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  • Procurer has the rights to sign the procurement contract as the results of  negotiating procurement procedure not earlier than 10 days (five days – in case of conducting negotiating procurement procedure on the grounds, defined by clause 3, part 2 of the article, as well as in case of procurement of oil, crudes, electric power, services in its transfer and distribution, centralized supply of heat power, centralized supply of hot water, services in centralized heating, postal communication services, postage stamps and stamped envelopes, telecommunication services, including broadcasting of radio- and television signals, services in centralized water supply and/or water disposal system and services in transportation by railway transport in public use) after the day of publication of the notification on intention to sign the contract according to the results  negotiating procurement procedure on the web-portal of the Authorized body.

  • Procurer signs the procurement contract with the participant, who is announced as tender winner during qualification period, not later than 20 days after the day of adoption of the decision on intention to sign the procurement contract according to requirements of the tender documentation and the proposal of the winner. With the aim of enforce the rights for an appeal of the procurer’s decision the procurement contract can’t be signed earlier than 10 days after the date of publication of the notification of intention to sign the procurement contract on the web-portal of the Authorized body.

  • No, because the system automates the procurement process and virtually eliminates the human factor in decision-making. A state-owned company need not “choose” the contractor; instead of “committees” the decision will be made by the computer. The single manager employed in the purchasing department will only have to check whether the winning bid meets the stated requirements. In this way the state will double its savings. After all, electronic trading usually reduces the purchase price 10-25% compared to the expected levels.

  • The system works using cross-access—no matter which platform the supplier logged in from, or where the client announced the tender. All data is transmitted to the Central Database and is visible on any of the platforms. Regarding the bidding module, it is also a universal block and can be used for online bargaining by suppliers from any of the electronic trading platforms. Many platforms linked to the system guarantee that none of them will be an inefficient and expensive monopoly.

  • The system was developed and created by Ukrainian activists with active support from the IT industry, the government and international experts. It’s creation was financed by commercial electronic trading platforms, who were convinced of the effectiveness of electronic trading when they were involved in its implementation in the Ukrainian business community, and by international donor organizations (EBRD, WNISEF, GIZ). Presently, the system formally belongs to Transparency International Ukraine – a respectable international organization dedicated to combating corruption. Following the completion of the pilot project, the system will be donated to the government.

  • The introduction of open competitive procurement system should provide a powerful impetus to the Ukrainian economy. Until now, most of the bidding was done by insiders who then siphoned money out of the country. This time around, thousands of Ukrainian small and medium enterprises—the backbone of any economy—will receive access to public procurement.
    Additional orders mean new opportunities, faster growth, new jobs and more tax income.
    This means that by developing a transparent procurement system we develop the national economy.

  • In this system, as in real life, no one knows how many bidders will come to a particular tender, and what prices they will offer. Therefore, if the supplier’s price tag is above the market price because, say, he is hoping that there will be no candidates, there is no need to cancel the tender. You must give him the opportunity to bargain and to lower his price. This problem is solved via the reverse auction—a three-stage auction, which is part of the system.

  • The market must be self-regulating and open to all. Any kind of preferential treatment will lead to higher prices and lower quality. The Ukrainian automobile market, that has been “protected” from competition, is a good indicator of what such preferential treatment can lead to. A lack of preferential treatment is also required by WTO’s Agreement on Government Procurement (GPA), which Ukraine will soon sign. Joining the GPA will give Ukrainian suppliers access to government procurement markets of the EU, USA, Canada, Japan and other countries, totaling 1.7 trillion USD.

  • Whether these funds stay in the budget or go towards making additional procurements is decided by the state customer. In any case, this money is not being laundered out of the budget, fueling the shadow economy – which is exactly what happened before, when the kickbacks on government tenders were as high as 50%.

  • We have an entire monitoring group that analyzes the tenders of procurers that have attracted many complaints. Currently, our means of influencing customers are rather limited, but they do exist and can include, for example, appealing to the purchaser’s superiors with a description of the unfair practices and asking them to take measures to stop such violations.

  • Certain platforms have the option of registering as an “Observer”. However, you can find all of the information on bi.prozorro.org without registering.

  • The system needs to be financed – it cannot function and develop without financial support. Funding from state budget could be used as a leaver to influence the system administrator, and in any case, these funds would still be coming from the taxpayers. Therefore, it seems more logical and fair to charge the users of the system themselves – those who stand to profit by winning the public tenders. Meanwhile, the government institutions calling for bids, are able to use the system for free!