Electronic Store as a Form of Public Procurement

Modern trends in the digitalization of the economy and public administration have necessitated the transition to electronic forms of procurement. In the Republic of Uzbekistan, one of the tools ensuring transparency and efficiency of public procurement is the electronic store — a competitive method of purchasing goods, works, and services that are not subject to specific requirements. Its legal regulation is enshrined in the Law "On Public Procurement" (Law No. ZRU-684 of April 22, 2021).

According to the law, an electronic store is a special platform within the electronic public procurement system, where public offers of participants are formed and the customer selects the most advantageous proposal. It is part of the electronic procurement system and serves as a tool for:

• ensuring equal access for participants;
• reducing corruption risks;
• increasing transparency and efficiency in the use of budget funds.

Criteria for the Use of the Electronic Store

The law establishes maximum contract values:

• for goods — up to 25,000 base calculation units (for budget customers — up to 2,500 BCUs);
• for works and services — up to 100 BCUs (for budget customers — up to 50 BCUs).

Limits are also set on the purchase of homogeneous goods and services during a fiscal year. These restrictions are aimed at preventing the splitting of procurements and avoiding competitive procedures.

Mechanism of Functioning

The electronic store is based on a system of public offers submitted by suppliers. Each offer must contain:

• the name and technical specifications of the product/service;
• price and delivery terms;
• information about the manufacturer and country of origin;
• shelf life (for food products);
• warranty obligations;
• certificates and licenses, if required.

The public customer selects the desired proposal and initiates the price request mechanism. The system automatically sends notifications to other suppliers of similar goods, which stimulates price reductions. The final contract is generated automatically at the lowest price offered during the process.

Advantages of the Electronic Store

• Transparency — eliminates the possibility of closed negotiations and corruption schemes.
• Competitiveness — every participant has equal access conditions to the customer.
• Speed and convenience — transactions are automatically registered in the electronic system.
• Cost efficiency — the price request mechanism reduces budget expenditures.
• Integration with the legal system — data on concluded contracts are entered into the Unified Register.

Problems and Challenges

Despite the obvious advantages, the practice of applying the electronic store faces a number of issues:

• limited scope in terms of value and types of goods;
• risk of placing false information about goods;
• need for continuous improvement of IT infrastructure;
• formal splitting of procurements to bypass tenders.

Development Prospects

To improve the effectiveness of the electronic store, it is advisable to:

• expand the list of goods and services eligible for purchase through the electronic store;
• introduce intelligent algorithms for price and quality analysis;
• integrate the system with international electronic trading platforms;
• strengthen liability measures for dishonest posting of offers.

The electronic store is an innovative tool in Uzbekistan’s public procurement system, ensuring transparency, budget savings, and increased competition among suppliers. Its further development is directly linked to the improvement of the regulatory framework, digital infrastructure, and control mechanisms.

Comparison Between the Electronic Store and Tender

Criterion	Electronic Store	Tender
Legal basis	Law "On Public Procurement" (Chapter 5)	Law "On Public Procurement" (Chapter 4, Articles 30, 32)
Purpose	Procurement of standard goods (works, services) not requiring specific conditions	Procurement of complex and/or high-value goods, works, and services
Cost threshold	Goods: up to 25,000 BCUs (budget customers — up to 2,500 BCUs); Works/services: up to 100 BCUs (budget customers — up to 50 BCUs)	No cost limits, applied for large and complex procurements
Participants	Any suppliers posting public offers	Pre-qualified participants submitting tender proposals
Form of participation	Posting public offers + price request (automated process)	Submission of tender documentation, review by commission
Winner selection	Automatically, based on the lowest price among proposals	By procurement commission, based on a set of criteria (price, quality, timing, etc.)
Procedure speed	High (several days)	Long (weeks or months depending on procurement complexity)
Transparency	Full: all offers are available in the system, negotiations excluded	High, but requires commission work and protocol procedures
Risks	- False information in offers - Splitting procurements to bypass tenders	- Subjective influence of commission - Higher corruption risks if insufficiently controlled
Flexibility	Suitable for mass and recurring procurements (stationery, furniture, consumables)	Suitable for unique, technically complex, and innovative procurements
Result	Automatically generated contract at the minimum price	Contract with the participant offering the best overall conditions

 

Legal Restrictions on the Use of the Electronic Store

The Law "On Public Procurement" explicitly defines the scope of the electronic store, thereby limiting its application.

1. Value restrictions

Procurement through the electronic store is not allowed if:

• the value of goods exceeds 25,000 BCUs (for budget customers — 2,500 BCUs);
• the value of works or services exceeds 100 BCUs (for budget customers — 50 BCUs).

Thus, large and costly procurements are directly allocated to other procedures — tenders or two-stage bidding.

2. Specific and complex procurements

The electronic store is designed only for typical goods and standard services. Not allowed are procurements that:

• require complex technical specifications and expertise;
• involve a high degree of innovation or uniqueness;
• require special performance conditions (e.g., construction, complex IT systems).

Such procurements must be carried out through tender or two-stage procedures.

3. Procurements related to security and secrecy

The electronic store cannot be used for procurements related to:

• state protection and defense;
• maintenance of internal order;
• state secrets;
• preparation and conduct of elections and referendums.

4. Volume restrictions

Even if each transaction complies with the limits, homogeneous goods and services are subject to cumulative annual limits:

• goods — no more than 10,000 BCUs per year for budget customers;
• works/services — no more than 500 BCUs per year for budget customers (and up to 1,000 BCUs for corporate customers).

This means that procurements cannot be artificially “split” to bypass tenders.

Conclusion:

Procurements through the electronic store are not allowed if they:

• exceed established cost thresholds;
• involve unique and technically complex goods/services;
• relate to defense, security, or elections;
• exceed annual limits for homogeneous goods/services.