Government Procurement Agreement Ukraine
Ukraine’s history of joining WTO GPA 7th Mar. 2014 Ukraine’s first revised proposal circulated 2011 Ukraine submits application to join GPA
2011
2012
28th Oct. 2014 Ukraine’s second revised proposal circulated 2013
Aug. 2011 & Dec. 2012 Ukraine answers the question checklists and submits initial proposal
2014 27th Apr. 2015 Ukraine’s third revised proposal circulated
29th Jun. 2015 Ukraine’s final proposal circulated
2015
11th Nov
2015 Ukraine’s accession terms approved
18th May 2016 Ukraine became GPA member
2016
16th Mar. 2016 Rada ratifies agreement 2
GPA is a much needed tool
$1.7
trillion
Plurilateral agreement under the WTO Agreement. Mutually open government procurement market among its parties. GPA market value = approx. $1.7 trillion.
Closing of Russian market. Ukrainian exporters need to export to new markets. GPA can be a powerful tool to do this.
Easiest access to foreign markets. NO Local office NO Ad expenditures NO Retail setup
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GPA Members and observers 45 Members EU-28, USA, Canada, Armenia, Bulgaria, Romania, Croatia, Hong Kong, Iceland, Israel, Japan, Rep. of Korea, Liechtenstein, Montenegro, Aruba, New Zealand, Norway, Singapore, Switzerland, Taipei, (Ukraine).
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GPA thresholds start at â‚Ź 130,000 Generally applicable thresholds 2016-2017 Central government entities
Sub-central government entities
Other entities
Goods and Construction Goods and Construction Goods and Construction Services Services Services Services Services Services
Special Drawing Rights (SDR)
130,000
5,000,000
200,000
5,000,000
400,000
5,000,000
EURO (â‚Ź)
135,000
5,225,000
209,000
5,225,000
418,000
5,225,000
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Non窶電iscrimination 1. Suppliers wishing to sell goods, services and construction services from other GPA Parties to the government may not be discriminated against, have to be treated the same as national companies. 2. Companies from different GPA Parties have to be treated the same. 3. Foreign direct investment is welcome: No discrimination on the basis of foreign affiliation. 4. No offset requirements allowed: e.g. no local content or other discriminatory conditions. 6
Compete on a level playing field 1. Selection of participating suppliers -
according to pre-determined, limited and objective conditions for participation (read Article VIII:3+4)
-
Not allowed: Previous awards in the same country as requirement. But: experience requirement possible
-
Experience abroad needs to be taken into account
2. Conditions for participation must be published in notices or tender documentation. -
Only published conditions may be taken into account!
3. Examples of grounds for exclusion -
Bankruptcy, false declarations, performance deficiency in prior contract, professional misconduct, non-payment of taxes 7
Technical Specifications (Article X) Prohibition to use technical specifications to create unnecessary obstacles to int’l trade Goal: objective, non-discriminatory technical specifications, fair competition
Details •
Set out in terms of performance and functional requirements
•
Based on international standards, if they exist
•
If narrow/descriptive etc., use “or equivalent”
•
No advice from persons with comm. interest
•
Allowed: promotion of conservation of natural resources, protection of the environment
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Transparency: what, when and how • Date of delivery/supply of services (Article X:8) - Complexity of procurement, extent of subcontracting, realistic production, destocking, transport times to be taken into account • Evaluation criteria - May include: price/other cost factors, quality, technical merit, environmental characteristics, terms of delivery - Value for money • Who gets the information? (Art. X:10) - any participating supplier, any supplier requesting to participate, no competitive advantage accorded to any one supplier
Non-discrimination, fair competition 9
Realistic time frames Sufficient time for preparation & submission of tenders (Article XI:1) • Nature and complexity of procurement, extent of subcontracting, time needed to transmit tenders have to be taken into account. • Same time period for all suppliers. Deadlines •
Selective tendering: min. 25 days for request for participation, state of urgency: min. 10 days
•
Submission of tenders: 40 days from publication of notice/invitation to submit tender, min. 10 days if notice of planned procurement, recurring contracts, state of urgency,
•
Reduction possible if use of electronic means. 10
Fair Results •
Award to the tenderer that̆: I.
has been determined as fully capable of undertaking the contract and
II.
is most advantageous according to the evaluation criteria as set out in the tender documentation, or
III.
has submitted the lowest price (if only price as evaluation criterion)
• Possibility to exclude tenders that do not fulfil requirements set out in notices & tender documentation or by supplier that does not satisfy conditions for participation. • Verification if abnormally low price. • No options, cancellation, modification of awarded contracts in a manner that circumvents the obligations under the GPA. 11
Where to find tender calls?
