Ukraine's presentation of the public procurement reform in and eProcurement system ProZorro

1. YOUkraine. Because ProZorro:
Professionalization of
Procurement Function

2. Everything started here

3. 25B UAH (ca 1.1B USD) –
conservative estimation of
“corruption tax”
25B UAH (ca 1.1B USD) –
losses caused by limited
competition
10%
10%
At least 50B UAH (ca 2.2B USD) per annum –
losses from corruption and limited competition
250B UAH
(ca 11B USD)
10%
10%
Estimation of losses in public procurement (PP)
PP was seen as synonym of corruption in Ukraine

4. eProcurement system ProZorro developed in a year
13
March 2014
Volunteers’ team
setup
April-May 2014
First search & first
concept
August, 2014
Georgians &
concept
review
February, 2015
MVP
development &
launch
September,
2014
ePlatforms &
final concept;
first “seeding”
April, 2015
Volunteers
move into gov’t
June, 2015
First donor
support
May, 2015
MinDefence &
small
procurements’
pilot
December,
2015
New Law on
eProcurement
approval
April, 2016
Law comes
into force,
system’s
scale up

5. “Golden triangle of partnership” in the core
13
Commercial
platforms
Civil Society:
monitoring and
control of
procurement
Government:
“the rules”,
professionalization
and data storage
Commercial
platforms:
CAs & suppliers
acquiring and
service

6. 90k tenders
USD 1.3B
planned
amount
4980
contracting
authorities
16 325
suppliers
More than 12%
savings on
completed
procedures
2,84
average
number of
bids
bi.prozorro.org
First year: results

7. • ProZorro considered by EBRD
as a recommended model for
eProcurement reform
• Ukraine won the World
Procurement Award in the
Public Sector nomination
• National Council of Reforms
recognized PP reform as the
most successful one
• ProZorro is a showcase &
learning project of the Open
Contracting Partnership
Prozorro recommended by EBRD as a reform model

8. What are advantages of ProZorro
13
• Low initial cost
• Low implementation and
maintenance cost
• Better services, incl. training &
legal support, due to competition
among platform providers
• Higher suppliers competition due to
involvement of existing pools of
suppliers registered on commercial
platforms
• Higher resistance to corruption due to
distribution of risk among various actors
• Additional statistical & risk-
management tools
• Application of Open Contracting Data
Standard
• Alignment with international legislation
standards

9. ProZorro covers key procedures and functionalities
eProcurement
Functionalities
Web portal
ePlanning
eRegistration
eAuthentification
eNotification
eNotices
eAccess
eSubmission/eTendering
eEvaluation
eAuction
eAwarding
ePurchasing/eOrdering
eInvoicing
eContract Management
ePayments
Procurement Procedures
Open Procedure (price & MEAT)
Competitive Dialogue
Negotiation Procedure
Framework Agreements
Dynamic purchasing system
Electronic Catalogues
available
being developed now
to be developed later

10. All information is available for everyone
bi.prozorro.org provides all available information in
a user-friendly format

11. Professional risk-management system developed
Automatic screening of a number of factors allows
to identify corruption-prone tenders

12. New official web-portal with “Google”-like search

13. A variety of Partners makes the reform possible

14. All finance distributed through the Steering Committee
Total amount of
donations 764 800 USD
Business
donations
WNISEF
GIZ/DFID
+ 2 commercial
platforms
Steering Committee

15. Professionalization seen as a step-by-step process
Platforms
support
eLibrary of
typical
specificationsKnowledge
database
Online course
ToT for consultants &
civic activists
CPB
Center of
excellence
Certification
Regional
presentations

16. No financial motivation
No specialized
training centers
Unstable
legislation
Procurer is an unpopular profession

17. 1. No financial motivation
Review of procurers remuneration
In the meantime, simplification and automatization of
processes:
- customer-friendly platforms’ interfaces
- service support from platforms
- library of typical
specificationsinfobox.prozorro.org/specifications

18. eLibrary of typical specifications

19. 2. Unstable legislation
Online knowledge database infobox.prozorro.org
- all legislation in one place
- publications “for dummies”
- course for self-attestation

20. All legislation in one place

21. Online course started

22. 3. No specialized training centers
Market stimulation:
- Negotiations with business schools and potential
international partners
- ToT, involving regional consultants & civic activists
- Piloting CPBs

23. A detailed reform plan is developed for 2016

24. Hope to see you next year in Ukraine!

25. Thank you!
Web-portal
Prozorro.gov.ua
Analytics Module
Bi.prozorro.org
CA Support
Infobox.prozorro.org