To purchase from a single supplier under the Law N 223, objective reasons are needed, the appeal reminded

8 February 2023, Wednesday

A customer with activities to ensure the holding of sporting events annually purchased sporting goods in an uncompetitive way from the same suppliers.

The procurement regulations allowed to conclude deals with a single supplier in more than 60 cases, regardless of the presence of a competitive market. Among other things, the customer explained: in the Law N 223 there are no restrictions in conducting purchases from a single supplier.

The inspectors ordered to adjust the procurement regulations. The courts supported them:

  • impossibility of delivery of sporting goods by other suppliers, not justified;
  • the urgency of the purchase, the uniqueness of the goods and other circumstances of the need to purchase in a non-competitive way, have not been proven;
  • the procurement regulations allowed the use of non-competitive methods in all cases and for any needs of the customer. There are no conditions for the use of such methods. This restricts competition and violates the basic procurement principles;
  • Law No. 223 does not give the customer the right to conduct non-competitive purchases at its discretion. The procurement regulations should establish restrictions for the application of such procedures.

The appeal also reminded that objective reasons are needed to purchase from a single supplier, for example, a low competitive market or the urgency of the purchase. A similar position is supported, in particular, by the Armed Forces of the Russian Federation, AS of the West Siberian District.

Document: Resolution of the 8th AAC of 26.01.2023 on case no. A70-18212/2022

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