OREANDA-NEWS. April 02, 2009. The Federal Antimonopoly Service (FAS Russia) found that a Federal State Unitary Enterprise - the Academy of the State Fire-Fighting Service at the Russian Ministry of Civil Defence, Emergency Situations and Natural Disasters Relief (further on referred to as the Academy) violated the Federal Law "On State and Municipal Procurement of Goods, Works and Services" and issued a determination to eliminate the violations, reported the press-centre of FAS Russia.

Earlier FAS Russia was approached by "No.197 SU" CJSC with the statement that the Academy unlawfully rejected its application for participation in the auction for selecting the general contractor for construction works at the site of the "Multifunctional Educational-and-Laboratory Facilities of the Academy of the State Fire-Fighting Service at the Russian Ministry of Civil Defence, Emergency Situations and Natural Disasters Relief, SVAO, build. 4, Boris Galushkin St."

Investigating the case, the FAS Russia's Commission established that the Protocol did not give an explanation of the decision of the auction commission to refuse participation of "No.197 SU" CJSC in the auction, which violated Part 3 Article 36 of the Federal Law "On State Procurement…" and constitutes an administrative offence under Part 1 Article 7.30 of the Code of the Russian Federation on Administrative Violations.

Refusal to accept application of "No.197 SU" CJSC for participation in the auction on the grounds that the company did not have five-year work experience violated Part 2 Article 12 of the Federal Law "On State Procurement…" and constitutes an administrative offence under Part 2 Article 7.30 of the Code of the Russian Federation on Administrative Violations.

Having processed the case, the FAS Russia's Commission found the complaint justified.

Also, an unscheduled FAS Russia's inspection by the FAS Russia's Commission revealed the following:

1) According to the auction documentation, a participant of the state procurement must include in the auction application certain documents in breach of Part 3 Article 35 of the Federal Law "On State Procurement…" (constitutes an administrative violation under Part 4 Article 7.30 of the Code of the Russian Federation on Administrative Violations);

2) The Ordering Party failed to include in the auction documentation the requirements to the content of the auction applications filed by the participant of the state procurement, and did not specify the types of licenses required in accordance with the subject matter of the auction, which breached Clause 1 Part 4 Article 34 of the Federal Law "On State Procurement…";

3) The Ordering Party specified in the auction documentation that execution of the governmental contract must be secured only by an irrevocable bank guarantee, which contravened Part 4 Article 38 of Federal Law "On State Procurement…";

4) The auction documentation did not specify then scope of works, which violated Part 2 Article 34 of Federal Law "On State Procurement…";

5) The Ordering Party failed to place design estimates at the official web site, which violated Parts 2.2 and 7 Article 34 of the Law.

FAS Russia issued a determination to the Academy to cancel the Protocol for Bids Consideration, and amend the auction documentation in accordance with the statutory requirements. Also, the Academy must place design estimates at the official web site www.zakupki.gov.ru, and extend the deadline for filing the auction applications for fifteen days after the date when the amendments to the auction documentation are placed at the official web site. The bids filed earlier shall be returned to the participants who shall be with notified that their applications are no more valid and they can file the new applications.

Reference:
94-FZ Federal Law "On State and Municipal Procurement of Goods, Works and Services" came into force in January 2006.

The Law is aimed at increasing transparency of state and municipal procurement, and preventing corruption and abuse to determine the best conditions for execution of governmental contracts. The main objective of the Law is to save state budgetary funds.

In 2008 enforcement of the Federal Law "On State Procurement…" saved the state budget around 260 billion Rubles, in 2007 -168 billion Rubles, and in 2006 -106 billion Rubles.