From Now on, Local Authorities Should Make Public Procurement through the ProZorro System

By 1 August 2016, the transfer to the electronic public procurement through the ProZorro system is to be completed in Ukraine. Earlier, the central authorities, large state-owned companies, and natural monopolists transferred all their threshold tenders (in the amount of UAH 200 thousand and more with respect to goods and services, and in the amount of UAH 1.5 million with respect to works) [to the system]. And now, local authorities, communal enterprises, and other organisations using the funds of tax payers are also bound to use the ProZorro system.

Full transfer to the electronic system means that from now on all tenders in the amount exceeding the thresholds should be held through the ProZorro system. The public sector customer (a governmental authority, state-owned or communal enterprise) should load its calls for tender in the ProZorro system thus placing an advertisement of the procurement. Thereafter, it shall answer the suppliers' questions and conduct an auction or any other procedure in the electronic system as provided for in the Law of Ukraine "On Public Procurement". After the winning bidder is determined, the public sector customer is bound to load in the system the text of the agreement with the supplier. Due to the integration with the Є-Data web-portal and the .007 project, not long ago it also became possible to track the payment under the agreement in the ProZorro system if the payment is made by the State Treasury.

Regarding the so-called under-threshold procurements (which value is less than UAH 200 thousand with respect to goods and services, and less than UAH 1.5 million with respect to works), the use of the ProZorro system for them is voluntary though very much advisable. "The system operated in pilot mode specifically in terms of under-threshold procurements and it proved to be very efficient: over the one year period of the pilot project within the ProZorro system, the amount of saving totalled more than one billion Ukrainian Hryvnias (as of today, the aggregate amount of saving has reached UAH 2.6 billion). Therefore, we call all bona fide public sector customers to use the ProZorro system with respect to under-threshold procurements. It is easy, convenient, and profitable to do so", Deputy Minister of Economic Development and Trade of Ukraine Maksym Nefiodov emphasized.

The experience of the first wave of transition to the ProZorro system proves that there are no hindrances or difficulties for the customers pertaining to the introduction of the electronic system. On the contrary, the use of the electronic system significantly simplifies the procurement procedures. "Over the year and half, the ProZorro team carried out more than 250 training events within the framework of the largest training program in the public sector. We successfully launched the on-line training course on the free of charge Prometheus platform and created a special information web-site for customers http://infobox.prozorro.org/. So, they all had an opportunity to learn the principles of the system structure and instructions how to operate it", Maksym Nefiodov noted.

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the National Council for Reforms

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