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Federal Antimonopoly Service of the RF is vested with oversight functions in procurement according to 223-FL
Currently main federal laws controlling the Government procurement in Russia are:
- «On the contract system in state and municipal procurement of goods, works and services» (№44-FL of 05 April 2013, as amended on 13.07.2015);
- «On Procurement of Goods, Works and Services by Certain Legal Entities» (№223-FL on 18 July 2011, as amended on 29.06.2015).
223-FL is by definition and requirements to the Government procurement more loyal than 44-FL. For example, the last one in a serious way limits ways of bidding, sums and procurement of goods amount, works and services; demands proving the starting price of contract, describing functional characteristics of goods and services to the full extent. The reasons of passing 44-FL are: misregulating of relations appeared while using the previous law connected with the Government procurement; grown corruption level; development of business activity in Russia.
223-FL, for example, does not demand proving the Government procurement, the starting price of contract, the possibility of making amendments into completed contract. Other differences of 223-FL are represented in table 1.
| Name of law provision | 223-FL | 44-FL | |
|---|---|---|---|
| 1 | Procurement plan | Can be changed. It is by definition easier and customer defines its structure and content | Yearly plan-diagram and 3-year procurement plan for the state institutions are demanded |
| 2 | Reason for procurement | Not required | Obligatory |
| 3 | Description of procurement | Can be any, including with direct reference to brand name, manufacturer, country, origin | Neutral, objective, without brand names |
| 4 | Source of financing | Self-gained finances | Transfers (subsidies), provided for the Government task fulfillment |
| 5 | Conditions of contract | Can be changed | Limited change |
| 6 | Making contract with winner | Not obligatory | Only with winner |
| 7 | Conditions of procurement | Customer defines | Heavy regulations |
| 8 | List of cases for procurement by the sole supplier | Customer defines | Limited |
| 9 | Ways of procurement | Any ways depending from the customer`s choice | Limited |
Analysis of 223-FL realization shows that several state companies abuse loyalty of the law, for example, tens of times driving up procurement prices, as a result increase of expenses is close to 100%. When there is a violation of 223-FL participant of procurement can lodge a complaint to the Federal Antimonopoly Service of the RF (FAS). Among the violations are: not placement of data on procurement in the unified information system; inaccurate information about procurement; additional requirements to suppliers. However, it turned out to be inadequate, that is why the Government of the RF made a decision to enforce procurement control of state companies.
According to the Government regulation №1139, amendments were made to the FAS activity. Since 1 November 2015 FAS is vested with oversight functions in the procurement area of «Certain Legal Entities» in accordance with 223-FL. They include state and municipal unitary enterprises with a government stake more than 50%. Moreover, FAS got a possibility to make decisions on suspense of plan implementation of goods procurement, works, services, and also innovative and high-technology products, medical products concerning procurement of small and medium-sized business entities.