Фото: Cancellation of the conclusion on the results of monitoring of the procurement procedure

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Yasinskiy Yevhen

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Cancellation of the conclusion on the results of monitoring of the procurement procedure

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The State Audit Service is responsible for monitoring the procurement process. The activities of this structure are regulated by the Law «On Public Procurement». Specialists working in the State Audit Service are responsible for monitoring compliance with applicable laws by the parties interacting in the procurement process. An audit can be conducted at different stages - from the conclusion of the contract to its execution. We offer you a closer look at how monitoring is carried out. We will also touch upon the issue of appealing the State Audit Service's conclusion.

 

Monitoring mechanism

Procurement monitoring is one of the key activities of the State Audit Service. Article 8 of the Law «On Public Procurement» defines the grounds on which the State Audit Service may conduct an audit. However, even when representatives of this body have informed you that they have started monitoring, this does not mean that you need to stop the procurement process or terminate the contract.

Among the things that will be checked by representatives of this service is the following:

  • whether the tender documents comply with the requirements set forth by the applicable law;
  • whether the contracts have been amended without justification;
  • whether the tender proposals that should have been rejected were rejected.

During the audit, representatives of the State Audit Service are authorized to request explanations for certain facts found. Failure to provide such explanations will be considered a violation, which may be reflected in the relevant monitoring report. Therefore, it is better to comply with such a request.

It is also important to note that the State Audit Service has the right to conduct scheduled on-site audits, which can be conducted no later than once a year and last no longer than 30 business days. There are exceptions when the audit can be extended for another 15 days, but this is rare. There are also unscheduled audits. We advise our clients in detail about this.

Cancellation of the conclusion on the results of monitoring of the procurement procedure

Consequences of the monitoring results

Sometimes, based on the results of monitoring, representatives of the State Audit Service demand termination of the procurement contract. This happens when the service's specialists see corruption or abuse. However, such interpretations can be subjective.

Often, the parties to the contract disagree with this and seek to challenge the conclusion. Moreover, it can be difficult to terminate the contract at the stage of performance when the raw materials are already being delivered or the customer would have to look for a new supplier to fulfill the order in a short time. In the case of products that were manufactured specifically for the customer, a demand to terminate the contract may bring a number of complications for both parties. The same is true for off-the-shelf products.

 

Procedure for appealing the conclusion

The conclusion of the State Audit Service can be appealed within 10 days. This is done through administrative proceedings. As you can see, the deadlines are quite short. Therefore, as soon as you receive a conclusion with which you disagree, contact professional lawyers who can help you effectively.

We will professionally represent your interests in court and help you defend your position effectively. Fill out the form on our website and our lawyer will contact you as soon as possible.

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Head of tax law practice

An expert in the practice of tax law, specializes in the protection of rights in court, corporate law.

Contact now
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