New Edition the Law "On Public Procurement"

Yesterday, August 29, in the Verkhovna Rada of Ukraine, draft Law No. 1076 appeared, which should introduce the long-awaited amendments to the Law of Ukraine “On Public Procurement”. In fact, the new edition focuses on eradicating previously unresolved issues in government tenders.

What Will Change

The new edition provides many changes, but, apparently, the most interesting of them will be the following.

Pre-threshold Procurement

According to the proposed draft Law, the use of the ProZorro system will become mandatory in the case of procurement of amounts from UAH 50,000 (now – from UAH 200,000 ) when purchasing goods or services. The new version of the Law will also regulate the use of ProZorro Market.

Complaints

Payment for filing a complaint to the AMCU against the decision of the organizer will become differentiated and proportional to the size of the procurement budget (now it is UAH 5,000 for procurement of services and goods and UAH 15,000 for procurement of work).

Abnormally Low Price Offers

The system will automatically reject the abnormally low offers. The purpose of innovation is the fight against dumping and increasing the efficiency of procurement.

Responsibility for Non-compliance with the terms of the Agreement

The organizers will have a technical and legal opportunity to reject the tender proposal of those suppliers who in the past were seen as not fulfilling the terms of the contract.

Responsibility for Compliance with the Law

The law will provide for additional liability for organizers in the form of a fine for failure to comply with public procurement legislation. The size of fines is from UAH 34,000 to 170,000.

Correction

The Law will finally allow participants to correct inaccuracies in proposals within 24 hours from the date the customer decides to eliminate the shortcomings. Also, there will be non-price criteria for evaluating offers, as well as other useful little things.
Now we are all waiting for the full text of the draft law and continue to monitor the situation together. As of August 30, 2019, the document was classified by the president as urgent and submitted for consideration.