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Economic Analysis: Theory and Practice
 

On procedure for justifying the initial (maximum) contract price in an inflationary economy

Vol. 15, Iss. 1, JANUARY 2016

PDF  Article PDF Version

Received: 4 December 2015

Accepted: 16 December 2015

Available online: 24 January 2016

Subject Heading: ECONOMIC ADVANCEMENT

JEL Classification: Н57

Pages: 4-14

Kostyukova E.I. Stavropol State Agrarian University, Stavropol, Russian Federation
elena-kostyukova@yandex.ru

Bobryshev A.N. Stavropol State Agrarian University, Stavropol, Russian Federation
bobrishevaleksey@yandex.ru

Subject The problem of justifying the initial (maximum) contract price is one of the most pressing in the entire system of public procurement planning. Both the overstatement and understatement of the value has a negative impact on the efficiency of budget spending.
Objectives The study aims to reveal current problems and deficiencies of the existing methodology for justifying the initial (maximum) contract price, and to identify areas of its further improvement.
Methods. The study employs the systems approach, methods of analysis and synthesis, induction and deduction, techniques of logical, semantic, retrospective and comparative analysis.
Results We assessed procurement efficiency in 2014 based on the reduction in the initial (maximum) contract price criterion, identified weaknesses and bottlenecks in the application of guidelines for the use of methods to determine the initial (maximum) contract price and the price of contract entered into with a sole supplier (contractor). The article describes the procedure for calculating the initial (maximum) contract price using deflator indices and consumer price indices to level the inflation factor.
Conclusions The existing methodological approaches to determining the initial (maximum) contract price and the price of contract with a sole supplier (contractor) require further perfection, particularly with regard to justifying the performance of procurement activities, and adjusting the initial (maximum) contract price due to the effects of inflation.

Keywords: procurement, State needs, contract price, initial (maximum) price

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