Billions for small business

вестник 05.07.2018

In 2017 1,3 mln contracts at total volume of 975 bln RUB were executed with small businesses.

The volume of contracts with small businesses (SMEs) is amounted a little over 15% of total cost of contracts executed for the reporting period (6 320 bln RUB) that corresponds to legislative regulation obliging governmental customer to place procurements with SMEs.

The number of contracts with small businesses increased by 12% and their cost — by 27% compared to 2016. Average price of contract executed with small and medium enterprises (SMEs) in 2017 amounted to 741 th RUB and increased by 28% compared to 2016.

The increase in rates of budget allocation to small businesses through contract system remains this year: 241 thousand contracts at total amount of 147 bln RUB are executed in the 1st quarter of 2018; that is more than in the similar period of the past year by 30% of the amount and 40% of the number.

Almost half of budget funds allocated for procurements with small business is accumulated in 10 regions.

The majority of procurements placed with small businesses is located in Moscow. The capital leads among all regions in terms of small business financing through contract system — 222 bln RUB or 19% of total value of procurements in 2017. Saint-Petersburg follows next with a noticeable lag and 95 bln RUB (8%). Moscow region with 73 bln RUB (6%) closes the top three. Totally 556 billion or 48% of the total procurement value was accounted for Top-10 regions (see Picture 1).

Picture 1. Total value of procurements placed with SMEs, by regions of RF, 2017, in % Picture 1. Total value of procurements placed with SMEs, by regions of RF, 2017, in %

A third of all procurements placed with SMEs is connected with construction activity.

Construction is most-coveted service for governmental or municipal customers — 30% of procurements are related to this activity. The share of repair of vehicles is 12%, and 10% of total procurements value falls for other activities (see Picture 2).

Picture 2. Most common types of activity by total value of procurements placed with SMEs, 2017, in % Picture 2. Most common types of activity by total value of procurements placed with SMEs, 2017, in %

The maximum price of the current contract, executed with a small enterprise, exceeded 10 bln rubles.

Among the small businesses, there are organizations which executed contracts on more than 1 bln RUB.

The small enterprise LLC Spetstrans providing services for processing of solid domestic waste in the North-West administrative district of Moscow executed the contract at 12,4 bln RUB (see Table 1). The microenterprise Tehnostroy LLC undertakes to accomplish construction of a highway bypassed Pskov until December 16, 2019. The contract price is 6,8 bln RUB.

Table 1. The largest active contracts by 44-FZ (94-FZ) executed with small enterprises
Rank Supplier Customer Contract №, scope Contract price, bln RUB Contract status
1 SPETSTRANS, LLC
Small enterprise
MOSEKOPROM 1774370937515000007
Date of contract 29.12.2014
Services for processing of solid household waste in the North-West Administrative District of Moscow
12,4 Execution to 25.12.2029
2 TEHNOSTROY, LLC
Microenterprise
STATE COMMITTEE OF PSKOV REGION ON TRANSPORT 2602708751416000028
Date of contract 18.07.2016
Construction of a public road of regional significance Northern bypass of Pskov (2nd launch complex)
6,8 Execution to 16.12.2019
3 TEHNOSTROY, LLC
Microenterprise
DEPARTMENT OF SAINT-PETERSBURG-MURMANSK MOTORWAY 1100111701018000068
Date of contract 04.06.2018
Maintenance of federal general-purpose highway Р-21 “Kola” on a site 451 + 365 km, 1070 + 806 km
2,8 Execution to 30.07.2023
4 KOMPLEKSSTROY, LLC
Microenterprise
STATE BUDGETARY INSTITUTION OF MOSCOW “AUTIO ROADS” 2772765679018000147
Date of contract 26.03.2018
Supply of materials for asphalt-concrete and concrete plants of the State Unitary Enterprise “Automobile roads” in 2018
2,5 Execution to 31.12.2018
5 DORTRANSSTROY, LLC
Small enterprise
DEPARTMENT OF DEVELOPMENT OF NEW TERRITORIES OF MOSCOW 2770481244217000237
Date of contract 16.11.2017
Construction of Ostafievskoe highway
2,4 Execution to 30.11.2019
6 ILION, LLC
Small enterprise
MOSCOW ANALYTICAL CENTER IN THE SPHERE OF URBAN ECONOMY 0373200608514000004
Date of contract 28.03.2014
Implementation of project documentation for creation of a unified navigation system in Moscow
1,9 Execution to 31.12.2018
7 PROJECT SUPPORT, LLC
Small enterprise
DEPARTMENT OF INFORMATION TECHNOLOGIES OF MOSCOW 2771087800018000049
Date of contract 13.04.2018
Services for installation and configuration of software providing access for educational institutions of Moscow to the electronic educational environment (second priority)
1,9 Execution to 01.05.2024
8 SK INTEG, LLC
Small enterprise
DEPARTMENT OF CAPITAL CONSTRUCTION OF THE SVERDLOVSK REGION 2666100455917000055
Date of contract 28.11.2017
Construction and installation works on the project: “Maternity home with women’s consultation and pregnancy pathology department, Verkhnyaya Pyshma”
1,7 Execution to 31.12.2019
9 LLC TEHNOSTROY
Microenterprise
DEPARTMENT OF MOSCOW-BOBRUYSK MOTORWAY 1672500081017000047
Date of contract 18.04.2017
Execution of major overhaul of the existing network of federal general-purpose highway
1,7 Execution to 01.12.2018
10 KOMSTROY, LLC
Small enterprise
MOSKOLLEKTOR 2770800088218000017
Date of contract 29.12.2017
Services on operation of low-current systems of collector facilities of State Unitary Enterprise “Moskollektor”
1,6 Execution to 31.12.2020

