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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 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 Midterm 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: March 2017

Context and Objectives

In December 2015, the Ukrainian Parliament adopted a Law on Public Procurement, which introduced a mandatory online public procurement system for all state bodies. Starting August 2016, all public authorities were obliged to use the new online system for public tenders on goods and services over UAH 200,000 (USD 7,000) or works over UAH 1.5 million (USD 52,000).[Note234: 'The Law on Public Purchasing of Ukraine,' The Verkhovna Rada of Ukraine, http://zakon0.rada.gov.ua/laws/show/922-19.] With the public procurement system software ProZorro,[Note235: ProZorro, https://prozorro.gov.ua/en.] public authorities publish tender announcements online, and businesses compete in the auction process with the help of an electronic auctions module.[Note236: 'About,' ProZorro, https://prozorro.gov.ua/en/about.] Use of the system constitutes a fundamental shift regarding transparency of public procurement in Ukraine.

This commitment builds on the successful efforts brought by the creation of ProZorro and takes openness in public procurement a step further. It introduces elements that enhance monitoring possibilities. This complex commitment envisions a number of important elements, such as publication of procurement data in the Open Contracting Data Standard (OCDS). It also proposes linking this data with public databases of ultimate beneficial owners and the State Treasury to allow better tracking and cross-checking of information. Functional compatibility of these datasets on the use of public funds would provide a link between the planned budget and the results of tenders, agreements, certificates of work performed under these agreements, and transactions under agreements. In particular, this information would be linked through the publication of a unique agreement ID. Other important elements include the creation of a public feedback mechanism for reporting procurement violations. The commitment also seeks to establish a multilateral monitoring group to discuss that feedback and determine follow-up steps for the relevant public bodies. This commitment, if fully implemented, could transform opportunities for public oversight of procurement processes in Ukraine.

Consequently, this commitment is multifaceted and directly relevant to the OGP values of access to information, civic participation, and technology and innovation. Introduction of the international OCDS in public procurement via an application software interface will improve access to information via modern technologies. The establishment of public feedback mechanisms and a multilateral monitoring group, with participation of civil society organizations, will help advance civic participation on government decision making on public procurement. Finally, introducing the functional compatibility between the data on public procurement and use of public funds with State Treasury data will increase the transparency of the use of public funds, thereby providing access to information by high-tech means.

Thus, the quality of public procurement and finance management should increase, with fewer expenses. The government expects this to lead to increased public trust.[Note237: Victor Nestulia (Transparency International Ukraine), interview by IRM researcher, 26 July 2017.] Ultimately, the commitment aims for a public procurement system with competition, austerity, transparency, online visibility, and automation. It seeks to create a public procurement system that involves competitors and civil society in control and corruption prevention, and that leads to increased trust in the system.[Note238: Maksym Nefyodov (Ministry of Economic Development and Trade of Ukraine), interview by IRM researcher, 19 July 2017.]

Completion

This commitment has made substantial progress.

The Open Contracting Data Standard (OCDS) has been introduced.[Note239: Maksym Nefyodov (Ministry of Economic Development and Trade of Ukraine), interview by IRM researcher, 19 July 2017.] The OCDS enables the disclosure of data and documents at all stages of the contracting process by defining a common data model.[Note240: Open Contracting Data Standard, http://standard.open-contracting.org/latest/en/.] A civil society expert confirmed that the application software interface of the public procurement electronic system is in accordance with the OCDS and has been published with an updated application programming interface (API).[Note241: Victor Nestulia (Transparency International Ukraine), interview by IRM researcher, 26 July 2017.] The public procurement interface with the OCDS is available online, as is the associated United State Register of Legal Entities, Individual Entrepreneurs and Public Organizations of Ukraine.[Note242: Open Procurement API, http://api-docs.openprocurement.org/uk_UA/latest/.],[Note243: Maksym Nefyodov (Ministry of Economic Development and Trade of Ukraine), interview by IRM researcher, 19 July 2017.]

