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Ukraine

Open Public Procurement (UA0064)

Overview

At-a-Glance

Action Plan: Ukraine Third National Action Plan 2016-2018

Action Plan Cycle: 2016

Status: Inactive

Institutions

Lead Institution: Ministry of Economic Development, Ministry of Finance, Ministry of Justice, State Agency for E-governance, State Audit Service, National Police, Treasury.

Support Institution(s): Transparency International Ukraine and Eidos Centre for Political Studies and Analysis non-governmental organisations, Open Contracting Partnership Initiative, other civil society institutions and international organisations (by consent).

Policy Areas

Capacity Building, Fiscal Transparency, Open Contracting and Procurement, Open Data, Oversight of Budget/Fiscal Policies, Private Sector

IRM Review

IRM Report: Ukraine End-of-Term Report 2016-2018, Ukraine Mid-Term Report 2016-2018

Starred: Yes Starred

Early Results: Outstanding Outstanding

Design i

Verifiable: Yes

Relevant to OGP Values: Access to Information Civic Participation , Technology

Potential Impact:

Implementation i

Completion:

Description

Event: Provision of openness and transparency in public procurement.; Implementation timeframe: November 2016-March 2017; Entities responsible: Ministry of Economic Development, Ministry of Finance, Ministry of Justice, State Agency for E-governance, State Audit Service, National Police, Treasury.; Partners: Transparency International Ukraine and Eidos Centre for Political Studies and Analysis non-governmental organisations, Open Contracting Partnership Initiative, other civil society institutions and international organisations (by consent).; Expected results: Ensuring the: Publication of the application software interface of the public procurement electronic system in accordance with the international Open Contracting Data Standard (November 2016). Publication of the application software interface of the Unified State Register of Legal Entities, Individual Entrepreneurs and Community Groups with disclosure of the owners and ultimate beneficiaries (February 2017). Establishment of a multilateral monitoring group aimed at ensuring the independent monitoring of public procurement (November 2016). Introduction of a public feedback system to improve the integrity of the system (February 2017). Functional compatibility between the data on public procurement and use of public funds with treasury data in order to increase the transparency of the use of public funds by providing a link between the planned budget and budgetary classification, the results of tenders, agreements, certificates of work performed under these agreements and transactions under agreements, in particular through the publication of a unique agreement ID (March 2017).

IRM End of Term Status Summary

✪8. Ensure openness and transparency in public procurement

Commitment Text:

Provision of openness and transparency in public procurement.

Expected results: Publication of the application software interface of the public procurement electronic system in accordance with the international Open Contracting Data Standard (November 2016). Publication of the application software interface of the Unified State Register of Legal Entities, Individual Entrepreneurs and Community Groups with disclosure of the owners and ultimate beneficiaries (February 2017). Establishment of a multilateral monitoring group aimed at ensuring the independent monitoring of public procurement (November 2016). Introduction of a public feedback system to improve the integrity of the system (February 2017). Functional compatibility between the data on public procurement and use of public funds with treasury data in order to increase the transparency of the use of public funds by providing a link between the planned budget and budgetary classification, the results of tenders, agreements, certificates of work performed under these agreements and transactions under agreements, in particular through the publication of a unique agreement ID (March 2017).

Responsible Institutions: Ministry of Economic Development, Ministry of Finance, Ministry of Justice, State Agency for E-governance, State Audit Service, National Police, Treasury.

Supporting Institutions: Transparency International Ukraine and Eidos Center for Political Studies and Analysis non-governmental organizations, Open Contracting Partnership Initiative, other civil society institutions and international organizations (by consent).

Start date: December 2016..                                     End date: August 2018

Editorial note: This commitment is clearly relevant to OGP values as written, has transformative potential impact, and is substantially or completely implemented and therefore qualifies as a starred commitment.
Commitment Aim:

This commiment aims to expand openness and transparency in public procurement. According to the Law on Public Procurement, an online public procurement system, ProZorro, should be used by all state bodies. Nevertheless, the system needed updating to ensure higher transparency and inclusion of tools for civil society monitoring. Therefore, the commitment envisioned four enhancements: (1) introduce the Open Contracting Data Standard, (2) require disclosing information about owners and ultimate beneficiaries, (3) establish a multilateral monitoring group and (4) establish functional compatibility between a set of public registries.

