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GENERAL PROZORRO PRINCIPLES

The history of Prozorro, the basic principles

Загальні положення про Prozorro.

History of creation

The Prozorro Public Procurement system emerged during the Public Procurement Reform. The official slogan of reform: "Everyone sees everything."

The purpose of implementing the Reform was to eliminate and systematically prevent corruption, increase transparency of the procurement process, switch to electronic commerce, avoid discrimination of participants' applications, broad engagement of the public, and introduce an electronic auction, which involves the automatic assessment of the submitted proposals.

The essence of the reform lies in the maximum transparency and availability of the procurement process, the interaction of authorities, business and the society. So, after the end of the tender, in the electronic system you can see all the information on the submitted proposals of the participants, the decisions of the tender commission of the procurer, all qualification documents, published agreement and other documents. This information is available through the analytics module and can be used to monitor the procurement process.

The Law of Ukraine "On Public Procurement" introduced mandatory public electronic procurement procedures in two stages:

Stage I was implemented from April 1, 2016 and introduced mandatory electronic procurement for chief administrators of budgetary funds and monopolists.

Stage II began on 01.08.2016 and ordered all procurers to make electronic procurements through the Prozorro system.

State Enterprise "PROZORRO".

Control over the operation of the System is exercised by State Enterprise PROZORRO, which belongs to the Ministry of Economic Development and Trade of Ukraine. The predecessor of the State Enterprise "PROZORRO" was the State Enterprise "Zovnishtorhvydav of Ukraine". SE "PROZORRO" owns the central ProZorro database and is responsible for educational, consulting, technical and marketing support for the public procurement system.

The structure of ProZorro.

The e-procurement system includes the Prozorro Authorized Web Portal (Central Database) and commercially licensed electronic platforms.

This system ensures procurement procedures, creation, deployment, and exchange of information, operation and workflow between all system units.

At the moment, the Prozorro system has become an integral part of public procurement. According to the web portal, the public procurement market in 2016 reached about UAH 300 billion.

Principles of the Prozorro System. 

For procurement and participation in the tendering process, procurers and participants register on electronic platforms. The procurer creates procurement on any electronic platform, pre-registering on it. Once placed, the procurement is automatically duplicated on all other sites and in the CDB

( www.prozorro.gov.ua)

Registration on the site.

The law allows for almost everyone who has the individual or entity status to participate in the procurement procedure.

Procurers and participants can register and take part in an auction on one of the authorized sites.

Procurers use the system for free.

Participation of suppliers in public procurement is payable. According to the Law of Ukraine "On Public Procurement", the fee is charged for the submission of tender offers, that is, only in the case of a real bidding. Registration on the electronic platform is free of charge.

For submitting a tender offer, an authorized electronic site operator charges a fee depending on the procurement price, namely:

Expected value of the procurement subject, UAH

Payment for submission of a tender offer

up to 20000,00 UAH

17 UAH

up to 50000,00 UAH

119 UAH

up to 200000,00 UAH

340 UAH

up to 1 000000,00 UAH

510 UAH

from 1000000,00 UAH

1700 UAH









In case of cancellation of bidding or their recognition as failed- by the time of the disclosure of tender offers, the fee is returned to the participant by the operator of the authorized electronic platform.

Auction.

The next stage after registration and submission of the tender offer is participation in the auction. In addition to the registered participants during the auction in the online mode, other users of the System may also view the procedure through the Central Database or an electronic platform.

Prozorro auctions are reversed, meaning the price decreases with each round.

From the beginning of the auction, the system takes a 5 minute break before the start of the first round. At this time, you can see the number of participants in the auction and their initial bids, but without the name of the participants. Accordingly, the price offers are anonymous and alternate from minimum to maximum.

The auction consists of three rounds. The first one who changes the offer is the participant with the highest price. He can reduce his offer (at least at the step that was specified in the announcement) or leave without changes.

Each participant has 2 minutes to change the offer, then the queue goes to the next participant, who also has 2 minutes to make the change. Then the system takes the next, 2 - minute break, the order of the offers varies (from the largest to the smallest), and the process is repeated.

At the end of the third round, the results of the auction are displayed - at this moment the names of the companies - participants and their offers in all rounds of bids are revealed.

At the end of the third round, the announcement of the results takes place.

 In the case of a Multi-Lot Procurement Auction, an auction is held for each lot separately.

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