FAS of Russia: the purchase from a single supplier must be justified

3 September 2024, Tuesday

The Federal Antimonopoly Service of Russia has sent explanations to the territorial authorities that the purchase from a single supplier must be justified and must be carried out in exceptional cases.

The customer's exercise of this right must be consistent with the principles of equality, fairness and non-discrimination towards the participants in the purchase.

The Federal Antimonopoly Service of Russia emphasizes that purchases from a single supplier are advisable in cases where goods and services are traded on low–competitive markets or if auctions cannot be held on a competitive basis for objective reasons - for example, in the aftermath of emergencies.

When making a decision to purchase from a single supplier, the customer must have reasonable and objective reasons explaining the inefficiency of applying competitive procedures in a particular situation. Otherwise, the choice of an uncompetitive method of placing an order is an abuse of the right provided for by the current provisions of Law No. 223-FZ.

The FAS of Russia notes that the inclusion in the procurement regulations of grounds for its implementation without objective reasons is a restriction of competition in the commodity market. Therefore, such actions can be assessed for violations of the Law on Protection of Competition. If the fact of violation is proven, the service will issue a binding order to the customer (Part 1 of Article 17 of the Law on Protection of Competition).

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