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The document ceased to be valid since  April 20, 2014 according to Item 5 of the Section XI of the Law of Ukraine of  April 10, 2014 No. 1197-VII

LAW OF UKRAINE

of June 1, 2010 No. 2289-VI

About implementation of public procurements

(as amended on 13-03-2014)

 This Law establishes legal and economic basis of implementation of purchases of goods, works and services for public funds.

The purpose of this Law is creation of competitive environment in the sphere of public procurements, prevention of manifestations of corruption in this sphere, development of fair competition, ensuring rational and effective use of public funds.

Section I. General provisions

Article 1. Determination of the main terms

1. In this Law the following terms are used in such value:

1) the acceptance of the offer of the competitive biddings or the price offer (the offer on results of application of procurement procedure for one participant) - adoption of the offer of the competitive biddings by the customer or the price offer recognized as the most economic by results of assessment (by results of application of procurement procedure for one participant), and provision of consent to capture of obligations on payment of subject of purchase or its part (lot). The offer of the competitive biddings or the price offer the offer on results of application of procurement procedure for one participant is considered accepted if the customer submits to the participant to the time established by this Law the written confirmation about the acceptance of such offer;

1-1) subscribers - any physical person or legal entity registered on electronic platform or the web portal of Authorized body;

2) the general customer - state bodies, the public, municipal institution or the organization determined respectively by the Cabinet of Ministers of Ukraine, Council of Ministers of the Autonomous Republic of Crimea, local public administrations or executive bodies of local councils responsible for the organization and holding procedures of purchases for the benefit of customers by the framework agreements according to this Law;

3) public procurement (further - purchase) - acquisition by the customer of goods, works and services for public funds according to the procedure, established by this Law;

4) public funds - means of the Government budget of Ukraine, the budget of the Autonomous Republic of Crimea and local budgets, means of the National Bank of Ukraine, the state trust funds, the Pension fund of Ukraine, means of obligatory national social insurance, funds of obligatory national social insurance for case of unemployment, means of obligatory national social insurance in connection with the temporary disability and expenses caused by the birth and burial, the means provided by the Law of Ukraine "About obligatory national social insurance from labor accident and occupational disease which entailed disability", means of the organizations or organizations formed in accordance with the established procedure by state bodies, authorities of the Autonomous Republic of Crimea local public administrations or local government bodies, means of the state and local funds, means of the state defensive order, means of the state order for satisfaction of priority state requirements, means of the state material reserve, means of Agrarian fund, fund of social protection of disabled people, means which are provided to customers under guarantees of the Cabinet of Ministers of Ukraine, Council of Ministers of the Autonomous Republic of Crimea and local government bodies on the credits, loans which are allowed by foreign states, banks, international financial institutions or on the terms of joint financing together with foreign states, banks, international financial institutions;

5) the purchase agreement - the agreement which is signed between the customer and the participant by results of procurement procedure and provides provision of services, performance of works or acquisition of property right to goods for public funds;

6) documentation of the competitive biddings - documentation which is developed and affirms the customer will be promulgated for open entry and free of charge moves the customer during tendering (the competitive biddings) to physical/legal entities. Documentation of the competitive biddings is not object of copyright and/or the related rights;

6-1) documentation of electronic reversive auction - electronic documents which have obligatory detail - the digital signature and determine requirements of the customer to subject, the agreement, the procedure and procurement participants. Requirements concerning structure and contents of documentation of electronic reversive auction are established by this Law;

6-2) electronic request (further - the request) - the electronic document which confirms the consent of the participant of purchases to sign the purchase agreement on the conditions determined by the customer and contains the documents and data confirming fulfillment of requirements of the customer during purchase execution according to the procedure of electronic reversive auction;

6-3) electronic competitive request (further - the competitive request) - the electronic document containing information on the proposal of the participant concerning the price of the purchase agreement (lot) who moves to the operator of an electronic trading platform directly during trading session of electronic reversive auction;

6-4) electronic platform - the website on the Internet together with set of technical equipment, the software and organizational actions which are used by the operator of an electronic trading platform for carrying out public procurements according to the procedure of electronic reversive auction;

