Regulations on Below-Threshold Procurement of Goods, Works, and Services
at National Aerospace University
«Kharkiv Aviation Institute»
QMS KhAI-ZDZ-P/001:2016
Date of Enactment August 01, 2016
Revision No. 1
1. General Provisions
1.1 These Regulations establish the procedure for carrying out below-threshold procurements by National Aerospace University «Kharkiv Aviation Institute» - a spending unit of budget funds (hereinafter – Regulations), the expected value of which does not exceed the amount specified in Article 2 of the Law of Ukraine «On Public Procurement» using the ProZorro e-procurement system (hereinafter - System).
1.2 Regulations on the Procedure for Below-Threshold Procurement are developed on the basis of paragraph 4, part 1, Article 2 of the Law of Ukraine «On Public Procurement» (hereinafter - Law), paragraph 21, point 12 of the Procedure for the Functioning of the E-Procurement System and Authorization of Electronic Marketplaces, approved by Resolution of the Cabinet of Ministers of Ukraine dated February 24, 2016 No. 166 (hereinafter - System Functioning Procedure), Procedure for Posting Public Procurement Information, approved by Order of the Ministry of Economic Development and Trade of Ukraine dated March 18, 2016 No. 477, Procedure for Determining the Subject of Procurement, approved by Order of the Ministry of Economic Development and Trade of Ukraine dated March 17, 2016 No. 454 (hereinafter – Procedure for Determining the Subject of Procurement), Procedure for Carrying Out Below-Threshold Procurements, approved by Order of SE «Zovnishtorgvydav of Ukraine» dated April 13, 2016 No. 35 (hereinafter - Below-Threshold Procurement Procedure) and define the general procedure for organizing and conducting procedures of below-threshold procurements of goods, works, and services by National Aerospace University «Kharkiv Aviation Institute» (hereinafter – University). Structural units of the university that are registered as separate lower-level spending units of budget funds must use these Regulations in their work.
1.3 In these Regulations, the terms defined below are used in the following meaning:
- below-threshold procurement (hereinafter - Procurement) - procurement of goods, works, and services by the Procuring Entity, the value of which is less than the value established in paragraph 2, part 1, Article 2 of the Law, namely as worded in the Law on the date of signing these Regulations, if the value of the procurement subject of goods and services equals or exceeds 200 thousand UAH, and for works - 1.5 million UAH;
- electronic marketplace – a hardware-software complex (software) functioning on the Internet, providing procuring entities with free registration and access to services of the e-procurement system with automatic exchange of information regarding the procurement process of goods, works, and services on electronic marketplaces;
- auction – carrying out competitive selection of participants through an e-procurement system to determine a winner according to the procedure established by these Regulations;
- procuring entity (hereinafter - Procuring Entity) - University;
- procurement procedure - selection of a supplier of goods, service provider, or work executor;
- participant's bid - a proposal regarding the subject of Procurement or its part (lot), which a participant submits for participation in the Procurement (including Direct procurement) according to requirements specified by the Procuring Entity and these Regulations;
- system user – any natural person, legal entity, or sole proprietor registered in the e-procurement system;
- participant – natural persons and legal entities who are system users and have submitted an electronic bid for participation in procurements announced by the procuring entity;
other terms are used in the meaning set forth in the Law.
1.4 All issues related to below-threshold procurements of goods, works, and services not regulated by these Regulations are resolved in accordance with the procedures and requirements of current regulatory acts of Ukraine.
2. Scope of Application of the Regulations
2.1 This Procedure applies to all procurements of goods, works, and services, provided that the annual expected value of the procurement subject of goods, services, and works is within limits established by the Law, namely as of the signing date of these Regulations from 50 thousand UAH up to 200 thousand UAH for goods and services, and up to 1.5 million UAH for works.
2.2 During direct and below-threshold procurement of goods, works, and services, the Procuring Entity may use procurement procedures via an electronic marketplace or by determining the most favorable price, adhering to principles of public procurement established by the Law.
2.3 The effect of these Regulations does not extend to cases where the subject of procurement includes goods, works, and services specified in parts 3 and 4 of Article 2 of the Law.
3. Procedure for Organizing Below-Threshold Procurements
3.1 The procurement procedure is conducted to achieve the most rational and efficient use of the university's financial resources by selecting suppliers of goods, executors of works, and service providers whose proposal is the most economically advantageous taking into account the ratio of quality and price indicators.
3.2 Below-threshold procurements are conducted in accordance with the approved Annex to the Annual Procurement Plan for the corresponding budget year.
