FAS RUSSIA SUPPORTS UNIFICATION OF BIDDING PROCEDURES

Introduction of a unified procedure for conducting auctions will increase their effectiveness

Gennady Magazinov, Deputy Head of the FAS Russia, discussed this within the framework of the 5th International Scientific and Practical Conference organized by the FAS Russia and the journal “Competition Law”.

At the moment, the rules for conducting industry auctions regulate more than 50 legal acts – Land, Water, Forestry, Urban Planning Codes, as well as a number of federal laws. The variety of auctions and procedures complicates the bidding process, leads to a low level of competition at auctions and a shortage of funds in budgets of all levels. In addition, most legal acts do not provide for bidding in electronic form.

In order to optimize bidding procedures and eliminate differences in approaches to regulating this area, the FAS Russia proposes to introduce a unified procedure for bidding and participating in them in a single digital environment.

“Our proposed concept of the unification of industry trades includes two stages. The first is the introduction of system-forming norms on uniform rules of bidding in the Law on Protection of Competition. The second is the establishment by an act of the Government of the Russian Federation of the bidding procedure itself. The industry specifics of certain types of bidding - such as the subject of bidding, the initial price, the procedure for forming lots will continue to be regulated by the industry legislation,”  Gennady Magazinov explained.

The draft law developed by the FAS Russia proposes to supplement the Law on Protection of Competition with an article fixing a number of provisions of the procedure for organizing and conducting industry auctions. It includes the principles of organizing and conducting auctions, conducting auctions in electronic form on sites operating within the framework of the legislation on the contract system, establishing a ten-day moratorium on concluding a contract based on the results of auctions and using the portal for bidding www.torgi.gov.ru.

It is proposed to establish the bidding procedure directly by an act of the Government of the Russian Federation. Among other things, it will contain requirements for a notice of bidding, an application for participation and a list of necessary documents, the deadline and procedure for submitting applications, as well as the procedure for admission and refusal of admission to bidding.

At the moment, the draft law is being considered by the Analytical Center under the Government of the Russian Federation. It is planned that it will come into force in 2023.