Back to publication

Governmental customers may have a sole supplier

Customers of goods and services for governmental needs, who place orders in amount of less than 1 million rubles a year, will be able to designate a sole supplier. The amendment is contained in the draft law to the Federal law on contract system which was delivered to the State Duma for reading. 

Such modification of the law on federal procurement system will optimize the procurement process for a few number of institutions in both central and remote regions of Russia, notes a lawyer Kirill Dozmarov. “Those institutions would not have to waste their time and funds to organize tendering procedures since, besides occurrence of unnecessary expenses on organizing tenders and auctions, hosting such events often result to filing petitions with the antimonopoly agency due to intentional or unintentional violation of the law on contract system by the customer on the course of tendering procedure.”, - he says. According to the expert, such petitions lead to the frustration of procurement plans, extra expenditures in respect of supervision by the antimonopoly agency, and to a new tender frequently. The procurement with a sole supplier offsets the aforementioned potential risks, summarizes Dozmarov.