Government customers make 15% of all purchases from non-profit socially oriented organizations.
What does 44-FZ regulate?
- Planning, monitoring and audit of procurement.
- Selection of suppliers.
- Conclusion of contracts and their execution.
- Procurement control.
What is not regulated by 44-FZ?
- Procurement of services from international financial organizations.
- Procurement of services for state protection of judges, officials, court participants and other people.
- Purchases of precious metals and precious stones to replenish the State Fund.
- Procurement related to the support of facilities and information systems for the 2018 FIFA World Cup and the 2017 FIFA Confederations Cup.
- Purchasing free legal assistance or defense in court.
- Procurement of election commissions for elections and referendums.
- Payment for participation in procurement.
Who adopts legal acts under 44-FZ?
- President of Russian Federation;
- Government of the Russian Federation;
- Federal executive authorities;
- Rosatom;
- Roscosmos;
- State authorities of the constituent entities of the Russian Federation and local governments.
44-FZ is based on the provisions of the Constitution, Civil and Budget Codes of the Russian Federation
Principles of the contract system
Important Definitions
State customer is an organization that needs goods and services and pays for the purchase. For example, hospitals, schools, universities, scientific institutes,
Provider- a legal or natural person, including individual entrepreneurs, who participates in the procurement and supplies goods and services.
Zakupki.gov.ru— website of the unified information system (UIS), where customers publish purchases and reports. The EIS contains registers of all concluded contracts, unscrupulous suppliers, complaints against customers and other important information.
Initial contract price (IMC)— the cost of supplying goods, which is set by the customer. The NMC must be justified. Suppliers cannot offer a price higher than the NMC.
Electronic marketplace— a website on which customers place purchases, suppliers submit applications for participation in purchases, and electronic auctions are held.
Specialized electronic platform— a website with access via secure communication channels, where closed purchases are carried out.
Application for participation- these are documents and information that the supplier submits in written or electronic form to participate in the procurement.
Unified Information System (UIS)
Currently contains
- Information about purchases, the ability to search for them,
- Contract templates,
- Standardization rules
- Information on market prices for goods,
- Procurement plans, schedules,
- Reporting on completed contracts,
- Register of unscrupulous suppliers.
- Unified registration and register of procurement participants.
- Unified catalog of goods, works and services.
- Publication of procurement under RF PP No. 615 (major repairs).
Coming in 2020
- A system for recording the actions of procurement participants in the Unified Information System and on 8 federal ETPs.
Access to information on the EIS is free. If information about the same purchase, customer, contract, etc. on the UIS and in another source is different, then priority goes to the information on the UIS.
EDI organization
Suppliers can apply to participate in procurement on electronic trading platforms. In cases determined by the government, electronic document flow may also pass through the Unified Information System. All documents are signed electronically:
- Customers receive an electronic signature free of charge from the Federal Treasury. They work with it in the EIS and on the ETP.
- Suppliers require a signature to participate in e-procurement. Since July 1, 2018, the system uses qualified signatures in public procurement. Suppliers can obtain a signature from an accredited certification authority.
National regime
The national regime was introduced to give advantages to suppliers of Russian goods and goods from other Eurasian Economic Community member countries. Read more about him here.
Procurement methods
Depending on the source of income, government customers can make purchases under both 44-FZ and 223-FZ. According to 44-FZ, if an organization spends budget money. According to 223-FZ, if it spends its own and it has a procurement provision.
Planning
Procurement plans* |
Schedules |
|
This is the basis for schedules. |
You cannot make a purchase that is not included in the schedule. |
|
The description of each purchase contains:
|
| Formed for 3 years. This is the validity period of the federal budget law. | Formed for the financial year. |
| Plans can be changed. Come into force within 10 working days after the budget is approved. They are published in the Unified Information System, on their websites and in any printed publications within 3 working days after approval, unless they are a state secret. |
Come into force within 10 working days after the budget is approved. They are published in the Unified Information System within 3 working days after approval, unless they constitute state secrets. |
| The plan must justify the object of each purchase in accordance with standard costs. |
The NMC must be justified in the schedule. Customers also take into account procurement quotas in different ways and must make 15% of all purchases from small businesses and socially oriented organizations. |
* From October 1, 2019, customers will plan purchases only according to 3-year schedules; purchase plans will be cancelled. Until the end of 2019, it is still necessary to draw up a procurement plan and schedule.
