Calculation of the expected cost of the procurement of the tender

Public procurement in Ukraine was created with the sole purpose of conducting tenders transparently among various state institutions and selecting a tender winner among potential participants on a competitive basis. In addition, one of the main principles of public procurement today is the maximum saving of budget funds and the efficiency of their implementation. However, to achieve this in practice, it is necessary to engage in preliminary optimal planning of public procurement. Therefore, the stage of calculating the expected cost of tender procurement is always important and relevant for the successful conduct of the tender as a whole. What is the relevance of the chosen topic for today. In this informative article, we will talk about the specifics of calculating the expected cost of a tender purchase under Ukrainian legislation.

What should be understood by the expected cost of public procurement in Ukraine?

From the analysis of the provisions of the current Ukrainian legislation, it can be seen that under

the expected cost of public procurement should be understood as the estimated cost of the subject of the tender under specific conditions of supply of goods, performance of works or provision of services with the mandatory inclusion of all necessary taxes and fees for its successful conduct in the future and selection of the winner.

It can be said that if the expected cost of the tender purchase is too low, then potential participants from the market will not be interested in participating in this public procurement. If, on the contrary, the expected cost of the tender is too high, then in this case the principle of maximum saving of budget funds for public procurement is nullified.

Therefore, in practice, it is quite important to correctly calculate the expected cost of the tender purchase in order to attract as many potential participants as possible, increase competition among them in order to receive a more favorable tender offer, and effectively conduct the entire procurement process as a whole.

What is the general algorithm for calculating the expected cost of tender procurement?

In order to calculate the expected cost of the procurement of the tender, the following algorithm of actions must be followed, namely:

• First of all, the public procurement customer needs to determine the need for goods, works or services that he wants to receive as a result of the tender;
• Determine the characteristics of the subject of purchase. At this stage, you should deal with the description of all qualitative and technical characteristics of goods, works or services that may affect their final price;
• To analyze the offers of the economic market, which currently exist in other public procurements;
• Establish the terms of payment for the supply of goods, the performance of works or the provision of services;
• Calculate the expected cost of the tender purchase. At this stage, you can use various sources of information to determine the final cost, namely: commercial offers from manufacturers of goods, service providers or contractors; conduct an analysis of global and regional stock exchanges, trading platforms and electronic platforms; use the information available from the electronic procurement system on Prozoro; use the prices determined by the state (resolutions, orders, tariffs, etc.).

If you have any questions regarding the calculation of the expected procurement price of the tender, please contact the Prykhodko and Partners law office.

Our team includes only experienced specialists in the field of public procurement, who perfectly understand the practical nuances of conducting tenders and always work for the result for our clients. So don't delay and contact us!