Public procurement (44-FZ / 223-FZ)
Public procurement is a system of purchasing goods, works and services for state and municipal needs, regulated by laws 44-FZ and 223-FZ.
Contents
What is public procurement in simple words
Public procurement is when the state or budget institutions buy goods, works or services from private companies. The entire process is strictly regulated by laws to ensure transparency, competitiveness and efficient spending of budget funds.
Imagine that you want to buy new furniture for the office. You can just go to a store and buy what you like. But if you are a government institution and buy furniture with budget money, you cannot simply buy whatever you want. You must announce a tender, describe exactly what you need, collect proposals from different suppliers, choose the best one and only then conclude a contract. This is exactly how public procurement works.
The public procurement system in Russia is regulated by two main laws: 44-FZ "On the contract system" (for state and municipal needs) and 223-FZ "On procurement by certain types of legal entities" (for state corporations and companies with state participation). Both laws are aimed at ensuring transparency and efficiency of the procurement process.
Public procurement is closely related to RegTech and the "Electronic Budget", ensuring transparency of budget spending. All procurement is published in the Unified Information System (UIS), and anyone can see who buys what and for how much.
Automation of public procurement
Public procurement management is a complex process that includes many stages:
- Planning: Formation of annual procurement schedules.
- Justification of the initial maximum contract price (IMCP): Calculation of a reasonable price to avoid overpaying.
- Conducting procurement procedures: Announcing tenders, auctions, requests for quotations.
- Contract conclusion: Execution of contracts with selected suppliers.
- Contract execution: Control over the supply of goods and performance of works.
- Reporting: Preparation of contract execution reports.
The SKIF-BP system includes modules for automating the customer's budget process: formation of procurement schedules, justification of the IMCP, accounting of contract execution and preparation of reporting. This significantly reduces document preparation time and reduces the risk of errors.
The SINTEZ-M platform allows creating applications for managing procurement activities in low-code format with process models in BPMN notation. This makes it possible to quickly adapt the system to changing legislative requirements.
Control and import substitution
The public procurement system is under multi-level control:
- FAS Russia: Controls compliance with antimonopoly legislation.
- Federal Treasury: Controls financial flows.
- Accounts Chamber: Conducts audits of the efficiency of budget funds use.
Since 2022, customers are required to use domestic software included in the Russian Software Registry. This requirement applies to all procurement for state and municipal needs, as well as to procurement by state companies.
The Fintech company's solutions — SKIF-BP and SintezM — are registered in the registry and can be used by customers without restrictions. This allows organizations to comply with import substitution requirements and use modern domestic solutions for procurement management.
The training service prepares contract service specialists to work with the system. The design service helps configure procurement automation processes taking into account the specifics of the organization. Read more in the technologies section.
Frequently asked questions
What is public procurement in simple words?
Public procurement is when the state or budget institutions buy goods, works or services from private companies. The entire process is strictly regulated by laws 44-FZ and 223-FZ to ensure transparency and competitiveness. The SKIF-BP system is used to automate procurement activities. The training service will help specialists master working with procurement procedures.
How to start working in public procurement?
To start working in public procurement, you need to register a status (individual entrepreneur, LLC or self-employed), obtain a qualified electronic signature, open a special bank account for trading, register on the Gosuslugi portal and in the Unified Information System (UIS). After that, you can find tenders and submit applications. The SKIF-BP system is used to automate participation. The training service will help master the processes.
Who can participate in public procurement?
Legal entities, individual entrepreneurs, as well as individuals and self-employed citizens can participate in public procurement. Organizations in the process of liquidation or bankruptcy, companies with tax debts and offshore companies cannot participate. The SKIF-BP system is used to automate participation in procurement. The training service will help prepare specialists.
Where can I view public procurement?
The official source of all public procurement is the Unified Information System (UIS) in the field of procurement (zakupki.gov.ru). Procurement plans, tenders, contracts and results are published there. Procurement also takes place on electronic trading platforms: Roseltorg, Sberbank-AST, RTS-tender. The SKIF-BP system is used to automate search and participation. The training service will help work effectively with procurement.
How do people make money on public procurement?
They make money on public procurement by supplying goods, performing works or providing services to government institutions. The main income is formed by participating in electronic auctions and competitions, where the customer pays for the contract performance. The profit ranges from 10% to 40% of the contract amount. The SKIF-BP system is used to automate participation. The training service will help master tender processes.
How much does public procurement security cost?
The amount of contract performance security is set from 0.5% to 30% of the contract amount. Advance security is 100% of the advance amount (if the supplier agreed to receive it). For contracts up to 20 million rubles, the bid security is 0.5-1%, over 20 million — 0.5-5%. The SKIF-BP system is used to manage security. The training service will help understand the procedures.
How much do people earn on public procurement?
On public procurement, they earn from 10% to 40% of net profit from the contract amount. Supply of goods gives a margin of 10-15%, provision of services and performance of works — from 15% to 40%. Hired tender specialists earn from 40,000 to 120,000 rubles, experienced experts — up to 250,000 rubles. The SKIF-BP system is used to automate participation. The training service will help master tender processes.
Other terms in «Fintech and Public Finance»
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Public procurement (44-FZ / 223-FZ)
Public procurement is a system of purchasing goods, works and services for state and municipal needs, regulated by laws 44-FZ and 223-FZ.
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