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The new version of the law provides for increased liability for gross violations of tender legislation.
Ukraine's state-owned enterprise ProZorro says a new version of the law on public procurement came into force on April 19, which provides for a decrease in the lower threshold for mandatory state procurement via the ProZorro public e-procurement system from UAH 200,000 (US$7,353) to UAH 50,000 (US$1,838).
According to the previous version, customers could sign procurement contracts for sub-threshold amounts with the supplier directly, ProZorro's press service said on April 17.
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ProZorro emphasizes that legislative changes will open more than 250,000 purchases for participants, as well as open businesses' access to an additional market of UAH 30 billion (US$1.1 billion).
In addition, the new version of the law provides for increased liability for gross violations of tender legislation. In particular, if customers unreasonably rejects a bid and the State Audit Service confirms this, they are subject to a fine worth from UAH 25,000 (US$919) to UAH 51,000 (US$1,875). If a government agency concludes an agreement without observing the tender procedures prescribed by law, their CEOs shall be fined in the amount worth from UAH 34,000 (US$1,250) to UAH 85,000 (US$3,125). Fines imposed on customers for insignificant procedural violations are reduced from UAH 11,700 (US$430) to UAH 1,700 (US$63).
Moreover, bidders who win tenders will be able to correct minor errors in their tender offers within 24 hours from the date when they are named winners.
The new version of the law also provides better tools for appealing tender procedures in the Antimonopoly Committee of Ukraine (the fee for an appeal will be reimbursed to businesses in full if it is satisfied by the Antimonopoly Committee of Ukraine). The document improves the protection of customers from dumping (ProZorro will highlight the offers of bidders whose bids will be 30%-40% lower than the nearest ones offered by competitors, after which a customer may require price justification from such bidders). The amended law also envisages the operation of a quick alternative for small sub-threshold purchases, that is ProZorro Market (for the purchase of fuel, stationery, equipment, medical devices, foodstuff, etc.), as well as gradual change of collective decision making to personal one.
As UNIAN reported earlier, on September 19, 2019, the Verkhovna Rada, Ukraine's parliament, passed bill No. 1076 in the second reading to amend the law on public procurement and certain relevant legislative acts regarding the improvement of public procurement.
Ukrainian President Volodymyr Zelensky signed the bill into law on October 16, 2019.