FAS RECOGNIZED THAT HEATING NETWORK COMPANIES VIOLATED THE LAW “ON PROTECTION OF COMPETITION”

The companies put excessive procurement requirements for pipes, restricting competition in procurement

Drafting the Technical Specifications as part of procurement documentation for the tender for the right to conclude a contract to supply pipes, “Odintsovo Heating Network” JSC, “Schebekeno Heating Netwrok” Schebekeno Municipal Unitary Enterprise, “KOTELNIKI” Municipal Unitary Housing-and-Utility Company and “Smolenskregionteploenergo” Ltd. put a requirement for mandatory expert conclusion issued by an independent laboratory to confirm pipe testing in particular conditions.

Since the period for filing the bids was limited to 22 days, while the above pipe testing required 1 year 8 months in one case and 2 years 7 months in another case, the pipe manufacturers that did not possess an expert examination from an independent laboratory at the time of announcing the tender, could not take part in the tender.

The FAS Commission concluded that the companies had included excessive requirements in the procurement documentation, which could have prevented, restricted or eliminated competition in procurement. Thus, FAS found that “Odintsovo Heating Network” JSC, “Schebekeno Heating Netwrok” Schebekeno Municipal Unitary Enterprise, “KOTELNIKI” Municipal Unitary Housing-and-Utility Company and “Smolenskregionteploenergo” Ltd. violated the Federal Law “On Protection of Competition” (Part 1 Article 17).

The executives of the above organizations will be fined under Part 1 Article 14.9 of the Code of the Russian Federation on Administrative Violations.

Deputy Head of FAS Andrey Tsyganov commented: “Unfortunately, FAS and its regional Offices frequently observe that resources suppliers in the housing-and-utility sector attempt to restrict competition by artificially reducing the number of bidders, and in some cases – “tune” tenders to fit the known-in-advance winner. Timely exposure and elimination of such violations help save the budgetary funds and personal assets of the population of the Russian Federation”.