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Types and purchase price for customers and customers-monopolists according to the Law of Ukraine On Public Procurement

The Article addresses the following issues related to the choice of procurement type by customers and customers-monopolists, who conduct their activities in certain spheres , which cost thresholds provides for the new edition of the law that is a simplified procurement and procurement that requires a report on signed agreement.

Updated revision of the Law On Public Procurement, which entered into force on 19 April, determines the existence of the following procurement types:

  • competitive dialogue;
  • simplified procurement;
  • open bidding;
  • competitive dialogue;
  • report on agreement;
  • bidding with limited participation.

The next issue that requires consideration concerns the choice of the type of procurement depending on the expected amount of the agreement for both regular customers and for customers-monopolists operating in a particular area.

Cost thresholds and types of procurement procedures for customers

If the expected amount of the procurement does not exceed 50 thousand hryvnias, the report on it (or the report on contract) is published in the system "report" on the internet site "Prozorro.Market".

For purchases, the cost of which is in the price range from 50 thousand hryvnias to 200 thousand hryvnias (when paying for the offered services or the delivered goods) or from 50 thousand hryvnias to 1.5 million hryvnias (for payment of performed works). The decision to choose the type of procurement is made by the customer at its discretion. If no simplified procedure is made, but any other agreement is selected or the reports are published in the Prozorro Market system.

In cases where the expected cost of purchasing services or goods exceeds the amount of 200 thousand hryvnias, and its upper threshold reaches 133 thousand euros, or when ordering works, these figures are in the range from 1.5 million hryvnias to 5.150 million euros, the customer is one of the following types of procurement:

  • competition agreement;
  • open bidding;
  • bidding with limited participation;
  • procurement negotiation procedure.

Types and purchase price for customers and customers-monopolists according to the Law of Ukraine On Public Procurement

Customers-monopolists (customers operating in certain economic areas) are offered almost the same, with some changes, conditions for choosing the type of procurement, depending on the price threshold.

With the expected purchase price not exceeding UAH 50,000, the customers-monopolists publish a report in Prozorro.Market or a contract report.

With the expected cost of the tender, which amounts from 50 thousand hryvnias to 1 million hryvnias for the purchase of goods or payment for services, and from 50 thousand hryvnias to 5 million hryvnias for the payment of works, either a simplified procurement is made or a report is published in Prozorro.Market or contract report.

The subject of procurement is estimated from 1 million hryvnias to 133 thousand euros (for the purchase of goods or ordering services) or from 5 million hryvnias to 5, 150 million euros when ordering works by a monopoly customer, one of the following types of procurement:

  • competitive dialogue;
  • open bidding;
  • bidding with limited participation;
  • procurement negotiation procedure.

European thresholds in international bidding

With an expected purchase price of 133 thousand euros maximum for the purchase of goods or payment for services, or 3.150 million euros for ordering work, the customer makes one of the types of procurement:

  • competitive dialogue published in English;
  • open bidding published in English;
  • bidding with limited participation, published in English.

With an expected transaction cost of more than 133,000 euros for the purchase of goods or payment for services and 5.150 million euros for the payment of works, the customers-monopolists also make the following procurements:

  • competitive dialogue published in English;
  • open bidding published in English;
  • bidding with limited participation, published in English.

For customers-monopolists, the types of procurement do not change depending on the expected cost of tenders.

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