During an inspection or upon a complaint from a supplier, the FAS may recognize the purchase as unfounded. Then it is adjusted or cancelled. The perpetrators are brought to administrative responsibility.
All government purchases are regulated. The quantity, price, characteristics of goods and services are established by the federal and local legislation of the Russian Federation.
Hello, dear readers of the ABC of Tenders online school! From this article you will learn what government procurement is and why it is needed, as well as what types of government procurement currently exist. This topic is so popular in the business environment that only the lazy, probably, did not write on their website about what government procurement is.
We not only know what it is, but also successfully train our clients to participate in both government and commercial procurement. Therefore, we consider it our direct duty to reveal this topic in as much detail as possible on the pages of our school. Well, let's start exploring...
Public procurement: definition of the concept
State procurements (abbreviated government procurement) - procurement (purchase, purchase) of goods, works or services for state or municipal needs.
As you understand, our State is such a huge “organism” that regularly needs various goods (works, services), ranging from the purchase of paper clips to the construction of large industrial facilities.
In order to meet these needs, state and municipal customers regularly conduct various types of procurement among suppliers (procurement participants) in order to purchase goods (work, services) on the most favorable terms.
The supplier (procurement participant) who meets all the customer’s requirements and offers the best conditions is recognized as the winner with whom the contract is concluded.
The supplier receives money, and the customer receives the goods (work, services) he needs.
However, I would like to note that the attitude of suppliers towards government procurement is ambiguous. Many of the suppliers have heard about this line of business, but never dare to try their hand, fearing to work with the government.
Others, having taken part in several purchases and not receiving the desired result, flatly refuse further attempts. Still others, on the contrary, consider government procurement an excellent “tool” for increasing their portfolio of orders and expanding the sales market.
How are government procurements regulated?
Government procurement is regulated by the Constitution of the Russian Federation, the Civil Code of the Russian Federation, the Budget Code of the Russian Federation, Federal Law No. 44-FZ, as well as other Federal laws.
The main regulatory document is Federal Law No. 44-FZ of 04/05/2013 “On the contract system in the field of procurement of goods, works, services to meet state and municipal needs.”
Therefore, if you seriously decide to master the topic of government procurement, then you need to start your training directly by studying 44-FZ. This is a kind of “primer book”, without knowledge of which you will not be able to take part in procurement.
Where can I find information about ongoing government procurement?
According to the requirements of Article 4 44-FZ, all public procurement must be placed in a unified information system (abbreviated as UIS).
The official website of the unified information system in the field of procurement is www.zakupki.gov.ru. All information contained in the UIS is publicly available and is provided free of charge.
Those. in order to find information about all ongoing government procurement, you just need to use the website zakupki.gov.ru.
Types of procurement under 44-FZ
Federal Law 44-FZ provides for 11 types of procurement, with the help of which Customers can purchase the goods (work, services) they need.
Procurement can be carried out in two ways: with tendering (competitive) and without tendering (non-competitive).
Let's first look at competitive procurement methods. Competitive procurement, in turn, can be either open or closed.
Competitive types of procurement (open):
- auction in electronic form;
- open competition;
- competition with limited participation;
- two-stage competition;
- request for quotations;
- request for proposals.
Competitive types of procurement (closed):
- closed auction;
- closed competition;
- closed competition with limited participation;
- closed two-stage competition.
Non-competitive procurement includes only purchases from a single supplier (performer, contractor).
Statistics from the official website of the EIS for 2016 indicate that the most popular methods of public procurement today are: electronic auction (more than 57%), open competition (more than 13%) and procurement from a single supplier (performer, contractor) (more than 22%). They account for the lion's share of all procurement carried out in Russia.
We will talk in more detail about each of the 11 types of procurement in our next issues.
Our state was, is and will be the largest and most solvent consumer. If you are an existing entrepreneur or planning to become one, then you should take a closer look at government procurement as one of the tools for increasing the number of orders and expanding the geography of your activities.
Advantages of participating in government procurement:
- There is no need to spend money on advertising, which is not the case in any other type of sales;
- There is no need to attract a huge number of people (at the initial stage one person will be enough);
- Most government procurement takes place electronically. What expands the market for your goods (works, services);
- You can predict in advance the demand among customers for your goods (works, services);
- Low competition;
- You can get started with minimal costs.
That's all for today. If you still have questions, you can ask them below in the comments to this article.
Most tenders in Russia are carried out by the state through the public procurement system. The volume of government procurement is more than 40 trillion rubles per year.
