Abstract
Traditionally, public procurement has been associated with the measurement of achieving savings. However, recent research shows that the economic impact of public procurement is not limited only to savings, but by measuring the impact of four capitals—natural, human, social, and economic—on sustainable well-being over time. Ukraine is a country with a very low gross domestic product (GDP) per capita, which exacerbates the problem of the impact of public procurement results on the population’s welfare. Ukrainian public procurement legislation allows customers to apply non-price criteria (the share of non-price criteria cannot be more than 70%), which, together, are taken into account in the formula of the quoted price. The studies show that the effect of the use of non-price criteria depends on the relevance of the method of the evaluation of non-price criteria. The most important non-price criteria for Ukrainian customers by product categories and the methods of their evaluation are analyzed according to the Bi.prozorro.org analytics module. Therefore, it is concluded that the quoted price method, which is used in Ukrainian practice, is not relevant in comparison with the method used in the EU. A survey of the government buyers on the practice of applying non-price criteria was conducted, and the areas of their use were identified.
Highlights
One of the most promising areas of e-commerce is so-called e-procurement (Gelderman et al 2006), which is increasingly gaining ground in the public procurement markets of developed countries (SIGMA 2016), in particular the European Union common market
The aim of the study is to identify important non-price criteria for Ukrainian government buyers based on the ProZorro (2019) system analytics module; the assessment of the adequacy of the quoted price method which is used in the Ukrainian practice; customers survey on the awareness of the need to apply non-price criteria; the implementation of author’s questionnaire of polling government customers at the online training “Electronic evaluation of tender offers proposals using non-price criteria.”
We have investigated how the application of non-price criteria affected the level of competition (Table 2)
Summary
One of the most promising areas of e-commerce is so-called e-procurement (Gelderman et al 2006), which is increasingly gaining ground in the public procurement markets of developed countries (SIGMA 2016), in particular the European Union common market. In the study of the evaluation of the tender offers by government customers, the scientists (Mateus et al 2010) consider a linear scoring function and note the importance of openness of information on non-price criteria according to the Code of State Contracts. The EU project “Harmonization of the Public Procurement System in Ukraine with EU Standards” (Crown Agents 2017a, 2017b) the experts have stated that compliance with the technical specifications on a two-point scale “meets”/“does not meet” does not comply the principle of the best offer in terms of the quality This two-point scale practice is used by the customers in many cases in Ukraine. The use of non-price criteria in the evaluation of the tender offers allows one to choose the most cost-effective offer, but on the condition that such criteria are significant, the evaluation methodology is adequate and the evaluation results are controlled
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