Requirements to state procurement participants became stronger

At the end of 2016 the legislation on procurements was amended. Details of the essentials are stated below.

• The Federal law №474-FL as of 28.12.2016 «On amendments to certain legislative act of the Russian Federation» has expanded possibilities of participation in procurement of goods, works and services by certain federal state unitary enterprises.

This is about enterprises essential for ensuring the rights and legitimate interests of citizens of the Russian Federation, defense and security of the state. As agreed with Russia's Presidential Executive Office, the list of the enterprises was later approved by the Russian Government Executive Order №2931-r as of 31.12.2016 «On approval of the list of Federal state unitary enterprises, which are essential for ensuring the rights and legitimate interests of citizens of the Russian Federation, defense and security of the state».

Conclusion of civil law contracts by these enterprises on supplies of goods, works and services now falls within the scope of the Federal law №223-FL as of 18.07.2011 «On procurement of goods, works and services by certain types of legal entities» and is released from the Federal law №44-FL as of 18.07.2011 «On the contract system in state and municipal procurement of goods, works and services».

It was also stated that the effect of law does not extend to procurement of goods, works and services made by the Central elections commission and elections commissions of the RF subjects during elections to the federal authorities.

The law has come into force since January 1, 2017.

• The Federal law №489-FL as of 28.12.2016 On the amendments to Article 31 of the Federal Law “On the contract system in state and municipal procurement of goods, works and services has expanded the list of obligatory requirements to participants of procurement provided by the Article 31 of the law and uniform requirements to the participants were set.

One of the most important requirements is that participant (natural person, executive, members of collective executive body, chief accounting officer of a legal entity) must have no criminal records for economic crimes. This norm does not cover persons with expired and expunged criminal records. The same is about cases when criminal records are not connected with deprivation of right to hold specific positions (to be engaged in certain activities) or disqualification related to supplies of goods, performance of works, provision of services being an object of procurement.

Another requirement is absence of criminal records for offenses under articles of the Criminal Code for illegal participation in entrepreneurial activities, taking or giving of bribe, or mediation in bribery. When criminal record is expired or expunged, the limitations will not be applied.

The list was also added with the requirement for participant (legal entity) not to be brought to administrative responsibility under the article of the Code of the Russian Federation on Administrative Offenses on illegal gratification on behalf of a legal entity.

• The Federal law №500-FL as of 28.12.2016 “On the amendments to Article 93 of the Federal Law “On the contract system in state and municipal procurement of goods, works and services” specifies cases of conducting sole supplier procurement.

The law sets that customers acting on the territory of foreign state (diplomatic missions, consular offices or trade representation of the Russian Federation, etc.) at procuring are released from limitations regarding making of the contract price, not exceeding one hundred thousand.

Full range of information on procurements is available in the Information and Analytical system Globas-i. «Procurement analyses» section contains services for analyses of information on procurements. Using tools and filters developed by the experts of the Information agency Credinform it is possible to organize data on procurement participants, goods and prices. The information produced after analyses will assist in searching for counterparty, choosing marketing strategy and forming pricing policy.