Defense Contract Bidding

What are the "White List" and "Black List"?

The "White List" is a registry of qualified suppliers who enjoy simplified procedures. The "Black List" includes dishonest companies banned from participating in state tenders for 1 year.

How can I participate in a closed tender?

Participation in a closed tender is by invitation only from the procuring entity. This often requires prior vetting and security clearance for state secrets.

What if I am disqualified unfairly?

You can appeal the disqualification at the Dispute Resolution Council of the State Procurement Agency within 10 days. A lawyer can help draft a substantiated appeal.

Is a bank guarantee mandatory?

Yes, defense tenders usually require both a bid bond (to secure your offer) and a performance guarantee (to ensure contract fulfillment).

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Participating in defense procurement and tenders is one of the most complex and regulated processes for private companies in Georgia. The Ministry of Defense and related agencies (e.g., State Military Scientific-Technical Center "Delta") conduct large-scale procurements, ranging from uniforms and food to high-tech equipment. This process is regulated not only by standard procurement legislation but also by special norms concerning state secrets and national security. Companies wishing to enter this sector need qualified legal support in preparing tender documentation, proving qualifications, and participating in the bidding process. Legal.ge offers access to lawyers specializing in state procurement with deep knowledge of the defense sector's specifics, increasing the chances of winning tenders and reducing disqualification risks.

What does this service cover?

Specialists on our platform offer full tender services for the defense sector:

  • Tender Documentation Analysis: Detailed legal expertise of the Terms of Reference (ToR), identifying hidden risks, and assessing qualification requirements.
  • Documentation Preparation: Collecting and preparing all necessary legal documents (certificates, acts proving experience, licenses) in full compliance with tender conditions.
  • Participation in Closed Tenders: Legal assistance for participating in procurements related to state secrets (classified as "Secret"), including security clearance procedures.
  • Bank Guarantee Management: Negotiating forms for bid bonds and performance guarantees.
  • Tender Disputes: Appealing disqualifications or unfair conditions at the Dispute Resolution Council of the State Procurement Agency or in court.
  • Consortium Agreements: Drafting Joint Venture (JV) agreements for joint participation in tenders with partner companies.

Common Scenarios and Needs

Legal assistance in defense tenders is needed by:

  • Textile and Equipment Manufacturers: When participating in tenders for military uniforms, footwear, and ammunition.
  • Construction Companies: For tenders regarding the construction and rehabilitation of military bases, barracks, and infrastructure.
  • Technology Companies: Supplying communication systems, IT infrastructure, and cybersecurity services.
  • Food Suppliers: Participating in large-scale tenders for army food provision.

Georgian Legal Framework

The field is regulated by the Law of Georgia on State Procurement, which establishes general rules (electronic tender, consolidated tender). However, for the defense sector, the Law on State Secrets and Government Resolutions are critical, determining the rules for simplified or closed competitions for procurements classified as state secrets. Also important is the Law on Defense, which defines the powers of defense agencies in the procurement planning process.

Step-by-Step Process

The process begins with monitoring tender announcements (tenders.ge or closed invitations). Then, a detailed study of the tender documentation and clarification via Q&A takes place. Qualification documentation and pricing tables are prepared. In electronic tenders, bidding (auction) occurs. In case of victory, documentation is finalized, and the contract is signed. In case of disqualification, the lawyer prepares an appeal.

Why Legal.ge?

Even a minor error in defense procurement can lead to disqualification and potentially landing the company on the "Black List," barring it from participating in state tenders for years. Legal.ge connects you with experienced administrative lawyers who are intimately familiar with procurement procedures and protect you from bureaucratic traps, ensuring your smooth and successful participation in state orders.

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