The government and State Duma decided to make changes in the defense procurement procedure, Izvestiya reports.
At present tenders and auctions are taking place during procurement in the network of State Defense Order. Deputies and representatives of military-industrial commission offer three other variants of tendering instead.
The first one: if the supplier is a monopolist, like Gazprom, then the bidding would be cancelled. The government defines the price of production and quota of obligatory delivery.
The second one: in the network of procurement of military and special equipment, special munitions (like armor vests and helmets) a system of competitive negotiations will be implemented. In the network of these negotiations the enterprises’ manufacturing capabilities will be competing instead of products.
The third one: in the network of procurement of household goods like fuel, building materials, furniture, etc. the deputies suggested using the existing system assuming tenders and auctions.
The changes suggested by the governmental commission and Duma’s Committee have been finalized in the form of amendments to the bill “About State Defense Order”. The document elaborated by the government and passed in the first reading in May 2012 is being prepared for the second reading.
The current law “About State Defense Order” passed in 1995 is not working well. This is proved by wrecking of procurement over the last two years, Izvestiya reports. The main cause of this situation is inability of the armed forces and defense industry to make agreement upon the cost of products along with attempt of using market mechanisms under non-market conditions, when some products are manufactured by the only enterprise.
The new system should improve the situation, the deputies assured.