STATE PROCUREMENT REGIONAL TRAINING AND AWARENESS RAISING FOR INTERNAL USE ONLY

16 October 2018 This publication was produced for review by the United States Agency for International Development. It was prepared by Deloitte Consulting LLP. The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

STATE PROCUREMENT REGIONAL TRAINING AND AWARENESS RAISING FOR INTERNAL USE ONLY

USAID GOVERNING FOR GROWTH (G4G) IN CONTRACT NUMBER: AID-114-C-14-00007 DELOITTE CONSULTING LLP USAID | GEORGIA USAID CONTRACTING OFFICER’S REPRESENTATIVE: PHILLIP GREENE AUTHOR(S): GEORGIAN CHAMBER OF COMMERCE AND INDUSTRY STATE PROCUREMENT: 5840 LANGUAGE: ENGLISH 16 OCTOBER 2018

DISCLAIMER: This publication was produced for review by the United States Agency for International Development. It was prepared by Deloitte Consulting LLP. The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

USAID | GOVERNING FOR GROWTH (G4G) IN GEORGIA STATE PROCUREMENT REGIONAL TRAINING AND AWARENESS RAISING 1

DATA

Reviewed by: Irakli Gelovani, Tamar Buadze, Michael Martley

Project Component: GoG Capacity Strengthening Component

Practice Area: State Procurement

Key Words: Procurement, SPA

USAID | GOVERNING FOR GROWTH (G4G) IN GEORGIA STATE PROCUREMENT REGIONAL TRAINING AND AWARENESS RAISING 2

ACRONYMS

G4G Governing for Growth in Georgia GCCI Georgian Chamber of Commerce and Industry PPD Public-Private Dialogue SMEs Small and Medium Enterprises SPA State Procurement Agency ToT Training of Trainers USAID United States Agency for International Development

USAID | GOVERNING FOR GROWTH (G4G) IN GEORGIA STATE PROCUREMENT REGIONAL TRAINING AND AWARENESS RAISING 3

CONTENTS DATA ...... 2

ACRONYMS ...... 3

1. BACKGROUND ...... 5

2. A SUMMARY OF THE ACTIVITY OBJECTIVES AND ACHIEVEMENTS ...... 6

2.1 DETAILED ACTIVITIES AND ACHIVEMENTS: ...... 6

2.2 LESSONS LEARNED AND RESULTS: ...... 8

USAID | GOVERNING FOR GROWTH (G4G) IN GEORGIA STATE PROCUREMENT REGIONAL TRAINING AND AWARENESS RAISING 4

1. BACKGROUND G4G’s Business Perception Survey on State Procurement identified gaps in Georgia’s state procurement. One of the issues identified under the survey was the low business participation in the regions. To address the problem of the low business participation in state procurement, by the State Procurement Agency’s (SPA) request, G4G conducted a grant program to increase awareness and knowledge of the business sector in the regions on state procurement opportunities. The activity targeted small and medium enterprises (SMEs) in the regions through training and public private dialogues (PPDs), as well as strengthened the capacity of local associations to offer procurement training as a service to businesses in the regions. The Georgian Chamber of Commerce and Industry (GCCI) is a voluntary membership based corporation under public law with seven regional branches in the regions: Samegrelo-Zemo , , -Lechkhum-Kvemo Svaneti, Kvemo , Shida Kartli, , -Mtianeti. GCCI is a well-established business association in Georgia. GCCI is composed of the representatives of unions (associations) of business entities. Currently, GCCI unifies the 38 largest business unions in its main policy-making body. The chamber is an effective platform between public and private entities for coordination and dialogue. GCCI has regular contact with regional businesses. It has the capacity and experience in providing services and trainings. GCCI is well positioned to address the SPA’s challenge, due to close cooperation with enterprises and state authorities, broad membership base as well as its experience in implementing trainings and conducting PPDs. Moreover, in 2016, GCCI signed a Memorandum of Understanding (MoU) with the SPA and in the past has organized several PPDs with the private sector to discuss participation in tenders and other relevant matters.

