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LAW OF UKRAINE

of April 10, 2014 No. 1197-VII

About implementation of public procurements

(The last edition from 25-12-2015)

This Law establishes the legal and economic principles of implementation of purchases of goods, works and services for ensuring needs of the state and territorial community.

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.

Section I. General provisions

Article 1. Basic concepts

1. In this Law the terms below 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 the negotiation procedure) - adoption of the offer of the competitive biddings by the customer or the price offer which is recognized as the most economic by results of assessment (by results of application of the negotiation procedure), 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 the negotiation procedure 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;

2) the general customer - the public authority, local government body, 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 according to the procedure, established by this Law;

4) the purchase agreement - the agreement which is signed between the customer and the participant on the results of the procedure of purchase and provides provision of services, performance of works or acquisition of property right to goods;

5) 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 when tendering (the competitive biddings) to physical/legal entities. Documentation of the competitive biddings is not object of copyright and/or the related rights;

6) electronic means - the electronic equipment and the software for creation, processings, transfers and data storage and electronic documents;

7) ensuring agreement performance about purchase - provision by the participant to the customer of performance guarantees of the agreement obligations about purchase, in the form of such providing as guarantee, pledge, deposit, 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 submission of the offer of the competitive biddings, in the form of such providing as guarantee, pledge, deposit, the deposit;

9) customers - the public authorities, local government bodies and bodies of social insurance created according to the law and also legal entities (the companies, organizations, the organizations) and their associations which provide needs of the state or territorial community if such activities are not performed on industrial or commercial basis in the presence of one of the following signs:

the legal entity is manager, the receiver of budgetary funds;

public authorities or local government bodies or other customers have by a majority vote in the supreme body of management of the legal entity;

in the authorized capital of the legal entity the state or municipal share fraction (share, shares) exceeds 50 percent.

The customers determined in Item of 1 part one of article 1 of the Law of Ukraine "About features of implementation of purchases in certain spheres of economic activity" also treat customers;

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