OREANDA-NEWS. March 29, 2011. The Federal Law “On State Procurement…” has played its positive role and now needs follow-up revision for the purposes of combatting corruption. This statement was made by the Head of the Federal Antimonopoly Service (FAS Russia) Igor Artemyev, speaking at the 7th Forum and Exhibition “State Procurement 2011”, reported the press-centre of FAS Russia.

The Head of FAS Russia announced some proposals of the Antimonopoly Service towards reforming the state procurement system. According to Mr. Artemyev, it is necessary to centralise state procurement. “Local health centres must focus on treating people rather than puzzle out subtleties of state procurement”, is convinced the Head of FAS Russia.

Mr. Artemyev pointed out that still there are incidents when tender or auction documentation is prepared in such a manner that requirements are met by a particular company. This has signs of collusion between a customer and a supplier”, said Igor Artemyev, who promised the first bid-rigging criminal cases already in 2011.

Amendments proposed by FAS Russia would resolve the issue of overrating the initial contract price: after the amendments are adopted customers will have to justify their initial (maximum) contract price.

Igor Artemyev also stated that it is necessary to stop using the “weak forms” – quotation requests and the short auction procedures should be applied.

The Head of the antimonopoly authority also pointed out insufficient industry specification. “This is not so much about construction although the voice of constructors on this issue is the most loud. The problem can be resolved by developing standard contracts”, suggested Igor Artemyev.

Another questionable issue in state procurement, in the FAS Russia’s opinion, is a long procedure for judicial contract termination. The antimonopoly authority proposes to form and inter-branch Commission that would grant permissions for unilateral contract terminations by customers.

The Head of FAS Russia pointed out that at the moment customers do not have stimuli to save budgetary funds. “The punishments for the committed violations is heavy and every day we fine around 250 officials but there is no encouragement for the customers who were able to save considerable budgetary funds”, complained Mr. Artemyev and suggested that some of the saved funds should be used on bonuses and premiums for the customers who managed to save budgetary funds. Another part of the saved funds Mr. Artemeyv would put in the fund for innovations development. For the five years since the 94-FZ Federal Law “On State Procurement…” has been in effect, it has saved over 1 trillion 68 billion Rubles.

Summing up his speech, Igor Artemyev stated that if the existing state procurement system is not “demolished”, small and medium business entities will get access to competitive bidding for the sum of 400- 800 billion rubles per year.