How is the public procurement process going? Only the latest version of Federal Law No. 44 "On Public Procurement" will provide an answer to this question. Everything about this bill will be described below.
Scope of Federal Law
What relationship does the bill represent? The first article secures the provision of municipal and state needs for a variety of but legitimate purposes. This may include the purchase of goods, improving the quality of services, ensuring efficiency in a particular area, etc.
The entire existing public procurement system represents the following main areas of application:
- procurement planning;
- identification of suppliers, conclusion of civil contracts with them;
- control over the execution of contracts;
- continuous monitoring and audit in the field of procurement;
- control over compliance with certain laws, norms, rules, policies, etc.
At the same time, Federal Law No. 44 "On Public Procurement" regulates the impossibility of the following relations:
- cooperation with foreign commercial enterprises;
- procurement of goods for persons subject to state protection;
- purchase of precious metals or stones;
- procurement through some intermediaries.
Basic principles
The Law on Public Procurement (No. 44 FZ) establishes the basic principles in accordance with which all necessary work must be carried out. What exactly is worth highlighting here?
- The principles of the contract system. This is a competent conclusion of contracts, in accordance with all the rules and regulations.
- The principles of transparency and openness of the entire public procurement system.
- The principle of competition. Thanks to this principle, public procurement will be carried out much faster and more efficiently. Moreover, the authorities themselves must constantly support and ensure healthy competition.
- The principle of professionalism and competence of customers in the person of the state.
- The principle that strengthens the continuous stimulation of innovation and innovation.
- The principle of ensuring the unity of the entire contract system.
- The principle of responsibility for procurement results.
Thus, the first chapter of the bill under consideration quite clearly regulates all the basic principles and conditions for the implementation of state and municipal procurements.
Goals of public procurement
Federal Law No. 44 on public procurement, namely, article 13 enshrines the three main goals of carrying out its work by the customer in the person of the state. What exactly can be highlighted here? In accordance with the draft law under consideration, the purchase of certain goods by state or municipal authorities is carried out:
- to implement certain measures and achieve the goals prescribed in the programs of the state (municipal district);
- for fulfillment by the state of its international obligations, implementation of international programs;
- to fulfill government tasks and responsibilities.
Thus, the goals are presented in the bill in a very generalized and concise, but at the same time quite clear and precise.
Procurement planning
The Law on public procurement (No. 44 FZ), namely its second chapter, introduces the concept of so-called procurement planning. What it is? Article 16 speaks of the formation, approval and implementation of two critical elements: time schedules and procurement plans. It is these two elements that make up the procurement planning system. Schedules are developed for each order individually, but procurement plans must comply with certain norms and rules.
So, it is worth highlighting the following points:
- the need for an identification code;
- the purpose of the procurement must be clearly established;
- the purpose of the procurement must not be contrary to law;
- the name of the object must be indicated;
- The financial volume of the purchase should be calculated;
- terms of registration and receipt of goods should be clearly established;
- it is necessary to correctly substantiate the purpose of a particular public procurement.
Thus, the planning system established by the Federal Law No. 44 "On Public Procurement" is clearly structured and justified.
How are government purchases made?
Above, a procurement plan by the Russian state was outlined. Now it’s worthwhile to talk about how the power structures need to act in accordance with the presented plan.
At the very beginning, you need to find a supplier. There are a number of conditions and requirements that should apply to suppliers. So, after making a purchase, the seller should not reduce supplies, stop them, or otherwise interfere with the quality receipt of goods. It is also worth noting that the supplier must have a clean and spotless reputation. It, among other things, should significantly stand out among its competitors.
A contract must be concluded with the supplier that complies with all necessary norms and rules. The contract must be confirmed by the bank. It should be noted the active participation of various expert organizations in the implementation of public procurement. Enterprises of this kind will help to correctly place, change or cancel an order, create certain guarantees, arrange documentation, etc.
Audit and monitoring
Federal Law No. 44 "On Public Procurement" (the latest edition), namely, its fourth chapter, introduces two important concepts: monitoring and audit of procurements. What is monitoring? This is an observation system that is carried out on an ongoing basis through the collection, systematization or evaluation of certain information (in this case, information about suppliers and procurements).
What should monitoring be done for? This is what the law prescribes:
- assessment of the validity of procurement;
- evaluation of the cost of procurement;
- checking purchases for compliance with laws and regulations and many other functions.
And what about the audit (holding hearings)? The law speaks of the need for its implementation by the Accounts Chamber of the Russian Federation, as well as some other counting bodies and entities. The authorities should give a clear and reasonable assessment of the design and results of purchases.
Exercise control
A detailed description of the control procedures is provided by the fifth chapter of the Federal Law No. 44 "On public procurement" (2015). First, we are talking about the main bodies involved in control. Here you can distinguish the federal executive authority authorized to control procurement or cash services of the budget system of the Russian Federation, as well as various bodies of internal municipal or federal financial control.
Control should be carried out in relation to direct customers or contract services. It is also worth highlighting the main areas that must be controlled using the above organs. These include:
- information on the amount of finance;
- schedules, information on purchased products;
- Supplier Protocols
- registry of contracts and some other areas.
The Federal Law (No. 44 FZ) "On Public Procurement", therefore, establishes a very high-quality and extensive control system.
Appeal against purchases
Any participant in the procurement, both the supplier and the customer, can file a complaint with the court. Such measures are only taken if someone’s legitimate interests or rights were violated during the delivery of goods. At the same time, two procurement participants can file a complaint at once, without interfering with each other.
There are some complaint rules that should be highlighted in more detail. So, filing an application with the court can be carried out no later than ten days after placing an order in a single information register. The complaint must be filed with the relevant courts in writing or electronically. The application itself must be executed in accordance with all rules and regulations.
The Regulation "On Public Procurement" (under No. 44 of the Federal Law) governs that the procurement review body should consider the complaint. He is given exactly five days for this. The decision taken by the authority may be appealed in court.
Government procurement
Federal Law No. 44 “On Public Procurement” (“Guarantor”, Chapter 11, Article 111) regulates the procurement process by decision of the Russian government. What should be noted here?
The supreme executive authority is able to determine the features of a product before direct purchase. As in other cases, it is necessary to determine the supplier, consider additional terms of the contract, identify the technological and economic features of the product.
The government is the body that procures a particular product most often. What exactly does the executive branch purchase? This may include products for a wide variety of spheres of life: cultural, environmental, educational, medical, etc. Any budget institution should be provided with all necessary funds at the expense of the state.
Defense Procurement
Reviews on the Federal Law No. 44 "On public procurement" are very positive. Any political scientist or other specialist will note the quality structure, many additional legal elements and a detailed system for writing articles. Thus, article 109 of the draft law in detail regulates the specifics of concluding public procurements to ensure the country's security and defense.
The entire procurement system here is almost no different from others. The supplier is also determined, a contract is concluded with him. In case of breach of contract, the government begins to search for another supplier. However, it is worth noting that in the field of defense everything is somewhat more complicated. So, the competition for the search for suppliers is more difficult here. Each supplier must have a special license and certificate. The price is determined by the customer, in accordance with the initial and maximum settings during the competition.