Government Procurement Agreement
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Government Procurement Agreement Ukraine
description
Ukraine
Transcript of Government Procurement Agreement
Government Procurement Agreement
Ukraine
Ukraine’s history of joining WTO GPA
2011Ukraine submits application to join GPA
Aug. 2011 & Dec. 2012 Ukraine answers the question checklists and submits initial proposal
7th Mar. 2014Ukraine’s first revised proposal circulated
28th Oct. 2014Ukraine’s second revised proposal circulated
27th Apr. 2015Ukraine’s
third revised proposal
circulated
29th Jun. 2015Ukraine’s final proposal circulated
2011 2012 2013 2014 2015
11th Nov 2015Ukraine’s accession terms approved
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2016
16th Mar. 2016Rada ratifies agreement
18th May 2016Ukraine became GPA member
GPA is a much needed tool
$1.7 trillion
Plurilateral agreement under the WTO Agreement. Mutually open government procurement market among its parties.
GPA market value = approx. $1.7 trillion.
Closing of Russian market.Ukrainian exporters need to export to new markets.
GPA can be a powerful tool to do this.
Easiest access to foreign markets. NO Local office
NO Ad expenditures
NO Retail setup
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GPA Members and observers
EU-28, USA, Canada, Armenia, Bulgaria, Romania, Croatia, Hong Kong, Iceland, Israel, Japan, Rep. of Korea, Liechtenstein, Montenegro, Aruba, New Zealand,
Norway, Singapore, Switzerland, Taipei, (Ukraine).
45 Members
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GPA thresholds start at € 130,000
Central government entities
Sub-central government entities Other entities
Goods and Services
Construction Services
Goods and Services
Construction Services
Goods and Services
Construction Services
Special Drawing Rights (SDR)
130,000 5,000,000 200,000 5,000,000 400,000 5,000,000
EURO (€) 135,000 5,225,000 209,000 5,225,000 418,000 5,225,000
Generally applicable thresholds 2016-2017
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Non–discrimination
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1. Suppliers wishing to sell goods, services and construction services from other GPA Parties to the government may not be discriminated against, have to be treated the same as national companies.
2. Companies from different GPA Parties have to be treated the same.
3. Foreign direct investment is welcome: No discrimination on the basis of foreign affiliation.
4. No offset requirements allowed: e.g. no local content or other discriminatory conditions.
Compete on a level playing field
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1. Selection of participating suppliers
- according to pre-determined, limited and objective conditions for participation (read Article VIII:3+4)
- Not allowed: Previous awards in the same country as requirement. But: experience requirement possible
- Experience abroad needs to be taken into account
2. Conditions for participation must be published in notices or tender documentation.
- Only published conditions may be taken into account!
3. Examples of grounds for exclusion
- Bankruptcy, false declarations, performance deficiency in prior contract, professional misconduct, non-payment of taxes
Technical Specifications (Article X)
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Prohibition to use technical specifications to create unnecessary obstacles to int’l tradeGoal: objective, non-discriminatory technical specifications, fair competition
Details
• Set out in terms of performance and functional requirements
• Based on international standards, if they exist
• If narrow/descriptive etc., use “or equivalent”
• No advice from persons with comm. interest
• Allowed: promotion of conservation of natural resources, protection of the environment
Transparency: what, when and how
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• Date of delivery/supply of services (Article X:8)- Complexity of procurement, extent of
subcontracting, realistic production, de-stocking, transport times to be taken into account
• Evaluation criteria- May include: price/other cost factors, quality,
technical merit, environmental characteristics, terms of delivery
- Value for money• Who gets the information? (Art. X:10)- any participating supplier, any supplier
requesting to participate, no competitive advantage accorded to any one supplier
Non-discrimination, fair competition
Realistic time frames
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Sufficient time for preparation & submission of tenders (Article XI:1)
• Nature and complexity of procurement, extent of subcontracting, time needed to transmit tenders -have to be taken into account.
• Same time period for all suppliers.
Deadlines
• Selective tendering: min. 25 days for request for participation, state of urgency: min. 10 days
• Submission of tenders: 40 days from publication of notice/invitation to submit tender, min. 10 days if notice of planned procurement, recurring contracts, state of urgency,
• Reduction possible if use of electronic means.
Fair Results
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• Award to the tenderer that̆:
I. has been determined as fully capable of undertaking the contract and
II. is most advantageous according to the evaluation criteria as set out in the tender documentation, or
III. has submitted the lowest price (if only price as evaluation criterion)
• Possibility to exclude tenders that do not fulfil requirements set out in notices & tender documentation or by supplier that does not satisfy conditions for participation.
