Ph.D. in Technical Sciences, associate professor in
Department of Commerce, Samokrutova O.G.
Amur State University (Birobidzhan Branch), Russia
Use of a mixed model of procurement
management for public requirements
The process of formation, placement and execution of
government orders is of significant importance in the economy of the Russian
Federation and its regions. Procurement Institute for public requirements is
one of the directions of State participation in economic turnover. The
significant importance of public procurement is due to, above all, their
specific focus on satisfaction of public requirements and guarantee of its
functioning.
It should be noted that each year the volumes of
procurement by public orders are increasing and significant amounts of
procurement carry out the task of effective placement of public orders as a
priority. That’s why improvement of the Public Procurement Institute is,
undoubtedly, one of the priorities of the State.
In this regard, the issues of effective planning,
formation and implementation of public procurement take one of the most
important places in public administration at both federal and regional levels.
In the Amur region the system
of placing public orders began to form in 2002. At that time, at the federal
level the process of public procurement was regulated by the Federal Law No
97-FZ, which did not affect the activities of the constituent entities of the
Russian Federation, and especially did not mention about municipal procurement,
that put local government authorities in an awkward position. In order to fill
existing gaps in the Federal legislation, local authorities had to legally
regulate the organization of the public procurement system in the field. As a
result, the absence of strict legal centralization gave local authorities not
only, the right of legislative initiative, but the right of independent legal
regulation of regional procurement.
The fundamental normative legal act of the Amur Region
in the sphere of regional public procurement in the period of zeroes became the
law of the Amur Region dated December 16, 2002 No 164-RL “On purchases and
deliveries of production for regional public requirements”. The law regulated
organizational legal relationships arising between purchasing and delivering of
production, works and services for regional public requirements and defined
basic rights and obligations arising between a regional public customer and a
supplier in the procurement process. The purpose of the law was to ensure
maximum economy and efficiency of public procurement, to expand and encourage
participation of local producers in procurement, to develop fair trading, to
achieve maximum transparency in the use of budgetary funds, and improve
organizational structures of the public procurement management.
In order to control and regulate procurement
processes, there was a necessity to establish an authorized body. According to
the Decree of the Governor of the Amur Region dated October 3, 2003, No. 652-d
“On approval of the Provision on Management of Prices and Government Purchasing
of the Amur Region Administration” the Provision of Public Orders Government
was approved. In accordance with the adopted Provision and Law No 164-RL, the
Government was an authorized body of the Administration of Cross-sectoral
Coordination in the sphere of purchasing of products for regional requirements
and carried out the functions of formation of public orders, elaboration of
documentation for trade procedures, organization of orders placing processes.
Thus, the Government was a centralized authority which
regulated and supervised the whole process of purchasing from the formation of
a regional order and to drawing up a report on procurement.
The transitional moment in the
public procurement system has been the entry into legal force of the Federal
Law No. 94-FL «On placing of orders for supplies of goods, the performance of
work and the rendering of services for state and municipal requirements”. This
Law has introduced a unified system of public procurement throughout the
Russian Federation. For the Amur Region, this transition was accomplished with
minimal changes, as the Law No 164-RL formed an identical government
procurement management system. The Public Orders Government of the Amur Region
centrally carries out monitoring and procurement planning, forms the
competitive (auction) commissions, determines their content, carries out
examination of a primary (maximum) contracts price, affirms competition
(auction) documentation, conducts trade procedures: an open competition and a
public tender in electronic form , posts on a website the information of
tendering, monitors regional customers. At the same time, certain functions for
placing public orders are assigned to customers as budget holders, they
determine a subject and conditions of purchase, form a technical task, file an
application for placing an order and conduct simple procedures as a request for
price quotations, purchase from a single provider. This can be seen as a part
of decentralization.
Thus, at present the structure
of executive bodies and local governments for regulating and organizing the
process of public procurement includes, alternating, forms of centralized and
decentralized control (a mixed model). The management model is dominated by
centralized purchasing, the percentage of which is increasing annually. In
2011, this figure was 86.2% of the total number of orders. Both centralized and
decentralized purchases go through the following stages the planning;
placement, execution, and monitoring of public contracts at the authorized body
(the Public Orders Government of the Amur Region).
This model of management has allowed not only to
organize procedural stages with the least number of mistakes, but to ensure
that the planning process, despite the fact that in the Federal Law No 94-FL
procurement planning process is not reflected. While planning all customers
present a procurement plan to the authorized body for the next financial year
(until 20 September), then specify a means of procurement and determine a
maximum order value. It allows the supplier to plan their participation, and
the customer to avoid problems with the use of budgetary fund.
In the Amur Region, the system of effective placement
of orders is being formed through an optimum correlation of the price and the
quality of purchased production.
At
present, response execution for interaction functions to control the
correctness of formation of prices of goods, works and services are assigned on
the Department of Prices Evaluation of Public Orders Management of the Amur
Region. Prices Evaluation is conducted only in regard of products purchased by
the results of trades undertaken by the Government as an authorized body for
placement of orders. The percentage of centralized tenders in the total volume
of purchased products remains stable at a high level and, as a consequence, a
volume of purchases increases annually and an initial contract price is being
monitored. In 2011, this figure amounted to 80.5% (86.2% in 2010, 279.2% in
2009).
During 2011 the Government handled 5037 applications
of customers that are 2.2 times higher than in 2010 (2307 applications).
Reducing the percentage of applications where according to the results of
examination prices are put down from 54.2% to 40% in
2010, suggests the possibility of improvement of the quality of preparation of
customers in price grounding.
Initial prices of contracts in 2011 were reduced by
the Government to 250.8 million rubles, in 2010 to 76.3 million rubles, in 2009
to 70.5 million rubles.
Thus, through tendering budget surplus is achieved not
only by procedures results but also at the preparation stage of placing orders.
Thus, the mixed model of procurement management for
public requirements in the constituent entity of the Russian Federation leads
to increasing professionalism, transparency of procurement procedures and
improvement of efficiency of budgetary funds application, but the
centralization of procurement procedures from planning to monitoring government
contracts can now be made through authorized bodies
Literature:
1.
Samokrutova
O. G. Systems of public procurement management in the Amur Region. // In the
world of scientific discovery – 2011. – No 10.1(22). - P.422-434.