• Українською
  • Government changes rules of bidding on Prozorro: Auctions temporarily canceled
    Ministry of Economy of Ukraine, posted 03 January 2023 13:03

    Due to the constant shelling of energy infrastructure facilities by the russian federation, not all bidders in the Prozorro electronic procurement system have the opportunity to participate in electronic auctions. In this regard, the Cabinet of Ministers of Ukraine has temporarily, for the period of the legal regime of martial law in Ukraine and within 90 days from the date of its termination or cancellation, changed the rules of bidding. The Cabinet of Ministers of Ukraine issued Resolution No. 1495 dated December 30, 2022.

    "As a response to the blackouts, we have temporarily canceled electronic auctions. From today, all tenders announced in Prozorro will be held without an auction. That is, the tender offer of the participant is final, and the one who gave the lowest price when submitting the offer wins. In the conditions of power and Internet outage, not all participants had the opportunity to bid in the auction. At the same time, equal access is a key principle of public procurement. We will return the auctions as soon as the situation stabilizes," said First Deputy Prime Minister - Minister of Economy of Ukraine Yuliia Svyrydenko.

    She also announced possible changes in the public procurement system on a permanent basis.

    " Along with this, we will analyze how this change will affect different categories of procurement. There have been many discussions whether auctions are needed for complex procurement items, such as construction. EU directives stipulate that auctions should be optional. At the request of the World Bank Ukraine, we are implementing a separate procedure in which auctions will be optional, that is, at the decision of the customer. Therefore, in 1-2 months we will look at the figures, if it is confirmed that in different categories of procurement the tender strategy without an auction can be more effective, we will return auctions as an optional bidding tool for all procurements," explained Yuliia Svyrydenko.

    Also, according to her, this resolution abolished localization in procurement for the needs of the Armed Forces. That is, pickup trucks, trucks, ambulances, etc. can now be purchased for the needs of the Armed Forces without localization requirements.

    Background information

    In 2022, since the beginning of the war, Prozorro has recorded the following financial results:

    - 94,000 tenders for UAH 120 billion were held;

    - more than 23,000 enterprises became participants of competitive procurement;

    - the difference between the total amount that public customers planned to spend on their procurement and the amount for which contracts were concluded through tender procedures amounted to UAH 6 billion;

    - in total, more than 2 million contracts for UAH 311 billion were reported in the electronic system.