Simplified Small-Scale Procurement in the Public Procurement System

The simplified small-scale procurement procedure (SSSP) is a special mechanism of public procurement designed to increase the efficiency of budget spending and simplify access of business entities to public contracts. In the context of reforming Uzbekistan’s procurement system, this tool ensures a balance between transparency, competition, and resource savings.

According to the Law of the Republic of Uzbekistan “On Public Procurement” (LRU-684 of April 22, 2021), the simplified small-scale procurement procedure is a competitive method of public procurement carried out either by:

• comparing prices obtained from open sources of information; or
• requesting prices from at least three potential suppliers of goods, works, or services.

Application criteria:

• total procurement amount — no more than 50 base calculation units (BCU);
• for budget-funded customers — no more than 25 BCU.

Goals and Objectives of the Simplified Procedure

• Reducing administrative barriers — the simplified procedure reduces paperwork and approval timelines.
• Cost savings — direct price comparison makes it possible to select the most optimal offer.
• Accessibility for small businesses — the absence of complex qualification requirements encourages participation of microenterprises.
• Transparency and reduction of corruption risks — the use of open sources and mandatory publication of results ensures public oversight.

Mechanism of Conducting Simplified Procurement

The stages include:

1. Determining the need by the public customer.
2. Choosing the method of price comparison:
   • analysis of prices from open sources (market, electronic platforms);
   • requesting prices from at least three suppliers.
3. Selecting the winner — the participant offering the lowest price while meeting quality requirements.
4. Concluding the contract and publishing information in the unified register.

Comparative Analysis of Procurement Forms

Criterion	Simplified Small-Scale Procurement	E-shop	Tender	Auction
Contract value	≤ 50 BCU (≤ 25 BCU for budget)	up to 2500 BCU (goods)	above 2500 BCU	no limit
Procedure speed	High	Medium	Low	Medium
Competition	Minimal (3 offers)	Broad participant base	High	High
Paperwork	Minimal	Moderate	High	Medium
Main criterion	Price	Price & quality	Price + non-price	Price only
Corruption risks	Low	Medium	Medium	Medium

 

Restrictions and Exceptions

The simplified small-scale procurement procedure does not apply to:

• procurements related to state secrets and defense;
• procurements for elections and referenda;
• projects implemented under investment programs;
• procurements in the field of national security.

Scientific and Practical Significance

The introduction of SSSP contributes to the development of a flexible procurement environment but requires:

• improving monitoring mechanisms;
• preventing artificial “splitting” of procurements to bypass tender procedures;
• digitalization of the process to minimize the human factor.

Procedure of Simplified Small-Scale Procurement

Step	Action	Responsible Party	Result
1	Determining the need for goods (works, services)	Public customer	Justification of procurement
2	Checking compliance with limits (≤ 50 BCU / ≤ 25 BCU for budget)	Public customer	Confirmation of applicability of SSSP
3	Selecting method of price comparison: a) open sources; b) ≥ 3 suppliers	Public customer	Method defined
4	Sending price requests to suppliers (if this method is chosen)	Public customer	Commercial offers received
5	Comparing price offers or open-source information	Public customer	Best price identified
6	Checking supplier compliance (resources, no debts, etc.)	Public customer / procurement commission (if any)	Supplier admitted or rejected
7	Determining winner (lowest price with required quality)	Public customer	Decision on contractor
8	Preparing and concluding procurement contract	Public customer & winner	Legal execution of transaction
9	Publishing information in the Unified Register of Contracts	Public customer	Transparency and oversight
10	Contract execution and payment	Supplier & Treasury Committee (for budget)	Supply/service provision & obligation closed

Conclusion

The simplified small-scale procurement procedure is an effective tool of public procurement focused on small volumes and accelerated satisfaction of government needs. It serves as a mechanism to support small businesses, as well as an element to increase transparency and efficiency of budget expenditures. At the same time, further improvement of the procedure requires comprehensive control and harmonization with international public procurement standards.