scholarly journals Public Procurement Development: from the Past to the Present

2021 ◽  
Vol 26 (1) ◽  
pp. 129-134
Author(s):  
Tetyana Pisochenko ◽  
◽  
Kateryna Tishechkina ◽  
Semen Yunoshev ◽  
◽  
...  
Keyword(s):  
Public Procurement ◽  
Electronic System ◽  
The State ◽  
The Public ◽  
Electronic Procurement ◽  
Future Developments ◽  
Innovative Solutions ◽  
The Law ◽  
Procurement System ◽  
Weak Independence

Abstract. Introduction. Any political system exists as a set of institutions and organizations that are collectively responsible for social organization and assuming various managerial functions. Since the fundamental task of the state is to ensure sustainable economic development, the processes that can ensure certain economic shifts are almost a defining component of economic policy and are urgent. Ukraine, striving for real change, did not miss this trend of change, as the political bankruptcy of the state apparatus led to weak independence, and a huge corruption component exhausted the economy and brought Ukraine to the brink of economic crisis. The decisive way to solve this problem was the renewal of the public procurement system, governed by specific regulations, and its transfer from the shadow format to the electronic one in 2016 for public availability. An e-procurement system is a tool for detecting and combating corruption through numerous tools for monitoring and analyzing public procurement. In addition, the system is unique in its structure, since it works in cooperation with three parties – government, business, and the public. Purpose. The purpose of the article is to study and compare the laws of Ukraine "On public procurement" that were in force until 2021 and the new law that came into force on 01.01.2021. Fundamental amending and supplementing to the articles of the law are subject to assessment. Results. The issue of current innovations in the public procurement sector is investigated. The historical development of the implementation of the public procurement system on the example of "Prozzoro" is highlighted. The paper deals with the cycle and the process of implementation of public procurement, the structure of the electronic system of public procurement. The general state of functioning of electronic procurement in Ukraine and tools of the e-procurement analytics module is analyzed. Public procurement procedures contribute to the provision of society with goods, works, and services in the required quantity and quality on time and acceptable contractual relations. It is difficult to imagine the development of economic prosperity without the full functioning of the mechanism of transparent public procurement, which can ensure uninterrupted interaction between all representatives of the economic system at the macroeconomic level. The Law of Ukraine "On Public Procurement" and some other legislative acts of Ukraine on strengthening control and responsibility for violations of legislation in the field of public procurement, ensuring proper protection of the rights of public procurement participants are analyzed. The prospect of further research is to consider the content and evaluation of innovations in the Law of Ukraine "On Public Procurement" and objective conclusions regarding innovative solutions and future developments. Conclusions. The most significant achievements in the development of the public procurement system in Ukraine were achieved in the period 2016-2021 since the enactment of the Law of Ukraine "On Public Procurement" and the introduction of the electronic procurement system ProZorro. To this date, the achievements in the field of reforming the public procurement system are noticeable to the general public, because the disclosure of the system has increased the level of knowledge of citizens in this area. However, there are gaps in the legislation that do not exclude the possibility of abuse by individual bidders. This necessitates further scientific research towards the development of the public procurement system in Ukraine. The prospect of further research is to consider the content and evaluation of innovations in the Law of Ukraine "On Public Procurement" and objective conclusions regarding innovative solutions and future developments.

scholarly journals STANDARDIZATION OF PUBLIC AUDIT OF PUBLIC PROCUREMENT IN UKRAINE THROUGH THE INTRODUCTION OF COMPLIANCE AUDITS

2020 ◽  
pp. 156-174
Author(s):  
Nataliya ZDYRKO
Keyword(s):  
Public Procurement ◽  
The State ◽  
International Standards ◽  
The Public ◽  
Electronic Procurement ◽  
State Audit ◽  
Financial Audit ◽  
Compliance Audit ◽  
Audit Standard ◽  
Procurement System