7) ensuring agreement performance about purchase - provision by the participant to the customer of performance guarantees of the agreement obligations about purchase, including such types of providing as the guarantee, guarantee, pledge, deposit, penalty, the deposit;

8) providing the offer of the competitive biddings - provision by the participant to the customer of performance guarantees of the obligations in connection with provision of the offer of the competitive biddings, including such types of providing: guarantee, guarantee, pledge, deposit, deposit;

8-1) tender security - means which are provided upon the demand of the customer by the participant of purchases according to the procedure of electronic reversive auction as performance guarantee of obligations by it concerning the conclusion of the agreement by results of the procedure;

9) purchase electronically - public procurement during which carrying out the electronic document management according to the Law of Ukraine "About electronic documents and electronic document management" is used;

10) customers are the managers of public funds conducting procurement according to the procedure, determined by this Law;

11) plot - the arrangement between two or several participants of procurement procedure directed to price fixation of the offer of the competitive biddings or the price offer at the artificial or non-competitive levels from permission or without the knowledge of the customer;

12) qualification documentation - documentation which is developed, affirms, will be promulgated for open entry and is free of charge provided by the customer during preliminary qualification of participants to physical/legal entities;

13) the qualification offer - the proposal which is submitted by the participant of preliminary qualification to the customer according to requirements of qualification documentation;

14) committee on the competitive biddings - the office (official) faces of the customer (the general customer) appointed responsible for the organization and holding procurement procedures according to this Law;

15) monitoring of purchases - systematic observation of holding procedures of public procurements by customers for the purpose of the analysis of their efficiency and proper compliance with law in the sphere of public procurements;

16) the most economic offer - the offer which corresponds to all criteria and conditions determined in documentation of the competitive biddings and is recognized as the best by results of assessment of competitive offers according to article 28 of this Law;

17) the announcement of holding procurement procedure - the announcement of carrying out open tenderings, the announcement of holding procedure of the two-level biddings, the announcement of carrying out preliminary qualification, request of price offers, information on application of procurement procedure for one participant;

18) the announcement of results of procurement procedure - the announcement of results of tendering, the message on results of carrying out preliminary qualification, information on results of the procedure of request of price offers, information on the results of the procedure of purchase at one participant, the message on cancellation of the biddings or recognition their cancelled, the message on cancellation of procurement procedure at one participant;

19) body of appeal - Antimonopoly Committee of Ukraine;

19-1) operator of an electronic trading platform - the legal entity both state, and other patterns of ownership which state registration is carried out in the territory of Ukraine in the procedure established by the legislation, owning electronic platform, program hardware, necessary for its functioning, experience and which qualification of personnel allow to provide holding electronic reversive auctions according to this Law and included in the Register of operators of electronic platforms;

20) the winner of procurement procedure - the participant, the offer of the competitive biddings or the price proposal of whom is recognized as the most economic and is accepted in case of tendering (the competitive biddings), or the participant whose proposal is accepted by results of application of procurement procedure for one participant, or the participant of the procedure of electronic reversive auction who during trading session of electronic reversive auction offered bottom price of the agreement (lot) and which request is acknowledged documentation of electronic reversive auction meeting the requirements;

21) the companies - the companies formed in accordance with the established procedure by state bodies, authorities of the Autonomous Republic of Crimea or local government bodies and representatives on receipt of public funds, capture on them of obligations and implementation of payments, including the state, state, municipal companies, and also economic societies in which authorized capital the state or municipal share fraction (shares) exceeds 50 percent, their affiliated enterprises, and also the companies, economic societies in which authorized capital 50 and more percent belong to the state, including state, municipal companies and economic societies in which authorized capital the state or municipal share fraction (shares) exceeds 50 percent, merging of such companies (economic societies);

