Professional Procurement

On September 6, the State Institution "Professional Procurement" published the first aggregated purchase of electricity for the needs of Poltava, Ternopil, Khmelnytsky, and Cherkasy customs, using the SmartTender.biz platform.

The expected cost is UAH 334,595.42, and offers from suppliers are accepted until October 7, 2021. You can view the purchase here.

What Is Aggregation?

The aggregation procedure consists in combining the same type of requirements of several customers into one purchase. At the same time, as a result of the purchase, each customer can conclude a separate contract with the supplier.

Only a centralized purchasing organization can conduct an aggregated tender since its main function is to carry out purchases in the interests of other customers.

This procedure is used in many countries of the world and is considered one of the best since it allows to effectively save budget funds and operating costs for procurement.

How Does Aggregation Work in Ukraine?

Today, the CPO State Institution "Professional Procurement" serves 65 central executive authorities, as well as their structural divisions – more than 100 state customers in total. All of them regularly make purchases to buy the same goods: paper, pens and pencils, water, electricity and fuel, furniture, etc.

In order not to announce more than 100 public tenders in the system with the same procurement items, CPO can combine the needs of all customers and announce one aggregated tender (for example, for the purchase of electricity). Large-scale (wholesale) purchases are more interesting for the market, which means that potential suppliers will be more willing to reduce the price. As a result, each customer, in whose interests the purchase was carried out, agrees with the winner for the required volume of goods at a favorable price.

Key Benefits of Aggregation

Customers get the following benefits from aggregation:

1. Reducing the number of public tenders, which means saving time and human resources.
2. Growth in budget savings – wholesale purchase allows to get a lower price per unit of goods.
3. Simplification of the procurement procedure. All the customer needs to do:

- - inform the CPO which product needs to be purchased;
  - agree on the specification;
  - agree with the winner chosen by the CPO.

Aggregation also brings benefits to suppliers:

1. Saving time and resources – they do not need to submit applications for more than 100 tenders (and, accordingly, prepare packages of documents for each of them) and take part in them.
2. The ability to conclude several contracts with different customers at once.

Recall that the SmartTender.biz has all five levels of accreditation, and therefore centralized purchasing organizations can officially carry out their purchases with its help. Read more about this in our article.

Sell your goods to the state profitably and win with SmartTender!