The independent legislative agency of Ukraine according to the international standards ISSAI in private carrying out of the state audit (including the published purchases) is made. It is established that international practice has identified three components of public audit: performance audit, financial audit and compliance audit. The necessity of standardization of the state audit of public procurements through legislative fixing of audit of conformity is proved. The main objects of compliance audit are proposed: the activities of the customer (participant), public resources and the activities of responsible government agencies. Recommended main directions and procedures for compliance audit for each object and by stages of the life cycle of procurement items. Features of the audit of compliance of redistribution by the customer of various receipts for public procurement are considered. Features of audit procedures for different types of public procurement are identified. The recommended procedure and algorithm for auditing the correctness of determining the subject of procurement from the customer. The main mistakes and violations of the participants, which take place during the audit of compliance with public procurement, have been identified. The peculiarities of compliance audit at the stage of public procurement planning, pre-contractual and contractual relations in the electronic procurement system, as well as at the stage of use of procurement items are highlighted. It was emphasized that the responsible body should regulate issues related to the functioning of the electronic information system, platforms and web portal in the field of public procurement. The key elements of the Public Procurement Compliance Audit Standard (purpose, objectives, subject, objects, subjects, stages, methods, principles) are proposed.

scholarly journals Features of using the electronic system ProZorro in public procurement in Ukraine: problems and ways to overcome them

2021 ◽  
pp. 100-113
Author(s):  
Natalia Ponomarenko ◽  
Christina Voznyakovska ◽  
Julia Nemish
Keyword(s):  
Law Enforcement ◽  
Research Methods ◽  
Positive Impact ◽  
Public Procurement ◽  
Electronic System ◽  
Tender Offers ◽  
The Public ◽  
General Scientific ◽  
The Law ◽  
Procurement System

Summary The purpose of the article is to study the problematic aspects of the functioning of the electronic public procurement system ProZorro in Ukraine and to develop proposals for minimizing abuses in the field of tender procedures. Research methods: The article uses general scientific research methods, in particular: synthesis analysis – in the study of scientific literature and determining the features of the electronic public procurement system ProZorro; economic and statistical analysis and comparison – with indicators of public procurement in Ukraine; generalization – when developing recommendations for minimizing abuses in the field of public procurement within the electronic system ProZorro. Scientific novelty: is to determine the main mechanisms of abuse in the field of public procurement in order to obtain illegal benefits: the fragmentation of contracts and the development of sub-threshold trade procedures and justification of ways to minimize them. In particular, in the article It is substantiated that non-competitive tender offers carry high corruption risks and lead to inflated prices for the supply of goods, services and works. It is proposed to amend the Law of Ukraine «On Public Procurement» in order to prohibit the conclusion of additional agreements after the tender; prohibition to change the conditions of the tender and tender documentation after the announcement of tenders; prohibitions to combine goods into one lot and set maximum payment terms for delivered goods for more than 30 calendar days. Conclusions: The study concludes that the electronic public procurement system ProZorro has a positive impact on the development of public procurement in Ukraine, as it increases the transparency of bidding and tender procedures, expands opportunities for participation in tenders of small and medium-sized businesses and more. However, shortcomings, first of all, in the law enforcement and judicial system of Ukraine are caused by frequent cases of corruption schemes in the public procurement system both within the ProZorro system and outside it. Elimination of corruption schemes in the public procurement system is possible subject to amendments to the Law of Ukraine «On Public Procurement». Keywords: public procurement, ProZorro, tender, tender offer, electronic bidding, competitive and non-competitive procedures.

scholarly journals Digitalisation of public procurement: The case study of Ukraine

2019 ◽  
Vol 53 (3) ◽  
pp. 61
Author(s):  
Nataliya Synyutka ◽  
Oksana Kurylo ◽  
Mariya Bondarchuk
Keyword(s):  
Public Procurement ◽  
Synthesis Method ◽  
Electronic System ◽  
Theoretical Background ◽  
The Public ◽  
Electronic Procurement ◽  
Public Consumption ◽  
Procurement Procedure ◽  
Procurement System ◽  
The Impact

