Law

Public procurement procedures: public tendering

Number of procurement procedures in the updated Law of Ukraine “On public procurement” of 25.12.2015, № 922-VIII (hereinafter − the Law on public procurement)decreased significantly. Thus, it is provided the use of two competitive and one non-competitive public procurement procedures instead of five types of them. Competitive procurement procedures defined as public tenders and competitive dialogue and non-competitive public procurement is a negotiating procurement procedure.Public procurement procedure is considered in details.

General conditions

Public tenders are carried out under the following above-threshold values:

  • for regular customers − equal or exceeds UAH 200 thousand (works – UAH 1.5 million);
  • customers that do business in specific areas of economic activity − equal or exceeds UAH 1 million (works − UAH 5 million).

Announcement of carrying out the procurement procedure and tender documents should be published not later than 15 calendar days before the tender offers opening, if the purchase price does not exceed the limits established in sec. 4 of Art.10 of the Law on public procurement, but not later than 30 calendar days in case of exceeding those limits.

Announcement of carrying out the procurement procedure for trading over 133 thousand euros (works – 5 150 thousand euros) should be additionally published in English.

It is determined additional requirements on the content of announcement on carrying out the tendering, namely:

  • expected cost of procurement of goods, works or services with an indication of information on the including of value added tax (hereinafter − VAT) and other taxes and fees into expected cost;
  • the size of minimal step of prices reduction during electronic auction in percentage and monetary terms and mathematical formula that to be used in the electronic auction to determine the performance of other evaluation criteria in case of non-price criteria.

Tender documentation

Tender documentation should include:

  • project of the procurement contract with mandatory indication of changes procedure in its conditions;
  • description of methods of evaluation under the criterion “price” with information on VAT accounting.

It is possible to make changes to the tender documents in three cases:

  • based on the results of appeals;
  • on own initiative;
  • upon a decision of appeal agency.

Thus any registered user can appeal to the customer in order to clarify the information about the purchase or to correct the violation (if available). All appeals are published automatically in the system without personal identification. Questions and requirements could be made 10 days before the expiry of the period for submission of offers. The answers provided by the customer within three working days from the date of the question via the area where the announcement was placed.

If there was not an answer to any question or the late answer, the deadline for tender offers is automatically extended via electronic system at least for seven days.

Complaints about the conditions of tender documents should be submitted by registered users of the system starting with the publication of the announcement of the tendering and ending four days before the end of the reception of offers.

Publication of changes in the tender documents and clarifications thereto (if any) should be made by the customer within one calendar day after the decision on their inclusion or clarification.

Sample tender documentation for the public tendering was approved by the Ministry of Economic Development of 13.04.2016, № 680. The contents of each its section is defined by the customer. According to Art.25 of the Law on public procurement, tender offers should be submitted by the participants electronically through the electronic procurement system.

The period for submitting of tender offers could not be less than 15 calendar days after publication of the announcement of the procurement procedure on the website of the Authorized Agency.

If the announcement of the procurement procedure is published in accordance with the provisions of para.4 of Art.10 of the Law on public procurement, the evaluation is carried out only for those tender offers, which were not rejected in accordance with the law.

Electronic auction

The use of an electronic auction in the public tendering has the binding character.

Date and time of the electronic auction should be determined with the electronic system of procurement automatically on the day of publication of announcement on the website of the authorized agency by the customer, except in the case prescribed in para.10 of sec. 2 of Art.21 of the Law on Public Procurement.

The electronic system automatically discloses information on price (adjusted price) of offers of all participants prior to the auction.

Queue of the participants is formed from the cheapest to the most expensive under the criterion “price” or “adjusted price”.

The auction consists of three rounds and based on the repetitive process of lowering the price (adjusted prices) of offers of participants.

If the participants submitted offers with the same amount, the participant who submitted his/her proposal later would be the first in the electronic auction of price reduction. During one stage of the auction, the participant can reduce the amount of his/her offer once not less than one step from his/her previous price/adjusted price. Tender offers of participants and all provided documents are to be opened after the completion of the auction.

Consideration of tender offers for compliance with the tender documents starts from the most economically advantageous offer specified by the evaluation results. If the mentioned offer is rejected, it should be considered the next one from the list of the participants, which is the most economically advantageous.

If the offer of the first participant in the queue is appropriate for the customer, other offers should not be considered.

At the same time, consideration of the tender offer should not exceed five working days of the day of determining the most economically advantageous offer. However, it can be extended to 20 working days if the customer has substantiated reasons with the publication of announcement in electronic procurement system.

The law provides for the granting of confidential information available only for viewing by the customer, as a part of the tender offer. But, para.2 of Art.27 of the Law on public procurement defined the information which can not be confidential.

Protocol of the consideration of offers should be prepared and published on the website of the Authorized Agency only if the announcement of the procurement procedure is published in accordance with para.4 of Art.10 of the Law on Public Procurement.

The term of information publishing on rejection of the tender offer of the participant − one day after the decision of rejection.

Contract conclusion

The announcements are to be sent to the participants via electronic system automatically and then a list of participants not rejected is to be published.

On day of the winner determination, the customer adopts the decision on the intention to conclude the contract. Notification of intention to conclude the contract should be published on the website of the Authorized Agency within one day after the decision on the intention to conclude the contract.

According to para.2 of Art.32 of the Law on public procurement, the customer concludes the contract not earlier than 10 days from the publishing of notification of intention to conclude the contract, but not later than 20 days after the decision about it. After that the contract should be attached to the system.

Deadline for notification of amendments to the contract is up to three calendar days after the day of making changes. The period for the report submitting on the performance of the contract is three days after the expiry of the contract, its execution or termination.

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