Russian government allows state companies to buy their own funded technology without tenders
In short
The Russian government has issued directives letting state companies move competitive purchases of technology, including from small technology companies, to single-supplier deals under 223-FZ. The technology must have been created or refined with federal budget support for the buyer's own benefit or at its initiative, and must be listed in the “Витрина стартапов” subsystem of GIS “Экономика”. The Economy Ministry says the mechanism applies first of all to equipment, technologies and components in oil and gas, transport and special machine building, chemicals, energy and IT.
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The Russian government has issued directives that let state companies replace competitive procurement from technology companies with purchases from a single supplier, the Economy Ministry said, according to Interfax and Kommersant. The directives allow state companies whose purchases fall under the 223-FZ law on procurement by certain types of legal entities to amend their own procurement regulations accordingly. CNews reported the change as covering purchases of software and equipment made under technologies developed at the buyer’s own initiative. [ 1 , 2 , 3 ]
Under 223-FZ, Kommersant and CNews noted, a contractor is normally selected through competitive tenders, with the winner offering the most favourable terms among those meeting the criteria. The new directives allow technology companies to act as a sole supplier, so contracts can be concluded directly without a tender procedure. [ 2 , 3 ]
The mechanism has conditions. The technology used to make the purchased goods, works or services must have been created or refined with financial support from the federal budget in the interests of, or at the initiative of, the joint-stock company itself, its subsidiaries or dependent companies, state corporations or their subsidiaries. Information about that technology must be held in the “Витрина стартапов” subsystem of the state information system “Экономика”. [ 1 , 2 , 3 ]
First deputy economy minister Maxim Kolesnikov said the government’s decision “simplifies the process of purchasing technology products refined to meet the requirements of customer corporations and will contribute to the further formation of domestic technology chains.” Alexander Isayev, general director of the Federal Corporation for the Development of Small and Medium Enterprises, which monitors state-company purchases from small and medium businesses, said the possibility of creating products for large corporations gives small technology companies new sales markets and offers corporations a way to adopt innovative solutions, Interfax reported. [ 1 , 2 , 3 ]
The Economy Ministry told Kommersant the mechanism may in the first place be applied to purchases of equipment, technologies and components in oil and gas, transport and special machine building, chemicals, energy and information technology. Denis Frantsuzov, vice-president of the Russian Chamber of Commerce and Industry, said the simplified scheme would be in demand for software, computer equipment, automation tools and information security, according to Kommersant and CNews. [ 2 , 3 ]
CNews added that some state customers may choose not to use the right, so as not to attract the attention of supervisory authorities. Interfax cited analytical data saying about half of the companies in the register of small technology companies are developing along the lines of substituting foreign solutions, though its text is cut off before further registry details. [ 1 , 3 ]
Why it matters
The directives change how state-owned buyers select suppliers for technology that was developed with budget money on their own initiative, cutting out tender procedures. Officials say this should shorten procurement of technology tailored to corporate customers and build domestic technology chains, while the business daily notes a key condition is that the technology be financed with federal budget support. CNews reports that some state customers may choose not to use the right in order to avoid the attention of regulators, an indication the practical effect may vary by company.
Key facts
- The government issued directives permitting state companies to replace competitive procurement from technology companies, including small technology companies, with purchases from a single supplier. [ 1 , 2 , 3 ]
- The directives allow state companies whose purchases are regulated by 223-FZ to amend their own procurement rules accordingly. [ 1 , 2 , 3 ]
- The technology must have been created or refined with federal budget support in the interests of, or at the initiative of, the joint-stock company, its subsidiaries or dependent companies, state corporations or their subsidiaries. [ 1 , 2 ]
- Information about the technology must be held in the “Витрина стартапов” subsystem of the state information system “Экономика”. [ 1 , 2 , 3 ]
- The Economy Ministry said the mechanism may apply first of all to purchases of equipment, technologies and components in oil and gas, transport and special machine building, chemicals, energy and information technology. [ 2 , 3 ]
- First deputy economy minister Maxim Kolesnikov said the decision simplifies purchases of technology products refined to meet the requirements of customer corporations and supports domestic technology chains. [ 1 , 2 , 3 ]
- Russian Chamber of Commerce and Industry vice-president Denis Frantsuzov said the simplified scheme will be in demand for software, computer equipment, automation and information security tools. [ 2 , 3 ]
Confirmed by several sources
- The government issued directives allowing state companies to purchase technology from a single supplier without competitive tenders. [ 1 , 2 , 3 ]
- State companies covered by 223-FZ may change their procurement rules to use the mechanism. [ 1 , 2 , 3 ]
- A condition is that the technology be created or refined with federal budget support for the buyer or at its initiative and listed in the “Витрина стартапов” subsystem of GIS “Экономика”. [ 1 , 2 , 3 ]
Still unclear
- Whether all state customers will actually use the right to buy without tenders. CNews reports some state customers may refrain from using it to avoid attracting the attention of regulators; no figures on take-up are given.
- The size and composition of the register of small technology companies. Interfax’s article cites the register and a figure of about half its companies working on import substitution, but the text is cut off before the registry details are given.
What local media are saying
Timeline, local time
- Interfax reports, citing the Economy Ministry, that the government issued directives allowing state companies to move competitive technology purchases to a single supplier. [ 1 ]
- Kommersant reports the directives and their conditions, including the federal budget support requirement and the “Витрина стартапов” listing. [ 2 ]
- CNews reports the change for software and equipment purchases and notes some state customers may not use it. [ 3 ]