Status

Midterm: Substantial

By midterm, this commitment had made substantial progress. The Open Contracting Data Standard (OCDS), [135] with an updated application programming interface, had been introduced. The public procurement interface with the OCDS was available online, as was the associated Unified State Register of Legal Entities, Individual Entrepreneurs and Community Groups of Ukraine. [136] In April 2017, the Ministry of Economic Development and Trade created the multilateral monitoring group. The group consisted of members of the civil service and civil society. The ministry authorized the group to discuss public feedback received on procurement and develop policies to improve monitoring and enforcement. The government activated the public feedback mechanism through the DoZorro portal. This feature included both public and professional analytical modules. [137] DoZorro automated statistical calculations and displayed statistics for all appeals. It also served as a platform for dialogue among all parties. The Ministry of Economic Development and Trade advocated the functional compatibility of all financial flows, including compatibility between ProZorro and the State Treasury. This functional compatibility was delayed  because of the o lack of funding. For more information, please see the 2016–2018 IRM midterm report. [138]

End of term: Substantial

The second year witnessed further progress in implementing this commitment. According to the government representative, the Ministry of Economic Development and Trade introduced new procedures to ensure that the government publishes the data according to OCDS standards. [139] A civil society expert noted that the Unified State Register of Legal Entities, Individual Entrepreneurs and Community Groups discloses data in .csv format for free and via API for a fee. [140] A civil society member said that the creation of the multilateral monitoring group in 2017 spurred the formation of several other working groups. These groups were driven by participating parties from the government and civil society and met several times in 2018. [141] DoZorro, which can be named a full-fledged monitoring online portal, grew to include an additional analytical module. This module specializes in the monitoring of prices of medical products. [142] As described by a civil society expert, their NGO further extended DoZorro to include more nongovernmental organizations and local authorities. [143] The government requires each procuring authority to monitor public feedback. On 21 December 2017 Parliament adopted amendment #2265-VIII to the Law on Public Procurement. [144] The amendment introduced mandatory automatic risk indicators in public procurement, which will strengthen monitoring opportunities. These risk indicators are designed to be regularly updated through machine learning. [145] Artificial intelligence will help the State Audit Service identify procurements with violations while using less resources, examining bigger quantities, and working faster. [146] However, the government did not establish functional compatibility between the data on public procurement and the use of public funds and Treasury data. According to a representative from Transparency International Ukraine, the government did not complete this task because of lack of openness and willingness to implement this initiative by the State Treasury. [147] Overall, the completion of four out of five objectives merits a rating of substantial progess for this commitment.

Did It Open Government?

Access to Information: Outstanding

Civic Participation: Outstanding

At the onset of the action plan, the government had already established the online procurement system, but it needed further enhancement. The commitment involved raising the transparency bar by publishing procurement data in the Open Contracting Data Standard. The commitment also entailed linking this data with public databases of ultimate beneficial owners and the State Treasury. It also mandated publishing a unique ID for each public procurement contract to allow better tracking and cross-checking of information. According to the Ministry of Economic Development and Trade, the amount of open data on public procurement has increased. In particular, ESCO contracts and framework agreements started to be published. [148] An expert from Transparency International Ukraine stated that ProZorro established the best standard on open data procurement in the world. It publishes the structured data online, via datasets and API. [149] Outcomes include the following: The integration of the data with the Unified State Register of Legal Entities, Individual Entrepreneurs and Community Groups eliminated the requirement for companies to submit registration certificates. The integration also prevented fake companies from bidding in tenders. [150] The abundance of data initiated a burst of independent online monitoring initiatives. Already established were YouControl, [151] Opendatabot, [152] (which analyzed participants), E-data, [153] and .007 [154] (which overviewed financial flows). The second year witnessed the emergence of Anti-Corruption Monitor [155] and Clarity Project [156] (which focused on monitoring purchases themselves). This emergence of subsequent civil society projects demonstrates an apparent multiplier effect of DoZorro. These achievements represent an outstanding opening in the area of access to information on procurement. They also represent an outstanding progress in civic participation to monitor public procurement.

