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Tender Risks: YouControl Was Supplemented with Data from BI ProZorro

2 December 2019
Tender Risks: YouControl Was Supplemented with Data from BI ProZorro

The YouControl system was supplemented with four risk factors from BI ProZorro, that indicate the risks associated with the involvement of a company in government procurement. They can be found in the express analysis and in the section “Government procurement”.

The behavior of a company in government bidding can tell a lot about its way of doing business and responsibility, and, therefore, about the counterparty’s reliability. At present the best tool for analyzing participants of government procurement is the BI ProZorro module of the Dozorro project. YouControl integrated with the analytical module. As a result, new data on companies which had participated in public procurement appeared in the express analysis and the profile section “Government procurement”. These four risk factors are calculated on statistics from the BI analytics module. They indicate that one or the other supplier showed themselves in government bidding not in the best way.

Among these risks there are:

Frequent disqualifications

They may speak of irresponsibility, the lack of systematic preparation for bidding, poorly established organizational processes or even that the participant is false and acts to imitate competition.

Frequent defeats

They can also be a sign that the participant is “fake” and acts only as a cover for the other participant to create the illusion of rivalry in the tender.

Frequent non-fulfillment of obligations

This may certify that the supplier is unreliable, does not guarantee the fulfillment of the terms of the contract.

A large number of CPV units (the participant submits offers for a too wide range of goods and services)

On the one hand, it may indicate that the company is false and acts to imitate competition. On the other hand, it may indicate that the participant’s legal entity was created specially to work with a particular customer, it is associated with him/her and supplies virtually everything s/he purchases, which is illegal.

Potential counterparties of the participants in government bidding can transfer this experience to the commercial market. For example, if an enterprise failed to fulfill its obligations to a state institution, it can do the same to any other partner. “Technical” candidates do not value their reputation, so they can be used for fraudulent schemes with you.

Of course, all these risk factors outline only the general picture. They point at potential danger and suggest that companies need a more thorough examination rather than hasty refusal to cooperate.

The negative experience of participation in government procurement can indicate that the enterprise does not play fairly with other partners. In the government bidding it is not always possible to avoid a toxic supplier directly, since an offer can be rejected under only a small number of conditions specified by law. But the commercial market opens up more opportunities. Having enough information on how the company has proven itself in cooperation with various counterparties, including state institutions, which problems it generally has (courts, debts, sanctions, etc.), you can make a balanced decision about working with it. This approach will help you avoid financial losses and protect your own reputation,Ihor Kurochka, the Head of the YouControl Training Department, explained.

YouControl has been working with BI ProZorro not for the first year. At present users of the analytics module can check participants of bidding through YouControl. To do this, you need to find the appropriate link on the page “Participants” of the Procurement Phase of the BI Public Module and follow it to the system.

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