Administrative barriers in tenders are one of the main obstacles that reduce competition and drive up prices. How can bureaucracy be reduced? The experts at Etenders.ge examine international practice and practical recommendations.
Introduction
The effectiveness of both public and commercial procurement largely depends on how actively market participants take part. However, practice shows that the process itself — particularly the preparation and submission of tender proposals — frequently becomes one of the main obstacles.
Did you know that the attractiveness of a commercial tender is significantly reduced by the administrative barriers associated with preparing and submitting tender proposals?
The Core of the Problem
To participate in the tender process, companies are often required to:
— collect various types of documentation
— meet formal requirements
— submit the same information repeatedly in different formats
This is particularly problematic for small and medium-sized enterprises (SMEs), which have limited administrative resources. According to various studies, SMEs cite high levels of bureaucracy as the main obstacle to participating in public tenders.
Why are Administrative Barriers a Problem?
— Reduced competition — the more complex the process, the fewer companies participate
— Rising prices — less competition often leads to higher prices
— Limited innovation — small and new companies are less likely to engage in the process
— Inefficient use of time and resources — both for bidders and for purchasing organizations
International Practice
In a number of EU countries (for example, the Netherlands, Belgium, Italy and Hungary), particular attention is paid to reducing administrative barriers. The legislation of these countries often obliges purchasing organizations not to require the submission of information that they themselves can verify. For example:
— registration data
— tax status
— information available in other public registries
(Source: European Code of Best Practices Facilitating Access by SMEs to Public Procurement Contracts)
The "Once-Only Principle"
The modern approach is based on the idea that:
— a bidder should submit the same information to the state and/or a private purchasing organization only once
— subsequently, different agencies or private purchasing organisations should verify this information themselves through electronic systems and available data
How to Reduce Administrative Barriers?
1. Minimizing documentation — request only the information that is genuinely necessary for evaluation.
2. Using electronic services — use state registries and digital platforms to verify data.
3. Standardized forms — create simple and uniform forms for bidders.
4. Staged evaluation — at the first stage, request minimal information, and additional documents only from the winning bidder.
5. Use of self-declaration — confirmation of certain information by the bidder's self-declaration, subject to subsequent verification.
Practical Examples
— Registry extract — instead of the bidder submitting an extract, the purchasing organization verifies the information directly in the relevant registry
— Tax arrears — information can be obtained from electronic systems without additional involvement from the bidder
— Certificates and licenses — required only when they are critically necessary
Risks and Balance
Reducing administrative barriers does not mean weakening control. What matters is balance: less bureaucracy, but sufficient verification and transparency.
Recommended Formulations for Tender Documentation
— "The purchasing organization is entitled not to require the submission of information that is available in public registries and can be verified independently."
— "Part of the information submitted by the bidder may be confirmed in the form of a self-declaration, subject to subsequent verification."
— "Submission of additional documentation will be requested only from the winning bidder."
Conclusion
Administrative barriers are one of the important factors that determine the attractiveness of commercial and public procurement. Reducing them leads to:
— increased competition
— price optimization
— greater engagement from small and medium-sized businesses
Ultimately, simpler and more sensible procedures mean better outcomes for both the state or private purchasing organization and for business.
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Author: Aleksander Chkhikvishvili