For proper monitoring of procurement, this commitment entailed the creation of a public feedback mechanism for reporting procurement violations. It also called for the establishment of a multilateral monitoring group to discuss feedback and determine follow-up steps for relevant public bodies. By March 2018, DoZorro had been used by over 300,000 users (social activists, investigative journalists, researchers, big procuring entities, ministries, and regulatory and law enforcement authorities). Every month, 24 monitoring civil society organizations identify and submit complaints concerning violations in over 1,500 procurements. [157] To strengthen their organizational capacities, ProZorro and DoZorro created a strong regional network of nongovernmental organizations (NGOs) and held over 350 training seminars in 2016–2017 for these NGOs. Over 20,000 participants attended the seminars. [158] The abundance of data initiated a burst of independent online monitoring initiatives (mentioned above). A Ukrainian multi-stakeholder team even started developing systems similar to DoZorro in Moldova. [159] These actions represent an outstanding change in civic participation in public procurement policy.

Carried Forward?

When this report was written, the government had not published the next action plan. Thus, it is not clear if this commitment has been carried forward. Given the importance of procurement reform and the achievements the commitment has already made, the IRM researcher recommends the government continue working on enhancing the features of the relevant platforms. For example, the State Fiscal Service could collaborate with the Ministry of Economic Development and Trade on the integration of the indebtedness certificate into ProZorro. With this action, bidders will not need to upload the information already possessed by the government, implementing the “once only” principle. The Ministry of Economic Development and Trade could analyze risk statistics and regularly update the methodology of automatic risk indicators. The Ministry of Economic Development and Trade could also integrate ProZorro and DoZorro so that the platforms send feedback and reports on findings directly to enforcement agencies or oversight authorities online. Civil society organizations could work to develop an analytical module monitoring the full cycle of violations of procurement and control—from a reported violation to its investigation, lawsuit, court decision, and enforcement.

[135] Open Contracting Data Standard, http://standard.open-contracting.org/latest/en/.

[136] Open Procurement API, http://api-docs.openprocurement.org/uk_UA/latest/.

[137] DoZorro, https://dozorro.org/.

[138] “Ukraine Mid-Term Report 2016–2018,” Open Government Partnership, https://www.opengovpartnership.org/documents/ukraine-mid-term-report-2016-2018-year-1/.

[139] Maksym Nefyodov (Ministry of Economic Development and Trade of Ukraine), interview with IRM researcher, 15 August 2018.

[140] Victor Nestulia (Transparency International Ukraine), interview with IRM researcher, 6 August 2018.

[141] Ibid.

[142] “Monitoring of Prices on Medical Products,” DoZorro, https://dozorro.org/medical_contracts.

[143] Victor Nestulia (Transparency International Ukraine), interview with IRM researcher, 6 August 2018.

[144] “The Law of Ukraine on Amendments to the Law of Ukraine ‘On Public Procurement’ and Other Laws of Ukraine on Procurement Monitoring,” #2265-VIII, the Verkhovna Rada of Ukraine: The Official Web-portal, http://zakon.rada.gov.ua/laws/show/2265-19.

[145] Maksym Nefyodov (Ministry of Economic Development and Trade of Ukraine), interview with IRM researcher, 15 August 2018.

[146] “DoZorro Story,” Transparency International Ukraine, 2018.

[147] Victor Nestulia (Transparency International Ukraine), interview with IRM researcher, 6 August 2018.

[148] Maksym Nefyodov (Ministry of Economic Development and Trade of Ukraine), interview with IRM researcher, 15 August 2018.

[149] Victor Nestulia (Transparency International Ukraine), interview with IRM researcher, 6 August 2018.

