PROCUREMENT SYSTEM IN NUCLEAR INDUSTRY
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1 ROSATOM STATE ATOMIC ENERGY CORPORATION ROSATOM PROCUREMENT SYSTEM IN NUCLEAR INDUSTRY Atomex-Europe 2013 Forum Pavel Tikhomirov Head of Rosatom Central Arbitration Committee October 8-9, 2013 Brno, Czech Republic
2 What is the nuclear industry in Russia? ROSATOM Functions and goals 390 daughter companies and plants - Management 270 thousand employees 10 billion Euro annual amount of open procurement 48 thousand procurement notices on the official website of Rosatom Huge range of procured goods and services in different branches of industry: minery, chemical, machinery, transport, power energy, science, safety equipment etc. -Economic efficiency - Unified regulation - IT - Internal audit and compliance - Nuclear safety 2
3 Procurement legislation in Russia Rosatom Procurement State budget sources Federal Law FZ «State and municipal procurement law». Own sources (earnings) Federal Law on FZ Procurement notices and info On-line electronic procurement Procurement notices and info On-line electronic procurement
4 Public information on the procurement cycle Procurement planning Procurement procedures Contract signing and performance Preliminary procurement budgets and schedules are open on sites Procurement notices and documents Appeals and Arbitration cases Winner zakupki.gov.ru zakupki.rosatom.ru etp.roseltorg.ru Rosatom central arbitration (appellation) committee: «Hot line» 8(800) Supplier shall look and find items in product range according to their interest Supplier shall log in at the trade site and submit his offer on-line. Suppliers can also address questions on the documents The compliant can appeal a decision or negligence of tender committee Contract performance 4
5 Open Annual procurement schedule RF State Official Internet Site on procurement ( Rosatom official Internet Site on procurement ( 5
6 Procurement procedures Tender by law tender auctions competitive reductions Tender by Rosatom Call for proposals (offers) Price quotation procurement Competitive negotiations Non competitive Purchasing on exchange Small purchases Simple purchases Single supplier planned urgent no offers on tender 6
7 Procurement procedures Tender Auction Reduction General procedure for any purchasing situation Procurement of series produced machines, raw materials, typical services Same, but used under the 223-FZ law Price quotation Up to 3 mln Rbl or up to 5 mln. Rbl on-line Call for proposals (offers) Procurement on scientific research, services, consulting, design, legal services etc. Competitive negotiations In case of consulting services, when the scope of work is not definite enough Small purchases From 100 up to 500 thousand rubles with VAT 7
8 For State Corporation Rosatom suppliers Official Internet Procurement website contains legal and local acts and documents, procurement notices, information on training seminars, appellation bodies and procedures, contacts, procurement news. Russian Federation official Internet procurement website contains procurement schedules and current procurement notices. Annual Forum and Exhibition «GOSZAKAZ». Where to find info about ROSATOM procurement? Forum and Exhibition ATOMEX (1080 participants for the last 3 years) times a year Rosatom s Director General holds round tables with suppliers. Exact information on dates, as well as the application form may be found on the website Booklets How to become Rosatom supplier is on the website and at the Rosatom stand during exhibitions Training seminars are carried out on regular basis at Rosatom Corporate Academy. 8
9 General tender procedure Interested suppliers General open tendering procedure Procurement order Tender documents preparation Advertising of the procedure on the Official site (RFP) Bids (proposals) preparation Tender Participants Selection Bids (proposals) evaluation Rejection of the proposal Supplier nomination (winner) 9
10 Evaluation criteria Total weight of the rest criteria - 25% (45%) Contract price, Unit price 75%, or 55% in case of competitive negotiations or call for proposals Qualification: Experience Reputation Equipment and machinery Personnel Terms of payment Time of delivery, work schedule Technical proposal quality Functional or technical characteristics Quality management Warranty period Other Total weight 100% 10
11 Appellation procedure Who and when can appeal Before the end of proposal submission period After tender opening Any interested supplier or manufacturer can appeal Tender documents Only those who submitted proposals can appeal tender committee decision (no appeals in terms of tender documents) Appellation indication on this procurement procedure Tender procedure is suspended while appellation is on 11
12 Open information about audit and appellation At Rosatom s official website : Appellation regulation documents Appellation practice ( ) Quarterly appellation statistics Black list of suppliers List of appellations address for appellations: arbitration@rosatom.ru
13 Appellation bodies in Rosatom Central Appellation Committee and branches of the Appellation Committees appellation bodies in atomic industry Principles of the Appellation Committees Efficiency and speed (10 days) Non discriminate, unbias Under state control Objectives Discover and eliminate violation Restore suppliers rights Informing top management about procurement violations for corrective action
14 Examples of successful Appellations (1) 47,6 Mln rub. 43,5 Mln rub. Procurement procedure Appellation ООО «AKRUS» to FGUP «PО «Mayak» Contract subject supply of internal special railway train Reason disagreement on proposal rejection Starting contract price Contract price after first evaluation 29,8 Mln rub. Contract price after re-evaluation Violations Wrongful rejection due to the lack of Rostechnadzor licenses Verdict Re-evaluate proposal of applicant Results Applicant becomes tender participant Economy 17,8 Mln rub (37 %)
15 Examples of successful Appellations (2) Appeal from JSC «Hilty Distribution Ltd» to JSC «Atomenergoremont» Merit 4 months suspending of contract conclusion after nominating a winner, because of lack on beneficiaries information for JSC «Hilty Distribution Ltd» Verdict Violation of Rosatom procurement rules Results Contract signed 15
16 Examples of successful Appellations (3) Appeal from «Electromashholding» (EFCO Maschinenbau GmbH) to JSC «Concern Rosenergoatom» Merit Applicant disagree nominating a winner «Maritek Ltd», because they allege that «Maritek Ltd» hasn t got authority from manufacturer Violation Violation proved Proposals re-evaluated. Results «Maritek Ltd» rejected, winner is Electomashholding
17 Results of procurement activities in 2013 Industry procurement 536 State procurement % 100% 99% % 85% 94% % % 37% Share of organizations which joined the standard, % ETP procurement share % Number of procedures Order dynamics, bln rub. Total sum of open procurement - starting price, bln rub. Number of reasoned appeals 17
18 THANK YOU FOR ATTENTION! 18
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