• Verification if abnormally low price.
• No options, cancellation, modification of awarded contracts in a manner that circumvents the obligations under the GPA.
Where to find tender calls?
EU www.ted.europa.eu
USA www.fbo.gov
Canada www.buyandsell.gc.ca
Japan www.jetro.go.jp
Full list of national platforms can be downloaded from: https://goo.gl/uTrVQP
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Top 10 products in cross-border PP by valuePoland№ Name of product CPV %
1 Pipeline, piping, pipes, casing, tubing and related items 44160000 47.90
2 Railway and tramway locomotives and rolling stock and associated parts 34600000 4.45
3 Pharmaceutical products 33600000 4.134 Diesel oil 09134100 3.015 Rolling stock 34620000 2.566 Distribution boxes 31213100 2.227 Natural gas 09123000 1.778 Electricity, heating, solar and nuclear energy 09300000 1.699 Taps, cocks, valves and similar appliances 42130000 1.3810 Broken and crushed stone 14212300 1.14
Slovakia№ Name of product CPV %1 Electricity 9310000 11.032 Medical consumables 33140000 10.163 Unleaded petrol 9132100 8.804 Diesel oil 9134100 7.895 Communications infrastructure 32571000 6.316 Defibrillator 33182100 5.12
7 Medicinal products for the blood and blood-forming organs 33621000 4.93
8 Catheters 33141200 4.669 Natural gas 9123000 3.6010 Angioplasty supplies 33111730 3.43
Hungary№ Name of product CPV %1 Electric vehicles 34144900 64.632 Medical equipments 33100000 12.133 Petroleum and distillates 9130000 4.354 Electricity 9310000 3.755 Diesel fuel (EN 590) 9134220 3.316 Photocopiers 30121100 3.167 Natural gas 9123000 1.108 X-ray contrast media 33696800 0.769 Miscellaneous structures 44212320 0.6210 Pharmaceutical products 33600000 0.52
Romania№ Name of product CPV %1 Diesel fuel (EN 590) 09134220 11.362 Particle accelerators 31643000 6.99
3 Antineoplastic and immunomodulatingagents 33652000 4.82
4 Antineoplastic agents 33652100 4.465 Medical equipments 33100000 3.986 Laboratory reagents 33696500 3.677 Blood-testing reagents 33696200 3.148 Diesel fuel 09134200 3.089 Microwave radio equipment 31711423 3.0710 Various medicinal products 33690000 2.83
13Source: TED 2015
Top 10 products by number of contracts in cross-border PP
№ Name of product CPV %1 Pharmaceutical products 33600000 25.76
2Disposable non-chemical medical consumables and haematological consumables
33141000 5.30
3 Various medicinal products 33690000 4.094 Medical equipments 33100000 3.145 Antineoplastic agents 33652100 2.676 Laboratory reagents 33696500 2.507 Surgical sutures 33141121 2.398 Medical consumables 33140000 2.029 Dressings (medical equipments) 33141110 1.83
10 Antineoplastic and immunomodulatingagents 33652000 1.82
№ Name of product CPV %1 Pharmaceutical products 33600000 18.812 Catheters 33141200 6.573 Medical consumables 33140000 6.274 Angioplasty supplies 33111730 4.35
5 Occupational clothing, special workwear and accessories 18100000 4.15
6 Medicinal products for the blood, blood-forming organs and the cardiovascular system 33620000 4.04
7 Cannulae 33141220 3.648 Surgical implants 33184100 2.739 Infusion solutions 33692100 2.4310 Electricity 9310000 2.43
№ Name of product CPV %
1 Food, beverages, tobacco and related products 15000000 15.06
2 Pharmaceutical products 33600000 12.403 Various medicinal products 33690000 7.164 Angioplasty devices 33111740 6.105 Medical equipments 33100000 4.906 Electricity 9310000 4.837 Miscellaneous food products 15800000 3.228 Photocopiers 30121100 1.39
9 Laboratory, optical and precision equipments (excl. glasses) 38000000 1.30
10 Natural gas 9123000 1.24
№ Name of product CPV %1 Antibacterials for systemic use 33651100 20.802 Pharmaceutical products 33600000 10.433 Various medicinal products 33690000 7.93
4 Medicinal products for functional gastrointestinal disorders 33612000 7.48
5 Blood-testing reagents 33696200 6.696 Antihaemorrhagics 33621200 6.177 Syringes 33141310 2.498 Antineoplastic agents 33652100 2.419 Laboratory reagents 33696500 2.1110 Laboratory glassware 33793000 2.08
Poland Slovakia
Hungary Romania
14Source: TED 2015
Ukrainian companies already won foreign tenders in the past
Year Country CPV Product Company Town TotalFinalValue(Euros)
2009 Bulgaria 34622300 Trolleybuses UkrainianCommercialAutomobiles
Kyiv 1,021,982
2009 Poland 34940000 Railwayequipment Kakhovka plantofelectricweldingequipment
Kakhovka,Khersonregion
665,496
2009 Hungary 42113000 Partsofturbines Turboatom Kharkiv 2,098,629
2009 Germany 34631000 Partsoflocomotivesorrollingstock
Promtrans Donetsk 228,600
2010 Lithuania 34631100 Monobloc wheels Dnipropetrovsk 149,760
2012 Poland 55000000 Hotel,restaurantandretailtradeservices
Lviv ChamberofCommerce Lviv 42,221
2012 Poland 79000000 Businessservices:law,marketing,consulting,recruitment,printingandsecurity
CourierGalician Khorosno,Lvivregion 11,305
2013 Poland 79210000 Accountingandauditingservices
DK-Ukraine(audit) Lviv N/A
2013 Bulgaria 34120000 Motorvehiclesforthetransportof10ormorepersons
LAZ Kyiv 1,405,800
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And that is even before GPA!
