Procurement Operations

For the purpose of procurement operations, the Company uses the Unified Standard of Procurement of PJSC “Russian Grids”. Participants are selected by means of procurement procedures in accordance with the Unified Standard of Procurement of PJSC “Russian Grids”.

Procurements from small and medium-sized enterprises are carried out in accordance with the Federal Law No. 223-FZ dated 18.07.2011 “Concerning Procurement of Goods, Works and Services by Individual Types of Legal Entities” and the RF Government Decree No. 1352 dated 11.12.2014 “On the Specificities of Participation of Small and Medium-Sized Enterprises in the Procurement of Goods, Works and Services by Individual Legal Entities”.

Procurements from national producers are carried out in accordance with the Unified Standard of Procurement of PJSC “Russian Grids” (Procurement Regulations). Preferences of the Russian goods are determined in accordance with the RF Government Decree No. 925 dated 16.09.2016 “On the Priority Given to the Russian Goods, Works and Services Performed and Rendered by the Russian Entities in Comparison with Foreign Goods, Works and Services Performed and Rendered by Foreign Entities”.

The Company uses the following main principles of procurement activities:

• Informational openness of purchases – ensuring openness of procurement activities in accordance with the requirements of the current Russian law, as well as the degree required and sufficient to provide for a possibility of making decisions by potential contractors on participation in the procurement procedures of IDGC of Siberia
• Equality, fairness, absence of discrimination and unreasonable restrictions on competition in relation to the participants of the procurement – suppliers, contractors and executives are mostly selected using a competitive procedure, on the basis of equal competitive opportunities, without discrimination and unreasonable restrictions in relation to the participants of the procurement, in accordance with the justified requirements to potential participants of the procurement and goods, works and services procured, inclusive of life cycle, if necessary
• Targeted and cost-effective spending of money for the purchase of goods, works, services and the implementation of measures aimed at reducing the costs of the customer – selection of technical and commercial proposals based on the whole aggregate of price and non-price predefined criteria determining economic and other required efficiency of procurements
• There is no restriction on admission to participation in procurement by establishing immeasurable requirements to the participants of the procurement
• Transparency and manageability of procurement activities – planning, accounting, monitoring, control and audit of procurement activities at all its stages in IDGC of Siberia
• Professionalism and competence of employees involved in the procurement activities of IDGC of Siberia – personal responsibility of officials for efficient organization of procurement procedures, as well as for their decisions made in relation to the procurements and precise performance of actions required by procurement-regulating documents
• Compliance with the current legislation regulating the organization of procurement activities, as well as anti-corruption legislation, including the Anti-Corruption Standard of procurement activities

In 2018, 2,208 purchases were made for a total amount of RUB 36,912 mln, VAT included.

Including by methods of procurement:

• 462 purchases by means open one-stage tenders for the amount of RUB 24,590 mln, VAT incl. (20.92% of the total amount of purchases, 66.62% of total purchases in value terms)
• 510 purchases by means of open requests for prices for the amount of RUB 624 mln, VAT incl. (23.10% of the total amount of purchases, 1.69% of total purchases in value terms)
• 683 purchases by means of open requests for proposals for the amount of RUB 5,999 mln, VAT incl. (30.93% of the total amount of purchases, 16.25% of total purchases in value terms)
• 369 purchases based on results of framework agreements made for the amount of RUB 2,855 mln, VAT incl. (16.71% of the total amount of purchases, 7.74% of total purchases in value terms)
• 184 purchases from a single supplier for the amount of RUB 2,843 mln, VAT incl. (7.70% of total purchases in value terms)

Including by activity types:

