ARBITRATION COURT SUPPORTED FAS DECISION AND ORDER ON AN AUCTION FOR REPLACING ELEVATORS IN PERM REGION FOR OVER 640 MILLION RUB

The auctions was performed with violations that prevented the auction organizer to get the best price offer

In September 2018, FAS considered the complaints of “Mosregionlift” and “Scherbinka Elevator Works” against actions of the Fund for Capital Repair of Common Facilities in Apartment Blocks in the Perm region, “Sberbank-AST” CJSC and the Regional Tariff Service (RTS) of the Perm region during an auction in August 2018 for evaluating the technical conditions of elevator shafts, drafting project documentation for replacing elevator equipment and carrying out elevator-replacement works in the region. The initial contract price was 644.2 million RUB.

It was established that “Mosregionlift” and “Scherbinka Elevator Works” were unreasonably excluded from the Register* of qualified contractors in the Perm region, which resulted in rejecting their auction bids.

The body responsible for keeping the Register was ordered to withdraw the protocol not allowing the companies to take part in the auction; and the auction organizer was ordered to abolish the auction so that in the future it can be organized with the maximum possible number of bidders and obtain the best price offer.

The “First Elevator Company” Ltd., that won the void auction, appealed FAS decision and order at Court. Moscow Arbitration Court, however, fully supported the position of the antimonopoly body.

“The order was fulfilled. Later, the Capital Repair Fund announced new auctions for elevator replacement”, said Deputy Head of FAS Rachik Petrosyan.

Reference:

*To take part in competitive bidding, a company must be included in the Register of qualified contractors.

** Regulations on engaging a specialized non-profit organizations involved in organizing capital construction of common facilities in apartment blocks, contractors for rendering service sand (or) carrying out works for capital repair of common facilities in apartment blocks, approved by No. 615 Decree of the Government of the Russian Federation.