Government Efficiency Department: Procurement reform enters into force, introducing e-catalogues, framework agreements, and subcontractor pooling

“A major wave of public procurement reforms is officially entering into force, introducing modern elements such as electronic catalogues, multi-year framework agreements, and subcontractor qualification pooling,” declared Guram Dumbadze, Head of the Government Efficiency Department.

Dumbadze detailed each reform track, stressing that the upgraded framework aligns with contemporary procurement standards and creates a level playing field for small and medium-sized enterprises (SMEs) to compete against major market players.

“The electronic catalogue introduces a streamlined, modern digital format for proposal submissions. This will primarily apply to price-list procurement, where purchasing authorities outline itemised specifications required throughout the fiscal year, allowing suppliers to submit proposals electronically. This framework agreement model enables multi-year tendering, spanning three to four years or longer, while allowing us to select multiple winning vendors under a single contract structure.

Furthermore, the aggregation of subcontractor qualifications represents a major milestone for small and medium-sized enterprises. This is particularly vital in the construction sector, where domestic firms must compete with foreign entities operating in Georgia, or where SMEs seek to challenge dominant market players.

As of 1 September, companies are allowed to aggregate their operational experience through subcontracting arrangements. Previously, if a procuring entity demanded GEL 5 million in prior experience alongside specific quality benchmarks, a single company had to satisfy those criteria individually unless a formal joint venture or partnership was established. Today, a company can engage a subcontractor partner and demonstrate that it meets GEL 2 million of the requirement while its subcontractor covers the remaining GEL 3 million, fulfilling the tender conditions through joint capacity. Consequently, an enterprise lacking the full requisite track record can leverage additional corporate capacity to meet buyer specifications and execute the contract jointly. This empowers small and medium-sized businesses to mount formidable competition against large corporate entities,” Guram Dumbadze noted.