Public Procurement: the Issues of Improving the Pricing

The  presented study analyzes the  problems of  public procurement associated with the  pricing of  procurement  items.

Aim. The  study aims   to  substantiate  recommendations on  improving the   pricing of  items  procured under government  contracts  implemented  in  accordance with the  laws  of  the  Russian Federation.

Tasks. The  authors  examine various problematic aspects  of  formation of  the  initial (maximum) price under government  contracts  and  propose ways  of  neutralizing them.

Methods. This   study uses   the   methods of  institutional, structural, and   functional  analysis of  economic  phenomena and  processes and  specific methods of performance evaluation, comparative analysis, and  expert assessment.

Results. It is  established  that the  Russian public procurement  system  has  a number of  shortcomings and  does  not  function efficiently enough. That said, most of the  problems that affect its development arise from the  inadequate establishment of initial (maximum) contract prices. Errors and  inaccuracies in  pricing are what makes the  public procurement system inefficient. They  occur due  to the  lack  of qualified personnel in  the  procurement  divisions of  customer  organizations, inconsistency  of  the  system of economic interests mediating public procurement, errors and  institutional shortcomings in  the establishment  of  the  initial (maximum) contract  price, etc.  In  order to  increase the  efficiency of  public  procurement, the  authors provide recommendations aimed at improving the  reliability of  substantiation of  the  initial (maximum) contract  price.

Conclusions. According to  the  results  of  the  study, the  authors propose directions for improving the pricing mechanism for goods  (works, services) procured to  meet  government  needs.

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