USAID | GOVERNING FOR GROWTH (G4G) IN GEORGIA STATE PROCUREMENT REGIONAL TRAINING AND AWARENESS RAISING 5

2. A SUMMARY OF THE ACTIVITY OBJECTIVES AND ACHIEVEMENTS The “State Procurement Regional Trainings and Awareness Raising” grant program aimed to enhance awareness and capacity of SMEs in the regions to participate in state procurement tenders and engage in PPDs. The activity was implemented in the following locations: Imereti Region - ; Samegrelo-Zemo Svaneti Region - Municipality of ; Autonomous Republic of – ; Kakheti Region – Municipality of ; and Shida Kartli Region – Municipality of Gori. SPA acted as a key partner of GCCI to ensure quality performance and implementation. Main objectives and expected results were as follows:  Develop a training of trainers (ToT) program, including a ToT action plan and training curriculum/materials printed;  To train 15 trainers in state procurement to deliver trainings for relevant private sector representatives in the regions;  Implement trainings in selected regions for SMEs on state procurement;  Five PPDs related to state procurement held in the regions. 2.1 DETAILED ACTIVITIES AND ACHIVEMENTS: GCCI in collaboration with SPA developed and implemented the following activities: Training materials development GCCI in collaboration with the SPA developed, designed and published relevant materials for PPD and training sessions, and textbooks for the e-system. Textbooks for e-system include:  User text book Georgian Legislation on State Procurement;  User text book Methodological Guidelines and Best Practices;  User text book CMR, ePLAN, SMP and Ranking Electronic Modules;  User textbook Electronic Tenders;  User textbook Electronic Procedure Using Donor Funds and Electronic System of Grant Competition;  User textbook System Functionality, User Registration and Profile Management. Selection of regional trainers  Call for potential trainers was published on the GCCI website and disseminated through relevant sources of information;  Qualified candidates were shortlisted for interviews;  Potential trainers were selected on the merits of their professional background and motivation. GCCI identified beneficiaries of trainings per region based on their prior experience in state procurement;  Each qualifying potential trainer was interviewed. Interviews were conducted by GCCI, SPA and G4G representatives;  Fifteen potential trainers from five selected regions were selected, five from GCCI’s staff for sustainability purposes;  Potential trainers provided written consent on commitments to the project prior to the commencement of the training. They were contracted accordingly with the obligation to carry out trainings in the regions if required.

USAID | GOVERNING FOR GROWTH (G4G) IN GEORGIA STATE PROCUREMENT REGIONAL TRAINING AND AWARENESS RAISING 6

Training of Trainers (ToT)  ToT action plan and schedule were developed;  State procurement trainers delivered training for the selected potential trainers; SPA provided training for 15 potential trainers from five different regions during the two weeks period, 60 hours in total. ToT was held in , at the SPA office;  The trainers of the state procurement delivered trainings covering relevant topics: 1. The essence of public procurement and general overview; 2. Integrated services in a single electronic system; 3. Procurement preparation stages; 4. General tendencies in state procurement; etc. The trainers proactively participated in the training process. They expressed interest in the proposed topics, providing their questions and opinions on the current challenges and issues related to state procurement. State procurement trainers fully covered the topics included in syllabuses. At the end of the training, all participants were awarded with certificates for successful completion of the trainings. Trainers of state procurement assessed each of the potential trainers individually and eight trainers were identified as capable of conducting regular trainings independently. Regional Trainings:  Dates of the regional training were:

1. Training in Batumi, June 11-14; 2. Training in Kutaisi, June 24-28; 3. Training in Telavi, July 9-12; 4. Training in Gori, July 16-19; 5. Training in Zugdidi, July 23-26.

