Discusses the legal requirements for selling to the host government, including whether the government has agreed to abide by the WTO Government Procurement Agreement or is a party to a government procurement chapter in a U.S. FTA. Specifies areas where there are opportunities.
Last Published: 8/27/2019

The Competition and State Procurement Agency (CSPA) is a state organization that governs government procurement through the e-tender system introduced in 2011.  State purchases in the range of GEL 5,000- to 200,000 ($1,798-71,940) are conducted through a simplified electronic tender which is a substitute to single-source procurement.  Purchases above GEL 200,000 ($71,940) mandate a call for a regular e-tender.

The Law on State Procurement requires an international tender announcement for contracts exceeding GEL 2 million (around $719,400) for products and services, and GEL 4 million (around $1.44 million) for public works projects.

Budgetary constraints limit the government’s purchasing power.  International organizations and foreign governments finance many major procurement purchases, and respective tenders are carried out in line with their regulations and requirements.

Credit terms are one of the most important factors in government purchasing decisions.  Product quality and supplier reputation are other factors.  However, government procurement is often driven by a lowest bid consideration versus a best value for money approach, which can lead to the cheapest offer winning at the expense of quality. 

The time allowed for preparing bids after the announcement of a tender is frequently short.  Documentation requirements, including Georgian translations, can be onerous for companies not based in Georgia.

Information about tenders is available from the Georgian Competition and State Procurement Agency, and individual ministries such as the Ministry of Defense. 

The Georgian government finances some public work projects through borrowing from Multilateral Development Banks.  Please refer to “Project Financing” Section in “Trade and Project Financing” chapter for more information.
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.