22) the connected person - person corresponding any to any of the below-stated signs:

the legal entity who exercises control over the participant of procurement procedure, the operator of an electronic trading platform or is controlled by such participant of procurement procedure, the operator of an electronic trading platform, or is under general control with such participant of procurement procedure, the operator of an electronic trading platform;

the physical person or members of his family exercising control over the participant of procurement procedure, the operator of an electronic trading platform;

office (official) face of the participant of procurement procedure, the operator of an electronic trading platform, authorized to perform on behalf of the participant of procurement procedure, the operator of an electronic trading platform the legal acts directed to establishment, change or stop of the civil relations and members of the family of such office (official) person;

the members of the family of official (office) face of the customer exercising control over participants of procurement procedure or authorized to perform the legal acts directed to establishment, change or stop of the civil relations on behalf of the participant of procurement procedure.

It is necessary to understand ownership as control directly or through the bigger number of the related physical persons or legal entities the greatest share (share, the block of shares) of the authorized capital of the participant of procurement procedure, the operator of an electronic trading platform or management of the greatest number of voices in governing body of such participant of procurement procedure, the operator of an electronic trading platform, or ownership of shares (share, the block of shares) which constitutes at least 25 percent of the authorized capital of the participant of procurement procedure, the operator of an electronic trading platform.

For physical person the total amount of ownership of shares of the authorized capital of the participant of procurement procedure, the operator of an electronic trading platform (voices in governing body), is determined as the total amount of corporate laws which belongs to such physical person, members of his family and legal entities who are controlled by such physical person or members of his family.

For the purposes of this Law spouses, children, parents, brothers and sisters, the grandfather, the woman, the grandsons, adoptive parents adopted, and also other persons, on condition of their permanent residence together with the connected person and maintaining reckon with it joint economy as family members;

23) services - any subject of purchase (except goods and works), including transport services, development of technologies, scientific research, research or developmental developments, medical and consumer services, leasing, employment (lease), and also financial and consulting services, running repair;

24) purchase subject - goods, works or services which are bought by the customer within single procurement procedure on participation in which participants submit proposals of the competitive biddings (qualification, price offers) or offers at negotiations (in case of application of procurement procedure for one participant), or requests (in case of application of the procedure of electronic reversive auction). The subject of purchase is determined by the customer according to the procedure, established by Authorized body. For holding procurement procedure there shall be at least two offers / requests, except cases of application by the customer of procurement procedure for one participant;

24-1) applicant - the subscriber who was registered on electronic platform
for participation in procurement according to the procedure of electronic reversive auction, 
carried out on it to electronic platform;

25) the offer of the competitive biddings - the proposal concerning subject of purchase or its part (lot) which the participant submits to the customer according to requirements of documentation of the competitive biddings;

26) works - designing, construction new, expansion, reconstruction, capital repairs and restoration of the existing objects and constructions of production and non-productive appointment, work on regulation in construction, exploration works, technical retrofitting of operating plants and covering notes to service works, including geodetic works, drilling, seismic researches, aero - both satellite photographing and other services which join in the estimated cost of works if the cost of such services does not exceed the cost of works;

26-1) framework agreement - the bargain which is concluded by one or several customers (the general customer) in writing according to the procedure, established by this Law, with one or several participants of procurement procedure for the purpose of determination of the main conditions of purchase of separate goods and services for the conclusion of the corresponding purchase agreements during effective period of the framework agreement;

26-2) regulations of electronic platform - the rules regulating order of interaction between the operator of an electronic trading platform and his subscribers during implementation of public procurements according to the procedure of electronic reversive auction and the relation (including the rights, obligations and responsibility) which develop between them in the course of accomplishment of actions on electronic platform;

26-3) register of operators of electronic platforms - the list containing set of information about the subjects of managing having the right to perform activities for the organization and carrying out public procurements for the procedure of electronic reversive auction;

27) the manager of public funds - the state bodies, authorities of the Autonomous Republic of Crimea, local government bodies, other bodies, organizations, the organizations determined by the Constitution and other acts of the legislation of Ukraine, and also organization or organization, formed in accordance with the established procedure state bodies, authorities of the Autonomous Republic of Crimea or local government bodies and representatives on receipt of public funds, capture on them of obligations and implementation of payments and also the companies and their associations;

