OREANDA-NEWS. The Federal Law "On Amendments to the Federal Law "On State and Municipal Procurement of Goods, Works and services" and separate statutes of the Russian Federation" came into force in 25th April 2007. The Law was passed by the State Duma on 21st March 2007, approved by the Council of Federation on 13th April 2007 and then singed by the President on 20th April 2007, reported the press-centre of FAS.


The amendments to the Law eliminate various gaps and shortcomings and make the overall procurement procedure more open and transparent. In particular, the new law stipulates transition to obtaining information predominantly from official Internet sites and reducing the amount of information published by ordering parties in print media, which would result in reducing administrative expenses. Under the amendments, the ordering party has extended possibilities for simplified placement of small orders by means of quotation requests. Furthermore, should the supplier fail to discharge one's duties in good faith, the ordering party can now terminate the contract and enter into a new contract with the bidder who was ranked second, without repeating the tender procedures.


Also under the new provisions, the Federal Law "On Procurement…" is not applicable to the services offered by the international financial organizations formed in accordance with international treaties to which the Russian Federation is a signatory, as well as by the international financial organizations that have international agreements with the Russian Federation. The Law puts in force a mandatory requirement, effective from 1st January 2008, that state and municipal procurement of construction, alteration, improvement and major maintenance works on premises and facilities must be arranged through auctions. 

"Passing the Law marks a decisive step towards accomplishing the President's State of the Nation Address that emphasized importance of the transition to the auction system in state procurement", - said State Secretary, Deputy Head of FAS Russia, Andrei Tsarikovsky.