EU
www.ted.europa.eu
USA
www.fbo.gov
Canada www.buyandsell.gc.ca Japan
www.jetro.go.jp
Full list of national platforms can be downloaded from: https://goo.gl/uTrVQP 12
Top 10 products in cross-border PP by value Poland
Slovakia
№ Name of product Pipeline, piping, pipes, casing, tubing and 1 related items Railway and tramway locomotives and 2 rolling stock and associated parts 3 Pharmaceutical products 4 Diesel oil 5 Rolling stock 6 Distribution boxes 7 Natural gas 8 Electricity, heating, solar and nuclear energy 9 Taps, cocks, valves and similar appliances 10 Broken and crushed stone
CPV
%
44160000
47.90
34600000
4.45
33600000 09134100 34620000 31213100 09123000 09300000 42130000 14212300
4.13 3.01 2.56 2.22 1.77 1.69 1.38 1.14
Hungary CPV 34144900
% 64.63
2 3 4 5 6 7 8
Medical equipments Petroleum and distillates Electricity Diesel fuel (EN 590) Photocopiers Natural gas X-ray contrast media
33100000 9130000 9310000 9134220 30121100 9123000 33696800
12.13 4.35 3.75 3.31 3.16 1.10 0.76
9
Miscellaneous structures
44212320
0.62
33600000
0.52
Source: TED 2015
CPV % 9310000 11.03
2 3 4 5 6
33140000 9132100 9134100 32571000 33182100
Medical consumables Unleaded petrol Diesel oil Communications infrastructure Defibrillator Medicinal products for the blood and 7 blood-forming organs 8 Catheters 9 Natural gas 10 Angioplasty supplies
10.16 8.80 7.89 6.31 5.12
33621000 4.93 33141200 4.66 9123000 3.60 33111730 3.43
Romania
№ Name of product 1 Electric vehicles
10 Pharmaceutical products
№ Name of product 1 Electricity
№ Name of product 1 Diesel fuel (EN 590) 2 Particle accelerators Antineoplastic and immunomodulating 3 agents 4 Antineoplastic agents 5 Medical equipments 6 Laboratory reagents 7 Blood-testing reagents 8 Diesel fuel 9 Microwave radio equipment 10 Various medicinal products
CPV 09134220 31643000
% 11.36 6.99
33652000
4.82
33652100 33100000 33696500 33696200 09134200 31711423 33690000
4.46 3.98 3.67 3.14 3.08 3.07 2.83 13
Top 10 products by number of contracts in cross-border PP Poland № Name of product 1 Pharmaceutical products Disposable non-chemical medical 2 consumables and haematological consumables 3 Various medicinal products 4 Medical equipments 5 Antineoplastic agents 6 Laboratory reagents 7 Surgical sutures 8 Medical consumables 9 Dressings (medical equipments) Antineoplastic and immunomodulating 10 agents
Slovakia CPV % 33600000 25.76 33141000
5.30
33690000 33100000 33652100 33696500 33141121 33140000 33141110
4.09 3.14 2.67 2.50 2.39 2.02 1.83
33652000 1.82
Hungary № Name of product Food, beverages, tobacco and related 1 products 2 Pharmaceutical products 3 Various medicinal products 4 Angioplasty devices 5 Medical equipments 6 Electricity 7 Miscellaneous food products 8 Photocopiers Laboratory, optical and precision 9 equipments (excl. glasses) 10 Natural gas
Source: TED 2015
№ 1 2 3 4
Name of product Pharmaceutical products Catheters Medical consumables Angioplasty supplies Occupational clothing, special workwear and 5 accessories Medicinal products for the blood, blood6 forming organs and the cardiovascular system 7 Cannulae 8 Surgical implants 9 Infusion solutions 10 Electricity
CPV % 33600000 18.81 33141200 6.57 33140000 6.27 33111730 4.35 18100000 4.15 33620000 4.04 33141220 33184100 33692100 9310000
3.64 2.73 2.43 2.43
Romania CPV
%
15000000 15.06 33600000 33690000 33111740 33100000 9310000 15800000 30121100
12.40 7.16 6.10 4.90 4.83 3.22 1.39
38000000 1.30 9123000
1.24
№ Name of product 1 Antibacterials for systemic use
CPV % 33651100 20.80
2
33600000 10.43
3
Pharmaceutical products
Various medicinal products Medicinal products for functional 4 gastrointestinal disorders 5 Blood-testing reagents 6 Antihaemorrhagics 7 Syringes 8 Antineoplastic agents 9 Laboratory reagents 10 Laboratory glassware
33690000 7.93 33612000 7.48 33696200 33621200 33141310 33652100 33696500 33793000 14
6.69 6.17 2.49 2.41 2.11 2.08
Ukrainian companies already won foreign tenders in the past CPV
Product
Company
2009 Bulgaria
34622300
Trolleybuses
2009 Poland
34940000
Railway equipment
Ukrainian Commercial Kyiv Automobiles Kakhovka plant of electric welding Kakhovka, Kherson equipment region
2009 Hungary
42113000
Parts of turbines
2009 Germany
34631000
Donetsk
228,600
2010 Lithuania
34631100
Parts of locomotives or rolling Promtrans stock Monobloc wheels
Dnipropetrovsk
149,760
2012 Poland
55000000
Lviv Chamber of Commerce
Lviv
42,221
2012 Poland
79000000
Hotel, restaurant and retail trade services Business services: law, marketing, consulting, recruitment, printing and security
Courier Galician
Khorosno, Lviv region
11,305
2013 Poland
79210000
2013 Bulgaria
34120000
Turboatom