28) proposal validity of the competitive biddings or the price offer - the term established by the customer in documentation of the competitive biddings or request of price offers during which the participant has no right to change the offer of the competitive biddings or the price offer;

29) the subject of appeal in body of appeal (further - the subject of appeal) - the physical person or legal entity which addressed to body of appeal for the purpose of protection of the rights and the interests protected by the law concerning the decision, action or the customer's divergence which contradict the legislation in the sphere of public procurements and/or concerning violations of the law by the operator of an electronic trading platform and owing to which the right or legitimate interests of such person is violated;

30) goods - products, objects of any kind and appointment, including raw materials, products, the equipment, technologies, objects in strong, liquid and gaseous state, and also the services connected with delivery of goods if the cost of such services does not exceed the cost of goods;

31) the biddings (the competitive biddings) - implementation of competitive selection of participants for the purpose of determination of the winning bidder (the competitive biddings) according to the procedures established by this Law (except procurement procedure in one participant);

31-1) trading sessions - part of working hours of electronic platform during which participants of electronic reversive auction submit competitive applications;

32) the participant of preliminary qualification - physical person, including the physical person - the entrepreneur, the legal entity (the resident or the nonresident) who in writing confirmed intention to take part in preliminary qualification and/or submitted the qualification proposal;

33) the participant of procurement procedure (further - the participant) - any physical person or legal entity which confirmed intention to participate in procurement procedure by submission of the offer of the competitive biddings or the application for participation in electronic reversive auction, either the price offer, or the offer at negotiations in case of application of procurement procedure for one participant;

34) the price offer - the proposal concerning subject of purchase or its part (lot) which the participant submits to the customer according to request of price offers;

35) part of subject of purchase (lot) - the part of goods, works or services determined by the customer on which within single procurement procedure participants are allowed to submit proposals of the competitive biddings or the request, either price offers, or offers at negotiations in case of application of procurement procedure for one participant. For holding procurement procedure on each separate part of subject of purchase (lot) there shall be at least two offers or requests (competitive requests), except cases of application by the customer of procurement procedure for one participant.

2. The terms "electronic document management", "electronic document", "digital signature" are used in the values determined in the laws of Ukraine "About the digital signature", "About electronic documents and electronic document management in Ukraine". The terms "Other Services", "market of support services", "services in equalization of conditions for the competition" are used in the values given in the Law of Ukraine "About bases of functioning of the market of electrical energy of Ukraine".

Article 2. Scope of the Law

1. This Law is applied to all customers and purchases of goods, works and services which are carried out fully or partially at the expense of public funds provided that the cost of subject of purchase of goods (goods), service (services), equals or exceeds 100 thousand hryvnias (in construction - 300 thousand hryvnias), and works - 1 million hryvnias, except purchases according to the procedure of electronic reversive auction which conditions of application are established by the Section VIII-1 of this Law including on maintenance, other oplatny support on the future of subject to purchase or the payments connected with use of objects of intellectual property right.

Operation of This Law extends to the companies determined in Item of 21 part one of article 1 of this Law only in case of implementation of purchases by them at the expense of the public funds determined in item 4 of part one of article 1 of this Law.

Operation of this Law does not extend to cases of the conclusion of employment contracts.

2. Conditions, procedure and procedures of purchases of goods, works and services at the expense of public funds can be established or change exclusively this Law, except the cases provided by this Law.

3. Operation of this Law does not extend to cases if subject of purchase are:

the goods of work and service connected with development of design, production of the protected paper, banknotes, coins and the state awards of Ukraine, their storage, transportation and accounting;

services which procurement is conducted by national banks and banks in which capitalization the state, only for carrying out banking activities by them according to the Law of Ukraine "About banks and banking activity" took part;

goods, works and services which procurement is conducted by the customers located outside Ukraine;

goods, works and services which purchase is the state secret according to the Law of Ukraine "About the state secret";

services necessary for implementation of the state borrowing, servicing and repayment of public debt;

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