Ukrainian exporters show much interest, but need support
73%Of correspondence say they
don’t have a maximum or minimum limit of tender value to
participate
93%have potential commercial
interest in the markets of member countries of the WTO Agreement
on Government Procurement
88%unaware of English language
information resources of WTO on WTO GPA information on foreign purchases on the website MEDT
92%Require advice on finding relative
tenders, documentation andparticipation
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GPAinUA – supporting project office
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GPAinUA Office:
GPAinUA Office - a professional independent institution that ensures the creation of an ecosystem for effective participation of Ukraine in GPA markets; acts as a trusted advisor to MEDT in matters of strategy and international trade
policy in the field of public procurement
• Support of Ukrainian exporters on their access to the public procurement markets of GPA member countries
• Support of importers from GPA member countries on their participation in public procurement in Ukraine
• Provides development of consulting services market to support the participation of Ukrainian exporters in the public procurement of GPA member countries
• Supports MEDT regarding international trade strategy and policy in the field of public procurement
• Collaborating with MEDT and Ministry of Foreign Affairs on cooperation issues with governments of GPA member countries.
GPAinUA clients
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Ukrainian exporters:- Companies that already
participated in public tenders abroad
- Export companies- Companies that are potential
exporters in terms of GPA
Foreign exporters (from GPA parties):- Companies that already participated in
Ukrainian public procurement- Companies that didn’t participate in Ukrainian
public procurement
Ukrainian public bodies:- The MEDT- The MEDT units- Other central executive bodies- Ukraine’s diplomatic missions abroad
(trade & economic representatives)
Foreign public bodies:- Public Procurement Offices in the GPA parties- Dedicated WTO committees- The EU Commission- Trade and economic missions / foreign trade
representative offices of the GPA parties- International financial institutions
- e-Procurement and tender platforms, notice boards (e-GPA)
- Ukrainian business associations- Foreign business associations
Business partners:
- Law firms- Translation agencies- Export consultants- Analytical agencies- Business schools and higher
education institutions
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Analytics and strategy
PR/communication/education
Support of domestic exporters
Support of external exporters
Single entry point for:domestic exporters, importers from GPA members, domestic and foreign
business associations, business schools and universities, the media,Promoting the idea of participation in foreign public procurement
Providing general information on participation in public procurement, including information on professional intermediaries
• Identify promising foreign public procurement markets• Analytical support of MEDT in shaping Ukraine’s export
strategy in public procurement• eGPA strategy development
• Consulting on entering government procurement markets of other countries
• Database of trusted professional intermediaries
• Development training for local exporters (together with intermediaries) • Analysis of barriers
and help in resolving disputes in GPA
• Consulting on entering Ukraine’s government procurement market• Database of trusted
professional intermediaries
• Help in resolving disputesCooperation with
governments of GPA members
KEY:
Local exporters
GPA member importers
MEDT and other state institutions, diplomatic missions
Intergovernmental and foreign government agencies
Business associations, educational institutions and professional intermediaries
• Support for MEDT in international negotiations• Cooperation with Ukraine's diplomatic missions
abroad• Cooperation with the Offices of Public Procurement of
GPA members
GPAinUA concept model
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Guides on participation in public procurement of GPA
members
Database of partners and professional
intermediaries
Statistics and analytics
eGPA – a single information point
Tender listings from
GPA members:
WTO eGPAHub
