On 1 September 2011, the Ministry of Economic Development of the Russian Federation published on its official website the Federal Draft Law "On the Federal Contract System" (the "Draft Law"). If adopted, the Draft Law will replace the current Federal Law "On State Purchase Contracts" (the "Law"). Specifically, the Draft Law envisages:

  • reorganising the state purchasing system as a federal contract system intended for the long-term planning of state and municipal requirements;
  • amending the rules for determining the starting price in a tender for a state contract and the rules for assessing state purchase tenders; and
  • outlining separately the principles of the federal contract system, which was not the case with the Law.

The federal contract system will be based on the principles of (i) transparency; (ii) competition; (iii) professionalism of the customer; (iii) uniformity and responsibility for fulfilling state and municipal requirements; and (iv) efficiency in spending budgetary funds.

The Draft Law also envisages implementing new procedures for entering into state purchase contracts: there will be (i) a limited number of tender participants; (ii) a two-stage tender; and (ii) a request for bids. At the same time, it is proposed to conduct tenders for state purchases via e-tender only.

The Draft Law is intended to resolve issues that have arisen when implementing the Law, such as (i) the "bureaucratization" of the entire system of placing orders; (ii) a customer's lack of accountability for the result; and (iii) dumping.

[Federal Draft Law "On the Federal Contract System" (please see the link to the Russian text: http://www.consultant.ru/law/hotdocs/14590.html)]