Bid Protests: Restoring Fairness in Public Procurement
Public procurement is a significant source of revenue for businesses, but participation in tenders often involves legal disputes. Unfair disqualification, tailoring tender documentation to a specific supplier, or declaring a competitor the winner with violations — these are problems companies face. A Bid Protest is a special legal mechanism that allows bidders to protect their interests and ensure the transparency of the procurement process. The procurement dispute resolution system in Georgia is effective if the company acts in a timely and substantiated manner.
Tender disputes are characterized by extremely tight deadlines. Often, only a few days are allocated for appealing a decision. Delay automatically means losing the right. Therefore, the involvement of a lawyer specializing in state procurement is essential for an immediate response. The right legal strategy not only restores the company's rights but also prevents corrupt deals and ensures healthy competition.
What Does the Bid Protest Service Cover?
State procurement experts on Legal.ge offer full legal support at all stages of the tender:
- Analysis of tender documentation: Examining conditions to identify discriminatory requirements (e.g., technical specifications tailored to a specific brand).
- Appealing disqualification: Legal assessment and appeal of your company's baseless disqualification by the tender commission.
- Appealing a competitor's victory: Examining a competitor's documentation and, if violations are found, appealing their declaration as the winner.
- Preparing a complaint for the Dispute Resolution Board: Drafting and submitting a substantiated complaint to the Dispute Resolution Board of the State Procurement Agency.
- Litigation: Appealing the decision of the Dispute Resolution Board or the actions of the procuring entity in court.
- Appealing blacklisting: Protecting the company's interests during the process of registration in the Registry of Dishonest Persons (Blacklist).
Common Situations: When Do You Need a Lawyer?
Disputes related to tenders are diverse. Here are a few examples:
- Technical documentation flaw: Your company was disqualified due to a minor technical inaccuracy that did not change the essence of the offer.
- "Rigged" tender: Tender conditions are clearly tailored to one specific company, thereby restricting competition.
- Unnaturally low price: The winning company presented a dumping price, the realism of which is questionable.
- Experience requirement: The purchaser demands disproportionately high experience, creating an artificial barrier.
- Contract termination: The purchaser unilaterally terminated the contract and demands a penalty, which is disputable.
Georgian Legal Framework
The field of state procurement is regulated by the Law of Georgia on State Procurement and relevant bylaws. The law establishes principles of transparency, equality, and non-discrimination. The main body for dispute resolution is the Dispute Resolution Board under the State Procurement Agency. This is a quasi-judicial body that reviews complaints promptly (within 10 working days). The Board's decision is mandatory for execution, although it is subject to court control. Procedures are conducted electronically through the Unified Electronic System (tenders.procurement.gov.ge).
Filing a complaint suspends tender procedures until a decision is made. This is a crucial lever, because after the contract is signed, the dispute becomes much more difficult and can only concern compensation for damages. Therefore, timely reaction is critical.
Process Stages and the Lawyer's Role
The process begins with identifying the violation. The lawyer studies the tender documentation and protocols. The complaint is uploaded electronically to the system. When filing a complaint, clear legal argumentation and evidence are necessary. The Dispute Resolution Board reviews the complaint with the participation of the parties (remote participation is possible). The lawyer represents the company at the hearing and answers questions from Board members. In case of success, the tender commission's decision is cancelled, and the process returns to the relevant stage (e.g., re-evaluation). Legal.ge specialists will help ensure your arguments are convincing and legally sound.
Find a Procurement Expert on Legal.ge
Success in public procurement often depends on details. Legal.ge offers access to lawyers specializing in procurement law who have practice working with the Dispute Resolution Board. Protect your business interests and do not allow illegal decisions to hinder your development. Find your partner on Legal.ge.
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