YOUkraine. Because ProZorro: Professionalization of Procurement Function
Everything started here
PP was seen as synonym of corruption in Ukraine Estimation of losses in public procurement (PP)
10% 10% 250B UAH (ca 11B USD)
10% 10%
25B UAH (ca 1.1B USD) – conservative estimation of “corruption tax”
25B UAH (ca 1.1B USD) – losses caused by limited competition
At least 50B UAH (ca 2.2B USD) per annum – losses from corruption and limited competition
eProcurement system ProZorro developed in a year
March 2014 Volunteers’ team setup
August, 2014 Georgians & concept review
April-May 2014 First search & first concept
September, 2014 ePlatforms & final concept; first “seeding”
April, 2015 Volunteers move into gov’t June, 2015 First donor support
February, 2015 MVP development & launch
May, 2015 MinDefence & small procurements’ pilot
December, 2015 New Law on eProcurement approval
April, 2016 Law comes into force, system’s scale up 13
“Golden triangle of partnership” in the core Government: “the rules”, professionalization and data storage
Commercial platforms: CAs & suppliers acquiring and service
Civil Society: monitoring and control of procurement
Commercial platforms
13
First year: results
90k tenders
4980 contracting authorities
More than 12% savings on completed procedures USD 1.3B planned amount
2,84 average number of bids
16 325 suppliers
bi.prozorro.org
Prozorro recommended by EBRD as a reform model • ProZorro considered by EBRD as a recommended model for eProcurement reform • Ukraine won the World Procurement Award in the Public Sector nomination • National Council of Reforms recognized PP reform as the most successful one • ProZorro is a showcase & learning project of the Open Contracting Partnership
What are advantages of ProZorro •
Law initial cost
•
Law implementation and maintenance cost
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Better services, incl. training & legal support, due to competition among platform providers
•
Higher suppliers competition due to involvement of existing pools of suppliers registered on commercial platforms
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Higher resistance to corruption due to distribution of risk among various actors
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Additional statistical & riskmanagement tools
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Application of Open Contracting Data Standard
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Alignment with international legislation standards
13
ProZorro covers key procedures and functionalities Procurement Procedures Open Procedure (price & MEAT)
Competitive Dialogue Negotiation Procedure Framework Agreements
Dynamic purchasing system Electronic Catalogues
eProcurement Functionalities Web portal ePlanning eRegistration eAuthentification eNotification eNotices eAccess eSubmission/eTendering
available being developed now to be developed later
eEvaluation eAuction eAwarding
ePurchasing/eOrdering eInvoicing eContract Management
ePayments
All information is available for everyone
bi.prozorro.org provides all available information in a user-friendly format
Professional risk-management system developed
Automatic screening of a number of factors allows to identify corruption-prone tenders
New official web-portal with “Google”-like search
A variety of Partners makes the reform possible
All finance distributed through the Steering Committee Total amount of donations 764 800 USD
Steering Committee
Business donations WNISEF GIZ/DFID
+ 2 commercial platforms
Professionalization seen as a step-by-step process
Center of excellence
CPB
Online course
Platforms support
Regional presentations
Certification
ToT for consultants & civic activists
Knowledge database
eLibrary of typical specifications
Procurer is an unpopular profession No financial motivation
No specialized training centers Unstable legislation
1. No financial motivation Review of procurers remuneration In the meantime, simplification and automatization of processes: - customer-friendly platforms’ interfaces - service support from platforms - library of typical specificationsinfobox.prozorro.org/specifications
eLibrary of typical specifications
2. Unstable legislation
Online knowledge database infobox.prozorro.org - all legislation in one place - publications “for dummies� - course for self-attestation
All legislation in one place
Online course started
3. No specialized training centers
Market stimulation: - Negotiations with business schools and potential international partners - ToT, involving regional consultants & civic activists - Piloting CPBs
A detailed reform plan is developed for 2016
Hope to see you next year in Ukraine!
Thank you!
Web-portal Prozorro.gov.ua
Analytics Module Bi.prozorro.org
CA Support Infobox.prozorro.org