The procedure for execution of the state defense order is specified

The Federal Law of July 3, 2016 №317-FL "About modification of the Federal law "About the State Defense Order" and article 7.29.2 of the Code of the Russian Federation about administrative offenses" has come into force since July 15, 2016.

The law was introduced by the President of the RF for the State Duma consideration in May 2016 and is aimed at assured and qualitative execution of the state defense orders (SDO).

In general, the law broadens the rights of main executor of the state defense order and clarifies the procedure of contracts support by banks. In particular, the main SDO executor is given a right to cover expenditures made of enterprise own funds for stockpiling raw materials, semi-finished products and components necessary for execution of SDO. This will give the main executors an opportunity for timely repayment of loans taken for the creation of these stocks before the end of execution, which ultimately can affect the reduction of expenditures and, consequently, reduce the cost of production.

Moreover, the law introduced a concept of “products with a long production cycle (over six months)”. Determination of the order of classifying as a product with a long production cycle and the development of the issuance of the relevant documents are imposed on federal executive bodies with a relevant competence in the field of industrial and military-industrial complexes, the State Atomic Energy Corporation "Rosatom" and the State Corporation for Space Activities "Roskosmos".

The state customer on SDO is entitled to transfer funds to the main executor, developer or manufacturer with a long production cycle in the amount of profit after partial execution of the state contract. The basis for such payment is an official document of products taken by the state customer, i.e. a separate batch of goods or phase of works (services). At the same time, the companies leading in the field of SDO execution are required to conclude contracts for the execution of SDO in the absence of reasons economically or technologically justified for refusal. Breach of this duty may give rise to an administrative penalty in the form of fines for officials in the amount from 30 to 50 thousand rubles, and from 300 thousand to one million rubles for legal entities.

The subscribers of the Information and analytical system Globas-i can look at a list of strategically important enterprises for the military and industrial complex and security of the Russian Federation in accordance with the Federal Law №213-FL as of 21.07.2014, Decree №1009 of the President of the RF as of 04.08.2004, Order of the RF Government №91-p as of 23.01.200, the Federal Law №57-FL as of 29.04.2008, as well as analysis of contracts, procurement and tenders, using new analytical tool in the relevant section of the System.