Centralized Procurement Organizations have been established and being developed intensively in Ukraine since 2016. CPOs have an important task: to organize and conduct tenders and procurements under framework agreements in the interests of various procuring entities in accordance with the Law.
CPOs were expected to address the issues related to complexity and delays in procurements and to improve their efficiency and transparency. Also, CPOs were supposed to consult customers on how to draw documents, manage procurements, and mitigate corruption risks.
It is worth noting that in recent years there has been an increase in the number of Centralized Procurement Organizations. That means that central and local authorities are interested in the development of that institution. Unfortunately, the overall efficiency of procurements by the existing CPOs is the same (or even lower) compared to regular procuring entities.
Therefore those contemplating initiating a Central Procurement Organization should thoroughly study expectations, positive effects and, most importantly, current challenges of already existing CPOs. This will facilitate responsible and balanced administrative and managerial decisions and help build a professional and efficient centralized procurement organization.
Different methods and approaches were used to prepare this study at each stage:
Data collection stage:
Stage of checking and summarizing the collected data:
Research finalization stage:
CPOs or Centralized Procurement Organizations are state- or municipal-owned legal entities determined by the Cabinet of Ministers of Ukraine, the Council of Ministers of the Autonomous Republic of Crimea, local self-government bodies as procuring entities arranging and holding tenders and procurements under framework agreements in the interests of customers under this Law;
NLA — normative legal act;
CMU — Cabinet of Ministers of Ukraine;
LBs — local self-government bodies;
TD — documents about the terms and conditions of tenders developed and approved by procuring entities and made available to the public on the electronic procurement system;
ToR — terms of reference, the part of tender documentation with qualitative and quantitative characteristics of procurement items;
RFP — request for proposals, the type of Prozorro Market procurement methods; procuring entities submit RFPs through the e-procurement system by filling electronic field forms specifying the names and quantity of goods, deadline, place and manner of delivery, payment terms, and deadlines for submissions, and bidders submit price proposals in line with the requirements specified in RFPs on the e-procurement electronic system;
SI — state institution;
SE — state enterpise;
MI — municipal institution;
ME — municipal enterprise;
Authorized official — an official or other person working for a procuring agency (a customer) and responsible for the organization and holding of procurement/simplified procurement in accordance with the Law on the basis of procuring entities' order or employment agreement (contract);
SASU — State Audit Service of Ukraine;
AMCU — Antimonopoly Committee of Ukraine;
CPO DCC — Municipal Enterprise "Centralized Procurement Organization" of Dnipro City Council;
KPI — Key Performance Indicators;
CPV — common procurement vocabulary with classifiers for identification of procurement items;
Prozorro Market — a systematized database of current product proposals from bidders. It is formed and filled in by the Prozorro Market administrator (the CPO). Procuring entities may use that procurement procedure to buy goods cheaper than established in paragraphs two and three, Part 1, Article 2 of the Law of Ukraine "On Public Procurement";
Procurement — for the purposes of this study, this term refers to the process starting from the occurrence of need and ending with the receipt of goods (services) by a buyer;
Aggregated procurement — is public procurement made by a centralized procurement organization in the interests of several customers;
Planning — for the purposes of this study this term refers to processes that occur from the moment a need arises to the moment a purchase is announced in the Prozorro system;
Competitive bidding — types of procurement methods presuming competition of bidders and their option to submit bids;
Above-threshold procurement — a type of procurement methods with prices exceeding thresholds established by the Law of Ukraine "On Public Procurement";
Framework agreement — a transaction concluded by one or more customers (including centralized procurement organizations) in the procedure established by the Law with multiple bidders to establish the main terms and conditions of procurement of certain goods and services for the purposes of further conclusion of procurement contracts for the term of a framework agreement.
Adamanov Edem Acting CEO, Deputy CEO for Supply Management, SE "Medical Procurement of Ukraine"
Aleksandrov Oleksii Director of Department for Monitoring and Inspection of Procurement, State Audit Service
Volkova Yuliia Finance Department of Dnipro City Council, Dnipro City Council
Volodymyr Yurkevych Acting Director of "CPO of Ivano-Frankivsk Oblast Council"
Karelina Inna Vasylivna Public Procurement Expert, Municipal Institution "Sumy Oblast Entrepreneurship Support Fund" of Sumy Oblast Council
Kasian Yanu Head of Public Procurement Department, SI "Professional Procurement"
Kindii Tetiana Head of Department for Methodological Support of Monitoring and Inspection of Procurement of the Department for Normative and Methodological Support of State Financial Control of the State Audit Service, State Audit Service
Kryvonos Liliia Deputy Director of Department for Monitoring and Inspection of Procurement, State Audit Service
Kuchma Olha Head of Office for Normative and Methodological Support of State Financial Control, State Audit Service
Lakhtionova Liliia Director of Public Procurement Policy Research and Analysis, Procurement Excellence Center of Kyiv School of Economics
Lysenko Ihor Head of the Information and Analytical Tools Development Department, SE "Medical Procurement of Ukraine"
Lozynskyi Serhii Public Procurement Expert, SE "Ukrainian Special Systems"
Medviednikova Hanna Director of the Department, Ministry of Economy
Mishta Tetiana Deputy Director of Public Procurement, Ministry of Economy
Morozova Mariia Head of Category Management Department, SE "Medical Procurement of Ukraine"
Nina Abaimova Head of Procurement Legislation Analysis, Public Procurement Analytics Center
Nos Olha Head of Public Procurement System Development, SE "Prozorro"
Oleksandr Shatkovskyi Senior Expert, Support for Public Procurement Reform in Ukraine Project
Omelianchuk Orysia Public Procurement Department, Ministry of Economy
Omelianchuk Serhii Head of Public Procurement Department, SE "Medical Procurement of Ukraine"
Skok Anastasiia Director of CPO SE "USS" Branch, SE "Ukrainian Special Systems"
Slinchak Svitlana Head of the Professionalization Department of the Department of the Ministry of Economy, the Ministry of Economy
Yarosh Maryna Head of the Procurement Planning Department of the Centralized Accounting Department, Department of Humanitarian Policy, Dnipro City Council, Dnipro City Council
Tsiuman Liana Public Procurement Expert, Municipal Institution "Sumy Oblast Entrepreneurship Support Fund" of Sumy Oblast Council
Chichkan Mykyta Public Procurement Expert, SE "Medical Procurement of Ukraine"
Shavalieiev Arthur Deputy Head of the Public Procurement Department, SE "Medical Procurement of Ukraine"
Shymko Nataliia Deputy CEO, SE "Prozorro"
Yuldashova Anna Senior Researcher, Procurement Excellence Center of Kyiv School of Economics
Tkachenko Mykola Director of SE "Prozorro", SE "Prozorro"
Useinova Olena Deputy Director, SI "Professional Procurement"
Yakubovskyi Yevhen Director of SI "Professional Procurement", SI "Professional Procurement"