Aspects of Functioning of State Procurement System

Abstract

At the end of 2010, in order to manage the public procurement system properly and transparently, as a result of the modernization of the procurement process, the country has fully switched to the electronic procurement system. Under the current law, public procurement is defined as the procurement of any goods, services and construction work by a procuring entity using electronic or other means. It is implemented with funds from all levels of the budget hierarchy (central, autonomous, local) and beyond. Public procurement is regulated by a number of legislative-normative documents, including the “Law of Georgia on Public Procurement”, which sets out the general legal, organizational and economic principles of public procurement. Coordination and monitoring of public procurement activities is carried out by the State Procurement Agency. Despite the efficiency and transparency of the functioning of the electronic procurement system, there are shortcomings in this area, which need to be regulated and appropriate control mechanisms developed.