YOUkraine. Because ProZorro: Professionalization of Procurement Function

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

•

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