RESOLUTION OF THE CABINET OF MINISTERS OF UKRAINE

of October 17, 2008 No. 921

About approval of the Regulations on purchase of goods, works and services for public funds

For the purpose of ensuring effective use of public funds, according to Item 6 of article 116 of the Constitution of Ukraine, Item of 1 part one of article 20 of the Law of Ukraine "About the Cabinet of Ministers of Ukraine" the Cabinet of Ministers of Ukraine decides:

1. Approve Regulations on purchase of goods, works and services for public funds which are applied.

2. Determine that:

procedures for procurement of goods, works and services for the public funds begun about day of entry into force of this resolution come to the end in connection therewith with the resolution;

customers who are serviced in bodies of the State Treasury submit to such bodies during implementation of payment for purchase agreements of goods, works and services for public funds the report on the results of the procedure of purchase.

3. Recognize invalid resolutions of the Cabinet of Ministers of Ukraine according to the list which is attached.

4. Assign to the Ministry of Economics of function specially the representative of the central executive body for coordination of purchases of goods, works and services for public funds.

5. To management main control auditing, other state bodies which exercise the state supervision (control) in the field of public procurements, during actions for implementation of the state supervision (control) to check observance by managers of public funds of requirements of the Provision approved by this resolution.

6. To the ministries, other central executive bodies to bring own regulatory legal acts into accord with this resolution.

Approved by the Resolution of the Cabinet of Ministers of Ukraine of October 17, 2008 No. 921

Regulations on purchase of goods, works and services for public funds

General questions

1. This Provision determines the mechanism of implementation of purchase of goods, works and services for public funds.

2. In this Provision the stated below terms are applied in such value:

1) the acceptance of the tender offer - adoption of the tender offer by the customer which is recognized as the most economic by results of assessment, and provision of consent to its payment. The tender offer is considered accepted if the customer submitted to the participant to the time established in tender documents the written confirmation of the acceptance of the tender offer;

2) the alternative tender offer - the offer which can be in addition submitted by the participant to the customer together with the tender offer if it is provided by the tender documentation, and in accordance with the terms, determined by the tender documentation, and differs from the offer developed according to the conditions provided by the tender documentation;

3) public procurement (further - purchase) - purchase of goods, works and services for public funds in the procedure established by this Provision;

4) public funds - means of the Government budget of Ukraine, the budget of the Autonomous Republic of Crimea and local budgets, the state credit resources, and also funds of National Bank, the state trust funds, the Pension fund of Ukraine, Social Insurance Funds which are allocated for purchase of goods, the works and services necessary for ensuring activities of the specified bodies, means of the companies, means which are provided to managers of public funds under guarantees of Council of Ministers of the Autonomous Republic of Crimea and local government bodies on the loans which are granted by international financial institutions or on the terms of joint financing together with 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 finding of the property right to goods, including on the terms of leasing for public funds;

6) electronic public procurements - use of information technologies and the Internet in relations which arise when purchasing between customers and suppliers of goods, works and services in connection therewith the Provision;

7) providing the tender offer (further - tender providing) - provision by the participant to the customer of performance guarantees of the obligations in connection with submission of the tender offer, including such types of providing as bail, guarantee, pledge, deposit;

8) 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 bail, guarantee, pledge, deposit;

9) the customer - the manager of public funds who conducts procurement in the procedure established by this Provision;

10) qualification documentation - documentation which is developed by the customer and is transferred to participants of preliminary qualification for preparation of qualification offers by them when carrying out preliminary qualification of participants;

11) the qualification offer - the offer which goes the participant of preliminary qualification to the customer according to requirements of qualification documentation;

12) the winner of procurement procedure - the participant whose tender offer by results of assessment is recognized as the most economic and accepted;

13) the companies - the state, including state companies, organizations and economic societies in which authorized capital the state part of shares (shares, shares) exceeds 50 percent, their affiliated enterprises, and also the companies and economic societies in which authorized capital 50 and more percent belong to the state, including state companies and economic societies in which authorized capital the state part of shares (shares, shares) exceeds 50 percent;

14) the connected person - person who answers any of such signs:

the legal entity who exercises control of the participant or is controlled by such participant or is under joint control with such participant;

the physical person or members of his family who exercise control of the participant;

the official of the participant, authorized to perform on behalf of the participant the legal acts directed to establishment, change or the termination of the civil relations and also members of the family of such official.

In this Provision it is necessary to understand ownership as control directly or through connected physical persons or legal entities the greatest share (share, the block of shares) of the authorized capital of the participant or management of the greatest number of voices in governing body of such participant, or ownership of part (share, the block of shares) which constitutes at least 20 percent of the authorized capital of the participant. For physical person the total amount of ownership of part of the authorized capital of the participant (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.

In this Provision spouses and their children, parents, brothers, sisters, granddaughters, spouses of children, parents, brothers, sisters and grandsons are considered as family members;

15) services - any purchase, except goods and works, including training of specialists, providing with vehicles and means of communication, development of technologies, scientific research, medical and consumer services, running repair, and also consulting services. The services connected with consultation, examination, assessment, preparation of the conclusions and recommendations belong to consulting services;

16) purchase subject - determined by the customer (on amount, the nomenclature or the place of delivery of goods (performance of works, provision of services)) goods, works or services on which within single procurement procedure it is allowed to submit the tender offers or offers made at negotiations in case of application of procurement procedure for one participant. The number of tender offers on one subject of purchase when tendering cannot be less than two;

17) works - any activities connected with designing, construction new, expansion, reconstruction, capital repairs and restoration of the existing objects and constructions of production and non-productive appointment, the technical equipment of operating plants, utilization of ammunition and also accompanying services, including geodetic works, drilling, seismic researches, aero - and satellite photographing and others if the cost of accomplishment of the specified services does not exceed the cost of the construction;

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