For State and Municipal Institutions

The goal of establishing a competitive and efficient state and municipal system is becoming more topical for the system is closely related to budget execution and its utilization efficiency.

According to the official statistics and materials of the Ministry of Economic Development and Trade and Federal Antimonopoly Service of the Russian Federation the analyses of results of placing and meeting state orders reveal new tendencies in electronic trading. First of all there is steady growth trend of the volumes of state procurement on all market levels, federal, regional and municipal.

For there is a steady growth trend of expense items for state procurement and its share in the federal budget, the problem of promoting managerial economic conditions and the mechanism for better usage of state resources is getting more important.

As the up-to-date system of state and municipal procurement is not perfect the state procurement agents face a set of problems:

• inefficient draft of budget funds allocated for state institutions;
• abuse and corruption in the state procurement system;
• lack of information infrastructure in the state procurement system.

The adoption of the Federal Law Number 94-FZ «On Placement of Orders for Suppliers of Goods, Performance of Works, Rendering Services for State and Municipal Requirements» and some amendments to it contain measures for reforming the system of state procurement which include improvement and regulation of technologies (rules, the order and procedures) of government purchasing. In addition to tenders the law also defines cases where procurement might be provided at auctions including open auctions on electronic platforms.

Nowadays electronic trading is considered to be the most efficient way of organizing of procurement activities. A computer-based system of procurement management in a state institution makes possible the public control, leads to more transparence and increase in number of participants placing orders, eliminates possibility of corruption.

Advantages:

1. Reducing the expenses intended for taking procedures of procurement (in an average costs cut makes 10-15 percent of procurement funds).
2. Reducing the initial price due to increase in number of suppliers (increase in number of suppliers and price competition lead to price reducing for goods, work and services on electronic trades).
3. Transparence of electronic trades eliminates the possibility of corruption.
4. Equal chances for all participants.
5. Legal and information security providing for the participants of electronic trading platforms due to using of certificated encryption protection and identity verification technologies.

Electronic Trading Platforms Association is seeking for ways to enhance the efficiency of state and municipal procurement systems.

Cooperation with federal, regional and municipal authorities, business structures makes it possible that the Association will consolidate all electronic trading systems of the country and abroad which makes it possible to create a common information system for all participants of the trade and tenders. The Association is promoting its partnership with electronic trading program builders and spans more than 40 trading platforms.

A common information system let suppliers and customers to carry out trade and procurement activities more efficient:

• information of placing an order is available not only for suppliers (customers) of one region but also for other users of the common system (including users from several Russian regions and abroad). Increase in number of participants in state (municipal) procurement steps up competition and result in reasonable prices on purchases;
• information transparency and accessibility information on orders placement in Internet eliminates corruption;
• the analytical system of the Association of Electronic Trading Platforms is a very good information resource in organizing and conducting procurement activities;
• legal and information security providing for the participants of electronic trading platforms based on usage of certificated encryption protection measures and electronic digital signatures (using of EDS had been legislated after the enactment of the Federal Laws 94-FZ and 281-FZ defining the order of procedures for state and municipal procurement including electronic trading).

Incomplete information in the state procurement system is one of reasons for loss or inappropriate use of state funds. Acknowledging the importance of the transparence the AETP has developed an analytical system. The analytical system provides acquisition, analyses and storing in a common database of information on all phases of tenders, maintains a database on all prices offered by suppliers, collects and tabulates statistics and analytical data to order placement. Consolidation of information on state procurement contracts allows a fundamental analyses and all-around control of procurement procedures. The access to the analytical system of AETP is a necessary instrument while budgeting in a state institution.

Identity verification of participants and information security during the procurement activities supposed to be one of the most urgent problems of electronic trading.

For the application of electronic documents might be allowed according to federal law Number 94-FZ there is an acute need for accepting the flow of electronic documents while placing the government order as documents with legal effect which is possible due to the encryption protection and information security systems and the electronic digital signature.

Cooperation between the state procurement systems of the Russian Federation and Certification Authorities provides data security as well as makes it possible to control system users.

In process of developing the system and seeking for the solutions of the mentioned problems the Association of Electronic Trading Platforms has developed and introduced the accreditation system of Certification Authorities (CA) based on the accreditation system of the Chief Research and Computer Centre of the Federal Tax Service of the Russian Federation (GNIVC FTS of RF). According to the system an authorized institution has to check and monitor the activity of the CAs entitled to distribute EDSs in electronic trading systems. The checking and monitoring include documentation analyses and controlling whether the signature issue takes place as for technically and technologically aspects according to the current legislature.

One of the definite advantages of establishing a network of Certification Authorities is that tender participants may use one signature on all platforms of the Association what will reduce expenses and save time for getting EDSs.