Ministry of Economic Development of Russian Federation Department for contract system development “Applying professional standards in the legislative framework of Russian Federation on contract system” A.A.Pleskov, Head, Division for developing a unified information system of the Department for contract system development, Ministry of Economic Development of Russian Federation
Contract system development outcomes in 2015 In 2015 more than 90% of the main elements of the contract system were developed: Setting norms, justification and planning of procurement; Information support for procurement; Competitive biddings; Public discussions of large procurement; Procurement control; Procurement monitoring; Procurement audit; Professional training in procurement area. 2
Procurement value Savings Quantitative share of notices in 2015 E-auction (56.6%) Single source procurement (26.6%) Price quotations (14.9%) Open tender (1.2%) Request for proposals (0.4 %) Limited participation tender (0.3%) Price quotations without a notice (0.017%) Closed auction (0.006%) Closed tender (0.003%) Two-stage tender (0.002%) Closed tender with limited participation (0.002%) Total value of e-auctions in 2014-2015, trln Rubles Savings growth, bln Rubles 3
Contract award Value and number of contracts concluded in 2014-2015 breakdown by months and on an accrual basis Value of contracts Number of contracts, thou concluded, bln Rubles Single source Number of single source contracts 2014 Competitive bidding 2014 Number of single source contracts 2015 Competitive bidding 2015 Value of contracts Number of contracts, thou concluded, bln Rubles Single source Number of single source contracts 2014 Competitive bidding 2014 Number of single source contracts 2015 4 Competitive bidding 2015
Reduced average contract price Aggregate value of prices under the signed Number of contracts concluded, thou contracts, bln Rubles contracts AVERAGE CONTRACT PRICE 2014 2015 1,98 mln Rubles 1,64 mln Rubles 5
Single source Contracts awarded in 2014-2015 by types of Single source procurement in 2015 by procurement types of justifications Decision of the President of Russian Federation (44%) Public utilities’ services (14%) Natural monopolies (9%) Power supply (8%) Works and services of state bodies and organizations (5 Goods, works and services of penal enforcement system Procurement for emergency needs (3%) Arms delivery (2%) Rent of non-residential space (2%) Procurement for employment of the convicted (1%) Procuring author’s editions (1%) Other justifications (7%) “Index of single bid” 6
SME AND SONCO (SOCIALLY ORIENTED NON-PROFIT ORGANIZATIONS) SUPPORT Number of contracts awarded to SME and Total value of contracts awarded to SME and SONCO, thou contracts SONCO, bln Rubles AVERAGE NUMBER OF BIDDERS FROM SME AND SONCO 2014 2015 2 bids 3,1 bids 7
Outcomes of contract system development in 2016 Time for considering a complaint by a controlling body in procurement area Chile Mexico Turkey Actual period of complaint’s consideration Italy USA Period of complaint’s consideration Russia established by the legislation Poland South Korea Austria Number of days Outcomes of the analysis of objective and subjective indicators used in evaluation of public procurement systems New Zeeland Great Britain South Korea Sweden Austria Turkey Mexico Ireland Poland Russia 8 Chile USA Italy
The principle of the client’s professionalism Article 9 of the Law # 44-F З Contract system in procurement area assumes the operation of : THE CLIENT SPECIALIZED ORGANIZATION OF A CONTROLLING BODY IN PROCUREMENT AREA On the professional basis with mobilization of qualified experts having theoretical knowledge and skills in procurement area. 9
Procurement management in contracting authorities Depends on cumulative annual value of procurement (Article 38 of the Law # 44-F З ) ≤ 100 mln Rubles ( ≈ 1,3 mln Euro) > 100 mln Rubles ( ≈ 1.3 mln Euro) Contract Service Contract Manager Operates according to the Regulation developed and approved based on the standard regulation An official responsible for Order of the Ministry of Economic Development implementing procurement or Of Russian Federation as of 29.10.2013 # 631 (Order amended as of 26.05.2014 # 294) several procurements including execution of each contract 10
Requirements to educational background of the staff of Contract Service and Contract Manager Part 6 Article 38 of the Law # 44-F З Staff of the Contract Service and Contract Manager shall have a degree or additional professional education in procurement area Part 23 Article 112 of the Law # 44-F З Prior to January 1, 2017 a staff of the Contract Service and Contract Manager could be a person with professional education or additional professional education in the area of placing orders for goods, works and services for public and municipal needs 11
Methodological recommendations Methodological recommendations for implementation of additional professional excellence programs in procurement area (letter of the Ministry of Economic Development #5594- ЕЕ/ D28i, Ministry of Education and Science of Russian Federation # АК -553/06 as of 12.03.2015) Recommended minimal program length -108 hours. For the training provided to the heads of contracting authorities (clients) – 40 h. General requirements Part 2 Article 76 of the Law on Education as of 29.12.2012 #273-F3 Advanced training From 16 hours (p.12 of the Order of the Ministry of Education and Science of Russian Federation as of 01.07.2013 #499) Professional retraining From 250 hours (p.12 of the Order of the Ministry of Education and Science of Russian Federation as of 12 01.07.2013 #499)
Definition in the legislation Occupational standard Staff qualification Level of knowledge, abilities, professional skills and experience of a staff Occupational standard Characteristic of qualification needed for a staff to perform certain type of professional activity including performing certain job function Article 195.1 of the Labor Code of Russian Federation (edited 122-F3) The order of development and approval of occupational standards as well as deciding upon identity of the titles of positions, occupations and specialties listed in the single job evaluation catalogue for workers, single competency catalogue of positions of the directors, experts and servants, titles of the positions, occupations and specialties listed in occupational standards shall be established by the Government of Russian Federation considering the opinion of Russian Tripartite Commission for regulating social and labor affairs. Article 195.2 of the Labor Code of Russian Federation (edited 122-F3) 13
Procurement specialist Occupational standards “Procurement specialist” 4 main functionalities were defined: 1. Ensuring procurement for public, municipal, corporate needs - Preliminary data gathering on the needs and prices for goods, works and services - Preparing procurement documentation; - Processing the result of procurement and contract award. 2. Implementing procurement for public, municipal, corporate needs : - Developing plans and justifications for procurement; - Implementing procurement procedures. 3. Review of the results of procurement, acceptance of the contract: - Checking compliance with the contract; - Checking the quality of the goods, works and services provided. 4. Control in procurement area: - Monitoring in procurement area; - Audit and control in the area of public procurement. 14
Procurement expert Occupational standard “Procurement expert” 3 main functionalities were defined : 1. Consultancy in procurement area: - Market monitoring of the items of procurement for public, municipal and corporate needs; - Providing consultations on procurement procedures 2. Expertise in procurement area: - Expertise (review) of a procurement procedure; - Expertise (review) of contract implementation and outcomes of contract implementation 3. Work activity management related to expertise (review) and consultations in procurement; - Conducting attestation (evaluation of professional qualification) and control over professional development of the staff in a structural subdivision or in an organization; - Research of theoretical and practical problems of procurement function. 15
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