In April 2017, the Ministry of Economic Development and Trade created the multilateral monitoring group and adopted the format of its functioning. The monitoring group has the mandate to discuss public feedback received on procurement and develop policies on improving monitoring and enforcement. Members of the group include persons from civil society organizations as well as those from several public institutions. Represented civil society organizations include Transparency International Ukraine, Anti-Corruption Action Center, and Eidos. Involved public institutions include the Anti-Monopoly Committee, National Police, State Audit Service, and State Treasury. The group has met. It agreed to standardize control and create a transparent monitoring and audit process.[Note244: Maksym Nefyodov (Ministry of Economic Development and Trade of Ukraine), interview by IRM researcher, 19 July 2017.]

The government activated the public feedback mechanism through the analytical module DoZorro. A monitoring tool, DoZorro automates and shows statistics for all appeals. It also provides a platform for dialogue among all parties.[Note245: Maksym Nefyodov (Ministry of Economic Development and Trade of Ukraine), interview by IRM researcher, 19 July 2017.] Using DoZorro, anybody can submit feedback to a state contracting authority or contractor, society, or law enforcement agencies about a conducted procurement procedure. That person could also discuss and evaluate the circumstances of a particular purchase, and analyze purchases of a particular contracting authority.[Note246: 'FAQ,' DoZorro, https://dozorro.org/faq.] DoZorro does not automatically send feedback to the relevant public agency. For that, a separate official paper request needs to be sent by the ProZorro team.

According to a government representative, functional compatibility of all financial flows is being discussed.[Note247: Maksym Nefyodov (Ministry of Economic Development and Trade of Ukraine), interview by IRM researcher, 19 July 2017.] Currently, one can check transactions between ProZorro and the State Treasury. The system now identifies counterparts (relevant contracting authorities) but is not able to do so on the basis of individual contracts without having the user search manually. A civil society expert explains that the functional compatibility requires funding, which is not currently available.[Note248: Victor Nestulia (Transparency International Ukraine), interview by IRM researcher, 26 July 2017.] The government’s self-assessment report also notes the delay due to lack of funding.[Note249: 'The Interim Report on the Realization of the Action Plan for the Implementation of the Open Government Partnership Initiative in 2016–2018,' Civil Society and Authorities: Governmental Website, accessed 13 September 2017, (link no longer accessible as of 25 April 2018) http://civic.kmu.gov.ua/consult_mvc_kmu/uploads/attach-3467-910681586.doc. ]

Early Results

The feedback system incorporated in DoZorro consists of an online platform used by stakeholders to report observed violations. A civil society expert reports that the government receives 600 individual feedback reports monthly.[Note250: Victor Nestulia (Transparency International Ukraine), interview by IRM researcher, 26 July 2017.] Up-to-date statistics on DoZorro are available online.[Note251: DoZorro, https://dozorro.org/.] The statistics provided by DoZorro include the number of questionable tenders reported by users and the amount of public funds spent in the tenders in question. They also include further discussion on the tenders themselves and the number of comments and feedback reactions as indicators of public monitoring. Different civil society organizations have identified 1,000 violations, which the ProZorro team has handed over to contracting and controlling authorities.[Note252: Victor Nestulia (Transparency International Ukraine), interview by IRM researcher, 26 July 2017.]

Next Steps

While this commitment concerns improving monitoring opportunities, the IRM researcher recommends including a commitment focusing on enforcement in the next action plan.

The next step in this direction would be to integrate ProZorro and DoZorro to enable the sending of feedback and reports on findings to enforcement agencies or oversight authorities. Transparency International Ukraine points to the need for an online feedback mechanism connected to ProZorro. Currently, DoZorro collects feedback. However, the official analysis is not in the system, and requests for follow-up have to be sent to the law enforcement on paper in the mail.

The IRM researcher recommends that the State Audit Service act upon submitted complaints and that authorities report on actions taken and consequences. The Cabinet of Ministers and the parliament must ensure that the Ministry of Economic Development and Trade has sufficient funding for this important reform. Support from the international community and donors will be important for continued implementation and strengthening of the system.


Ukraine's 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,

  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,