<p><strong>Theoretical background</strong>: There is an ongoing global acceleration of automation and digitalisation in financial processes, which points to significant changes in public spending policies. After an analysis of several scientific studies, fundamental approaches have been elaborated to understand public consumption and the system of state purchases. The basic hypothesis for this research was to study the possible impact of the electronic procurement market ProZorro on state purchases in Ukraine. Possible directions are: increasing competitiveness, optimising state expenditures and saving the budget funds of public services based on innovative digital technology.</p><p><strong>Purpose of the article</strong>: The main goal is to investigate the impact of the electronic public procurement system ProZorro on corruption and bureaucracy in the public sector of Ukraine. The study object is an analysis of the volume and structure of the public procurement market, the number of procedures and participants in a bidding process, and the savings amounts in ProZorro’s public purchases during the study period in Ukraine.</p><p><strong>Research methods</strong>: The following methods were used during the research of the Ukrainian electronic procurement system: dialectical method; analysis and synthesis method – for a comparison of certain types of public procurement; subthreshold and suprathreshold statistical methods – for analysing the dynamics of indicators of the domestic system of public procurement during the period under research for a comparison of the indicators of public consumption of certain ministries and departments, different regions and territorial entities; structural and logical analysis – for generalising the theoretical and methodological principles of building a public consumption system in Ukraine. The main source of data was the data and analytical base of the ProZorro electronic public procurement system.</p><p><strong>Main findings</strong>: Effects of the innovative digital paradigm on the transparency and efficiency of public procurement are determined. Considerable attention is paid to the implementation of the electronic public procurement system ProZorro in Ukraine. The expediency is substantiated for its implementation in the national practice of budget expenditures, and the principles and procedures of implementation are analysed. The practice and dynamics of the public procurement market in Ukraine are summarised. The conclusions of the advantages of electronic system are provided, including transparency and impartiality, stimulation of competition and non-discrimination of bidding participants, reduction of corruption and the effect of reducing the savings of budget funds. Potential risks, threats and disadvantages of the ProZorro system in Ukraine are highlighted. Among them are: a high proportion of non-competitive procedures; possible latent conflict regarding the participants’ interests; unreasonable time spent on individual procedures; the justification of the procurement procedure to one participant due to a dubious “urgent need”; unreasonable application of the procurement procedure to one participant due to the falsification of conditions or the division of the procurement subject; the existence of discriminatory requirements in the documentation of competitive bidding; and a lack of efficiency in the complaints handling mechanism.</p>

scholarly journals Risk-based assessment model of the state and municipal procurement system

2019 ◽  
Vol 110 ◽  
pp. 02090 ◽  
Author(s):  
Elena Karanina ◽  
Ksenia Kartavyh
Keyword(s):  
Public Procurement ◽  
The State ◽  
Assessment Model ◽  
Government Contracts ◽  
Loss Minimization ◽  
Case Scenario ◽  
Public Funds ◽  
The Public ◽  
Funds Management ◽  
Procurement System

Every year, the volumes of funding in the sphere of provision of state and municipal demand increases significantly. Achieving the effectiveness of government contracts is one of the main and “eternal” problems of public funds management. For public procurement to be effective, it is necessary to meet the needs of the relevant actors, i.e. society, the state, and the private sector. In order to make a qualitative forecast of the results of public procurement placement, the development and implementation of measures aimed at improving the public procurement system, it is necessary to assess the current situation of manifestation of risks arising from the procurement of goods, works and services for state and municipal needs. For this purpose, a risk-based model for assessing the system of state and municipal procurement has been developed, which allows disclosing the nature of the risks of the procurement cycle fully and identifying a case scenario for choosing a way to loss minimization.

scholarly journals Public Expenditures Through Public Procurement

2018 ◽  
Vol 2 (2) ◽  
pp. 39-48
Author(s):  
Azem Duraku
Keyword(s):  
Public Procurement ◽  
Equal Treatment ◽  
Public Expenditures ◽  
Freedom Of Establishment ◽  
The Public ◽  
Electronic Procurement ◽  
Treaty Of Rome ◽  
Public Money ◽  
The Right ◽  
Procurement System

Abstract Treaty of Rome of 1957 and following treaties on amending the Treaty of Rome contain a number of basic principles on which the EU is founded. Among these principles, the most important ones related to the public procurement are: prevention of discrimination based on nationality, free movement of goods; right and freedom of establishment of a business; the right to provide services. Spending of public money in Kosovo pursuant to the Law on Procurement is found on the following principles: economization and efficiency; equal treatment and non-discrimination; transparency; value for money. The average of open procedure application in EU countries is 73% based on notices, whereas in Kosovo is 82.80% based on notices. In the end of 2014, Kosovo commenced the development of electronic procurement platform. This project takes place within the Public Sector Modernization Project. The importance of the electronic procurement is stated in the statement of European Commission: “Modernization and opening of procurement markets across borders - including through the electronic procurement expansion - are crucial for the competition in Europe and creating new opportunities for businesses in EU”. A good procurement system in Kosovo will have an impact on elimination of negative phenomena (corruption and bad management) in the management of public expenditures from spending agencies, as well as an impact on increase of budget saving.

