tender offer in the unified electronic system within no later than 5 business days from the determination of the winner.

4. Procuring organizations are given the opportunity, and that procuring organization which indicated about the consolidated electronic procurement in the annual procurement plan according to sub-paragraph “e1” of paragraph 6 of Article 9 of this Law is obliged – to conclude a state procurement contract with the winning contestant determined by the Agency within the necessary amounts in compliance with the conditions determined by the announcement on electronic tender, tender documentation and tender offer.

5. In case envisaged by this Article, the composition of the tender commission is determined by the Government of Georgia.


Chapter IV

Terms of the State Procurement Contracts and Rule of their Revision


Article 21. Terms of the State Procurement Contract and Rule of Their Revision

(from September 1) 1(1). State Procurement Contract is concluded only in written form, except for the cases of procurement implemented by simplified procurement means by the Georgian diplomatic representation and consular institution, also defense attaché and representative of the Ministry of Defense and the cases envisaged by sub-legislative normative act (from March 1)

2. For the purposes of ensuring performance under the state procurement contract, depending on the specifics of the procurement object, performance guarantee mechanism or requirement of insurance may be used. (From September 1)

3(1). Guarantee mechanism for performance under the state procurement contract and insurance of tender offer is mandatory, if the whole value of the contract in case of procurement of goods, services and/or works exceeds the monetary limit established by this Law for implementation of simplified electronic tender procurement. Person willing to participate in procurement procedures may be exempt from the presentation of guarantee mechanism envisaging its business reputation and quality and recognition of its goods, services and works. (from March 1)

4. Necessary terms of the procurement contract and the rule of using requirement of guarantee mechanism and insurance are determined by the relevant normative act. 4. Necessary terms of the procurement contract and the rule of using requirement of guarantee mechanism and insurance are determined by the sub legislative normative act (on 15th day)

5. Change of the terms of the contract concluded with the supplier is not allowed if as a result of such change the value of the contract increases for procuring organization or the terms of contract are deteriorated, except for the cases envisaged by Article 398 of the Civil Code of Georgia.

6. Rule of revision of the contract concluded with the supplier is determined by the Georgian legislation.


Chapter V Monitoring and Control of Procurement

Article 22. Procurement Report

1. Procurement process shall be reflected in the procurement report and the rule of its preparation, submission and storing shall be determined by the respective normative act.

1. Procurement process shall be reflected in the procurement report and the rule of its preparation, submission and storing shall be determined by the sub-legislative normative act (on 15th day) (From September 1)

2(1) in case of conduct of electronic tender, procurement report should be appended with the protocols of tender commission hearings, conclusions of the experts and consultants participating in the electronic tender, also other documents which are envisaged by sub legislative normative act. (from March 1)

(From September 1)

3(1). Procuring organizations, who implement state procurement with the funds envisaged by paragraphs “a.a”-“a.d” of Article 3 of this Law shall submit procurement report under the simplified rule envisaged by the sub-legislative normative act no later than January 30 of the following year if the estimated aggregate value of the annual plan (goods, services, works) according to the singular financing source is less than 50,000 Lari (from January 1)

4. Procurement reports should be accessible for all interested persons in case of their request, and short summaries of these reports should be regularly published by the procuring organizations through information means.

4. Procurement reports should be accessible for all interested persons in case of their request (from March 1)

5. Procurement report about the object with the value exceeding 2 000 000 Lari is submitted by the director of the procuring organization in written form to the Government of Georgia within 20 days from concluding state procurement contract.

(5. Procurement report about the object with the value exceeding 2 000 000 Lari is submitted by the director of the procuring organization in written form to the Government of Georgia within 20 days from concluding state procurement contract. This paragraph does not apply to the National Bank of Georgia, which submits procurement report to the Board of the National Bank of Georgia according to the Organic Law of Georgia on the National Bank of Georgia (24.09.2009 N 1690 To be enacted from January 1, 2010)).

6. Ministry of Finance of Georgia, Ministries of the Autonomous Republics of Abkhazia and Adjara in the finance spheres and financing bodies of the local self-governance units are obliged to submit to the Agency on quarterly basis information about factually allocated funds to the budgetary organizations and institutions.

7. Agency is authorized to require from the procuring organization and procurement participants at any stage of implementation of procurement any document and information related to procurement, including information related to performance under the contract.

8. For ensuring transparency of the procurement process the Agency implements monitoring in the course of procurement over the observance of such principles as publicity, fairness and nondiscrimination, accurate performance of the established procedures and reporting, ensuring open and effective competition, opportunity of rational and free choice. (18.07.2006 N3481)

9. Form of electronic procurement, rule of submission, timeframes and conditions are determined by sub legislative normative act (from March 1)


Article 221. Inspection of Procurement by Georgian Chamber of Control

1. Georgian Chamber of Control inspects procuring organization through audit.

2. Procuring organization is obliged to present to the Georgian Chamber of Control based on its request any documentation and/or information related to the procurement.

3. Procurement participant is obliged to present to the procuring organization based in its request relevant documentation and/or information related to procurement.

4. Removed (19.06.2009. N1236)


Chapter VI Rule of Appeal and Dispute Resolution over the Action Related to Procurement

Article 23. Rule of Appeal and Dispute Resolution

1. Natural or legal persons contesting or willing to participate in procurement prior to concluding agreement may file a complaint against the actions of the procuring organization or the tender commission in the procuring organization or the Agency if they consider that in the course of procurement the rules established by this Law have been violated and/or rights have been infringed.

