Selection of the Best Proposals in the Public Procurement System

Publication date: 24.06.2025

The selection of the best proposals is one of the key competitive procedures in the public procurement system of the Republic of Uzbekistan. Unlike a reverse auction, where the main criterion is price, this method provides for a comprehensive comparison of participants’ proposals, taking into account qualitative, technical, financial, and other parameters. Such a procedure ensures a balance between the cost-effectiveness and quality of purchased goods (works, services), which is directly related to the principles of transparency, competition, and efficiency in the use of public funds.

According to the Law “On Public Procurement” dated April 22, 2021, No. ZRU-684, the selection of the best proposals is defined as a competitive method of procurement based on the comparison of proposals received from several participants in procurement procedures. This form of procurement is among the main types of competitive procedures, along with tendering, two-stage procurement, auction, and simplified low-value procurement.

The main purpose of the procedure for selecting the best proposals is to identify the optimal contractor not only in terms of price, but also other essential contractual conditions. Key objectives include:

ensuring the rational use of public funds;
promoting competition and equal access for participants;
achieving a balance between price and quality;
creating conditions for the long-term efficiency of purchased goods (works, services).

Main Elements of the Procedure

Initiation of procurement — publication of an announcement on a special information portal indicating conditions, evaluation criteria, and deadlines for submission of proposals.
Submission of proposals — participants submit their offers within the established deadline.
Work of the procurement commission — opening of proposals, their registration, and objective consideration.
Evaluation criteria — price, deadlines, quality characteristics, payment terms, warranty obligations, operating costs, environmental parameters, etc.
Determination of the winner — the proposal recognized as the most optimal according to the totality of criteria is accepted. If necessary, a reserve winner is determined.
Acceptance of the winning proposal — the customer decides to conclude a contract with the winner.
Contract conclusion — signing of the contract on the terms proposed by the winner, with registration in the Unified Register of Contracts.

Legal Regulation Features

Powers of the Cabinet of Ministers: establishing the procedure for submitting proposals electronically, developing criteria and evaluation methods.
Role of the authorized body: introducing the method of evaluating the economically most advantageous proposal (considering non-price factors, including social and environmental).
Principles of selection: professionalism, validity, openness, objectivity, prohibition of corruption and conflict of interest.

Advantages of the Method

Comprehensive consideration of the interests of the customer and the state.
Reducing the risk of receiving low-quality goods at a minimum price.
Ability to encourage innovative and environmentally friendly solutions.
Increased trust of business and society in the procurement system.

Potential Problems and Challenges

Risk of excessive requirements for participants, which may restrict competition.
Possibility of subjective assessment of non-price criteria.
Need for high qualifications of the procurement commission.
Longer and more complex procedure compared to auction.

The selection of the best proposals is an important tool for increasing the efficiency of public procurement in Uzbekistan. Its successful application requires strict adherence to the principles of transparency, competition, and objectivity, as well as improvement of law-enforcement practices. Further development of the institution is associated with the introduction of digital technologies, unification of evaluation criteria, and strengthening the professionalization of procurement commissions.

Stages of the Procedure

Stage	Content	Responsible parties
1. Announcement of procurement	Posting information about the upcoming procurement on the special portal: procurement method, requirements, evaluation criteria, submission deadlines	State customer
2. Submission of proposals	Participants submit their offers (technical, financial, and other conditions) via the e-procurement system	Procurement participants
3. Opening and registration	Recording of received proposals, ensuring confidentiality and transparency	Procurement commission
4. Review of proposals	Checking compliance with documentation requirements (qualification, technical parameters, contractual terms)	Procurement commission, experts if necessary
5. Evaluation of proposals	Comparison based on price and non-price criteria: cost, quality, deadlines, guarantees, operating costs, environmental factors, etc.	Procurement commission (with experts)
6. Determination of the winner	Recognition of the most optimal proposal, determining a reserve winner if necessary	Procurement commission
7. Acceptance of the winning proposal	Customer’s decision to conclude a contract with the winner	State customer
8. Contract conclusion	Signing of the contract under the winner’s conditions, with registration in the Unified Register of Contracts	State customer and winner

Restrictions in Procurement through the Selection of the Best Proposals

1. General Restrictions

The method is not universal and applies only within the limits established by the Law of the Republic of Uzbekistan “On Public Procurement” (ZRU-684 of 22.04.2021). Key restrictions include:

By procurement subject: used when price is not the sole criterion, requiring consideration of quality, deadlines, warranties, operating costs, and other factors.
Prohibition of unjustified restriction of competition: excessive or discriminatory requirements cannot be set (e.g., artificially inflated technical specifications or unnecessary qualification conditions).
Affiliated persons: a participant and its affiliates cannot submit proposals within the same lot.

2. Restrictions on Method Application

Not allowed for closed procurements (state secrets, security, elections, etc.).
Not used for small purchases (covered by the e-store or simplified low-value procedures).
Not applied when only the price criterion is needed (e.g., for standard goods — in such cases, a reverse auction is used).

3. Restrictions for Participants

Participants are not admitted if they:

are listed in the Unified Register of Unscrupulous Contractors;
have tax arrears or are insolvent;
provided false information or failed to disclose beneficiary ownership;
are identified as having a conflict of interest or affiliation with other participants.

4. Process-Related Restrictions

Negotiations are prohibited — the customer cannot negotiate with participants before the winner is determined.
Proposal security may be required (deposit, bank guarantee, pledge), limiting participation of financially weaker companies.
Only criteria predetermined in the procurement documentation may be used; changes “on the go” are forbidden.

5. Risks of Abuse and Additional Restrictions

High qualification of the commission is required; lack of competence may lead to subjectivity.
Longer duration than auctions, limiting use in urgent procurements.
After the procedure, essential contract terms (volume, price, assortment) cannot be changed, except in cases expressly provided by law.

Thus, the selection of the best proposals applies only when multiple factors, not just price, must be considered. It is not used for mass standard procurements, small-value purchases, or procurements related to state secrets, security, or elections.

Restrictions Summary Table

Category	Content	Legal basis
By procurement subject	- Not used for procurements related to state secrets, security, elections, etc. - Not used for small purchases (low-value and standard goods — simplified procedures and e-store apply). - Inefficient for simple procurements where price is the sole criterion (then auction applies).	Law “On Public Procurement”, Art. 2, Art. 30
By participants	- Affiliated persons cannot participate in the same lot. - Excluded if tax arrears, bankruptcy, or inclusion in the Register of Unscrupulous Contractors. - Excluded for false information or concealment of beneficiaries. - Excluded for conflicts of interest.	Law “On Public Procurement”, Art. 23, 36, 42, 46
By process	- Negotiations between customer and participants prohibited before winner determination. - Proposal security (pledge, guarantee, deposit) may restrict weaker companies. - Evaluation only by criteria fixed in advance; no rule changes allowed.	Law “On Public Procurement”, Art. 39–40, 32
By contract	- After completion, essential contract terms (volume, price, assortment) cannot be changed, except as provided by law. - Contract must be registered in the Unified Register of Contracts.	Law “On Public Procurement”, Art. 34, 47
Practical risks	- Complexity and duration limit applicability in urgent procurements. - High professionalism required; subjectivity or low qualification may distort results.	Application practice & Art. 5 (principles)