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Central Procurement Organizations as an Instrument for Countering Corruption and Violations in Public Procurement
Postnikov O. O., Smerichevska S. V.

Postnikov, Oleksii O., and Smerichevska, Svitlana V. (2024) “Central Procurement Organizations as an Instrument for Countering Corruption and Violations in Public Procurement.” Business Inform 4:260–266.
https://doi.org/10.32983/2222-4459-2024-4-260-266

Section: Management and Marketing

UDC 351.9:35.073.5(477)

Abstract:
The article is aimed at analyzing the public procurement system in Ukraine in 2019–2023 and substantiation of the role of central procurement organizations (CPOs) as an effective instrument for countering corruption and violations in this area. The research methodology is based on the analysis of statistical data on the volume and features of public procurement in Ukraine for the specified period. As a result of the study, the structure of violations in the process of organization of public procurement in Ukraine is analyzed. The essence, advantages and foreign experience of functioning of central procurement organizations are considered. The results of the study show that the public procurement system needs to be improved due to the high level of violations, in particular in the procedures for considering tender proposals and drawing up tender documentation. A shortage of highly qualified personnel in public procurement management has been identified, especially in the regions. The role of CPO as specialized institutions for centralized procurement is substantiated. The main advantages of the CPO are defined as follows: saving budget funds, increasing professionalism, unification of approaches, reducing the administrative burden on customers, the possibility of concluding long-term agreements. The positive experience of the leading CPO of Great Britain – Crown Commercial Service, which provides effective transparent public procurement, achieves significant discounts due to the consolidation of demand, has a team of specialists in various fields, applies standard procedures and contracts, online catalogs, cost analytics, is analyzed. The organizational models of the CPO in the EU countries in accordance with Directive 2014/24/EU are studied. It is substantiated that the active development of the conception of the CPO in Ukraine, taking into account the positive world experience, strengthening human resources, improving legislation in this area and eliminating typical violations, are of particular importance for improving the public procurement system and countering corruption. Prospects for further research are related to the study of specific ways to implement the best world practices of central procurement organizations in Ukraine.

Keywords: public procurement, central procurement organizations (CPOs), corruption, procurement efficiency, human resources, world experience.

Tabl.: 2. Bibl.: 16.

Postnikov Oleksii O. – Postgraduate Student, National Aviation University (1 Lubomyra Husara Ave., Kyiv, 03680, Ukraine)
Email: [email protected]
Smerichevska Svitlana V. – Doctor of Sciences (Economics), Professor, Head of the Department, Department of Logistics, National Aviation University (1 Lubomyra Husara Ave., Kyiv, 03680, Ukraine)
Email: [email protected]

List of references in article

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“Shchodo podolannia koruptsii u sferi derzhavnykh zakupivel v Ukraini. Analitychna zapyska“ [Regarding Overcoming Corruption in the Field of Public Procurement in Ukraine. Analytical Note]. Natsionalnyi instytut stratehichnykh doslidzhen. March 18, 2014. https://www.niss.gov.ua/doslidzhennya/ekonomika/schodo-podolannya-korupcii-u-sferi-derzhavnikh-zakupivel-v-ukraini
“How to Improve Procurement Monitoring“. Transparency International Ukraine. September 12, 2023. https://ti-ukraine.org/en/research/how-to-improve-procurement-monitoring/
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“Antykoruptsiina initsiatyva YeS v Ukraini“ [Anti-corruption Initiative of the EU in Ukraine]. EUACI. https://euaci.eu/ua/.
Ofitsiinyi sait Prozorro. https://prozorro.gov.ua/
“Publichni zakupivli. Richnyi zvit (sichen 2023). Vypusk 2022. Kliuchovi pokaznyky sfery publichnykh zakupivel, vazhlyvi podii, rehuliatorni initsiatyvy ta tsikavi keisy“ [Public Procurement. Annual Report (January 2023). Edition 2022. Key Indicators of the Field of Public Procurement, Important Events, Regulatory Initiatives and Interesting Cases]. https://infobox.prozorro.org/upload/files/main/1930/589/zvit-rik-2022-zakupivli-2701-compressed.pdf
[Legal Act of Ukraine] (2019). https://ips.ligazakon.net/document/FN054662
“Novyi profesiinyi standart fakhivtsia z publichnykh zakupivel, shcho tse take, yak i na shcho vplyvaie“ [The New Professional Standard of a Specialist in Public Procurement, What It Is, How and What It Affects]. TNDR. October 27, 2023. https://tndr.com.ua/article/novij-profesijnij-standart-fahivecz-z-publichnih-zakupivel-shho-cze-take-yak-i-na-shho-vplivae/
[Legal Act of Ukraine] (2015). https://zakon.rada.gov.ua/laws/show/922-19#Text.
Centralized Procurement Organizations (CPOs) in Ukraine. https://ti-ukraine.org/cpo/en/terms.html
Shatkovskyi, O. “Tsentralizovani zakupivli: dosvid YeS pidtverdzhuie dotsilnist“ [Centralized Procurement: EU Experience Confirms Feasibility]. Radnyk u sferi publichnykh zakupivel. January 15, 2016. https://radnuk.com.ua/zhurnaly/tsentralizovani-zakupivli-dosvid-ies-pidtverdzhuie-dotsilnist/
Yakubovskyi, Ye. “Yak tsentralizovani zakupivli dopomahaiut derzhavi ekonomyty sotni milioniv“ [How Centralized Procurement Helps the State Save Hundreds of Millions]. Ekonomichna pravda. January 24, 2024. https://www.epravda.com.ua/columns/2024/01/24/709067/
Smerichevska, S. V., and Postnikov, O. O. “Derzhavni zakupivli: evoliutsiia rozvytku ta krashchi svitovi praktyky“ [Public Procurement: Evolution of Development and World Best Practices]. Problemy systemnoho pidkhodu v ekonomitsi, no. 1 (2024): 95-102. DOI: https://doi.org/10.32782/2520-2200/2024-1-14
Crown Commercial Service. https://www.crowncommercial.gov.uk/
Smerichevska, S. V., and Postnikov, O. O. “Modeli upravlinnia derzhavnym zakupivliamy v svitovii praktytsi“ [Models of Public Procurement Management in Global Practice]. Biznes, innovatsii menedzhment: problemy ta perspektyvy. Kyiv: Vyd-vo «Politekhnika», 2023. 176-177.

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