scholarly journals Modern system of state procurement in ensuring innovative development of economics

2018 ◽  
Vol 11 (3) ◽  
pp. 242-248
Author(s):  
T. S. Kolmykova ◽  
E. V. Semenikhina ◽  
E. A. Alpeeva
Keyword(s):  
Public Procurement ◽  
Great Influence ◽  
The State ◽  
Economic Research ◽  
Federal Law ◽  
The Public ◽  
Modern System ◽  
Innovative System ◽  
Modern Economic ◽  
Procurement System

Public procurement is a category of the modern economic system. They have a great influence on the formation of the innovative potential of the country and the regions. The state has a powerful management impact due to the modern system of public procurement. The state optimizes budget expenditures, minimizes uncontrolled costs, regulates prices for socially and economically important groups of goods. Public procurement is a complex innovative system. It includes elements: planning, formation and carrying out of purchases, the conclusion of the contract, the control of fulfillment of obligations between the customer and the supplier. The procurement system unites relations between authorities, legal and private persons. The process of public procurement is complex. He constantly undergoes changes and additions. According to the current Russian legislation, the procurement of goods, works or services is divided according to the subject matter into two groups: 1) purchases carried out by government customers to ensure state and municipal needs, controlled by Federal Law No. 44-FZ of 05.04.2013, and 2) carried out by certain types of legal entities or corporate purchases, controlled by Federal Law No. 223-FZ of July 18, 2011. State and municipal procurement are a tool for effective impact on the development of the economy. They perform the most important functions: regulative, reproductive, stimulating, social, innovative. Thus, the study of the public procurement system today is a significant and relevant issue in the field of economic research.

scholarly journals Practical aspects of assessing the efficiency of the modern system of public procurement in Ukraine

2018 ◽  
Vol 16 (2) ◽  
pp. 353-363 ◽  
Author(s):  
Bohdan Dmytryshyn ◽  
Ruslana Zhovnovach ◽  
Oleksandr Levchenko ◽  
Yurii Malakhovskyi ◽  
Viktoriya Gonchar
Keyword(s):  
Public Sector ◽  
High Efficiency ◽  
Public Procurement ◽  
Logistics System ◽  
Public Funds ◽  
The Public ◽  
Electronic Procurement ◽  
Before And After ◽  
The Individual ◽  
Procurement System

The issue of reforming the institute of state (public) procurement is one of the key directions of the modernization of the administrative sector of our state. Increasing the efficiency of this institute should be recognized as one of the conditions for ensuring stable economic growth. In this regard, issues relating to the assessment of the efficiency of the use of public funds are of particular interest. The indicators of the efficiency of the activity of the public procurement sector in Ukraine in the context of the introduction of the “ProZorro” electronic procurement system are calculated and analyzed. The existing works of the individual scientists in the direction of developing indicators of the efficiency that can be used to evaluate the results of the operation of the procurement logistics system in the public sector in Ukraine are generalized. As a result, approaches have been identified that can be used to determine the effectiveness of the participation of customers, private sector representatives and the system of electronic public procurement in general. On the basis of retrospective data of past years and the first half of the current year, a number of estimates of absolute and relative savings, as well as indicators of the effectiveness of the open bidding in the public sector of Ukraine have been identified. The dynamics of these indicators before and after the introduction of the “ProZorro” electronic procurement system was analyzed. The analysis shows that the first results of the functioning of the “ProZorro” system demonstrate the existence of negative trend of competition and reduction in the amount of savings in public funds. Ensuring high efficiency and competitiveness, integrity and transparency of the procurement process are the main tasks of the Ukrainian government in the field of public procurement. The authors argue that the introduction of the “ProZorro” system can help to solve them successfully, and the application of the analytics module enables to calculate the savings from the use of this system.

scholarly journals The State regulation of Public Procurement in Ukraine in the Context of Reforms and Integration Processes

2021 ◽  
Vol 2 (517) ◽  
pp. 35-40
Author(s):  
O. I. Laiko ◽  
Keyword(s):  
National Economy ◽  
Public Procurement ◽  
State Regulation ◽  
The State ◽  
Added Value ◽  
The Public ◽  
Goods And Services ◽  
International Distribution ◽  
Procurement System ◽  
The Impact

