Non-Price Criteria for the Evaluation of the Tender Offers in Public Procurement of Ukraine

Alexander Baranovsky, Nataliia Tkachenko, Vladimer Glonti, Valentyna Levchenko, Kateryna Bogatyrova, Zaza Beridze, Larisa Belinskaja and Iryna Zelenitsa
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Alexander Baranovsky: Faculty of Banking Technology and Business, University of Banking, 04070 Kyiv, Ukraine
Nataliia Tkachenko: Faculty of Banking Technology and Business, University of Banking, 04070 Kyiv, Ukraine
Vladimer Glonti: Faculty of Economics and Business, Batumi Shota Rustaveli State University, 6010 Batumi, Georgia
Valentyna Levchenko: Faculty of Economics and Business, Kyiv National University of Technologies and Design, 01011 Kyiv, Ukraine
Kateryna Bogatyrova: Faculty of Trade and Marketing, Kyiv National University of Trade and Economics, 02156 Kyiv, Ukraine
Zaza Beridze: Faculty of Economics and Business, Batumi Shota Rustaveli State University, 6010 Batumi, Georgia
Larisa Belinskaja: Faculty of Economics and Business Administration, Vilnius University, 01513 Vilnius, Lithuania
Iryna Zelenitsa: Faculty of International Trade and Law, Kyiv National University of Trade and Economics, 02156 Kyiv, Ukraine

IJFS, 2020, vol. 8, issue 3, 1-15

Abstract: Traditionally, public procurement has been associated with the measurement of achieving savings. However, recent research shows that the economic impact of public procurement is not limited only to savings, but by measuring the impact of four capitals—natural, human, social, and economic—on sustainable well-being over time. Ukraine is a country with a very low gross domestic product (GDP) per capita, which exacerbates the problem of the impact of public procurement results on the population’s welfare. Ukrainian public procurement legislation allows customers to apply non-price criteria (the share of non-price criteria cannot be more than 70%), which, together, are taken into account in the formula of the quoted price. The studies show that the effect of the use of non-price criteria depends on the relevance of the method of the evaluation of non-price criteria. The most important non-price criteria for Ukrainian customers by product categories and the methods of their evaluation are analyzed according to the Bi.prozorro.org analytics module. Therefore, it is concluded that the quoted price method, which is used in Ukrainian practice, is not relevant in comparison with the method used in the EU. A survey of the government buyers on the practice of applying non-price criteria was conducted, and the areas of their use were identified.

Keywords: public procurement; evaluation of tender offers; non-price criteria; life cycle cost; quoted price (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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