First edition of the draft law on public procurement: expectations and open questions

The Verkhovna Rada of Ukraine approved in the first reading the Draft Law "On Amendments to the Law of Ukraine" On Public Procurement" and Some Other Legislative Acts of Ukraine on Public Procurement Improvement" (registration No. 1076).

The draft law proposes to introduce a number of significant changes in the area of procurement, in particular:

1. The concept and procedure of simplified procurement for the purchase of goods, works and services by the customer, the value of which is equal to or exceeds UAH 50,000 and is less than the threshold for conducting the public procurement procedure has been introduced.
2. The customer may not allow an unfair bidder to participate in the procurement procedure in the event of the bidder's failure to fulfill its obligations under a previously concluded procurement contract with the same customer which led to its early termination, and sanctions such as fines and/or payment of damages were applied within three years from the date of early termination of such a contract.
3. The notion of “abnormally low price” and the right, and in some cases the obligation of the customer to reject an abnormally low bid as a kind of preventative mechanism against the misuse of budget funds (increase in price after the conclusion of the contract through additional agreements) has been introduced.
4. The tenderer is entitled to correct any discrepancies in the information and/or documents submitted by them in the tender offer and revealed by the customer after the tender has been opened, within 24 hours upon the customer's announcement in the electronic procurement system requesting elimination of such discrepancies.
5. The tenderer will not be able to withdraw complaint to the AMC, which has been entered on the register of complaints and for which a registration card has been created (protector against “trolls”).

Unlike the current Law of Ukraine “On Public Procurement”, the draft law does not define the term “specialized procurement organizations” and does not provide for the possibility of medicines and medical devices procurements with the involvement of specialized organizations. Instead, it is proposed to procure with the involvement of specialized organizations only specialized goods, works and services in the fields of national security, military, defense and military construction.

Currently, the draft law has been approved only in the first reading, so we look forward to its further elaboration by lawmakers.