Government procurement for dummies
Government procurement is an abbreviation for the word government procurement. These are purchases of goods, works or services carried out by government agencies, organizations, ministries, departments and government companies according to specially defined procedures.
The purpose of public procurement is to meet the needs of government customers for goods, works and services, save the budget, and reduce abuse. For this purpose, a whole system of legislation was invented, called the contract system.
Government procurement is competitive when the supplier, contractor or performer under a government contract is determined through competitive procedures carried out in various forms and aimed at selecting the best offer. On average, 3 potential suppliers participate in them.
There is a non-competitive form of government procurement - procurement from a single supplier, when a government contract is concluded without competition, that is, in the absence of a choice from several possible options.
Types of government procurement
Public procurement takes place in the form of an auction, competition, request for quotations, request for proposals and others.
- Public procurement mechanisms are defined in legislation and Government regulations
- The concept of tender itself is not officially used in the public procurement system.
- The term “procurement” is used, their totality is called the contract system
- Government procurement is carried out on a competitive basis and is designed to save money for government customers.
This is the purchase by the government of goods, works or services.
Government procurement is the same market for goods and services with one caveat: the buyers are state, regional and municipal enterprises and organizations. They also need ordinary paper clips and pencils, medical supplies, office furniture or their own website. They need to maintain and restore buildings, remove garbage and install Internet and telephony.
Simply put, government procurement exists in every field and in every region. They are interesting to business because the state is a good partner. The supplier can be a legal entity, an individual entrepreneur or an individual. Money for government procurement is included in the budget, so you are guaranteed to be paid for the goods delivered or the service performed.
Why participate in government procurement?
This is a good market.
Government organizations are a significant part of our economy. According to the FAS, the state's share in Russia's GDP has doubled in 10 years. In 2005 it was 35%, and in 2015 - 70%.
In addition, it increases the level of trust in your company and has a good effect on your reputation. Therefore, such a significant layer of the economy should not be overlooked.
I don't understand anything about government procurement. How to participate in them?
Government purchases come in different volumes. If the cost of purchases is more than 100 thousand rubles, information about them is posted on the website zakupki.gov.ru. Look for a suitable competition, submit an application and participate in the electronic auction. This is not an easy process, but if you want to compete for a significant part of the market, then it’s worth figuring it out. The main thing is to be patient.
There is an easier way to participate in government procurement, without competitions and auctions. It is of interest to small and medium-sized businesses due to the simplified participation procedure and small contract amounts. It looks like this: you offer your product or service to a government agency, and it selects a supplier and enters into a contract.
This procurement option is possible if their cost does not exceed 100 thousand rubles (or 400 thousand rubles if the purchase is made by educational organizations or cultural institutions: zoos, planetariums, recreation parks, theaters, philharmonic societies, libraries, and so on). Such purchases are called small volume purchases.
How to participate in small volume purchases?
The fact is that, according to No. 44-FZ, which regulates government procurement, information about small-volume purchases need not be published anywhere. It is believed that they are insignificant and holding auctions for such amounts is inappropriate. Therefore, government customers usually look for goods without competition (often choosing not the most advantageous offer and spending budget money ineffectively), and entrepreneurs cannot offer their services.
Moscow took a different path. To save budget and attract small and medium-sized businesses to government procurement, the city leadership created a single supplier portal. Not a single state or municipal institution in Moscow can conclude a small-volume procurement contract without going through the website. If we draw an analogy, you cannot buy bread without going to the store to buy it.
The Moscow supplier portal is focused specifically on small-volume purchases of up to 100 thousand rubles (or 400 thousand rubles if the purchase is made by cultural institutions or educational organizations). In addition, the portal hosts non-competitive purchases of medicines based on decisions of medical commissions.
And what is the Moscow supplier portal?
This is an online platform on which the city posts information about small-scale purchases and provides small businesses with access to the market for goods and services with a turnover of about 20 billion rubles per year.
Individual entrepreneurs and small businesses participate in government procurement in Moscow without auctions and unnecessary hassles. Anyone can post an offer on the portal, and city customers (there are more than 2.5 thousand of them) choose the best offer. Essentially, this is a store where you place your goods or services, offering them to the government.
Government procurement on the website takes place electronically. View orders and offer your services to state and municipal organizations and institutions without leaving your home.
The trick of the portal is that all procurement data is open and everything is transparent. You can see:
- Procurement plans of government agencies and institutions for the coming year (in the “Plans” section).
- Offers and prices of competitors (in the “Offers” section).
