Business news from Ukraine

Business news from Ukraine

Prozorro Market has become mandatory tool for food procurement

10 February , 2024  

The Cabinet of Ministers of Ukraine has obliged institutions of education, health care and other state contractors carrying out public procurement for budget funds to buy a number of products from the electronic catalog if their cost exceeds UAH 100 thousand.

According to the Ministry of Economy, Relevant amendments to the decree № 1178 on the peculiarities of public procurement for the period of martial law, the government adopted at a meeting on Friday.

“The Ministry of Economy has analyzed what set of products is most often purchased by educational institutions, medical institutions, and proposed amendments to the current regulations designed to simplify the procurement of such products for customers and suppliers. The electronic catalog procurement mechanism is the most understandable and accessible, so we suggest that customers and suppliers use the electronic catalog when making purchases. The decision will also contribute to the prevention of possible abuses and reduce corruption risks in procurement,” explained Deputy Minister of Economy Nadezhda Bigun.

The list of goods to be purchased through the catalog includes, in particular, meat – chicken, pork, beef, frozen fish, eggs, milk and dairy products including sour cream and kefir, cheese products, beet sugar, pasta, flour and various cereals, vegetables and fruits – cabbage, beets, carrots, apples, potatoes, etc.

The electronic catalog Prozorro Market is part of the reforms in the field of public procurement and allows customers to conduct competitive procurement of typical goods in just nine days, collecting competition twice as high as during the classic tender procedure. The administrator of the catalog in terms of consumer goods, including food products, has been determined by the centralized procurement organization GU “Professional Procurement”.

“Prozorro Market is not only a fast, convenient, safe, with minimal expenditure of resources of the customer procurement method, but also one where the savings are three times higher than in open tenders. The amount of food purchases in the electronic catalog already exceeds 2 billion UAH, and during 2023 every third purchase in the system was made using our tool”, – said the director of the State Institution “Professional Procurement” Eugene Yakubovsky.

It is assumed that if the purchase by electronic catalog by request for proposals did not take place, the customer can conduct a purchase at open tenders, without increasing the expected value of the purchase. Or procurement by request for proposals, taking into account the peculiarities of public procurement during martial law.

By the same decision, the government prohibited the purchase of goods, works and services from individuals and legal entities from the Russian Federation, Belarus and Iran, from companies whose ultimate beneficiaries or owners of more than 10% of shares are citizens of these countries. Exceptions are citizens legally residing in Ukraine; assets of citizens from these countries in the companies-suppliers are transferred to ARMA; goods from the Russian Federation and Belarus are necessary for repair and maintenance of goods purchased before October 19, 2022.

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