At the end of the year, I want to systematically sum up the initiatives and reforms - both public and private. With the transition of all government procurement to the work of ProZorro, successful cases are becoming more and more - we are especially pleased to talk about them, as our site makes the maximum effort in symbiosis with others, to ensure the clarity of the system.
One of the brightest cases for reforming procurement at state enterprises this year is the experience of Ukrzaliznytsia, which managed to organize purchases of diesel fuel taking into account efficiency and economy criteria. This is on his page in social networks Valery Shergin, Assistant to the Head of the Branch of the Center for Production Provision of the Public Joint Stock Company "Ukrainian Railway" tells. We are twice as pleased to see such a success, since the Ukrzaliznytsia State Enterprise started to work with our site in 2015.
"Prior to work through ProZorro, Ukrzaliznytsia constantly overpaid for diesel fuel. Contrary to the logic of the market, the largest buyer paid the least price, - writes Mr. Shergin.
For example, in May, at a market price of 17.9 thousand UAH for 1 ton of diesel, two dealerships WOG and OKCO won "paper" tenders at a price of 20.3 - 20.9 thousand UAH.
In July, this pair finally came up with a powerful competitor - Sokar Ukraine. On July 12, she will win a tender for the price of 17.7 thousand UAH at a market price of 17.8 thousand UAH. Two other lots wins WOG at a price of 20.4 thousand UAH.
August 18 is the first auction on Prozorto. OKKO wins with the price of 18.4 thousand UAH for the market - 17.6. The reason for the extra costs - UZ for too long agrees the expected cost of fuel. At Ukrzaliznytsya at that moment it is 21.7 thousand UAH per ton.
Only the appearance on the market of another powerful player - Trade Commodity - allows the railways to buy diesel at a price of 18.5 for the market value of 19.6 thousand. UAH
Seven of the following procedures are canceled by the AMC decisions: market participants use the fact that the tender documentation is complicated and requires a large number of documents, certificates, certificates, etc. And since the documents of the participants are visible to everyone, experienced lawyers easily find the reasons for challenging the procedure. This is the situation in favor of WOG and Trade Commodity, which are trying to topple UZ to the "needle" of diesel fuel loans.
We understand that the best way to overcome the problem is to destroy its cause. And we radically simplify the tender documentation. Now, participants are only required to declare that their fuel meets all technical requirements. This will be checked when supplying the goods to the railway.
In addition, we have achieved a revision of the expected cost of diesel fuel. It also showed traders that UZ no longer agrees to buy diesel at an overpriced price.
As a result, 8 procedures under the new documentation allowed to participate in the tender for a larger number of participants. Record - 7 companies. Secondly, competition reduces the price of fuel.
And although our old friends - WOG and Trade Commodity - become winners, they no longer earn U.S. super profits. The calculations show that, in comparison with the average price on the market, these eight procedures will give Ukrainian Railways savings of at least UAH 150 million. "
As a result, Mr. Shergin summarizes:
"Paper tenders artificially restrict competition and forced Ukrzaliznytsya to buy diesel fuel more expensive than average market prices. Losses - not less than 200 million UAH.
Automatic switch to Prozorto did not give the expected result. On the contrary, the openness of the documents of competitors allowed traders to block the tenders with their complaints in the Antimonopoly Committee and to make UZ their hostage.
A radical simplification of the documentation and requirements of the participants has allowed to increase competition. Ukrzaliznytsya finally began to buy diesel at the best price in the market. Estimated savings on the results of the last 8 auctions is not less than 150 million UAH. "
As you can see, a simple transition to a system of electronic procurement is not yet a panacea for market injustice, corruption, dishonest play of suppliers and monopolists. A smart procurement approach involves detailed work on a specific case, work with documentation, proper planning and risk elimination. Each particular case is a separate story of success or experience - this is exactly the approach and promotes the team SmartTender.biz.
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