ProZorro launches risk indicators system to monitor tenders automatically – Ukrainian Ministry of Economic Development, Transparency International Ukraine


ProZorro e-procurement system launches risk indicators system to monitor tenders automatically. E-system of anonymous auctions has already reduced risks of malpractices, but it does not make them impossible. The risk indicators system will analyze the data automatically and reveal suspicious tenders. “It will help to make assessment of each tender: information quality, probability of participation based on statistics, the logic of participants’ actions etc.  […] Our aim is to improve the overall quality of the procedure and reduce risks of unfounded disqualification, to increase accessibility of tenders for market players, to reduce the number of unintentional faults in the documents in order to make more visible those players who violate the rules intentionally. Because these malpractices result in excessive spending of our money, the taxpayers’ money,” said Maksym Nefyodov, Deputy Minister of Economic Development and Trade of Ukraine, at a press briefing at Ukraine Crisis Media Center.

The methodology was developed in cooperation with experts from Hungary, UK, and the Czech Republic. It is based on Open Data Standard and makes use of experience of other countries. According to developers, the system is unique. “It is completely automatic and eliminates the human factor – everything is analyzed by the computer,” says Victor Nestulia, Director of Innovation Projects at Transparency International Ukraine.

As of today, the system includes 16 indicators, later their number will be increased to 60. The developers noted that reaction of one indicator does not always point out to a violation. It can be a result of careless preparation of documents or specifics of certain market fields: if there are a few players on the market, naturally there is lack of competition on tenders. If a number of indicators point out to violations, the specialists will start analyzing the details. However, several indicators are always a sign of violation, such as untimely publication of winner’s documents, unjust disqualification (a participant receives a refusal after having been allowed to participate), when the tender had no clear requirements but the winner is chosen etc., explained Ivan Lakhtionov, a Project Manager at Transparency International Ukraine. “Now the activists have a proper toolkit for analysis, and these risk indicators will help everyone who has at least some expertise in this field to reveal violations. So, I call everyone to join the monitoring,” he said. The developers also suggest that the customers monitor their tender proposals through risk indicators system in order to reveal possible faults and avoid problems.

The results of monitoring and cases of suspicious tenders will be reported to the State Audit Service and law enforcement authorities. A draft law expanding the SAS mandate in this field is already registered in the Parliament (#4738). “This is significantly more efficient than monitoring thousands of tenders manually. Moreover, people will have fewer doubts why law enforcement officers paid attention to the tender of a certain businessman because e-system cannot be biased against someone,” Nefyodov noted.

The risk indicators system will be tested and improved on the basis of further ProZorro experience and users’ comments.

Victor Nestulia also added that all ProZorro-related services are to be integrated into a single system.