Pilot Project on Centralized Procurement Organization Prolonged

21/ 05/ 2018

On May 16th, 2018 the Cabinet of Ministers of Ukraine made a decision to prolong the pilot project on the Centralized Procurement Organization for procurement of goods and services based on the list approved by the Ministry of Economic Development and Trade.

In accordance with Article 1(36) of the Law of Ukraine “On Public Procurement”, centralized procurement organizations are legal entities determined by the Cabinet of Ministers of Ukraine, Council of Ministers of the Autonomous Republic of Crimea and local self-government bodies as customers which arrange for and carry procurement under framework agreements in the interests of customers in accordance with the Law.

Resolution of the Cabinet of Ministers of Ukraine No. 928 as of November 23rd, 2016 started to implement the pilot project to organize activities of the Centralized Procurement Organization as proposed by the Ministry of Economic Development and Trade by December 31st, 2017.

According to the Ministry of Economic Development and Trade, thanks to the Centralized Procurement Organization savings under the concluded agreements in 2017 constituted more than UAH 1 billion, which is 13.1 % of the expected cost of procurement.

At the new stage, framework procurement deals are expected to be used due to introduction of the corresponding function to the system of electronic procurement Prozorro, increased number of customers and expansion of the procurement subject, creation of electronic base of procurement subject catalogues.

Upon results of the pilot project implementation, the Cabinet of Ministers of Ukraine must adopt a decision to approve peculiarities of centralized organizations creation and activities as specified in the Law of Ukraine “On Public Procurement”.

It should be recalled that Decree of the Cabinet of Ministers of Ukraine “On Approval of the Concept for Reforming the Mechanisms of Public Procurement of Medicines and Medical Products” No. 582-р as of August 23rd, 2017 obliged the Ministry of Health to set up a legal entity which will carry functions of a centralized procurement organization within the framework of implementation of the Concept to procure of medicines and medical products.

In accordance with para 2 of the Decree, the Ministry of health of Ukraine develops and submits for approval to the Cabinet of Ministers the action plan on the Concept implementation.

Thus, it is expected that implementation of the pilot project of the Ministry of Health can start in the near future.

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