Innovations in the field of public procurement


On September 12, 2019, a meeting of Subcommittee on Public Procurement of the Industry Development Committee of the Federation of Employers of Ukraine was held with the participation of Vice-President of "Electron” Corporation Yuriy Dzhuryk.


The meeting was also attended by Kryukiv railway carriage building plant, "Tatra-South” LLC and other representatives of industrial companies, experts and deputies' assistants who worked out their proposals for the second reading of Bill No. 1076 "On Amendments to the Law of Ukraine" On Public Procurement ”.


The key innovations proposed for incorporation into law are the following:


1.To supplement the evaluation criteria of the bidder and the subject of the procurement with the coefficient of the "local component”. This means: the company provides a certain level of localization within the country, creates jobs, pays taxes - receives benefits at auction.


2. In case of obviousness of the subject of purchase, which has  complicated  or specialized character a customer must establish totality of all qualification criteria determined for participants . Today, the vast majority of customers are guided by the selection of the winner only by the criterion of the price of the object of purchase, not taking into account, for example, the life cycle indicator, the availability of material base, qualified personnel, etc. 


3. Strengthening of the customer's responsibility by introducing guaranteed medium-term contracts on the subject of procurement with extended production cycle


.4. The possibility of concluding a framework agreement with one participant.


5. Increasing of responsibility for tender trolling.


6. Parallel liability of the customer and the participant for the fulfillment of contractual conditions.


7. Increasing  of the incremental amount for complex or specialized procurement.


Formed and agreed proposals the FRU will  submit to the Verkhovna Rada ofUkraine in accordance with the legislative initiative. 


Reference: The estimated volume of public procurement for 2019 is about UAH 700 billion. Of these, UAH 170 billion is the product of a machine-building complex that is being manufactured or can be manufactured in Ukraine with a localization of at least 40 percent.


As an example, rolling stock for UZ, power equipment, turbines and transformers for Energoatom, UkrGroenergo and Ukrenergo, compressor stations and drilling rigs for Ukrgas production, trolleybuses, trams and municipal  machinery  for our cities.



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