Top Achievement and Challenge 2020.

1. Prozorro: Results and Achievements

2. Prozorro factsheet in 2019
Market volume — $21.3 bn
Economy — $1.2 bn (12,58%)
Number of procurement procedures > 1.2 mn
Number of suppliers > 150K
$12.6 bn (60%) were spent by competitive procedures

3. Top Achievement 2020:
The New Law in Procurement

4. New Threshold
Threshold for purchases without tenders was
reduced from 200K UAH to 50K UAH (i.e. from
$7.4К to $1.8К)
● For business, this gives access to app. 250K
purchases annually *
● For state, it gives additional financial economy
of $333 mn annually
*During the meeting your saw the number of purchases as 250M. It was a typo and there should have
been 250 thousand purchases. Now corrected.

5. New Standards of
Justice, Fairness and Openness
● Appealing to AMCU for suppliers became easier
and fairer
● Penalties and personal responsibility for the state
purchasers are increased tremendously
● Reporting about all purchases starting from 1
kopiyka
● New instrument: Abnormal Low Price
● New instrument: opportunity for suppliers to
correct mistakes within 24 hours

6. E-catalogues
● A platform for easy and fast purchases of typical goods like
furniture, stationery, medical goods etc (analog of Rozetka or
Amazon)
● Since its beta-launch in 2019:
- 1000 purchasers have registered in Prozorro Market
- value of goods purchased exceeded $1.85 mn
● Potential volume of Prozorro Market ~ $850 mn
● Prozorro Market really helps with medical goods procurement
(see next slide)

7. How saves money:
prices for personal protective equipment

8. As a result of the New Law
Results of the New Law
● $28.5 mn saved due to obligatory auctions from $1.8K
● $1.5 mn returned to companies after their complaints were
satisfied in Antimonopoly Committee
● More than 3K tenders were “rescued” due to the right to
correct the mistakes in tender proposals
● More than 1.4K tenders with abnormal low price were
identified

9. Challenge
2020:
COVID-19
Situation as of March 2020:
● huge demand for medical goods and equipment
● shortage of suppliers
● as a result — price skyrocketing and panic on the
market
Measures done:
● Decree #225 accepted allowing purchasers to buy
any amount of necessary medical goods without
open tenders
Result:
● according to MOH, hospitals of the 1st wave are now
fully equipped with necessary goods
● international recognition

10. Professionalization
of the procurement sphere
● From the members of Tender Committees, who do not
get remuneration for their jobs
--->
To Authorized person as a distinct position and
specialization with a proper remuneration
● Enters into force on the 01.01.2022

11. Other achievements
in 2019-2020:
● Framework agreements: purchasing once in
4 years goods that are usually purchased on a
regular basis
● Cyber security:
- complex information protection system
- Bug Bounty

12. Challenges

13. Legal
● Localization
● New Law changes, according to European
Directives
● AMCU Appeals
● Monitoring and State Audit Service reform
● Dynamic Procurement System

14. IT-development
● Defence procurement
● Procurement representatives testing and personal
data storage
● Central Procurement Bodie cabinet further
development
● AMCU e-appeals and Video conferences
● Lifecycle procurement, non-pricing criteria
● E-contracting
● Dynamic purchasing system

15. Further legal framework development
EU delegation tender:
to support the implementation under the EU Ukraine Association Agreement and Deep
and Comprehensive Free Trade Agreement namely:
1. legal and regulatory approximation of PP and concessions laws;
2. strengthened institutional and organizational capacities and further improved e-
procurement;
3. strengthened institutional and organizational capacities of the relevant public
bodies in control, audit and complaint/review of public procurement procedures
and
4. strengthened institutional and organizational framework for professionalisation of
PP professionals and enhanced communication/outreach to the participants of
the PP market.

16. 1. Covered
a. Procurement representatives testing and personal
data storage. Covered by TAPAS
1. Requested
a. AMCU video conferences. Applied for TAPAS, $170K
b. E-contracting. Applied for GIZ, 50K$ for SO Public
Finances
c. CPB: analytical and technical support, cabinet further
development. Applied for TAPAS, $215K
d. CPB: incorporating energy-efficient products in e-
Catalogues, facilitating emergency public
procurement by the CPB. Applied for EBRD, 149K EUR
1. Uncovered
a. Lifecycle procurement ~ 80k$
b. IP addresses ~ 30k$
IT-projects:
Prozorro and
Central
Procurement
Body