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Social responsibility and corporate sustainability report 2015
RU

Procurement

When implementing the investment programme, as well as annual repair and target programmes, Federal Grid Company implements procurement activities aimed at purchasing the necessary equipment and services on the competitive market. The Company is interested in cooperation with manufacturers of highly efficient electrical equipment, building and engineering contractors that are able to ensure high quality of work and optimal lead time. G4-DMA

Procurement System

Federal Grid Company conducts its procurement activities in strict compliance with the Regulations on Procurements.

Procurement Methodological Framework

The following framework underpins the Company’s procurement activities:

  • legislation of the Russian Federation (Civil Code, Federal Law No 135-FZ, 223-FZ);
  • public procurement experience;
  • international best practices.

Procurement principles of Federal Grid Company

Openness

The rules that regulate the arrangement of procurement are publicly available at www.fsk-ees.ru. Information about violations of these rules may be sent to Federal Grid’s Central Tender Commission, which composition is also disclosed at the Company’s website. The annual procurement programme is announced at the Company’s website www.fsk-ees.ru and the website www.zakupki.gov.ru www.zakupki.gov.ru.

Competitevness

Procurement is regulated in such a way that priority is given to open tenders that provide the highest possible level of competition. Any limitation on competition must be fully justified and agreed to collectively. Standard requirements to contractors and to evaluation of bids are provided for by the Regulations and are publicly available.

Justification

The Rules require that every decision should be justified and documented in order to increase the efficiency of purchases and to prevent corruption. Any decision in the course of procurement should be made collectively. Tender award decision shall be made by the Tender Commission, and the following criteria are taken into account: commercial appeal (bid price, terms of payment); product quality, technical specifications, warranty liabilities; supplier credibility.

A revised version of the Regulations on Procurement was approved in 2015

To improve the Federal Grid’s procurement activities, on 12 September 2014 the Board of Directors approved a new version of the Regulations on Procurement. The document is available on the corporate website www.fsk-ees.ru and contains the following amendments:

  • cancellation of price threshold for the Regulations’ scope of application (a new version of the Regulations cover all purchases from RUB0);
  • exclusion of such procurement methods as «competitive negotiations» and «small purchase»;
  • exclusion of sections «Certification» and «Attestation»;
  • specification of definition «adjustment of bids/ proposals of participants»;
  • optimisation of the number of hard copy originals to be submitted by participants of electronic procurements.

Procurement policy and procedures enable to spend funds effectively and per their intended purpose, and to obtain economically justified expenditures through market prices for products, with optimal quality and purchase conditions.

As a result of procurement procedures in 2015, an economic benefit amounted

2.7*
RUB billion

* Determined as the difference between the ceiling and actual purchase price.

Procurement from Local Suppliers G4-EC9

As procurement procedures are organised in the regions where the Company branches are located, a great number of local suppliers and contractors are involved therein.

Up to 80% of local suppliers and contractors participate in procurement in each region. In order to perform highly specialised work, organisations may be involved that perform such work throughout the territory of the Russian Federation.

Volume of purchases in the regions in 2015

Openness

The rules that regulate the arrangement of procurement are publicly available at www.fsk-ees.ru. Information about violations of these rules may be sent to Federal Grid’s Central Tender Commission, which composition is also disclosed at the Company’s website. The annual procurement programme is announced at the Company’s website www.fsk-ees.ru and the website www.zakupki.gov.ru www.zakupki.gov.ru.

Competitevness

Procurement is regulated in such a way that priority is given to open tenders that provide the highest possible level of competition. Any limitation on competition must be fully justified and agreed to collectively. Standard requirements to contractors and to evaluation of bids are provided for by the Regulations and are publicly available.

Justification

The Rules require that every decision should be justified and documented in order to increase the efficiency of purchases and to prevent corruption. Any decision in the course of procurement should be made collectively. Tender award decision shall be made by the Tender Commission, and the following criteria are taken into account: commercial appeal (bid price, terms of payment); product quality, technical specifications, warranty liabilities; supplier credibility.

Regulated procurements in 2015 by type

Region Share in overall volume of purchases, % Procedures conducted in 2015, total
amount, RUB thousandNumber of procedures
Siberia 6.9 9.8 3,185
Centre 15.4 22.0 3,223
East 8.8 12.5 1,712
South 6.6 9.4 1,625
Volga 3.9 5.6 1,816
Ural 5.1 7.3 1,842
North-West 36.7 52.4 1,795
West Siberia 16.5 23.6 1,363
Total: 100.00 142.6 16,561

Main procurement areas in 2015

All types Open tender Open request for quote Open request for proposals Sole source Ordinary purchase
Value of purchases under procurement procedures, RUB billion 142.6 126.1 0.6 8.6 5.6 1.7
Number of procedures 16,561 511 535 2,101 563 12,851
Share in the total value of purchases % 100.0% 88.4% 0.4% 6.1% 4.0% 1.2%

SME Procurement

Subject to the Resolution of the Russian Government No. 867-r dated 29 May 2013 “On Approving an Action Plan (“Roadmap”) on Improving the Access of Small and Medium-Sized Enterprises to Procurements of Infrastructure Monopolies and State-Owned Companies”, in 2014 the Company approved a Partnership Programme between Federal Grid Company and small and medium-sized enterprises (SME) and maintains a register of SMEs who have joined the Programme. The Company website has a special section “Roadmap for MSE engagement” www.fsk-ees.ru/suppliers/dorozhnaya_karta_po_sotrudnichestvu_s_msp.

An Advisory Body has been established to consider issues of ensuring efficiency of Federal Grid’s procurement, which includes, among others, small and medium-sized business entities.

The 2016 Procurement Plan was agreed with the Federal Corporation for Development of Small and Medium-Sized Enterprises.

Number and value of contracts awarded upon SME procurement in 2015

Number of contracts Total value of contracts
SME procurements 6,302 RUB33 billion included VAT

For 2015, Federal Grid Company achieved target values for SME procurement share set by the Resolution of the RF Government No. 1352 dated 11 December 2014.

Plans for 2016 and Mid-Term Prospects

Further improvement of procurement activities in accordance with the Russian legislation (Civil, Federal Law “On Procurement of Goods, Works and Services by certain legal entities” No. 223-FZ dated 18 July 2011, etc).

Total number of legal actions for anticompetitive behavior of the Company G4-S07

In 2015, 20 complaints were filed by organisations to the RF Federal Antimonopoly Service in respect of their rights’ violation in the procurement procedures conducted by Federal Grid Company. Upon investigation, 4 complaints were found to be justified. Appropriate measures have been developed to avoid future violations of anti-monopoly legislation.

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