Which Decisions Can Be Appealed to the Procurement Disputes Council
The Georgian Law on State Procurement gives tender participants and aspiring participants an effective appeal mechanism. Under Article 23-1, an aspiring participant, candidate or supplier has the right to appeal to the Procurement Disputes Council a decision or action of the contracting organization or tender commission related to the carrying out of a state procurement. Both an aspiring participant and a candidate may appeal where the complaint concerns the tender announcement and documentation, or any other decision taken before the start of the receipt of proposals; decisions taken after the start of receipt of proposals may be appealed only by a candidate. In simplified procurement, a person registered in the electronic system with supplier status may appeal where the value of the procurement equals or exceeds the monetary thresholds set by European Union directives and the complaint concerns a decision related to the conclusion of a contract. Not appealable are the choice of the procurement means and method, the award of a simplified procurement contract below the EU thresholds, and the suspension of the procurement procedure in the event of an appeal.
Deadlines and Procedure for Filing
Under Article 23-7, the deadlines depend on the type of decision. A decision related to the tender announcement or documentation may be appealed before the start of the receipt of proposals. Any other decision may be appealed no later than 10 days after its upload in the unified electronic system, and an action no later than 10 days after it was carried out, but in either case only before the conclusion of the contract. A decision in simplified procurement may be appealed no later than 10 days after its upload in the relevant module. The complaint is submitted to the Council electronically through the unified electronic system of state procurement, its form and manner being determined by the Council's rules of procedure. Within no later than 2 working days of submission, the Council examines admissibility. The complaint is declared inadmissible if filed by an unauthorized person, if the deadline has expired or a contract has already been concluded, if an identical case between the same parties is already pending before the Council or a court, or if the matter falls within the jurisdiction of the courts. If the complaint does not meet formal requirements but no ground for inadmissibility exists, the Council grants the complainant 1 working day to clarify it; otherwise it is automatically declared inadmissible. Once a complaint is admitted, the contested procurement procedures are automatically suspended — the complainant's fundamental guarantee.
The Complaint Fee
Under Article 23-8, a fee is established for filing a complaint with the Council. For a complaint related to a state procurement, the fee is 2% of the estimated value of the procurement, and in simplified procurement 2% of its value, but not less than 100 lari and not more than 500 lari. For a complaint related to a public-private partnership project, the fee is 0.15% of the project's estimated value, but not less than 22 000 lari and not more than 150 000 lari. No fee is payable where the complaint concerns matters related to the tender announcement and documentation. The fee is refunded to the complainant unless the complaint is rejected. Where the complaint is withdrawn, the fee is refunded in full if withdrawn before the Council's session, and in half if withdrawn during or after it. The rules for payment and refund of the fee are determined by the Council's rules of procedure.
Consideration by the Council and Its Decision
Under Article 23-9, the Council examines the complaint and takes a decision within 10 working days of its admission, and where material circumstances cannot be established within that period, the Council may extend it by no more than a further 10 working days. The complaint is examined at an open session with an oral hearing at which the Council hears the parties and interested persons. The session is competent if at least half of the Council's full composition is present. A member of the Council may not abstain from voting; where votes are equally divided, the chair's vote is decisive, and a dissenting member has the right to record a written dissenting opinion. The decision must be reasoned and consist of introductory, descriptive, motivational and resolutive parts; it is published in the electronic module immediately upon adoption, is public, and is deemed delivered to the party. Where the complaint is satisfied, the Council may point out to the contracting organization its incorrect action and demand that the procedures be carried out in compliance with the law, demand the review or repeal of a decision, and also raise the question of a participant's liability before the relevant bodies. Immediate execution of the Council's decision is mandatory.
The Right to Appeal to Court
Article 23-11 gives an aspiring participant, candidate, supplier and participant in a selection process the right to challenge a decision or action of the contracting organization or tender commission directly in court, without going through the Council. An interested person may appeal to court a decision taken by the Council in connection with their complaint; such an appeal does not suspend the operation of the decision. The Agency may also appeal a decision of the Council where it considers that the Council materially misinterpreted the legislation regulating procurement; such a claim must serve the establishment of the correct interpretation of the law. An interested person may likewise appeal to court a decision or action of the Agency. An aggrieved party thus has two routes: swift administrative review before the Council followed by judicial control of the Council's decision, or direct recourse to the courts.
Frequently Asked Questions
How much time does a complainant have to file?
For a decision on the announcement or documentation — before the start of the receipt of proposals. For any other decision — no later than 10 days after its upload in the electronic system; for an action — no later than 10 days after it was carried out, but before the contract is concluded. For simplified procurement — no later than 10 days after upload in the module.
What happens once a complaint is admitted?
The contested procurement procedures are automatically suspended upon admission. The contracting organization must not take decisions or actions during the consideration period, except in cases of urgent necessity. The Council decides within 10 working days of admission.
How large is the complaint fee?
2% of the estimated value of the state procurement, but not less than 100 lari and not more than 500 lari. For public-private partnership projects — 0.15% of the value, but not less than 22 000 lari and not more than 150 000 lari. Complaints about the announcement and documentation are free of charge.
Can a Council decision be appealed?
Yes. An interested person may appeal to court a decision taken by the Council in connection with their complaint. The appeal does not suspend the decision's operation, so a timely reaction is essential.
How We Help on Legal.ge
On Legal.ge we assist with bid protests at every stage: we assess whether a decision is appealable and the applicable deadlines, calculate the fee, draft the complaint for submission through the unified electronic system, represent you at the Council's session and, where necessary, prepare a court appeal. The deadlines are short — contact us without delay.