Federal Law No.44-FZ “On contract system in state and local government procurement of goods, works and services” dated April 5, 2013 (hereinafter the “Law 44-FZ”), which replaced Federal Law “On placing orders for goods supplies, work performance and service rendering for state and municipal needs” (hereinafter the “Law 94-FZ), has come into effect since January 1, 2014.

In connection with Law 44-FZ coming into effect the Ministry of Economic Development of the Russian Federation and the Federal Antitrust Service prepared the joint letter “On the stance of the Ministry of Economic Development of the Russian Federation, and the Federal Antitrust Service on the issue of application of the Russian Federation’s legislation in bidding and request for quotation, notifications of which are placed on the official web site of the Russian Government in the Internet information and telecommunications network for placing information about orders for goods, execution of works and rendering of services or invitations to participate in which were sent before January 1, 2014.”

According to the abovementioned letter, Law 44-FZ is applies to relations connected with the purchase of goods, works and services for meeting state and municipal needs, notifications on performance of which are placed in the unified information system, or on the official web site www.zakupki.gov.ru or if invitations to participate in them are sent after the date of the specified Federal Law coming into force. As far as relations arising before this date are concerned, the law applies to rights and responsibilities arising after the date of its coming into force, unless otherwise provided by Article 112 of Law 44-FZ.

In accordance with the provisions of Law 94-FZ for determination of the suppliers, executors, and contractors, concluding with them the state or municipal contracts or civil law agreements of the budgetary institutions, is subject to conditions provided by the tender documentation or notification on the request for quotation and is to be completed by conclusion of the contract or civil law agreement. Thus, the state and municipal contracts and the civil law agreements on orders for goods, execution of works and rendering of services for the customers’ needs, which were concluded before the date of Law 44-FZ coming into force, remain valid.

In the opinion of the Ministry of Economic Development of the Russian Federation, and FAS Russia, placement of orders, notifications of which are put on the official web site www.zakupki.gov.ru, or invitations to participate in which were sent before January 1, 2014 is performed in accordance with Law 94-FZ, including when:

• taking decisions on amending tender documentation, documentation on bids, cancellation of bidding;
• explaining the provisions of documentation on bids;
• providing or denying access to bidding, determining the winner, request for quotation;
• concluding contracts and approving the conclusion of contracts with a sole supplier in the event placement of order is deemed void.

Complete text of the Letter of FAS of Russia and Ministry of Economic Development of the Russian Federation, explaining application of the Contract System Law

Additional notes

Should any questions arise in connection with the above or if you need any additional materials, please contact Irina Akimova or Natalia Rossikhina, Moscow Office of Capital Legal Services.

This Information letter keeps the clients of the Capital Legal Services and other interested parties abreast of information that may, to any extent, affect their activity or cater to their particular interests. The opinions and commentaries expressed in this Information letter shall not be deemed as legal opinions.