2. Natural or legal persons willing to participate in procurement, contestant and supplier natural and legal persons may file a complaint against the actions of the procuring organization or the tender commission at any time if they consider that in the course of procurement the rules established by this Law have been violated and/or rights have been infringed.

3. A person having a claim in case envisaged by paragraph 1 of this Article is authorized to file a complaint in the procuring organization no later than within 20 calendar days from the date of learning of such circumstance or receiving such decision, which caused the complaint. Persons whose interests are or may be involved in the ensued dispute may also participate in the review of the complaint. ((5.12.2008. N627 to be enacted from December 15, 2008)

4. Prior to conclusion of an agreement contestant natural and legal persons or those willing to participate in the procurement may approach the Agency for the purposes of resolution of the procurement related dispute.

4(1). For resolution of the disputes related to procurement a council is created within the Agency whose composition based on the priority principle includes representatives of the Agency and non-governmental sector. Composition and the rule of activities of the dispute resolution council are determined by the sub-legislative normative act. (from March 1)

5. In case envisaged by paragraph 3 of this Article not later than in 10 calendar days from the receipt of the complaint procuring organization shall adopt an argumented written decision and communicate it to the complainant.

6. In case envisaged by paragraph 4 of this Article not later than in 20 calendar days from the receipt of the complaint shall adopt argumented written decision and communicate it to the complainant and procuring organization.

6. In case envisaged by paragraph 4 of this Article not later than 10 calendar days from the receipt of the complaint shall adopt argumented written decision and communicate it to the complainant and procuring organization (from January 1)

7. If as a result of the detailed study of the complaint and related circumstances by the Agency the fairness of the complaint is confirmed, the Agency is authorized:

a) to indicate to the procuring organization about its incorrect action and require implementation of the procedures in compliance with the legislation;

b) to require from the procuring organization to revise or cancel adopted decision;

c) in case of violation of the requirements of this Law to solicit at the appropriate bodies envisaged by the Georgian legislation about imposing responsibility on the participants of the procurement.

8. After the lapse of time indicated in paragraph 3 of this Article as well as after conclusion of the agreement any complaint may be reviewed only through the court.

9. Action may not be subject to appeal if the claim concerns:

a) selection of the procurement means in compliance with the rules established by this Law and respective normative acts;

b) decision of a procuring organization on suspension or termination of procurement procedure which has been adopted in compliance with the rule established by this Law and respective normative acts;

10. Complaint should have a legal ground and should be accompanied with the substantiated explanation of the complainant that he shall be significantly damaged if the claim is not satisfied. Complaint shall not be subject to review if procuring organization adopts decision on termination of the procurement procedure in conformity with this Law.

11. In case of filing complaint with the procuring organization or the Agency prior to conclusion of the state procurement contract procuring organization is obliged to suspend the procurement for the period corresponding to the procedures of complaint review. By the decision of a director of the procuring organization or the Agency the period of suspension of the procurement may be prolonged, however its overall time should not exceed 30 days.

12. Persons willing to participate in the procurement procedures, contestants and supplier legal persons may appeal the decisions adopted by the procuring organization and the Agency in relation to the complaint in the court.

13. Damages which may be compensated to the complainant as a result of review envisaged by this Article should be limited only to the compensation of the expenses related to participation in the procurement and should not envisage compensation of probable profit.


Chapter VII Transitional and Final Provisions

Article 24. Actions to be Implemented for Enactment of this Law

1. Removed

2.Within 1 month from enforcement of this Law the State Procurement Agency shall approve in compliance with the Georgian legislation regulation on “The Rule of Implementation of State Procurement”.

2(1). Removed

22. Removed

23. Removed

3. Operation of the present Law until January 1 2008 shall not extend to the procurements implemented by the enterprises of electricity and natural gas sector for rehabilitation or renovation of that property, which is actually related to generation, transmission, dispatcherization, distribution of electricity, transportation and distribution of natural gas, also regulation of electricity and natural gas billing system.

4. Requirements of this Law do not apply to the procurement of the cellular telephony services until January 1, 2011.

5. For the purposes of bringing the Law of Georgia on Broadcasting into compliance with paragraph “m” of subparagraph 31 of Article 1 of this Law the legal person of public law – Public Broadcasting and the Government of Georgia jointly shall ensure preparation of the corresponding draft law and submission to the Parliament of Georgia until December 1, 1009. (on 15th day)

6. From March 1 2010 to September 1 2010 procuring organizations shall implement state procurement with or without electronic procurement means under their own consideration (from March 1)

7. Until September 1 2010 for the purposes of determining the like procurement objects the Government of Georgia shall ensure recognition of the corresponding classificators adopted by the international organizations. (from March 1)


Article 25. Void Normative Acts

Upon enactment of this Law following shall be considered void:

a) Law of Georgia on State Procurement of December 9, 1998 (Legislative Messenger of Georgia, , 1998, Art. 52);

b) Order of October 15, 2001of the Chairman of the State Procurement Agency “On the approval of the “Rule of Implementation of the State Procurements”.


Article 26. Enactment of the Law

This Law shall enter into force from January 1, 2006.


President of Georgia Mikheil Saakashvili

Tbilisi,

April 20, 2005

1388-IS

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