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Procurement activities

 Procurement activities of the Company are stipulated by the Regulations on Procurement Procedures, approved by the Board of Directors (BoDBoard of Directors protocol # 145 dd. 02.06.2014). Regulation of the procurement activities is based on a reasonable usage of special techniques enhancing the force of market laws in each procurement case. The process is regulated by applying obligatory procedures subject to observation by the personnel to each procurement case with a value exceeding certain amount. The procedures may also be applied to smaller procurement cases acknowledged expedient. These procedures suppose:

  1. Market analysis and planning of Company’s needs;
  2. Information transparency of a procurement, equality of rights, fair play, non-discrimination and unwarranted restrictions to competitiveness towards procurement participants;
  3. Honest and reasonable option of preferable proposals after overall analysis of benefits and costs (primarily, produce price and quality);
  4. Targeted and economically feasible spending of monetary resources to acquire goods, works or services (if needed, with due regard to life-cycle costs of acquired produce) and implementation of measures focused on the cost-cutting;
  5. Freedom of access to procurement by setting immeasurable requirements to a participant;

The procurement regulation is based on a fundamental approach that stipulates a regulatory environment, approved system for procurement management and control, well-trained personnel and balanced procurement infrastructure (informational support, means of e-commerce, certification, professional advisors) for the client. Besides, regulation stipulates the observation of corporate unity of procurement rules and control over authorities as well as responsibility of personnel engaged in procurement procedures.

During 2014 the Company had 4,008 procurements worth RURRussian ruble 11,997,414.154 thousThousand., excl. VAT, namely:

  • in terms of procurement types:

    Procurements in quantitative terms

    Procurements in value terms

  • in terms of operation types:

    Procurements in quantitative terms

    Procurements in value terms

Operation typesQuantityWinner price, RURRussian ruble thousThousand., excl. VAT
New construction and expansion of grid facilities (1) 1,921 5,189,550.92
Reconstruction and upgrade of grid facilities (2) 1,050 2,794,466.64
Repair and maintenance (3) 514 1,075,064.91
IT (4) 50 171,259.67
R&D (5) 1 2,944.61
Consulting services (6) 3 4,406.81
Appraisal services (7) 9 812.41
Other procurement (8) 460 2,758,908.18
Total: 4,008 11,997,414.15

The quantity of procurements arranged via e-commerce means totaled 3,801, in monetary terms the value totaled RURRussian ruble 11,341,161.227 thousThousand., excl. VAT (99.7% of overall quantity of procurements, 99.919% of overall procurement volume minus single-source procurements). A share of open procurement procedures (open tenders, price queries, competitive dialogues, closed price queries after open competitive dialogues) totaled 95.059% of overall procurements and 94.605% of overall procurement volume in terms of value. Conventional permanent procurements totaled 1,497 worth RURRussian ruble 344,438.878 thousThousand., excl. VAT. Simple or small-scale procurements totaled 2,094 worth RURRussian ruble 181,563.465 thousThousand, excl. VAT. Economic effect from procurement procedures during the reported period totaled RURRussian ruble 1,424,393.118 thousThousand., excl. VAT or 10.6% of planned announced value of competitive procurements.

To execute Government Act #867–r dd. 29.05.2013 on the approval of action plan (roadmap) “Expansion of access for small and medium businesses to procurements of infrastructure monopolies and state-owned companies” the Company adopted a partnership program between IDGCInterregional Distributive Grid Company of Urals and small and medium businesses. The program and joining procedure are posted on the official web-site of the Company. During 2014 5 small-business entities joined the partnership program. The Company also arranged a consultative body responsible for efficiency of procurements from small and medium businesses. Evgeny Artyukh, head of “Towards honest procurements” movement, has entered the membership of the body. A share of small- and medium-business winners in value terms totaled 41.2%.

Activities held by IDGCInterregional Distributive Grid Company of Urals to improve economic indicators and increase transparency of procurements are:

  • Arrangement of procurements via e-trading facilities ( и;
  • Change of technical specifications to procurement procedures in terms of elimination of excessive requirements towards participants of procedures;
  • Arrangement of negotiations with producers and their involvement into the submission of requests leaving intermediaries behind;
  • Arrangement of additional requests for required documents to participants of procurement procedures;
  • Arrangement of a consultative body responsible for efficiency of procurement procedures held by the Company among small and medium businesses;
  • Arrangement of seminars for potential contractors to explain requirements of tender documentation and request submission procedure;
  • Arrangement of pre-contract negotiations;
  • Arrangement of repeated rebiddings.