DOT will apply restrictive measures to unfair suppliers.
The State Logistics Operator has developed restrictive measures for suppliers who fail to fulfill their obligations under concluded contracts.
In particular, these measures include the refusal to establish future business relations with DOT, resulting in disqualification from further procurement processes. A two-tier commission, with an option to appeal the decision, will determine the application of these restrictions. The maximum duration of such a restriction is one year from the date of the commission's decision taking effect.
The restrictive measure will be enforced through an operational and economic sanctions regime provided for by the Commercial Code of Ukraine. This, in turn, will serve as additional motivation for suppliers to adopt a more responsible approach to supplying the Armed Forces of Ukraine.
Thus, the restrictive measures will affect suppliers who:
- violate anti-corruption/sanctions legislation;
- supply counterfeit or low-quality products;
- have a low delivery performance rate (SLA);
- provide false or forged documents for goods.
To ensure transparency and openness in the process, DOT has established two commissions: the first commission considers the application of the restrictive measure on its merits, and the second commission reviews appeals by suppliers regarding the application of the restrictive measure.
Suppliers have the right to appeal the decision within five business days from the date the decision on the matter is issued.
"Currently, DOT has a successful legal precedent on the legitimacy of operational and economic sanctions in the form of refusal to establish future business relations and the possibility of disqualifying such suppliers from tenders. We continue to improve mechanisms for ethical cooperation with suppliers, thus meeting the public's demand for transparency and fairness in public procurement," said Dmytro Bigunets, Director of Risk Management and Compliance at DOT, during the presentation.
The implementation of legislation in the public procurement system now allows for the creation of fair rules for all suppliers. The advantage of this mechanism lies in the ability to consider the previous experience of the enterprise's interaction with DOT. However, we understand that the regulatory function must be clearly and transparently defined to maintain the boundary between reliable partners and unfair contractors.