- Transaction history for each registered supplier or customer (in the “Purchases” section).
- Concluded contracts (in the “Contracts” section).
In the field of small-scale government procurement, clear and understandable rules have appeared that any entrepreneur can study. The chance of receiving a government order in such a system is much higher: you study the market and offer the best option available. At the same time, you do not reduce the price below the market price, do not work at a loss, but sell the product or service at a fair price.
This is just a semblance of honest procurement, isn’t it?
No, purchases are carried out honestly, without acquaintances and cronyism. 93% of entrepreneurs registered on the website received government orders and became suppliers.
Integrity is achieved through transparency, openness, electronic document management and clear procedures. It is precisely for this purpose that all data on previous contracts is open on the portal. Everything can be traced and, if something is dishonest, you can contact the FAS. Violations are fraught with heavy fines and criminal liability.
This is a cool solution for government procurement, which is used in the EU and other developed countries. For example, the top five leading countries in the Corruption Perceptions Index in 2016 included Denmark, New Zealand, Finland, Sweden and Switzerland, which adhere to similar principles in public procurement.
If you still don’t believe in the integrity of procurement on the portal, the numbers speak for themselves: in 2016, Moscow saved about 37 billion rubles on government procurement, topping the National Procurement Transparency Rating.
Convinced. How to become a supplier?
To become a supplier, you need to complete several steps.
Government procurement - we start and win
Are you familiar with the expression “Supplier to the Court of His Imperial Majesty”? This title was given to merchants who constantly supplied goods for the imperial needs. Being a supplier to the yard was very honorable; such status spoke for itself and served as the best guarantee and advertisement of goods and services.
Getting the title of yard supplier was very difficult. Just to file a petition against him, the merchant had to supply goods or works of his own production to the court “at relatively low prices” for 10 years, have no complaints from consumers, and participate in industrial exhibitions. At the end of the 19th century, there were only about 40 court suppliers, and among them were not only Russian merchants, but also foreigners.
It is much easier for today's applicants for supplies for government needs, although, of course, they will have to try hard to obtain such an order. But still, any businessman has a chance to receive a government order.
Are you going to participate in government procurement? Open a current account in a reliable bank. Many banks offer favorable conditions for opening and maintaining a current account. You can view the offers here.
What is government procurement?
State procurements is a system for placing orders for the supply of goods, performance of work or provision of services for municipal or state needs. Government procurement was introduced by law dated July 21, 2005 No. 94-FZ, which became invalid on January 1, 2014.
Currently, the procedure for government procurement is regulated by Law No. 44-FZ dated 04/05/2013 “On the contract system in the field of procurement of goods, works, and services to meet state and municipal needs,” but on some electronic trading platforms there are still references to Law No. 94-FZ. Such a contract system involves a competitive selection of suppliers of goods and services, which allows the state to obtain the most favorable conditions for supplies and reduce corruption in public procurement through a system of “kickbacks”, although, of course, it is too early to talk about its complete eradication in this area.
The range of state or municipal orders is very wide, among them there are many small ones, not exceeding 1 million rubles. This makes it possible for not only large suppliers, but also small businesses, including individual entrepreneurs, to participate in government procurement. For suppliers who are also socially oriented non-profit organizations, there is a special quota - customers are required to make at least 15% of the total annual volume of government procurement from them (Article 30 of Law No. 44-FZ). The number of state and municipal customers on official websites exceeds 250 thousand, hundreds of new orders for hundreds are announced every day
Where are government procurements carried out?
Let's assume you are carrying out construction work; as of 01/04/2019, 1,581 tenders were open for this position.
By clicking on one of the advertisements, you can go to the page of the auction itself, which contains complete information about its conduct.
Procurement methods under 44-FZ
Article 24 of this law gives the concept “ ways to determine the supplier”, that is, exactly how government procurement can take place. These methods are divided into competitive and non-competitive. Non-competitive methods include procurement from a single supplier (contractor, performer), while competitive methods have the following classification:
With open methods of public procurement, information about them is communicated by the customer to an unlimited number of people, and uniform requirements are imposed on procurement participants. Closed methods of identifying a supplier are sending invitations to participate in a competition or auction to a limited circle of people who meet the customer’s requirements.
Closed methods are used in the following cases:
- information on government procurement is a state secret;
- a contract is concluded for services for insurance, transportation and protection of valuables of the State Fund, museum objects and museum collections and other items of important historical, artistic or cultural significance;
- a contract is concluded for cleaning services and driver services to support the activities of judges and bailiffs.