The article is concerned with topical issues of the State regulation of public procurement in Ukraine in the context of reforms and integration processes. The conceptual principles of regulation of the public procurement system have been formulated, taking into account the requirements and challenges of modern processes of reforms of the national economy and the implementation of the European integration vector. The public procurement system is considered as a new institutional unit in the national economy – the market for goods and services to the State-owned institutions and organizations with the involvement of budgetary funds. The significance of the public procurement system for the country’s economy as an environment for financing and implementing entrepreneurial initiatives aimed at creating high-quality goods and services, which is characterized by volumes equal to 15% of GDP, is substantiated. The article is aimed at defining the theoretical-conceptual and applied principles of the State regulation of the public procurement system in Ukraine in the context of efficient implementation of reform goals and taking into account the impact and challenges from the active participation of the national economy in the international distribution of labor in the course of integration processes with the EU countries. The article defines the key directions of the State policy on the regulation of the public procurement system, which include: stimulating the economic development of the entrepreneurial sector and overall economic growth on the basis of sustainability and balance; support for the production of domestic goods and services with high added value; stimulation of production of goods and services using local resources; stimulating the creation by domestic producers of both goods and services of cooperation associations in order to use the opportunities for the distribution of labor to create more competitive products; supporting the formation of an economic basis for the development of territorial and economic entities in the regions of Ukraine. As for the above defined directions of the State regulation of the public procurement system in Ukraine, appropriate measures have been proposed, the implementation of which is expected to contribute to the strengthening of the national economy and does not contradict the provisions of ratified international agreements.

scholarly journals Public procurement in Ukraine: analysis of advantages and disadvantages

2021 ◽  
pp. 56-60
Author(s):  
O.A. Lahovska ◽  
S.F. Lehenchuk ◽  
S.V. Svirko
Keyword(s):  
Sustainable Development ◽  
Narrow Range ◽  
Public Procurement ◽  
The State ◽  
Government Agencies ◽  
State Budget ◽  
The Public ◽  
Advantages And Disadvantages ◽  
Complex Process ◽  
Procurement System

Public procurement is a complex process. With the help of public procurement, governments and government agencies purchase products, services, work, creating expenditures of the state budget and taxpayers. The purpose of implementing the e-procurement system was to reduce these costs and overcome the corruption component in this area. However, there are still many issues related to the inefficiency of certain components of this system. It is determined that domestic scientists identify a narrow range of benefits of the public procurement system, which is reduced to overcoming corruption and saving budget funds. The domestic scientists identify a narrow range of benefits from the use of public procurement. This is overcoming corruption and saving budget funds. In contrast, the foreign scientists see the public procurement system as an effective tool for sustainable development, innovation. The article analyzes the shortcomings and weaknesses of public procurement at each stage of their implementation, which allows identifying the main areas of improvement of the public procurement system, and summarizes the main advantages.

Electronic Procurement (E-Procurement) Implementation in Municipalities

2013 ◽  
pp. 220-238 ◽  
Author(s):  
Rugayah Hashim ◽  
Mohd Anuar Mazuki
Keyword(s):  
State Government ◽  
Central Government ◽  
Public Procurement ◽  
The State ◽  
Lessons Learned ◽  
Local Authorities ◽  
Electronic Procurement ◽  
Project Failures ◽  
Procurement System ◽  
Government Level

Local authorities or municipalities have different organizational structure and goals and as such implementing a customized information systems project requires a separate evaluation that would fit their needs. In the case of an electronic procurement (e-procurement) system, the implementation of this project at the central government level is not without challenges. Similarly, at the local government level, issues prevailed. Thus, this chapter highlights the issues encountered by twelve local authorities in the state of Selangor, Malaysia. The issues are broken down into four themes, namely, political, economic, social, and technological. It is important to note that local authorities fall within the jurisdiction of the state government; thus, more issues are abound particularly with regards to political interference. Nonetheless, the ultimate goal of having an online public procurement system is a win-win situation for both the local authority concerned and the vendors or suppliers. Hence, identifying the issues and learning from them will limit project failures or extended scheduling. Inherently, the implications of lessons learned from others who have implemented an online public procurement system will provide valuable guidelines for other lagging municipalities, yet at the same time, the late implementers will benefit more as they are able to avoid the pitfalls made by their counterparts that embarked earlier. In fact, the late-comers tend to achieve better success rate and report a significant return of investment.

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