Summary of the initial audit

of the Prozorro Project

UKRAINE

Mr ADAM JONCZYK, EBRD Consultant

27th of May 2015, Kiev

A review of Prozorro Project was completed at the request of the

European Bank for Reconstruction and Development (EBRD) under

the technical cooperation project: Ukraine - Policy Advice for

eProcurement Reforms in Public Sector.

The project launched in May 2014 is dedicated to supporting the

government in designing, developing and implementing electronic

procurement in public procurement sector in Ukraine.

The eProcurement support project is accompanying the technical

cooperation project promoting Ukraine’s accession to Agreement on

Government Procurement (GPA) of the WTO

The review of Prozorro Project

1.Assess business and technology capacity of the

Prozorro Project in the Pilot Phase

2.Verify potential for further development

3.Review of compliance with international best practices

for electronic procurement in public sector.

The objective of the review

What you will find in the review report

1. Scope and objective of the review

2. Methodology & Benchmarks

3. PROZORRO Project Concept

4. The PROZORRO Project in Pilot

5. Functionalities of the Prozorro Project systems

6. Review of compliance with 2014 EU Directive

7. Review of compliance with EU best practice for eProcurement

8. Review of compliance with MDB eProcurement

9. End-user feedback

10. SWOT Analysis of Development Capacity

11. Recommendations

Transparency International

(Ukraine)

Prozorro Project Stakeholders

Platform

Operator

Platform Operator Agreement

Pro

zorr

o P

roje

ct

Project

Coordinator

National Council

of Reforms

Ministry of Economic

Development and Trade of

Ukraine

GOVERNMENT

Pilot Project Organisation

Project Coordinator

Website Transparency International

SoftServ

Zen

BI RBC Group

QuintaGroup

Mirohost

Contract Pro bono

Testing of new dedicated software

Hosting for Business Intelligence Module

Reporting Module Licences and Development

Call Center Services

Development of new dedicated software & Central Unit Administration

• The audit exercise covered business, legal and technology aspects

• Verified compliance with eProcurement standards included in:

the 2012 text of the GPA of the World Trade Organisation,

the EU Directive 2014/24/UE,

the EU Golden Book of eProcurement Best Practice, 2013

MDB ‘Handbook for e-Government procurement’, 2014.

Methodology & Benchmarks

Standard PROZORRO Level of Compliance

INTEROPERABILITY +TRACEABILITY -

SECURITY +PROPORTIONALITY +

TRANSPARENCY +

Compliance Review: 2014 EU Directives on eProcurement

List of 23 best practices from EU Member States

Score of compliant standards

Score of non-compliant standards

17 7

Survey of 46 requirements for good electronic procurement

Score of complaint standards

Score of non-compliant standards

37 9

1. EU best practice for eProcurement

2. International MDB eProcurement standards

PROZORRO compliance with international best practice

Recommendations for succesfull completion of the pilot

1. Technical

Software development for closing functional gaps identified in the review

Security audit of the solution is needed upon completion of Pilot

1. Organisational:

Contractual safety of the Prozorro Project has to be assured

(better SLAs);

New human resources have to be employed to implement Phase 2 of the pilot in the regions

2. Business:

Funding for completion of the Prozorro Project pilot has to be provided.

Recommendation for Prozorro Project future development

Coordinaton of Prozorro Project development & phasing with

legislative work

Business model for financing of the Prozorro Project Central

Unit and eProcurement platforms;

Standardization of procurement business process for

Contracting Authorities;

Stability of the legal environment.

Thank you for your attention.