Academic journal article Asian Social Science

Life Cycle Contracts in the Development of Procurement in the Russian Federation: World Experience

Academic journal article Asian Social Science

Life Cycle Contracts in the Development of Procurement in the Russian Federation: World Experience

Article excerpt

Abstract

The procurement activity in Russia is in a new phase of its development in connection with the entry into force of the 44-Fededal Law of 05.04.2013. "On the contract system in the procurement of goods, works and services for state and municipal needs". Sufficiently serious innovations are required the analysis of international and world experience of procurement and development of the scientific and methodological support of state procurement. One of the innovations is contracts lifecycle. The article reveals the author's approach to identify and justify the conditions of effective implementation of the life cycle contracts in the procurement of the Russian Federation.

Keywords: procurement, life cycle contracts, public-private partnerships, scientific and methodological support, professional training

1. Introduction

In Federal Law of the Russian Federation No44-FZ "On the contract system in the procurement of goods, works and services for state and municipal needs" from 05.04.2013, the contract life cycle is considered as a contract to purchase goods or work, follow-up maintenance, operation during the term of service, repair, recycling, and the goods supplied or created as a result of the object (Baronin, 2014; Yankov, 2013). Key words in this definition are life cycle.

2. Method

The definition of life cycle may vary in relation to different objects. Different products may also have different stages of the life cycle. Unlike stages of the life cycle of different objects can involve a variety of approaches to the conclusion LCC, their pricing and execution.

The process of calculation of life cycle cost is one of the most challenging tasks for the customers. In part 3 article 32 of the Federal Law on the contract system the criteria value of the product life cycle or created as a result of the object:

* expenses for the purchase of goods or performance of work,

* the costs of subsequent maintenance,

* operating costs during their lifetime,

* the cost of repairs,

* the costs of disposal of the goods delivered or created as a result of the object.

The order of the Ministry of Economic Development of Russia No 567 dated 02.10.2013 approved "Guidelines on the application of methods for determining the initial (maximum) contract price, concluded with a single supplier (contractor, executor)" examines the approaches to the definition of IMCP. Section VIII "Calculating the cost of the product life cycle, the object created in the result of the work" is a mere formality. Enough general information about what criteria the cost of the product life cycle or created as a result of the facility include the costs for the purchase of goods or performance, subsequent maintenance, operation during the term of their service, repair and disposal of the goods supplied or created as a result operation of the facility, which does not allow the customer to clearly understand the specific steps to substantiate the purchase of a contract lifecycle. At the same time, it is recommended to make the calculation of the cost of the product life cycle or created as a result of the object using the methods for the determination and justification of the initial maximum price contract. These methods include:

* Comparable uncontrolled price method, based on an analysis of information on market prices of identical goods, works and services, the planned procurement or, in their absence, similar goods, works and services;

* Normative method, based on the social requirements for procured goods, works and services, designed to provide the functions of public bodies, the management of state extra-budgetary funds, municipal authorities in accordance with Art. 19 of the 44-Federal Law;

* Tariff method used in the case in accordance with the legislation of the Russian Federation, the price of goods, works and services for state and municipal needs, subject to state regulation or established by municipal legislation;

* Design and estimate method used for the construction or renovation of capital construction on the basis of project documentation in accordance with the procedures and standards of construction and specialized construction activities, approved by the federal executive branch responsible for public policy and legal regulation in the sphere of construction; carrying out work on the conservation of cultural heritage (monuments of history and culture) of the Russian Federation;

* The cost method is used in case of inability to use other methods, or in addition to them; is to determine both the amount produced IMCP costs and normal for a particular scope of profit. …

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