Procurement without Prozorro: myth or reality?

11/ 08/ 2022

Author: Alina Shulika, Attorney at Dynasty Law & Investment With the beginning of the full-scale invasion of the Russian military on the territory of Ukraine, many legislative changes appeared. So, in particular, almost immediately after the introduction of martial law in Ukraine, Cabinet Resolution No. 169 of February 28, 2022 defined the procedure for conducting Public procurement during the period of martial law by concluding direct contracts without using the Prozorro system. However, at the end of June, the Cabinet of Ministers made changes to this Resolution, by which it returned mandatory purchases in Prozorro for all state/local authorities and enterprises when purchasing in the amount of 50,000 hryvnias and more, with the exception of cases when: ✅ the information to be made public in the announcement of the simplified procurement is such that it poses a threat to national security and/or public safety and order; ✅ at the time of purchase, the customer is at the point of hostilities and/or does not have access to the Internet and, accordingly, to the Prozorro system; ✅ urgent circumstances have arisen and there is no time to comply with the deadlines for the procedure; ✅ the purchase was canceled due to the absence of participants (including by lot); ✅ after concluding the relevant contract, the customer has the need to purchase an additional volume of goods from the same supplier or to purchase additional similar works/services from the same participant, etc. Do the changes really fully take into account the situation that has developed in the country as a result of Russias military aggression? Definitely yes! First of all, this is a salvation for customers who are in the territory where military operations are being conducted or they are in the temporarily occupied territory, which actually makes it impossible for them to get access to Prozorro, because in case of urgent needs, they will be able to conclude a contract directly.

Author: Alina Shulika, Attorney at Dynasty Law & Investment

With the beginning of the full-scale invasion of the Russian military on the territory of Ukraine, many legislative changes appeared.

So, in particular, almost immediately after the introduction of martial law in Ukraine, Cabinet Resolution No. 169 of February 28, 2022 defined the procedure for conducting “Public procurement” during the period of martial law by concluding direct contracts without using the Prozorro system.

However, at the end of June, the Cabinet of Ministers made changes to this Resolution, by which it returned mandatory purchases in Prozorro for all state/local authorities and enterprises when purchasing in the amount of 50,000 hryvnias and more, with the exception of cases when:

✅ the information to be made public in the announcement of the simplified procurement is such that it poses a threat to national security and/or public safety and order;

✅ at the time of purchase, the customer is at the point of hostilities and/or does not have access to the Internet and, accordingly, to the Prozorro system;

✅ urgent circumstances have arisen and there is no time to comply with the deadlines for the procedure;

✅ the purchase was canceled due to the absence of participants (including by lot);

✅ after concluding the relevant contract, the customer has the need to purchase an additional volume of goods from the same supplier or to purchase additional similar works/services from the same participant, etc.

Do the changes really fully take into account the situation that has developed in the country as a result of Russia’s military aggression?

Definitely yes! First of all, this is a salvation for customers who are in the territory where military operations are being conducted or they are in the temporarily occupied territory, which actually makes it impossible for them to get access to Prozorro, because in case of urgent needs, they will be able to conclude a contract directly.