On July 1, 2019, a new version of the Law of the Republic of Belarus «On public procurement of goods (works, services)» (hereinafter - «Law») entered into force. And this means that approximately 6% of the national GDP (about $3.5 billions) will be distributed according to the new rules. Main changes in the law on public procurement revealed below.
Reducing the possibility of changing the terms of the contract after the contract was concluded via public procurement procedure
In recent years, there has been a practice when, after reviewing proposals on the initiative of one of the parties, the conditions of the concluded contract could be changed. That could be a revision (downward) of the contract price by the customer and the addition of additional payments (works, equipment) to the terms of the contract initiated by the contractor. In the new version of the Law, the legislator decided to exclude such changes.
For example, the definition of the term «government procurement» is supplemented by an indication that this is also a relationship related to the execution of a public procurement contract. Thus, now the Law’s influence is not limited only to the procedure for concluding a contract and appealing a decision, but also regulates the expenditure of budgetary funds upon the further implementation of the initial agreement reached. As a result, the possibility of adjusting the certain (or adding additional) terms of contracts to be concluded in accordance with the Law will be significantly curtailed.
Also the term «bid price» was added - this is all payments that are included in the price of goods (services) under public procurement contract, including taxes, fees, as well as expenses of the contractor, which will fall on him, if a contract will be signed. In our opinion, the use of this definition will significantly curtail the possibility of adjusting the actual contract price by the expense of royalties and other mechanisms.
All these and other changes lead to the fact that at the phase of signing the terms of the contract can not be changed. At the execution stage, it will be impossible (as a general rule) to change:
- subject of public procurement;
- the purchase amount (can be adjusted within 10%);
- requirements for the subject of procurement;
- contract price (can be adjusted in proportion to the change of purchase volume, as well as in the case of changes in legislation or changes in regulated prices / tariffs);
- terms of payments;
- the date of execution of the contract (adjustment is allowed on the initiative of the customer, if such a change is caused by the design features of the subject of the procurement and such change can not been not be foreseen at the phase before the conclusion of the contract;
- responsibility of the parties.
At the same time, the possibility to change the subject of procurement is still preserved. To do so, three conditions must be present simultaneously:
- it is objectively impossible to execute an agreement with a certain object (for example, a ban has been imposed on the importation of specific goods into the territory of the Republic of Belarus);
- objective impossibility is documented;
- the customer has agreed to replace the subject of procurement.
Development of fair competition, increase of transparency and publicity of procurement procedures
The changes also relate to the rethinking of the portal icetrade.by - now the Internet resources are supplemented with the more complete information about the current procurement legislation, restrictions or special regimes that are set for individual contractors or groups of goods (services), as well as access to standard forms of documents and general pricing information. The entire system now has received a legislatively designated name - «the state information and analytical system».
Now data on contracts, and information about their changes or termination will be publicly available.
Moreover, with new wording of Law the procedure of including contractors in the register of unfair become easier. The court decision for this action is no longer mandatory, and customers are not entitled (as it was before), but are obliged to submit information abut violations by the contractors to the registry. The period for which procurement participants may be included in the register of suppliers (contractors, performers) temporarily not allowed to participate in public procurement has been extended to 2 years.
Introduced uniform requirements for contractors
The new edition of the Law determines that contractors must meet only three basic requirements:
- Have an appropriate license (if such is necessary by the type of activity related to the subject of public procurement).
- Not being included to the register of unscrupulous participants either not to be at the stage of liquidation, or at the stage of reorganization (with the exception of reorganization in the form of a merger), or bankruptcy.
- Not be in arrears in the payment of taxes, fees, duties to the treasury or in arrears of penalties for the such late payments.
At the same time, the obligation to provide reliable information about yourself is assigned to the participant. Reporting information that does not correspond to reality, is the basis for the termination of the contract by the customer unilaterally.
Additional requirements for certain types of public procurement can be introduced only by the Council of Ministers of the Republic of Belarus. In particular, the Government has introduced a requirement for food suppliers in canteens and buffets of educational institutions - at least 3 years of work experience.
The introduction of any other «local» requirements for suppliers (performers) that would restrict competition is prohibited. With the introduction of the new version of the Law, customers will not have the right to enter their own lists of unscrupulous suppliers or introduce additional requirements for work / production experience.
An additional requirements can only be in a new special procurement procedure - a competition with limited participation.
Other changes are introduced by the new wording of the Law
- The time for preparing and submitting proposals has been shortened - open (closed) tenders, as well as an electronic auction (cost over 3000 base units) - at least 15 calendar days; electronic auction (less than 3000 base units) - at least 10 calendar days; request for quotation - at least 5 business days.
- The period of suspension of the procurement procedure because of a complaint received by a government agency has been reduced from 30 calendar days to 10 working days.
- Signing an agreement on the results of trading on electronic platforms - now the agreement is signed using an electronic signature in the form of an electronic document.
- New types of procedures were introduced: a competition with limited participation and a two-stage competition. The two-stage competition provides that the subject matter of the procurement is formed at the first stage, on the basis of the technical task of customer, in accordance with the proposals of the contractors, and the second stage is an open competition for the participants of the 1st stage on the subject that was formed.
- Not only the cost criteria for the evaluation of the proposal have been introduced - now the delivery time (execution of works or rendering of services), availability of resources and work experience must also be taken into account by the customers.
- Requirements for members of the commission and employees who participate in the procurement on behalf of the customer are also introduced.



