Article 4. Basic Concepts

The following basic concepts shall be used in this Law:

beneficial owner means an individual who ultimately owns the property rights or actually controls the supplier of goods (works, services);

auction to lower the starting price means a competitive way of public procurement on a special platform of the electronic public procurement system, in the organization of which the only criterion for determining the winner shall be the price;

state customer means a legal entity carrying out public procurement;

public procurement means the process of meeting the needs of state customers in goods (works, services) on a paid basis;

contract on public procurement means an agreement between the state customer and the executor of public procurement on the establishment, change or termination of rights and obligations in public procurement;

subjects of public procurement means a state customer, a participant in procurement procedures, a public procurement contractor, a procurement commission, an operator of an electronic public procurement system, a specialized organization and an expert, an expert organization;

prequalification selection means a procedure carried out by the procurement commission for selecting qualified participants in procurement procedures, which are allowed to conduct procurement procedures, and which comply with the technical, economic, organizational and other features established in the procurement documentation;

reserve winner means a participant in the procurement procedures, whose proposal, according to the results of the procurement procedures, was recognized as the most optimal in accordance with the decision of the procurement commission, following the proposal of the winner;

two-stage public procurement — a competitive method for carrying out public procurement of technically complex goods (works, services) of a certain value, conducted in two interconnected stages under one contract;

simplified procedure for small-value procurement — a competitive method for carrying out public procurement by comparing prices obtained from open information sources of procurement procedures or by requesting prices from at least three potential suppliers of goods (works, services);

tender means a competition that provides for the procedure for determining the executor of public procurement through a competitive procedure for public procurement, according to the results of which the participant in the procurement procedures, who has offered the best conditions for the execution of the public procurement contract, is recognized as the winner;