YOUkraine. Because ProZorro: Professionalization of Procurement Function

Everything started here

25B UAH (ca 1.1B USD) – conservative estimation of

“corruption tax”

25B UAH (ca 1.1B USD) – losses caused by limited

competition

10%

10%

At least 50B UAH (ca 2.2B USD) per annum – losses from corruption and limited

competition

250B UAH(ca 11B USD)

10%

10%

Estimation of losses in public procurement (PP)

PP was seen as synonym of corruption in Ukraine

eProcurement system ProZorro developed in a year

13

March 2014Volunteers’ team setup

April-May 2014First search & first concept

August, 2014Georgians & concept review

February, 2015MVP development & launch

September, 2014ePlatforms & final concept; first “seeding”

April, 2015Volunteers move into gov’t June, 2015

First donor support

May, 2015MinDefence & small procurements’ pilot

December, 2015New Law on eProcurement approval

April, 2016Law comes into force, system’s scale up

“Golden triangle of partnership” in the core

13

Commercial platforms

Civil Society: monitoring and

control of procurement

Government: “the rules”,

professionalization and data

storage

Commercial platforms:

CAs & suppliers acquiring and

service

90k tenders

USD 1.3B planned amount

4980 contracting authorities

16 325 suppliers

More than 12%

savings on completed procedures

2,84average number of bids

bi.prozorro.org

First year: results

• 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

Prozorro recommended by EBRD as a reform model

What are advantages of ProZorro

13

• Low initial cost• Low implementation and

maintenance cost• 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

• Additional statistical & risk-management tools

• Application of Open Contracting Data Standard

• Alignment with international legislation standards

ProZorro covers key procedures and functionalities

eProcurement Functionalities

Web portalePlanningeRegistrationeAuthentificationeNotificationeNoticeseAccesseSubmission/eTenderingeEvaluationeAuctioneAwardingePurchasing/eOrderingeInvoicingeContract ManagementePayments

Procurement ProceduresOpen Procedure (price & MEAT)Competitive DialogueNegotiation ProcedureFramework AgreementsDynamic purchasing systemElectronic Catalogues

available

being developed now

to be developed later

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 do-nations 764 800 USD

Business donationsWNISEFGIZ/DFID

+ 2 commercial platforms

Steering Committee

Professionalization seen as a step-by-step processBa

sic

Com

pete

nces

Inte

rmed

iate

Com

pete

nces

Adva

nced

Com

pete

nces

Platforms support

eLibrary of typical

specificationsKnowledge database

Online course

ToT for consultants & civic activists

CPB

Center of excellence

Certification

Available

To-be

released

To-be

piloted

Regional presentation

s

No financial motivation

No specialized training centers

Unstable legislation

Procurer is an unpopular profession

1. No financial motivationReview of procurers remuneration

In the meantime, simplification and automatization of processes:

- customer-friendly platforms’ interfaces- service support from platforms- library of typical specifications

infobox.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-portalProzorro.gov.ua

Analytics ModuleBi.prozorro.org

CA Support Infobox.prozorro.org