[150] Maksym Nefyodov (Ministry of Economic Development and Trade of Ukraine), interview with IRM researcher, 15 August 2018.

[151] YouControl, https://youcontrol.com.ua/en/.

[152] Opendatabot, https://opendatabot.com/.

[153] E-data, http://www.e-data.gov.ua/.

[154] .007, http://007.org.ua/.

[155] AKM, http://acm-ua.org/.

[156] Clarity Project, https://clarity-project.info/about.

[157] “DoZorro Story.”

[158] Ibid

[159] Ibid


Commitments

  1. Infrastructure Data Portal

    UA0070, 2018, E-Government

  2. Open Standard for e-System

    UA0071, 2018, E-Government

  3. Ensuring Openness and Transparency of Selling Public Assets and Property

    UA0072, 2018, E-Government

  4. Transparency in Public Procurement (Prozorro)

    UA0073, 2018, E-Government

  5. Awarenss Raising About Social and Economic Development

    UA0074, 2018, Aid

  6. e-Calls for Proposals to Support CSOs

    UA0075, 2018, Civic Space

  7. Beneficial Ownership Registry

    UA0076, 2018, Beneficial Ownership

  8. Anti-Corruption Training

    UA0077, 2018, Anti-Corruption Institutions

  9. Publishing Environmental Information

    UA0078, 2018, E-Government

  10. Database of Natural Resources

    UA0079, 2018, E-Government

  11. Interactive Map of Mines

    UA0080, 2018, E-Government

  12. Priority Electronic Services

    UA0081, 2018, Citizenship and Immigration

  13. Online Platform for Executive Bodies and CSOs

    UA0082, 2018, Civic Space

  14. EITI Online Data

    UA0083, 2018, E-Government

  15. Electronic Resources for Education

    UA0084, 2018, E-Government

  16. Online Verification of Education Certificates

    UA0085, 2018, E-Government

  17. Free Access to National Repository for Academic Texts

    UA0086, 2018, E-Government

  18. Administrative Service Decentrilisation and Improvement

    UA0057, 2016, Capacity Building

  19. United State Portal Extension; Electronic Government Information Services Unification; Modern Tools for Electronic Identification

