What are public procurements and what corruption schemes are used in them?

What are public procurements and what corruption schemes are used in them?

Federal Law No. 94 establishes the following types of procurement:

• Closed auction
• Closed competition
• Request for quotes
• Notification of interest in the competition
• Open auction
• Open auction in electronic form
• Open competition
• Preliminary selection

Most commonly used today:

• request for quotes (if the amount of the state contract is up to 500t.r.)
• open tender or open auction (if the state contract is more than 500t.r.)

What is a quote request?

The state customer publishes on the federal or regional website the tender documentation which indicates the initial maximum price of the contract, terms of work and other conditions. Contractors send quotes to the customer indicating the price at which they undertake to perform this amount of work.

What corruption schemes are there in this type of procurement:

- a lured firm will always have time to submit an application for an amount known to be lower than that of all other participants
- the deadlines are set to be minimal, obviously not feasible for the participants "from the street"
- the volume of work - very large, obviously not feasible for the specified amount. ( often in construction, site development - for example, the creation of video clips, conducting marketing research
is molded by a trailer for website development) - huge payment deadlines for the work performed are indicated, for example, “45 days after writing acts of work performed, subject to the receipt of money from the Federal Budget. ” Customers from the street, this is often scary. Lured firms always know the actual deadlines for final payment.

What is an open auction?

The state customer publishes on the federal or regional website the tender documentation which indicates the initial maximum price of the contract, terms of work and other conditions. Contractors send applications for participation in the auction to the customer, the commission of the state customer reviews the applications on a certain day and issues a decision on the admission or not admission of the contractors to the auction.
In contrast to the request for quotations, in open auctions there is almost always a requirement to pay for the application security before submitting the tender documentation (most often 5% of the initial maximum price of the contract, the amount is returned after the auction). Also very often there is a requirement to ensure the execution of the state contract - the contractor who won the auction should provide 30% of the cost of the state contract most often with an insurance contract for this amount or by transferring this amount to the customer's account.
On the appointed day and hour, the contractors come to the state customer and the auction to lower prices begins. The auction pitch is usually 5%.

What corruption schemes are there in this type of procurement:

Everything is the same as in the request for quotes, with the exception of fraud applications with prices. Plus
- as much as possible do not allow contractors from the street to the auction on the basis of legal and non-legal requirements.
- ensuring the execution of the state contract only in cash, eliminates firms with a lack of cash.

What is an open competition?

Something between a request for quotations and an open auction, the difference is that the contractor is evaluated not only by price, but also by the quality of the services provided.
The requirements are exactly the same as in the open auction.

What corruption schemes are there in this type of procurement:

Here, to all of the above schemes, the contractor’s assessment by opaque criteria is added.

ps. I will say right away that I do not pretend to disclose absolutely all methods of cutting money from the state budget.
upd. Moved to Dura_lex - because I could not find a more suitable blog. Can make a blog about government procurement? I think the topic is interesting to many ...