Home  Journals  National Interests: Priorities and Security  28(313) - 2015 July

Issues of setting up and operating the procurement system in Russia

Vol. 11, Iss. 28, JULY 2015

Article PDF Version

Received: 9 April 2015

Accepted: 26 April 2015

Available online: 25 August 2015

Subject Heading: Priorities of Russia

JEL Classification: 

Pages: 10-21

Importance The effective use of budgetary funds is one of the national security priorities. Considering global sanctions, the Russian budget needs public and municipal procurement to be clearly arranged, and procurement specialists to act in a well-organized manner.
     Objectives The research pursues a practical improvement of public and municipal procurement in Russia by eliminating contradictions and legislative gaps concerning procurement.
     Methods The research relies upon the theory of organization and legislative regulations, instructions and methodological guidelines of public authorities that govern the procurement process under Federal Law №44-FZ.
     Results Based on the analysis of public and municipal customers, we formulate practical recommendations to improve the federal laws on the contractual system, thus increasing the quality of procurement procedures, preparation and performance of contracts, and decreasing the general level of breaches in procurement.
     Conclusions and Relevance The laws on the contractual system need to be significantly improved in accordance with practical experience in this area. The outcome of the research may be used by public authorities governing the procurement process so to eliminate contradictions in the federal legislation. The material presents the results of analyzing customers' practical experience in major sectors of the Russian economy. This material can prove helpful in taking competent and informed decisions in situations that are not covered by the existing laws. Furthermore, the article will be relevant to suppliers, helping them understand strict requirements of customers to procurement organization, and find common decisions. The research is of practical significance for studying mechanisms of interacting the State and business.

Keywords: contractual system, public customer, municipal customer, suppliers, procurement, public contract, municipal contract

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