Prozorro Results

Every year, the SmartTender team summarizes the results of tenders conducted in the Prozorro system. The results of 2022 will be shared with you by the head of the department for work with clients Maryna Tolochko and the head of the department for work with state customers Mykyta Lysiuk.

Prozorro Results

This year was different from all the previous ones because the country worked under martial law. Despite all the obstacles that began on February 24, both customers and suppliers showed the indomitability and unity of the Ukrainian people on the procurement front. So, on behalf of the entire SmartTender team, we would like to thank you for supporting the country's economy by making purchases, helping our military bring Ukraine closer to victory, and contributing to the reconstruction of settlements.

How Did the SmartTender Team Work with the Outbreak of Full-Scale War?

At the start of a full-scale war, most of our users had no idea how to proceed and whether it was appropriate to continue purchasing. It was especially difficult for customers and suppliers located in occupied territories or near war zones. We realized that now our users need support more than ever, so we quickly got to work. In the first days, we called all our government customers who were in touch. We reminded them that they can still advertise competitive purchases on SmartTender.biz, helped them publish tenders, and find suppliers faster.

During this time, we also contacted hundreds of our suppliers and provided them with round-the-clock consultations and assistance with the search and participation in purchases. In many cases, this was extremely necessary, as most of the persons responsible in the company for the search and preparation of the tender proposal were in shelters for several days or were forced to stop their work. For example, we recently published an interview with such a specialist who decided to join the Armed Forces: "From a Supplier to a Procurement Customer of the Armed Forces – Ruslan Kasprovych's Experience". The work with purchases was usually continued by company managers, who didn’t have such experience.

The managers of our site worked around the clock, without days off or holidays, hiding during air raids in shelters and subways and being in different parts of Ukraine and the world. We have collected the knowledge gained during this time in a selection of tips "Business in Wartime: How a Supplier Can Resume Work During Martial Law?".

We are glad that thanks to our work as well, state customers continued to carry out such necessary purchases at that time, which made it possible to support many business representatives. And now we offer to consider the results of 2022 in comparison with 2021 to see what changes have taken place in the field of public procurement.

About the Changes in the Legal Component

In 2022, the government adopted the following important regulatory acts for the field of public procurement:

1. CMU Resolution No. 169 in February.
2. CMU Resolution No. 1178 in October.
3. CMU Resolution No. 1275 in November.
4. Changes to the specified documents were made during the year.

All of these resolutions were adopted at different times to regulate procurement procedures during martial law in Ukraine.

Purchases in the Prozorro System

According to 2022 analytics, the number of successful competitive procurements has halved. But solely because since the beginning of the full-scale war, all public procurement with budget funds has been allowed to be done through direct contracts to provide the state with defense and critical needs as quickly as possible. However, with the introduction of amendments to Resolution of the CMU No. 169 dated 28.02.2022, which were adopted by the government on June 24, 2022, already in September, about a third of public purchases were made through the Prozorro system, and this immediately showed a result in the form of budget savings.

We offer to compare data for 2021 and 2022:

Prozorro Results

Suppliers found an opportunity to support the country's economy and develop their businesses:

- changed the focus of their business to the product that was in demand;
- switched from selling goods to services or work;
- relocated their production to safer cities.

That is why the number of suppliers who had the opportunity to participate in procurement during 2022 is quite large – 176.79 thousand. The organizers also instantly adjusted to the new realities: their number remained almost unchanged and they had the opportunity to actively publish new procurements.

Appeal to AMCU

Even though with the beginning of a full-scale war, the AMCU temporarily stopped considering complaints, already in April, the board fully resumed its work. Expectedly, until the end of June, few complaints were received from suppliers, because a greater number of purchases were made directly, but already in July the situation began to change and the dynamics of complaints gradually began to recover.

Prozorro Results

SmartTender's legal team has been in constant contact with our users, ready to help with the preparation and submission of complaints, as well as with any other legal issues of participation in procurement.

TOP-5 Categories with the Largest Number of Purchases

As we can see, both during peacetime and wartime, most procurement categories in the TOP-5 remained unchanged: the state actively purchased construction materials, food products, repair and maintenance services, and medical equipment. However, in 2022, fuel was more in demand than furniture, and we all understand why.

Prozorro Results

TOP-5 Suppliers by the Number of Participations in Tenders

In 2022, a trio of suppliers who actively participated in competitive public procurement in the previous year, 2021, entered the TOP-5. However, in July of this year, a new company "TVIY GAZZBUT" LLC entered the market, and took a leading position, working in the "Electric Energy" category.

In general, the rating looks like this:

1. LLC "TVIY GAZZBUT" – 2,403 purchases.
2. LLC "LIVAIN TORG" – 2,214 purchases.
3. LLC "Trading and Production Group Ukrainian Paper" – 2,198 purchases.
4. LLC "STM-Pharm" – 2,156 purchases.
5. LLC "Epicenter K" – 1,700 purchases.

TOP-5 Government Customers by Procurement Budget

Thanks to competitive procedures, the customer concludes contracts with the supplier with the most economically advantageous offer. This is especially relevant in wartime because the state can allocate the saved funds to new needs and additionally purchase everything necessary for our army.

According to procurement budgets, we select the following customers:

1. LLC "OPERATOR OF THE GAS TRANSPORT SYSTEM OF UKRAINE".
2. CE OF THE EXECUTIVE BODY OF THE KYIV GOVERNMENT (KYIV CITY STATE ADMINISTRATION) "KYIVTEPLOENERGO".
3. SE "MEDICAL PURCHASES OF UKRAINE".
4. PJSC EC “ZHYTOMYROBLENERGO”.
5. PJSC "LVIVOBLENERGO".

TOP-3 Regions by the Number of Suppliers

The leading regions in terms of the number of suppliers are the same as last year because it was these regions where the largest number of suppliers were relocated. The move allowed a large number of companies to continue operating in relative safety, rebuilding their businesses and continuing to support the state. For our part, we provided and still provide active assistance to companies with relocation.

Prozorro Results

TOP-3 Regions by the Number of Announced Tenders

But the TOP of regions by the number of announced purchases has changed. However, in 2023, we believe that the state customers of the Kharkiv and Dnipropetrovsk regions will resume active work, as it was before.

Prozorro Results

Prozorro Market Results

Prozorro Market became the most convenient tool for making purchases in the second half of 2022. If for complex purchases, government customers used open tenders with special features, then for simple quick purchases (and this is especially relevant for customers who do not have a large staff), most of the needs were closed through the electronic catalog.

The statistics on the results of purchases on Prozorro Market are as follows:

Prozorro Results

We draw your attention to the fact that even with a decrease in the number of purchases made in 2022, their value was much higher than in 2021. Read more about the work of SmartTender users on the marketplace, and the updates that took place in it during the year, in our article "What Were the Purchases on Prozorro Market During 2022 and What Has Changed in the Catalog?".

We hope that the next year will be successful for our country and the state will be able to concentrate on peacetime procurement as soon as possible. We believe in the defense forces of Ukraine and continue to support our customers and suppliers every day.