Unsuccessful public procurements

16 May, 2017

TI Georgia has studied the planning and organization of procurements by public agencies and the share of unsuccessful procurements within the total procurements. For this purpose, we reviewed public procurements that were terminated, failed to take place,   and ended with a negative result.  

The Law of Georgia on Public Procurement distinguishes between the following types of procurement: electronic tender; simplified electronic tender; simplified procurement; consolidated tender; design contest. Out of these categories, we have analyzed all procurements except simplified procurements and found out that the share of unsuccessful  tenders and design contests within the total procurements was mostly decreasing from 2010 to 2016, though the decrease rate dropped after 2012. Particularly large is the share of unsuccessful design contests – more than half (51.2%) of the total design contests announced in 2016 ended unsuccessfully. If we analyze all the procurements together, about a third (30%) of procurements in 2016 ended unsuccessfully. The highest proportions of unsuccessful procurements were observed in the Ministry of Defense (41.23%), the Ministry of Corrections and Probation (36.76%), and JSC Georgian Railway (36.18%). These figures are quite large, which points to significant shortcomings in the organization of procurements and inefficient spending of resources.