    UA0058, 2016, Capacity Building

  20. System for Entities Performing Government Functions

    UA0059, 2016, Capacity Building

  21. Free Urban Planning Documentation

    UA0060, 2016, E-Government

  22. Beneficial Ownership Verification System

    UA0061, 2016, Beneficial Ownership

  23. CoST Beneficial Ownership Standards

    UA0062, 2016, E-Government

  24. Transpartent Budget System

    UA0063, 2016,

  25. Starred commitment Open Public Procurement

    UA0064, 2016, Capacity Building

  26. Starred commitment Extractive Industries Transparency Initiative

    UA0065, 2016, Extractive Industries

  27. Environmental Public Monitoring

    UA0066, 2016, Environment and Climate

  28. Community Policing System

    UA0067, 2016, Education

  29. Draft Law on Public Consultations

    UA0068, 2016, Legislation & Regulation

  30. Development of E-Democracy.

    UA0069, 2016, Money in Politics

  31. Improve Government Rules on CSO Involvement

    UA0031, 2014, E-Government

  32. Financing of Charities

    UA0032, 2014, Civic Space

  33. Not-For-Profit Status for CSOs

    UA0033, 2014, Civic Space

  34. Public Participation Law

    UA0034, 2014, E-Government

  35. Establishing Rules on Processing Official Information

    UA0035, 2014, E-Government

  36. Access to Urban Planning Documents

    UA0036, 2014, E-Government

  37. Starred commitment Access to Communist-Era Archives

    UA0037, 2014, Legislation & Regulation

  38. Starred commitment Draft Law on Open Data

    UA0038, 2014, Legislation & Regulation

  39. Starred commitment Supervisory Mechanism for the Right to Information

    UA0039, 2014, Legislation & Regulation

  40. Compliance with EITI

    UA0040, 2014, Extractive Industries

  41. Monitoring of Infrastructure Projects

    UA0041, 2014, Anti-Corruption Institutions

  42. Adopt Regional Anti-Corruption Programmes

    UA0042, 2014, Anti-Corruption Institutions

  43. Corruption Risk Assessment Methodology

    UA0043, 2014, Anti-Corruption Institutions

  44. Starred commitment Asset Disclosure on a Single Web Portal

    UA0044, 2014, Asset Disclosure

  45. Law on Administrative Procedure

    UA0045, 2014, Legislation & Regulation

  46. Law on Streamlining Payment of Administrative Fees

    UA0046, 2014, E-Government

  47. Administrative Services Portal

    UA0047, 2014, E-Government

  48. Draft Law on Decentralisation of Administrative Services

    UA0048, 2014, Legislation & Regulation

  49. Draft Law on Social Services

    UA0049, 2014, E-Government

  50. e-Government Laws

    UA0050, 2014, E-Government

  51. Electronic Readiness Assessment

    UA0051, 2014, E-Government

  52. Government Regulations on Open Data

    UA0052, 2014, E-Government

  53. Electronic Democracy Development Roadmap

    UA0053, 2014, E-Government

  54. Open Budget Initiatives

    UA0054, 2014, E-Government

  55. e-Petitions

    UA0055, 2014, E-Government

  56. e-Governance Training for Local Government

    UA0056, 2014, Capacity Building

  57. Laws on Public Participation

    UA0001, 2012, Civic Space

  58. Amendments to the Law on Community Associations

    UA0002, 2012, Civic Space

  59. Amendments to Resolutions on Collaboration with Civil Society

    UA0003, 2012, E-Government

  60. Training for Public Servants on Consultations

    UA0004, 2012, Capacity Building

  61. Harmonisation of Access to Information Laws

    UA0005, 2012, E-Government

  62. By-Laws on Access to Information

    UA0006, 2012, Legislation & Regulation

  63. Guidelines for Classifying Data

    UA0007, 2012, Public Participation

  64. Public Information Recording Systems

    UA0008, 2012, Records Management

  65. Law on Public Broadcasting

    UA0009, 2012, Civic Space

  66. Public Access to Information in State Registers

    UA0010, 2012, E-Government

  67. Starred commitment Extractive Industries Transparency Initiative

    UA0011, 2012, E-Government

  68. Law for Controlling Declarations of Public Servants

    UA0012, 2012, Asset Disclosure

  69. Public Declarations of Officials’ Assets

    UA0013, 2012, Asset Disclosure

  70. Guidelines on Conflicts of Interest

    UA0014, 2012, Conflicts of Interest

  71. Updated Anti-Corruption Laws

    UA0015, 2012, E-Government

  72. Regional Anti-Corruption Programmes

    UA0016, 2012, E-Government

  73. Law on Competitive e-Government Procurement

    UA0017, 2012, E-Government

  74. Starred commitment Administrative Services Reforms

    UA0018, 2012, E-Government

  75. Electronic Access to Administrative Services

    UA0019, 2012, E-Government

  76. Governmental Web Portal of Administrative Services

    UA0020, 2012, E-Government

  77. Administrative Services in a Digital Format

    UA0021, 2012,

  78. Starred commitment Regional Administrative Service Centres

    UA0022, 2012, Public Service Delivery

  79. Programme for Promotion of e-Government

    UA0023, 2012, E-Government

  80. Electronic Collaboration Between Executive Agencies

    UA0024, 2012,

  81. Web-Based Petitions System

    UA0025, 2012,

  82. One Stop Shop for e-Reporting

    UA0026, 2012, E-Government

  83. e-Region Pilot Project

    UA0027, 2012, E-Government

  84. Network of e-Government Practitioners

    UA0028, 2012, Public Participation

  85. Public Libraries as Bridges Towards e-Governance

    UA0029, 2012, E-Government

  86. e-Government Knowledge Management Portal

    UA0030, 2012,