OMSK OFAS EXPOSED A PROCUREMENT CARTEL FOR ROAD REPAIR

The actions of the cartel excluded bond fide auction bidders from competition and made one of the cartel members the winner

Omsk OFAS found that “Alliance”, “Transstroi” and “Stroitorg” had violated Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition” by concluding an anticompetitive agreement for procurement of repair works at 9.7 million RUB initial (maximum) value.

The antimonopoly case was opened upon the materials of the Main Contractual System Department of the Omsk region.

The companies’ actions at bid filing were aimed to ensure that one of the cartel members would win.

In particular, throughout the auction “Alliance” Ltd., “Transstroi” Ltd. and “Stroitorg” Ltd. filed reducing bids (starting from 5% to 61%), thus, excluding bona fide bidders from competition.

Then the bids of “Alliance” and “Stroitorg” were rejected by the Auction Commission because they failed to meet the requirements specified in the procurement documentation, and “Transstroi” Ltd. was recognized the auction winner.

In the course of the investigation, the companies admitted concluding the anticompetitive agreement.

Head of FAS Anti-Cartel Department Andrey Tenishev emphasized: “Improving motor roads is one of the National projects for the near future, highlighted by the President of the Russian Federation in the “May” orders.The budgetary funds of all levels, allocated for road repair and construction must be spent efficiently. FAS continues its efforts to expose cartels. The National project can be achieved only as a result of competition – both on price and quality”.