New Electronic Purchase System Helps Ministry of Finance Reduce Price of Subthreshold of State Procurement by up to Half

7/9/15

The Ministry of Finance is transitioning to an electronic document flow and implementing electronic state subthreshold procurement in order to increase the transparency and efficiency of the state budget. The goal of the transition is to create a more transparent process, by allowing public access to state expenditures, contributing to an increase in trust amongst business and help in the fight against corruption.

In May 2015, the Ministry of Finance signed agreements with two electronic trade platforms – SmartTender.biz.ua and E-Tender – in order to carry out electronic procurement using the ProZorro system, which simplifies access of small and medium businesses to state trade, allowing for more economical spending, fair competition and proper controls over the process. Citizens, activists and journalists alike can check online to see who has won the tender, which offers are on the table, and who won the bid. Also, the Ministry of Finance makes subthreshold procurements (the total cost less than 100,000 UAH for goods and 1 million UAH for service without VAT)

At the end of June 2015, the Ministry of Finance carried out its first electronic subthreshold procurement for detergents and abstergents (Purchase №002529), with an expected price of 98,300 UAH. Six Ukrainian companies participated in an electronic auction, during which the offer price was between 42,000 and 97,000 UAH. Following all necessary procedures under the electronic procurement system, a bid of 42,300 UAH from LLC B Tu B Express was selected. The project agreement is currently being prepared. As a result of the new electronic procurement system, the Ministry of Finance could potentially halve its costs and ensure greater transparency in purchasing. The Ministry intends to carry out electronic subthreshold procurements of the office supplies and maintenance of air conditioning systems in the near future.

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