Supervision and Oversight in Procurement as a Tool of Efficient Project Implementation

Control in Procurement

Supervision Authority

Supervision Method

Supervised area

Competition Supervision Authority

State Financial Supervision Authority

Financial Authority

Scheduled/ Unscheduled Reviews and

Audits

Scheduled/ Unscheduled

Reviews and Audits approval

Prevention of reduced

competition during procurement,

compliance with procedural rules

Supervision of procurement effectiveness,

compliance with the law during

contract implementation

Verification of whether budget

funding is in line with the terms of the

contract

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New

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Bank management of public contracts

Treasury management

of public contracts

Contract register

Requirements to procured items and

their standard costs

Supervision and Oversight Tools in Procurement

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The aim of bank management of public contracts is to set up by the customer (in some cases by the supplier (contractor, implementing agency) of an efficient project management system under project implementation using common rules.

Tasks of bank management of contracts:• for the customer: efficient use of resources/fulfillment of

functions (including under state and municipal programs);

• for the supplier: minimization of costs related to investment project implementation (with provision of quality of its implementation)/reduced interest rates/reduced bank guarantee payments;

• for the bank: loan repayment/no calls for bank guarantees in cash by the customer/receipt of payment for services provided.

Bank Management of Public Contracts (1)

1)Monitoring of payments to suppliers, contractors, implementing agencies, subcontractors and co-implementing agencies engaged in the contract

2)Communication of monitoring results to the customer

3)Provision of other services that make it possible to ensure that accepted goods, works and services are consistent with the terms of the contract

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Bank Management of Public Contracts (2)Si

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Treasury Management of Public Contracts

The price of the public contract exceeds 1 billion rubles.

Condition of the transfer of advance payments to the accounts opened for the regional branches of the Federal Treasury in the offices of the Central

Bank of the Russian Federation

Advance payment

Account of the legal entity opened for the

Federal Treasury in the Central Bank

the payment order

Advance payments in cash based on the payment order that confirms a

money liability

Treasury supervision of budget funds disbursement

is transferred on the basis of

Ban to transfer funds:• to accounts opened in a banking institution;• as a contribution to the charter capital of

another legal entity;• to place funds on deposit accounts.

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Information on the Customer

Part 1

Information on the procurement activity

Part 2

Information on the contract

Part 3

Information on the supplier (contractor, Executing agency)

Part 4

Information on contract

amendments

Part 5

Information on performance

Part 6

Information on contract termination

Part 7

Contract Register

Citizens’ oversight

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Types of Requirements to Procured Items and their Standard Costs (1)

Requirements to Procured Items and

their Standard Costs

Requirements to procured items

Standard costs and/or

Goods, works, services Funding functions

implemented by bodies of power

Requirements to Procured Items and their Standard Costs

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Types of Requirements to Procured Items and their Standard Costs (2)

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Standard costs define maximum costs in monetary terms to finance functions of a specific public official (groups of public officials)

Requirements on the basis of requirements to goods (works, services) mean defined properties of a certain product that make it suitable for use for the purpose of delivery of state (municipal) services and fulfillment of functions

Calculation formulas take into account:• Standard financing rates of

logistical support of public authorities;

• Service life of fixed assets;• Staff size;• Remaining fixed assets and

inventory stock• Unit price of products (works,

services)

Requirements must determine the following properties of the product: • functional;• ergonomic;• aesthetic;• technological;• ecological;• reliability;• safety and security

Application of Requirements to Procured Items and their Standard Costs in Procurement

In planning procurement of goods, works and services to prepare the procurement

plan

In the budget process to prepare justification of

budget appropriations to procure goods, works and services for the purpose of

funding state and municipal functions

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Standard Costs

Requirements to Procured Items

Exclusion of procurement of goods, works and services that have excess consumer properties or are

luxury items

THANK YOU FOR ATTENTION!

Ministry of Finance of the Russian Federation