Procurement activities in FPC are governed by the corporate Regulation on Procurement of Goods, Work and Services. The document is based on the following laws and regulations of the Russian Federation:
Procurement contracts signed by the Company through order placement in accordance with Federal Law No.
Single source procurement (from a single supplier/contractor) accounted for 25% (RUB 4.2 billion) in 2015, significantly below the 54.6% for 2014.
The share of tender-based procurement is growing steadily. Over half of all procurement contracts were signed through a tender process (RUB 12.7 billion, or 75%, much more than a year before).
In 2015, the Company’s efforts to improve procurement focused on the development of an end-to-end procurement process covering all stages from need identification to delivery.
All competitive bidding procedures were organised using standard procurement forms in accordance with the rules established by RZD for its subsidiaries.
Pursuant to Resolution No. 1352 On Specifics of Participation of Small and Medium-Sized Enterprises in the Procurement of Goods, Work and Services by Certain Types of Legal Entities, FPC established a procurement process involving small and medium-sized enterprises (SMEs) and covering procurement planning, purchase and accounting stages, and approved a list of goods, work and services to be procured from SMEs.
These efforts enabled the Company to maintain the required share of procurement from SMEs in the period between 1 July and 31 December 2015. In particular, in the second half of 2015, contracts awarded to SMEs only totalled RUB 1.0 billion, or 16% of the total procurement.