On the results of the conference devoted to the transfer to competition basis in selection of suppliers and service entities in the Gazprom Group of companies

The Deputy Chairman of the Management Committee of Gazprom Alexander Ananenkov held a conference devoted to the topic of transfer to competition bases in selection of suppliers, work performers and service entities in the Gazprom Group of companies. The conference was attended by the top officers of the Tender Committee of Gazprom and OOO Gazcomplectimpex.

The conference participants discussed the issues of upgrading the organizational structure of the Competition commissions and the Tender Committee considering expansion of the range and volume of competition procedures.

The participants of the conference talked on the basic principles of Competition commissions, Tender committees and the Company’s subsidiaries functioning. It was decided that the performers of contract works funded by Gazprom and stipulated by the investment plan will be determined by the Company’s Competition Commission and the Tender Committee in centralized order.

Background

The Competition Commission of Gazprom was set up in June, 2003. The Provisions of Gazprom’s Competition Commission was approved in September, 2003.

The Provisions has been made up in order to:

  • raise efficiency of ordering;
  • promote competition development;
  • provide for objective and fair selection of suppliers;
  • increase transparency of the buying process.

In accordance with the Provisions, arrangement of competition procedures is carried out by the Competition Commission of Gazprom (arrangement and coordination between the Company’s Administration divisions and subsidiaries of Gazprom in competitive placing of orders), the Tender Committee of Gazprom and its subsidiaries (executive body set up by tender organizers).

The customer of a tender has to submit an application for commodities delivery, work performance, services rendering to the Competition Commission and to prepare technical requirements and commodities delivery terms and conditions.

The Competition Commission of Gazprom is intended to arrange activities of Tender Committees, to make decisions related to competition paperwork preparation and tender procedures, to determine the winner or winners of a tender.

Persons concerned with the results of a competition can not be the members of the Competition Commission as well as the persons – applicants or employees of organizations – the applicants.

The Tender Committee is responsible for invitation of participants, competition paperwork preparation, evaluation of compliance of the applications with the requirements predetermined in competition documentation and execution of competition summing papers.

The Tender Committee is responsible for publication of a competition announcement in the “Tender results” Information and analysis bulletin and putting it in the Internet site of Gazprom. The Committee guarantees confidentiality of information presented by Suppliers, which may become known to the Committee in the process of competition. Any discussions between the Tender Committee and a supplier concerning his/her application for participation in a tender are inadmissible.

In order to determine the winner of a tender the Tender Committee has to arrange evaluation of applications in accordance with the procedure and criteria provided in a tender documentation. A tender with a single participant is considered and invalid one.

In case a tender customer cannot compile detailed technical specifications and has to preliminary examine the offers of potential suppliers, the tender is arranged in a two-stage manner.

Allocation of orders for commodities supply, work performance and rendering services with a single Supplier without a tender procedure is admissible in the following circumstances:

  • in case the order for commodities, services may be placed only with particular Supplier due to technical complexity or specific nature of the order;
  • in case of urgent need in certain commodities, works and services due to emergency (incidents, disasters and other contingencies).

The volume material and technical resources delivery amounted to RR 88.13 billion, including centralized deliveries through Gazcomplectimpex worth of RR 68.12 billion (77.3%).

The share of purchases on the competition basis will be growing: since 20% in 2004 to 50% in 2005; in 2006 the share of purchases on the said basis will amount to 80% of the total volume of material and technical resources delivery.

Information Directorate, OAO Gazprom

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