3.3 By decision of the Rector of the University, an authorized person responsible for conducting below-threshold procurements is designated in accordance with the Law, these Regulations, and the operating rules of the accredited electronic marketplace in the System.
3.4 The appointment of the Authorized Person for below-threshold procurement of goods, works, and services must not create a conflict between the interests of the Procuring Entity and a participant, or between the interests of participants in the procurement procedure, the presence of which could affect the objectivity and impartiality of decision-making regarding the selection of the procurement procedure winner.
3.5 The Authorized Person for below-threshold procurement of goods, works, and services is responsible for the organization and conduct of below-threshold procurement procedures.
4. Rights, Duties, and Responsibility of the Authorized Person for Below-Threshold Procurement of Goods, Works, and Services
4.1 The Authorized Person for below-threshold procurement of goods, works, and services has the right to:
- participate in expenditure planning and determining the need for goods, works, and services planned for procurement;
- analyze and/or receive information regarding the performance of contracts concluded under the below-threshold procurement procedure in accordance with the Law;
- obtain from structural units of the University information necessary for conducting below-threshold procurement procedures;
- initiate the creation of working groups composed of officials and other staff of the University's structural units in order to draft technical requirements for the Procurement subject, prepare draft contracts, etc.;
- perform other actions provided for by the Law.
4.2 The Authorized Person for below-threshold procurement of goods, works, and services is obligated to:
- personally participate in all processes (stages) of conducting below-threshold procurements;
- process received procurement requests by determining the code according to the current state classifier and the rules for its determination, conduct market monitoring for a specific product (service, work), and determine the expected cost of the procurement;
- prepare planning documents regarding procurements of goods, services, and works, specifying the code according to the current State Classifier and the expected cost separately for each subject of procurement, as well as promptly make changes to the Annex to the Annual Procurement Plan while adhering to the procedure and deadlines for publishing such documents in accordance with the Law;
- organize and conduct procurement procedures;
- when conducting procurements without using the e-procurement system, ensure equal conditions for all participants, as well as an objective and fair selection of the winner;
- adhere to the operational rules of the System and act during the Procurement process in accordance with the regulations of the Authorized Electronic Marketplace;
- update the information submitted during registration in case such information changes;
- ensure non-disclosure and confidentiality of the login and password provided during registration. In case of suspicion of their unauthorized use by third parties, immediately notify the operator;
- comply with the norms of legislation in the field of public procurement and these Regulations;
- perform other actions provided for by the Law.
4.3 The Authorized Person for below-threshold procurement of goods, works, and services is responsible for the completeness and accuracy of information published on the web portal of the Authorized Body for Procurement for public access, as well as for the timeliness of providing and posting information subject to publication in accordance with the requirements of the Law and at the request of interested parties. For posting incorrect information, including information of an offensive nature, or for improper actions that caused damage to other persons, the Authorized Person bears responsibility in accordance with current legislation.
4.4 For violation of the requirements established by the Law and regulatory acts developed in accordance with the Law, the Authorized Person for below-threshold procurement of goods, works, and services bears responsibility under the laws of Ukraine.
4.5 General subordination of the Authorized Person is to the Rector of the University, and operational subordination is to the chairperson of the tender committee. To perform tasks and functions, as well as implement the rights provided for by these Regulations, the Authorized Person for below-threshold procurement interacts with vice-rectors, members of the tender committee, heads of structural units, and all structural units and officials of the Procuring Entity on matters within their competence.
4.6 The responsible employee from the structural unit of the University (the head of the structural unit or an employee designated by them) must, together with the Authorized Person, carry out preparations for the procurement procedure, maintain contact with potential counterparties, process technical and other conditions of the procurement, draft internal memos, and obtain approvals from the University management to conduct procurements, as well as support the procedure for concluding and executing the procurement contract.
4.7 Responsible employees from the structural units of the University are responsible for compliance with the principles of purchasing goods, works, and services at the University in accordance with the requirements of the current legislation of Ukraine and these Regulations. When drafting a document (internal memo, petition, application, etc.) to initiate a procurement procedure in the interests of a structural unit of the University, such a document must contain contact details of the responsible employee from that structural unit of the University (full name, position, phone number).
5. Procedure for Conducting Below-Threshold Procurements Using the Electronic Procurement System
5.1 To carry out below-threshold procurements via an electronic marketplace, the Authorized Person for below-threshold procurement of goods, works, and services designated in accordance with paragraph 3.3 of these Regulations registers in the System according to the operating rules of the selected electronic marketplace. To carry out the below-threshold procurement procedure, the Procuring Entity has the right to register on several authorized electronic marketplaces.
