The Law “On public procurements” has been signed!

16.10.2019

The president of Ukraine Volodymyr Zelensky has signed a Law on amendments to the Law of Ukraine “On public procurements” and some other legislative acts of Ukraine regarding improving public procurements № 114-ІХ that was passed by the Verkhovna Rada on September 19, 2019.

 

The law is aimed to ensure efficient, transparent and quality public procurement, prevention of corruption, development of competitive environment and fair competition in Ukraine`s procurement sector.

 

The document contains a number of innovations that will help to increase the efficiency of procurement procedures, the introduction of personal responsibility for violations of the legislation, improvement of the mechanism of appealing the tenders, harmonization with international standards.

 

What will change for Customers:

Purchases of more than 50 thousand UAH will have to be made through ProZorro, but under a simplified procedure;

Small purchases can be made through ProZorro Market;

From 2022, all contracting authorities should get rid of tender committees in favor of authorized persons;

The personal responsibility of the authorized persons and the heads of the customers will be applied for violation of the law;

A mechanism for automatically rejecting "abnormally low" bids will appear;

Customers will be able to reject the tender offer of a participant who has not fulfilled obligations to the customer under the previously concluded purchase contract.

 

What will change for Suppliers:

Ability to correct technical errors in the proposal within 24 hours;

The fee for a satisfied complaint will be returned to the AMCU.

According to the Ministry of Economic Development, ProZorro e-procurement system has saved the state 86 billion UAH for the three years of its existence. The ProZorro system has been extended in Ukraine to all state customers since August 1, 2016 for purchasing goods that are more than 200 thousand UAH in value and services worth more than 1.5 million UAH.

The team of Innovation and Development Foundation, under the leadership of Georgi Vashadze, Founder of IDF, participated in the creation of the system of open procurements 2.0 in 2014.

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