The maximum price of the current contract, executed with an individual entrepreneur, does not exceed 100 mln RUB.

Individual entrepreneurs (hereinafter IE) actively participate in the procurement system. Although the maximum volume of contracts in force is significantly inferior to contracts concluded with SMEs. However the contract system has become an essential component in maintaining the financial well-being of small businesses and a source of «long» money. The maximum value of contract with IE is 99 mln RUB (see Table 2).

Table 2. The largest active contracts by 44-FZ (94-FZ) executed with individual entrepreneurs
Rank Supplier Customer Contract №, scope Contract price, mln RUB Contract status
1 IE Zatsepin Alexander Leonidovich RF MINISTRY OF DEFENSE 1770425226117001183
Date of contract 14.11.2017
Services for transportation of servicemen participating in the Victory Parade in 2018 and during mass events for the needs of the Russian Defense Ministry in 2017 and 2018
99,0 Execution to 31.12.2018
2 IE Kremlev Denis Vladimirovich DIRECTORATE OF CAPITAL CONSTRUCTION AND INVESTMENTS OF THE YAMAL-NENETS AUTONOMOUS DISTRICT 2890101752618000032
Date of contract 26.04.2018
Execution of major repairs of the facility: "Infectious building of the district multi-profile hospital in Salekhard (second priority)
74,2 Execution to 18.01.2019
3 IE Zatsepin Alexander Leonidovich RF MINISTRY OF DEFENSE 1770425226117001197
Date of contract 16.11.2017
Services for transportation of servicemen participating in the Victory Parade in 2018 and during mass events for the needs of the Russian Defense Ministry in 2018
73,0 Execution to 31.12.2018
4 IE Andreev Vladislav Alexandrovich ROAD SAFETY CENTER OF ROSTOV REGION 2616712165218000013
Date of contract 13.04.2018
Provision of services to ensure the operation of hardware and software complexes of traffic infraction video recording
59,1 Execution to 31.12.2018
5 IE Nesterov Boris Alekseevich DEPARTMENT OF AFFAIRS OF THE VORONEZH REGION 0131200001214000120
Date of contract 06.11.2014
Non-residential lease
54,7 Execution to 31.12.2019
6 IE Vorobyeva Oksana Vladislavovna VOSNESENSKIY BOARDING HOUSE FOR ELDERLY AND DISABLED PEOPLE 2471100226718000015
Date of contract 05.02.2018
Repair of the catering place, laundry and building 1 and 2 floors in the Leningrad Regional State Budget Organization “Voznesensky D” in 2018
48,6 Execution to 31.12.2018
7 IE Vorobyeva Oksana Vladislavovna BUDOGOSCHSKY PSYCHONEUROLOGICAL HOUSE 2470800541218000040
Date of contract 04.06.2018
Works on the repair of the dormitory building № 1 (1-2 floor and PKO) of the Leningrad Regional State Budget Organization “Budogoschsky psychoneurological house”
45,2 Execution to 31.12.2018
8 IE Mitin Vladimir Zelimovich MOSKOMARHITEKTURA 2771014558918000006
Date of contract 13.02.2018
Rental services of passenger cars with driver
36,6 Execution to 31.12.2018
9 IE Sashin Alexander Borisovich NOVY URENGOI CENTRAL CITY HOSPITAL 2890401271017000762
Date of contract 18.12.2017
Provision of motor transport services
29,2 Execution to 31.12.2018
10 IE Vlasov Boris Viktorovich VOLGOGRAD REGIONAL CLINICAL CARDIOLOGY CENTER 2344390133818000103
Date of contract 10.05.2018
Supply of consumables for the implantation of pacemakers
18,5 Execution to 31.12.2018

Since the 1st of July, 2018 amendments to the law came into force following the Government Decree as of April 12, 2018 N 439.

Having freed up small purchases worth up to 1 mln RUB from the need for security, the law now obliges participants in large procurements to place contract security in special accounts with accredited banks.

Following the changes in the legislation, it is necessary to expect a shift in the activity of SMEs towards small purchases, an increase in the number of competing participants, and, in view of the facilitated procedure for participation in small purchases, the need for companies to be checked for solvency and reliability.