Odesa City Council Awards ₴7.9M Overhaul Contract Without Auction

The Department of Municipal Economy of Odesa City Council has conducted a procurement to select a contractor to be paid for the overhaul of a residential building at 14 Vitaliy Blazhko (formerly Marinesko) Descent.

The relevant information is available in the Prozorro electronic procurement system.

The procurement was conducted in the format of open bidding with no special features and the winner, the private joint-stock company "Repair and Construction Site Odeskolovpostach", had no qualifications. According to the YouControl service, the company was registered in 1998. It is currently owned by Oleksandr Fridman.

This is the second time the project has been adjusted. The first adjustment took place on April 17, 2024, when the expected purchase price was UAH 7 million 980.6 thousand. At that time, the private joint-stock company Odeskolovpostach Repair and Construction Site was selected as the contractor without an auction. The company agreed to work for UAH 7 million 980,600, but later an additional agreement was signed between the company and the department, which reduced the price of the work by UAH 5 million 736,500.

The first tender was held in August 2021. There were two bidders and the winner was BM Granit Limited Liability Company. The company agreed to work for UAH 23 million 898.4 thousand. However, in December 2022, the agreement was terminated due to force majeure.

Open bidding with special features means that almost all terms are shorter than in open bidding under the Law on Public Procurement. This means that this procurement is much faster than open tenders.

The period for submitting proposals is seven calendar days, and the period for challenging qualifications is five calendar days.

Often, there is no auction during such tenders, so the participant has no competitors.

However, in 2022, after the start of Russia's full-scale invasion, the Cabinet of Ministers of Ukraine temporarily changed the rules for bidding for the period of martial law in Ukraine and within 90 days from the date of its termination or cancellation.

Thus, the government temporarily canceled electronic auctions. Since then, tenders announced in Prozorro can be held without an auction.

Кирило Бойко