 GCCI identified beneficiaries of trainings per region based on their prior interaction with state procurement. Priority was given to the entities with less experience in state procurement. Information regarding the trainings was disseminated via GCCI’s regional offices;  In total, 126 SMEs were identified and trained in state procurement procedures and regulations in five regions. All participants received the relevant printed materials;  Trainers from Zugdidi demonstrated exceptionally good results in knowledge of material and presentation skills. Gori had the least attendance from all of the regions. Kutaisi had the most attendance and based on observations, the most interaction;  Intensive trainings in each region lasted for four days, in total 20 hours for each training session and covered:

1. SPA: Functions, Goals and Objectives; 2. SPA’s Electronic System; 3. Comparative Analysis of NAT and MEP Tendering Systems; 4. Consolidated Tendering; 5. State Procurement Procedures (SPA, NAT, DAP, TEP, MEP Tenders) in Georgia; 6. Monetary Regulations Timeframes; 7. Tender Offers, Procedural Issues, Tendering Commission and Contracting Stage; 8. Procurement – Supplier. So called Iron Triangle (with practical examples); 9. Qualification Requirements, the Demand for Turnover Proportion; 10. White Lists/Black Lists (with practical examples); 11. Dispute Resolution Board, Rule of Appeal, Submission of Complaint and Admissions; 12. Changes in the Legislation; 13. Procedures and Navigation in SPA System. Frequently Asked Questions; 14. Supplier Portfolio.

USAID | GOVERNING FOR GROWTH (G4G) IN GEORGIA STATE PROCUREMENT REGIONAL TRAINING AND AWARENESS RAISING 7

Public-Private Dialogue (PPD) Events

During the PPDs, the SPA provided regional SMEs with information regarding their action plans, planned and ongoing projects, simplified electronic mechanisms and services, as well as other relevant information. However, participants were more interested in discussions and Q&As. The PPDs were held on the following dates in the specified locations:  June 15, 2018, Batumi;  July 13, 2018, Kakheti;  August 10, 2018, Gori;  September 7, 2018, Kutaisi;  September 14, 2018, Zugdidi.

The topics discussed during the PPDs included but were not limited to:  Ongoing reforms and challenges in the field of state procurement;  Changes in the current legislation. New regulations and rules;  A new mode of producing black and white lists of suppliers;  Review of practical practices of the board of disputes review;  A new, more comfortable action environment for business companies participating in state procurement;  New procurement procedures and methods;  Recommendations and methodical practices in the implementation of modern state procurement;  Possibility of establishing condominiums and practical advice;  Review of procurement instruments, modules and e-service; and other relevant topics.

2.2 LESSONS LEARNED AND RESULTS: Overall, the regional trainings and PPDs can be summarized as follows:  A wide range of topics covered through training and PPD;  Active engagement of both regional SMEs and trainers in the Q&A sessions;  Diverse range of questions and comprehensive answers by SPA representatives at PPD. The main challenge related to the regional trainings was to find potential trainers who would be both - skillful to provide trainings and experienced in the state procurement. Considering the lack of such trainers in the regions, some of the selected potential trainers have a challenge to provide the trainings in the regions. There was a case when the trainer from Batumi had to be assisted by the trainer from Kutaisi. Considering this scenario, it is recommended for the ToTs’ that all potential trainers, before awarding them with certificates, provide a test training session for several hours, so that the ToT organizers are assured that the potential trainers have the capacity to provide trainings in future.

In total, the trainings and PPDs were successful with high engagement from participants during the sessions and personal interaction with them after the events as evidence. For evaluation purposes, the training participants underwent pre-training and post-training tests to determine the level of understanding of the materials the topics before and after the trainings. On average, the result of correct answers on the initial test was 40% compared to 80% in post-training test results, which indicates effectiveness of the training and the capacity of the regional trainers to effectively conduct further trainings for local SMEs.

USAID | GOVERNING FOR GROWTH (G4G) IN GEORGIA STATE PROCUREMENT REGIONAL TRAINING AND AWARENESS RAISING 8

USAID Governing for Growth (G4G) in Georgia Deloitte Consulting Overseas Projects LLP Address: 5 L. Mikeladze st., 0162, Tbilisi Phone: +995 322 240115 / 16

E-mail: [email protected]