What are the public procurement and what corruption schemes are used in them

What are the public procurement and what corruption schemes are used in them

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

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

Most often used today:

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

What is a request for quotations?

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

What corruption schemes are in this type of procurement:

- the lured company will always have time to submit an application for the amount obviously lower than that of all other participants
- terms of performance of works - are exposed minimum, obviously not feasible for participants "from the street"
- the amount of work is exhibited very large, obviously not feasible for a specified amount. (Often in construction, website development - for example, a trailer to the development of a website molds the creation of video clips, marketing research)
- the huge terms of payment for the work performed are indicated, for example, “45 days after the signing of the acts of work performed, subject to the receipt of money from the Federal Budget”. Customers from the street, it often scares. The lured firms always know the real terms of the final payment.
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What is an open auction?

The state customer publishes on the federal or regional website the tender documentation which specifies the initial maximum contract price, deadlines for the performance of work and other conditions. Contractors send applications to the customer to participate in the auction, the commission of the state customer on a certain day considers the applications and issues a decision on admission or non-admission of contractors to the auction.
In contrast to the request for quotations, in open auctions there is almost always a requirement until the submission of tender documentation to pay for the bid security (most often 5% of the initial maximum contract price, the amount is returned after the auction). Also, there is often a requirement for ensuring the fulfillment of a government contract - the winning contractor must provide 30% of the state contract value, most often with an insurance contract for this amount or by transferring this amount to the customer’s account.
On the appointed day and time, the contractors come to the state customer and the auction for a lower price begins. The auction increment is usually 5%.

What corruption schemes are in this type of procurement:

All the same as in the request for quotations, except for the manipulation of bids with prices. A plus
- as much as possible do not allow contractors from the street to auction on the basis of legal and not legal requirements.
- Ensuring the execution of a government contract only in money, eliminates firms with a lack of funds.

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.
Requirements are exactly the same as in a public auction.

What corruption schemes are in this type of procurement:

Here, the contractor’s score according to non-transparent criteria is added to all the listed schemes.

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