THE KEY TRENDS OF UKRAINIAN MARKET OF PUBLIC PROCUREMENT IN 2018

Abstract

The paper presents an overview of the general framework for public procurement system functioning in Ukraine. Insights are provided on the key trends in the sector of public purchase of goods, works and services by customers in 2018. Specific features of each of the procurement procedures based on quantitative and qualitative indicators across Ukraine’s regions have been identified. A thorough analysis of the structure of the Ukrainian public procurement market laid the basis for public procurement classification subject to market trends and in compliance with applicable laws and regulations. Thus, all public purchase of goods, works and services conducted in Ukraine depending on the supplier selection method can be divided into two large groups: competitive and non-competitive procedures. Within competitive procurement procedures at the stage of a supplier selection, holding an electronic auction is mandatory, whereas under the non-competitive procurement process, customers select the supplier at their own discretion with regard to the current realia of economic, social and legal public procurement market environment. The top five regions-customers who use competitive procurement procedures are represented by Kyiv region (about 39,81% of the cost of total open bidding), Dnipropetrovsk (of 7.91%), Lviv (6,0%), Kharkiv (5,69%) and Donetsk regions (5,25%). Among the leaders of the regions-customers following non-competitive procurement procedures, the top five include Kyiv, Kharkiv, Odesa, Dnipropetrovsk and Donetsk regions. At large, public procurement refers to transactions on purchase and sale of tangible and intangible goods at the expense of budget expenditure, social security funds, funds from the Central Bank of Ukraine, financing by the state-owned and communal ownership enterprises with government share of more than 50% of the equity capital. To attain the goal and objectives set in this study, general research methods such as the read-across approach, methods of system analysis and synthesis were employed.