MIL OSI Translation. Region: Russian Federation –
Photo by M. Denisov. Mos.ru
Competition between participants in urban procurement continues to grow: today, on average, five participants apply for each lot.
Since 2010, Moscow has made more than a million purchases worth almost eight trillion rubles. Thanks to the increased transparency of procedures and competition in tenders, the city budget has saved more than one trillion rubles during this time.
“The total amount of savings achieved at public procurement auctions over the past 10 years has already exceeded the average size of Moscow’s annual budget for purchases for state needs,” said the Deputy Mayor of Moscow for Economic Policy and Property and Land Relations
According to the deputy mayor, such savings are possible thanks to the participation of many suppliers. “If until 2010 only legal entities and large companies participated in public procurement, today the procedure is open to everyone: up to 80 percent of suppliers are representatives of small and medium-sized businesses, individual entrepreneurs and self-employed citizens. More than 21 percent of contracts from the total volume of purchases over the past 10 years were concluded with representatives of small and medium-sized businesses, their amount amounted to 1.7 trillion rubles, ”added Vladimir Efimov.
Every year the city organizes about 100 thousand purchases worth about 800 billion rubles. At the same time, in recent years, the number of unique suppliers has increased many times: if in 2012 eight thousand companies participated in city purchases, now it is almost 200 thousand.
“This ensures not only the transparency of procurement, but also the growth of competition, which in 10 years has increased from three to five participants per lot, and the share of competitive procurement procedures with a single participant has decreased from 36 to 12 percent,” said the head
Moscow City Department for Competition Policy Ivan Shcherbakov…
Uniform standards for documents also make it possible to make the public procurement process more convenient and efficient. Thanks to the use of standard documentation, the time required for preparation of applications by participants is reduced and the risks of appealing the results of procedures are minimized.
Over five years, the number of purchases according to standard documentation increased 25 times… Today, they cover 67 percent of all types of competitive procedures that the city organizes. Most often, with the help of standard documentation, they buy medicines, food for educational institutions and dairy kitchens, organize construction work in parks, repair medical equipment and infrastructure facilities.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.