Implementation of new standards in public procurement of Ukraine: analysis of the draft law "On public procurement"

The draft law "On public procurement" is a completely new document aimed at reforming the system of public procurement in Ukraine. This draft law is designed to ensure transparency, efficiency and competition in the procurement process, and also takes into account Ukraine's international obligations in this area and the urgent needs associated with the country's recovery after a full-scale war.

The main goal of the draft law is to create an efficient and competitive system of public procurement, which will ensure the transparency of the process and compliance with international standards. The draft law provides for the introduction of new mechanisms that will improve control over the use of public funds, minimize corruption risks, and ensure equal conditions for all market participants.

Key provisions of the draft law

1. Introduction of new terms.

The draft law contains a number of new terms that were not previously defined in the current legislation. These include "aggregated procurement", "veteran enterprise", "enterprise of persons with disabilities", "open project competition", "dynamic procurement system", "reserved contract" and others. The introduction of these terms is aimed at clarifying the legal framework and introducing new mechanisms that will ensure the effectiveness of procurement.

2. Restrictions on procurement with aggressor countries.

The draft law introduces strict restrictions on the purchase of goods, works and services from citizens and legal entities associated with the Russian Federation, the Republic of Belarus and the Islamic Republic of Iran. In particular, it is prohibited to enter into contracts with legal entities formed and registered in accordance with the legislation of these countries, as well as with companies whose beneficiaries are citizens of these countries. This restriction is an important step in ensuring national security and maintaining Ukraine's sovereignty.

3. Introduction of new procurement methods.

The bill proposes new procurement mechanisms such as the "innovative partnership procedure", "dynamic procurement system", "reserved contracts" and "joint procurement". These mechanisms are aimed at expanding the list of procurement methods, which will allow customers to more flexibly approach the choice of procurement methods, in accordance with the specifics of the procurement subject.

In particular, it is proposed to introduce the "innovation partnership" procedure, which will allow customers to cooperate with market participants to develop new products or technologies necessary for the performance of government tasks. In addition, the use of "dynamic procurement systems" is envisaged, which enable participants to submit proposals based on predefined criteria and conditions, which allows for a quick response to changing customer needs. "Reserved contracts" and "joint procurement" are also introduced, which allow several customers to join together for the joint purchase of goods or services, which can reduce costs and increase the efficiency of the use of budget funds. Also, these innovations are aimed at increasing competition among participants, ensuring transparency of the process and minimizing corruption risks.

4. Project competition through the electronic procurement system.

The draft law "On public procurement" introduces an important innovation related to conducting a project competition using an electronic procurement system. This innovation aims to increase transparency and efficiency in the project selection process, as well as to simplify the procedure for all participants. In particular, according to the draft law, customers will be able to organize project tenders through electronic platforms, which will reduce administrative costs and simplify the process of submitting and evaluating proposals.

The results of the project competition can become the basis for concluding a procurement contract using the negotiation procedure. This means that after the end of the competition, the customer will have the opportunity to negotiate with the participants to clarify the terms of the contract and achieve the most favorable conditions for both parties. The implementation of such a procedure also allows customers to focus on the qualitative aspects of projects and scientific developments, and not only on formal criteria. In particular, the electronic procurement system will provide access to all stages of the process for interested parties, which will contribute to increasing transparency and reducing corruption risks.

Thus, the innovation is aimed at modernizing the project procurement process, which will allow attracting more innovative ideas, increasing competition and ensuring more efficient use of public funds.

5. The possibility of correcting errors in tender offers.

One of the important novelties of the draft law is the opportunity for participants to correct inconsistencies in submitted tender offers within 24 hours. This will reduce the number of rejected offers due to formal errors and promote more active participation in bidding. However, correction is not allowed in cases where it leads to a change in the subject of the procurement or when there is no security for the tender offer.

6. Improvement of procurement rules.

The draft law makes significant changes to the procurement rules depending on the value of the procurement item. According to the new regulations, if the cost of works is equal to or exceeds 200 thousand hryvnias, but is less than 1.5 million hryvnias, the customer has the opportunity to make a purchase without using the electronic procurement system. In this case, the customer is obliged to publish the procurement report in the electronic system, if such information is mandatory in accordance with Article 13 of the law.

For goods worth from 400,000 hryvnias to the equivalent of 143,000 euros, and for works - from 1.5 million hryvnias to 5,538,000 euros, customers make purchases in one of the ways specified in the first part of Article 16 of the project. This includes the use of open tenders or other methods that, according to the new rules, ensure a high level of competition and transparency. The Cabinet of Ministers of Ukraine also has the right to approve the list of procurement items that must be procured through the electronic catalog, which allows to centralize the procurement of certain goods and services and ensure more effective control over the use of budget funds.

7. Standard contracts.

The draft law gives the right to the Cabinet of Ministers of Ukraine to approve standard procurement contracts for specific procurement items. This will facilitate the unification of contracts and ensure compliance with uniform standards during procurement. Customers are obliged to conclude contracts on the basis of standard forms approved by the government, taking into account the requirements of the Civil and Economic Codes of Ukraine.

In conclusion, the new draft law "On public procurement" is an important step on the way to increasing efficiency, transparency and competitiveness in the field of public procurement in Ukraine. The new mechanisms introduced by the draft law will contribute to minimizing corruption risks, improving the management of public funds and creating equal conditions for all market participants. The adoption of this draft law will be an important step in the implementation of the recovery strategy of Ukraine and will ensure its integration into the world economic space.

In the context of innovations in the legislation governing public procurement, it is important to ensure that your business can effectively adapt to the changes and take full advantage of the new procedures. Our law firm offers professional support in all aspects of public procurement, including consultations on new procurement methods, preparation of documentation, representation of interests before public authorities and lobbying of your interests. We will provide you with up-to-date information and help you avoid possible risks arising from the implementation of new regulations. Contact us for individual advice and comprehensive support that will help your business remain competitive and comply with legal requirements.