OREANDA-NEWS. May 25, 2011. The Federal Antimonopoly Service (OFAS Russia) found that the Ministry of Defense of the Russian Federation violated Parts 2 and 3 Article 17 of the Federal Law “On Protection of Competition”, organizing an open auction in the electronic form for purchasing aerodrome equipment, reported the press-centre of FAS Russia.

On 14th April 2011, FAS Russia considered a petition of “Cominvest-AKTM” CJSC and initiated a case upon the signs of violating the antimonopoly law – combining in the same lot the products that were not technologically of functionally connected as well as restricting participation in competitive bidding, particularly, by creating preferential conditions for bidding.

“Such actions of the Ministry of Defense resulted in restricting the number of potential auction bidders, depriving direct manufacturers of the equipment from a possibility to take part in the auction as the market in question does not have any manufacturers specializing in manufacturing of all range of equipment included in the lot. As a result, the contract was concluded at the starting price of the auction and no funds were saved, which is a very bad outcome under the conditions of limited financing of this sector, pointed out the Head of the FAS Russia’s Department for Control over Industry and Defence Complex, Mr. Maxim Ovchinnikov.

Reference:

1. Along with the prohibitions established in Part 1 of this Article for competitive bidding, when the organizers or customers are federal executive bodies, executive bodies of the constituent territories of the Russian Federation, local self-government bodies, state extra-budgetary funds as well as when competitive bidding takes place for state and municipal procurement of goods, works, services, Part 2 Article 17 of the Federal Law “On Protection of Competition” prohibits restricting participation in competitive bidding, which is not provided for by the federal laws or other normative legal acts;

2. Along with the prohibitions established in Parts 1 and 2 of this Article for competitive bidding for state and municipal procurement of goods, works, services, Part 3 Article 17 of the Federal Law “On Protection of Competition” prohibits restricting competition between the bidders by including in the lots products (goods, works, services) that are not related technologically and functionally to the goods, works, services that are the subject of competitive bidding.