5.2 Procurement using the System involves the following stages:
- announcement of Procurement;
- clarification period;
- submission of proposals;
- auction;
- qualification, determination of the winner, and completion of Procurement.
5.3 In order to acquire specified goods, works, or services, the Procuring Entity publishes a procurement announcement in the System.
When announcing a procurement, the Procuring Entity posts information in the System regarding the subject of procurement – title, quantitative and qualitative characteristics, expected cost of procurement, terms of the contract, procedure and terms of procurement, deadline for submitting proposals, as well as qualification requirements for the participant and other information that, in its opinion, is necessary for conducting the procurement. Requirements for the content, form, terms of posting, and clarification of information in the procurement announcement in the System are defined by the Procedure for Carrying Out Below-Threshold Procurements and the operating rules of the selected electronic marketplace.
5.4 When determining the subject of procurement, the Procuring Entity is obliged to be guided by the current Procedure for Determining the Subject of Procurement.
Technical requirements for the procurement subject and/or qualification requirements (if necessary) for participants of the procurement procedure, along with ways to confirm them, may be specified by the Procuring Entity in a separate document that is published simultaneously with the procurement announcement (procurement documentation). These requirements must establish the necessary level of conditions and constraints and maximize competition among procurement participants. If the title of the procurement subject or its description contains a reference to a specific trademark or firm, patent, design, or type of procurement subject, its origin, or manufacturer, the Procuring Entity may specify which analogues and/or equivalents will be accepted in the participants' proposals.
5.5 The procedure for conducting an electronic auction is carried out automatically by the system in accordance with the regulations approved by the Authorized Body. During the below-threshold procurement procedure, participants may submit requests for clarification, suggestions, or demands to the procuring entity. In such cases, the Authorized Person must respond promptly to such requests and, in order to prepare reasoned responses in a timely manner, involve officials responsible for the procurement, staff from the legal department, and relevant technical specialists of the university.
5.6 Based on the results of the electronic auction, the Authorized Person distributes the documents received from participants as part of their proposals among the specialists involved in the procurement for analysis. Based on their conclusions, the Authorized Person prepares information for publication regarding the rejection of a participant's proposal, the cancellation of the bidding process, or the intention to conclude a contract with the participant whose proposal is the most advantageous while meeting the procuring entity's requirements.
5.7 After signing the contract with the supplier of goods, services, or works, the Authorized Person is obliged to publish a report on the below-threshold procedure within the established deadlines, and the procedure is considered complete.
6. Procedure for Conducting Below-Threshold Procurements by Applying the Best Price Determination Procedure
6.1 To ensure continuous operations of the University, in addition to the electronic procurement system via an electronic marketplace, the University uses a below-threshold procurement procedure by determining the most favorable price from counterparties to conclude a commercial contract with them.
6.2 The application of the procedure through determining the most favorable price from counterparties to conclude a contract with them is carried out by monitoring prices on the date of procurement for similar purchases of goods, works, and services. Requirements for the scope and documentation of price monitoring are determined by the rules of economic research. The University approaches the counterparty publicly offering the most favorable price for the procurement subject with a proposal to enter into a contract. The procedure for concluding a contract is determined in accordance with the current University regulations on the procedure for drafting civil law contracts.
6.3 Copies of the contract with annexes are, as a rule, prepared in accordance with the form adopted by the University and signed in the manner determined by the parties to the contract. By agreement of the parties, performance under the contract may begin prior to its proper execution pursuant to the provisions of paragraph 3 of Article 631 of the Civil Code of Ukraine.
6.4 The Authorized Person, in accordance with the requirements of Article 10 of the Law, publishes a report on the concluded contract in the System.
7. Appeal of Procurement Results, Cancellation of Procurement
7.1 Appealing the results of a Procurement carried out «via an electronic marketplace», as well as the cancellation of such Procurement, is executed in accordance with current legislation of Ukraine and the regulations of the respective authorized electronic marketplace. The Procuring Entity's receipt of recommendations from the complaint review committee, as provided for by the Procedure for Carrying Out Below-Threshold Procurements, may serve as grounds for unilateral termination of an already concluded contract.
7.2 A Procurement may be cancelled exclusively by the Procuring Entity on the basis of current legislative requirements, stating reasoned grounds for making such a decision. Matters concerning the termination of concluded Procurement contracts are resolved in accordance with the provisions of civil and commercial law.
8. Final Provisions
8.1 The Regulations enter into force from the moment of approval and are enacted by an order of the Rector.
8.2 Amendments and/or additions to these Regulations are introduced in the manner established for their adoption.