Since the beginning of Prozorro system functioning, the price criterion has been identified as a key one to the choice of the tender winner. However, from April, it is planned to activate an instrument, which will give much more power to non-price criteria.

The tool is developed by the Ministry of Economic Development and Trade of Ukraine together with the Ministry of Ecology and Natural Resources of Ukraine. By the end of 2019, it will work at full capacity.

What's wrong with the price criterion?

The price criterion always prevailed over all others. And if in commercial tenders, some companies could ask for electronic platforms to provide them with functionality that took into account such aspects as deferred payment and payment by installments when calculating the final unit price, then in public procurement, it was impossible due to strict regulation of the Law of Ukraine "On public procurement".

In favor of the Law, it should be said that using other criteria is theoretically possible. These include the terms of the order, warranty service, the cost of operation, payment terms, and training. Prozorro representatives say customers simply don’t use this feature.

Perhaps this is because it is valid only for complex and specific products that do not have a permanent market. In turn, the Law does not give an exact definition of such products, giving the customer the opportunity to puzzle over the classification nuances. Moreover, the customer must necessarily justify the need to use certain non-price criteria. The Ministry of Economic Development and Trade suggests that there are procurements where it may not be appropriate, but does not provide users with an exhaustive list and does not inform about the possible consequences. This state of affairs can not be called the full use of non-price criteria on a par with price ones.

Using the price criterion as decisive really helped to achieve high efficiency and economy in most cases. However, there is a blind area with public tenders, the customers of which do not benefit from cooperation with the most "low-budget" supplier. This could occur for various reasons: transport costs, poor quality, import duties in the case of cooperation with foreign companies, etc. And the difference between the proposal of the winner and the proposal of the participant who has taken the second place having the opportunity to provide more attractive conditions often does not exceed a couple of hryvnas.

Non-price criteria, nice to meet you

Non-price criteria will be implemented sequentially. In particular, we are talking about economic, environmental, and energy-efficient criteria. Working with them will look like a classic list, where the user has the right to choose the necessary parameters for specific products of different categories. In addition, users will see recommendations on the application of non-price criteria for evaluating tender proposals. After the adoption of relevant changes in legislation, this tool will be applicable to all types of public procurement.

The use of non-price criteria will help to positively affect the quality of goods and the overall level of competition due to the growing number of potential participants. Perhaps someone offers the lowest price, but this is no longer a guarantee of victory. It is possible that the best option would be the choice of a more expensive, but at the same time better product. Non-price criteria are designed to dot the i's and cross the t's.