CIS Legal Update - May 2013: Changes to the Procedure for the Public Procurement of Food and Pharmaceuticals

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The Russian Public Procurement Law has brought forth new changes to the procedure for public procurement that affect general provisions and set up special rules that apply to the supply of pharmaceuticals and foods to educational institutions. The main changes are the following:

  1. Fulfillment of a contract can no longer be secured by promises of suretyship;
  2. The register of contracts executed following auctions/tenders is now required to reveal any fines imposed by a customer in connection with the non-performance or improper performance of contractual obligations;
  3. Requirement to specify the number of contracts in the register that are in the process of applying for auction/tender;
  4. Specification of rules on procurement of pharmaceuticals; and
  5. A supplier should confirm its experience in the sphere of public procurement of foods to educational institutions by providing evidence of at least 2 contracts that were duly executed by the suppliers within 3 years preceding the application filed with the tender commission.

Moreover, the supplier is not permitted to count contracts for which it was held liable for non-performance or improper performance of obligations as proof of past experience.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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