Today, the most popular methods of conducting government procurement within the framework of 44-FZ are an electronic auction, an open competition and procurement from a single supplier. As an example, let’s look at how an electronic auction works.
Stages of an electronic auction
1.Get an electronic signature
A mandatory condition for participation in the auction is the presence of an electronic signature. It must be obtained from an accredited certification center; read more about this in the article.
2.Pass accreditation of participants
To participate in electronic trading, the participant must be accredited on the site. Scanned documents must be attached to the application for accreditation.
For legal entities this is:
- extract from the Unified State Register of Legal Entities and copies of constituent documents;
- Copies of documents confirming the authority of the head;
- power of attorney to carry out actions on the site on behalf of the participant;
- a decision on approval or execution of transactions based on the results of an electronic auction, indicating the maximum amount of such a transaction.
Individual entrepreneurs submit a copy of an extract from the Unified State Register of Individual Entrepreneurs and a copy of identification documents.
3.Provide an application for participation
Securing the application is a mandatory condition for participation in the auction. This is, in fact, a deposit in the amount of 0.5% to 5% of the contract amount, which is blocked on the participant’s personal account. Securing the application is also possible in the form of, and some sites offer loans for these purposes.
The blocking is lifted, that is, the deposit amount is returned, if:
- the application was withdrawn by the participant before the deadline for submitting applications;
- based on the results of consideration, the application was rejected;
- the second part of the application is found to be inappropriate;
- a contract was concluded with the participant based on his application.
The deposit amount will not be returned if the participant recognized as the winner avoids concluding the contract or if the second part of the application is found to be non-conforming for the third time within one quarter.
4.Apply for participation
The application is submitted on the site through a special interface. The application consists of two parts. The first part of the application includes only the participant’s consent and information about the goods, works, and services offered for delivery. To ensure anonymity, the first part does not contain information about the name of the participant.
The second part of the application includes:
- TIN and name of the organization or full name of the individual entrepreneur indicating passport details;
- documents confirming the auction participant’s compliance with the requirements of Article 31 of Law No. 44-FZ (the participant should not have debts on taxes and fees, convictions for economic crimes, conflicts of interest between the procurement participant and the customer, etc.);
- copies of documents confirming the compliance of goods, work or services with the requirements established in accordance with the legislation of the Russian Federation;
- decision to approve or complete a major transaction;
- documents confirming the right of the auction participant to receive benefits (for institutions of the penal system and organizations of disabled people);
- declaration of the participant’s affiliation with small businesses or socially oriented non-profit organizations.
The operator of the electronic trading platform transfers to the customer the first parts of the applications, which he must consider and admit to trading, or, conversely, reject. Admission may be denied due to unreliable information about the product, work or service required by the auction documentation or due to its absence at all.
5.Participation in electronic trading
At the appointed time, the participant enters his personal account on the site and submits his price proposals. The auction takes place in two stages:
- Bidding stage (primary time). Participants' proposals are submitted within the auction step (0.5% - 5% of the initial maximum contract price), as well as regardless of the “auction step”, subject to certain requirements. The time for accepting proposals is 10 minutes from the start of the auction, as well as 10 minutes after the receipt of the last proposal for the contract price.
- Bidding closing stage. At this stage, price proposals can be submitted by all auction participants, except for the one who offered the best price or the same price at the bidding stage.
6. Signing a contract with the auction winner
The winner receives from the customer a draft contract, which must be reviewed and signed with his electronic signature or sent a protocol of disagreements (if errors or inconsistencies with the requirements of auction documentation and legislation are detected in the draft contract). If within the regulated period (no more than 13 days) the contract was not signed or a protocol of disagreements was not sent, then the customer is automatically notified of the participant’s evasion from concluding the contract. In this case, the amount of the security application is not returned to the auction participant.
Where can I get training in government procurement procedures?
Law No. 44-FZ is not only voluminous (about 180 pages in Word format), but also difficult to understand, so mastering the government procurement procedure on your own is problematic. We have already said above that information is published on government platforms in the form of step-by-step instructions. You can get full training, but for a certain amount of money, at the special Sberbank-AST.
In addition, a Unified Government Order Center has been created in Moscow, within which representatives of small and medium-sized businesses can receive free information support, which includes:
- seminars, round tables, forums, face-to-face, correspondence and online consultations;
- a set of teaching materials, memos, instructions.
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