Prozorro

ProZorro - transparent in Ukrainian

eProcurement system ProZorro

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This innovation has won an award, as described in the case study text.
Call for Innovations Call for Innovations
This case was submitted as part of the Call for Innovations, an annual partnership initiative between OPSI and the UAE Mohammed Bin Rashid Center for Government Innovation (MBRCGI)
Strong Evidence Strong Evidence

ProZorro is a hybrid electronic government e-procurement system created as the result of a partnership between business, government and the civil society in Ukraine. Innovative public procurement system delivering government services in a stakeholder-focused, transparent, fair and low-cost way. In two years of operation of ProZorro saved $1.9 billion of budget funds and became a leader in openess of goverment data on public procurement.

Innovation Summary

Innovation Overview

Before reform on public procurement sphere, Ukraine worked in a regulatory and institutional framework that regulated the "paper" procedure. This system made possible numerous abuses by government customers was difficult and inconvenient for suppliers did not provide the opportunity to the public and professional control. Due to corruption and limited competition country lose $2 billion from public procurement budget of $11 billion per year.

In March 2014, soon after the Revolution of Dignity began, a team of volunteer civil society advocates and experts began working on the design of a new and more robust procurement system for Ukraine. The first step was to change the special law ‘On Government Procurement’ that contained 43 exceptions and many corrupt provisions. The team worked for over a month together with the EU and Ukrainian experts, as well as employees of Ministry of economic development and trade of Ukraine.

Even though the new law was substantially different from the previous one and aimed to comply with the best international standards, the reformers realized it was not a “breakthrough changes.” It had to be something significantly larger. The team quickly realized that a comprehensive electronic procurement system for all tenders could significantly improve both access to and the integrity of public contracting, as well as improve the transparency of procurements. After a long round of discussions, the group decided to work towards digitization. The volunteers believed that implementation of an e-procurement system would streamline and improve public procurements.

The ProZorro team created a hybrid electronic system that is built on open source. The hybrid system is an interaction between of a state-owned central database and commercial areas, where all the information in the CDB is duplicated to the platforms. The code system is completely open and freely available for download and use.

The main principle of eProcurement system: “Everyone can see everything”. After the auction end in the electronic system, everyone can see all the information about the submitted proposals from all participants, decisions of the tender commission, all qualification documents etc. Moreover, developed monitoring tools – intelligence modules of bi.prozorro.org and bipro.prozorro.org. These modules have a wide range of functions and enable deep analysis and monitoring of public procurement. In particular, the module displays information about each announced tender; buyer and government authority.

Public procurement reform developed in the "Golden Partnership Triangle" (between government, business and society). We unite and take into account the interests of business, government and civil society, allowing to maintain a high level of trust between the key stakeholders in the implementation of reforms.

ProZorro remains one of the most successful reforms in Ukraine. In two years of operation of ProZorro saved $1.9 billion of budget funds. ProZorro is able to control procurement and track whether public agencies are using taxpayer money efficiently and transparently: the more processes take place online, the more transparent they are.

For Ukrainian government in a face of ProZorro team is important to develop further success of reform and innovations in the government. That’s why ProZorro using artificial intelligence and machine learning in its work. In February 2018 was organized first Data science hackathon in Ukraine based on government data. With a help of artificial intelligence participants were working on development of a model that would predict the number of bidders.

Fully implemented in 2016 Prozorro has since been globally recognized as one of the most innovative public procurement systems delivering government services.
- Rated #1 by World Procurement Awards 2016 in the Public sector nomination
- Rated #1 by Open Government Awards 2016
- ProZorro considered by EBRD as a recommended model for e-Procurement reform
- ProZorro is a showcase & learning project of the Open Contracting Partnership
- National Council of Ukraine recognized ProZorro reform as the most successful one
- ProZorro is posted on the World’s Procurement Think Tank
- World Bank is going to implement the base of Prozorro system for its procurement procedures

Next steps on innovative public procurement reform is further development of IT system; to match the requirements of the law and market needs; maximum of digitalization, integration with registries of other key stakeholders; ecosystem development - increasing the efficiency of procurement and to share philosophy and core values of ProZorro with other countries.

Innovation Description

Innovation Development

Innovation Reflections

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Year: 2016
Level of government: National/Federal government

Status:

  • Evaluation - understanding whether the innovative initiative has delivered what was needed
  • Diffusing Lessons - using what was learnt to inform other projects and understanding how the innovation can be applied in other ways

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