Accounting and auditing DK-Ukraine (audit) services Motor vehicles for the transport LAZ of 10 or more persons
Town
Total Final Value (Euros) 1,021,982
Year Country
Kharkiv
665,496
2,098,629
Lviv
N/A
Kyiv
1,405,800
And that is even before GPA! 15
Ukrainian exporters show much interest, but need support
93% have potential commercial interest in the markets of member countries of the WTO Agreement on Government Procurement
88% unaware of English language information resources of WTO on WTO GPA information on foreign purchases on the website MEDT
73% Of correspondence say they don’t have a maximum or minimum limit of tender value to participate
92% Require advice on finding relative tenders, documentation and participation
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GPAinUA – supporting project office GPAinUA Office - a professional independent institution that ensures the creation of an ecosystem for effective participation of Ukraine in GPA markets; acts as a trusted advisor to MEDT in matters of strategy and international trade policy in the field of public procurement
GPAinUA Office: •
Support of Ukrainian exporters on their access to the public procurement markets of GPA member countries
•
Support of importers from GPA member countries on their participation in public procurement in Ukraine
•
Provides development of consulting services market to support the participation of Ukrainian exporters in the public procurement of GPA member countries
•
Supports MEDT regarding international trade strategy and policy in the field of public procurement
•
Collaborating with MEDT and Ministry of Foreign Affairs on cooperation issues with governments of GPA member countries. 17
GPAinUA clients Ukrainian exporters:
Foreign exporters (from GPA parties):
- Companies that already participated in public tenders abroad - Export companies - Companies that are potential exporters in terms of GPA
- Companies that already participated in Ukrainian public procurement - Companies that didn’t participate in Ukrainian public procurement
Ukrainian public bodies:
Foreign public bodies:
-
-
The MEDT The MEDT units Other central executive bodies Ukraine’s diplomatic missions abroad (trade & economic representatives)
Public Procurement Offices in the GPA parties Dedicated WTO committees The EU Commission Trade and economic missions / foreign trade representative offices of the GPA parties - International financial institutions
Business partners: -
Law firms Translation agencies Export consultants Analytical agencies Business schools and higher education institutions
- e-Procurement and tender platforms, notice boards (e-GPA) - Ukrainian business associations - Foreign business associations
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GPAinUA concept model
KEY: Local exporters
Single entry point for: domestic exporters, importers from GPA members, domestic and foreign business associations, business schools and universities, the media, Promoting the idea of participation in foreign public procurement Providing general information on participation in public procurement, including information on professional intermediaries
• Consulting on entering government procurement markets of other countries • Database of trusted professional intermediaries • Development training for local exporters (together with intermediaries) • Analysis of barriers and help in resolving disputes in GPA
PR/communication/education
Support of domestic exporters
Analytics and strategy
• Identify promising foreign public procurement markets • Analytical support of MEDT in shaping Ukraine’s export strategy in public procurement • eGPA strategy development
Support of external exporters
Cooperation with governments of GPA members
GPA member importers MEDT and other state institutions, diplomatic missions Intergovernmental and foreign government agencies Business associations, educational institutions and professional intermediaries
• Consulting on entering Ukraine’s government procurement market • Database of trusted professional intermediaries • Help in resolving disputes
• Support for MEDT in international negotiations • Cooperation with Ukraine's diplomatic missions abroad 19 • Cooperation with the Offices of Public Procurement of GPA members 7
eGPA – a single information point
Tender listings from
Guides on participation in public procurement of GPA members
GPA members:
WTO eGPA Hub
Database of partners and professional intermediaries
Statistics and analytics
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Contacts
Alexei Mikhailitchenko mikhailitchenko@me.gov.ua facebook.com/gpainua
gpainua@gmail.com 11