• New Construction – 730 purchases for the amount of RUB 12,346 mln, VAT incl. (33.06% of the total amount of purchases, 33.45% of total purchases in value terms)
• Reconstruction and Technical Reequipment – 470 purchases for the amount of RUB 6,312 mln, VAT incl. (21.29% of the total amount of purchases, 17.10% of total purchases in value terms)
• Power Repair (Repair) Production and Maintenance – 603 purchases for the amount of RUB 2,336 mln, VAT incl. (27.31% of the total amount of purchases, 6.33% of total purchases in value terms)
• IT-Procurement – 99 purchases for the amount of RUB 887 mln, VAT incl. (4.48% of the total amount of purchases, 2.40% of total purchases in value terms)
• R&D – 2 purchases for the amount of RUB 164 mln, VAT incl. (0.09% of the total amount of purchases, 0.44% of total purchases in value terms)
• Consulting Services – 2 purchases for the amount of RUB 79 mln, VAT incl. (0.09% of the total amount of purchases, 0.22% of total purchases in value terms)
• Other Purchases – 302 purchases for the amount of RUB 14,787 mln, VAT incl. (13.68% of the total amount of purchases, 40.06% of total purchases in value terms)

732 simple and small purchases for the amount of RUB 237 mln, VAT incl.

The number of purchases using e-commerce tools was 2,024 purchases for the amount of RUB 34,068 mln, VAT incl. (100.00% of the total number of purchases, 100% of total purchases (excluding purchases from a single supplier) in value terms.

The economic effect following the results of procurement procedures for the period amounted to RUB 1,386 mln, VAT incl. or 3.91% of the planned declared cost of competitive procurement.

The share of open procurement procedures in the structure of purchases amounted to 100% of the total number of completed procurement procedures and 100% of total purchases in value terms (excluding purchases from a single supplier).

Import Substitution

In accordance with the Order No. 116 dated 30.08.2017 of PJSC “Russian Grids”, PJSC IDGC of Siberia implements a corporate plan of import substitution of PJSC “Russian Grids”. The following activities are performed in accordance with the plan:

• Execution of agreements of equipment manufacturers on the organization of manufacture of electrical products designed within the frames of R&D of PJSC «Russian Grids» or including components designed within the frames of R&D of PJSC «Russian Grids»
• Determination of pilot projects for the purpose of implementation of innovative equipment and systems
• Testing, approbation and pilot implementation of domestic analogues of import products at facilities of S&A in terms of their compliance with the requirements of PJSC «Russian Grids» and compatibility with equipment used
• Monitoring of industry registers of domestic products or tables for import-substituting products and manufacturers thereof formed by federal executive bodies together with development institutions
• Development of cooperation with the Chamber of Commerce and Industry of Russia, nongovernmental organizations «OPORA ROSSII», «DELOVAYA ROSSIYA», SME Corporation, etc. on the issues of import substitution implementation in the electric grid complex of Russia, subject to technical potential of small and medium-sized enterprises (SME)
• Participation in the work of special working bodies created by federal executive bodies, in which representatives of organizations and representatives of State Corporation «Bank for Development and Foreign Economic Affairs (Vnesheconombank)» as a state corporation carrying out investment activity in various priority sectors of economics (hereinafter — working bodies) can participate
• Development of cooperation with constituents of the Russian Federation on the issues of participation in regional industrial enterprises in the implementation of import substitution and modernization of the domestic production base. Execution and performance of agreements on cooperation, road maps and minutes of meetings
• Development of cooperation with electric power industry entities for the purpose of information exchange and formation of uniform approaches to the issues of import substitution implementation, development of unified requirements to equipment and materials, and formation of a consolidate need for critical groups of equipment (JSC Rushydro, PJSC Inter RAO, LLC Gazprom Energoholding, SC Rosatom)
• Development of cooperation with entities of the military industrial sector for the purpose of implementation of available domestic developments at electric grid facilities. Involvement of entities of the military industrial sector into the process of placement of information products manufactured at the portal of the Ministry of Industry and Trade — GIS of Industry
• Development of cooperation with leading scientific institutions and centers (SkolTech, Federal Testing Center, Kurchatov Institute, Moscow Power Engineering Institute, AllRussian Power Engineering Institute, All-Russian Research and Development Institute for Cable Industry, etc.) for the purpose of monitoring of perspective development having no analogues in Russia and abroad

Procurement from Small and Medium-Sized Enterprises

In 2018, 1,515 tenders were conducted in which the subjects of small and medium-sized enterprises (SMEs) became the winners for a total of RUB 20,123 mln, VAT incl., which equaled to 68.61% of the total volume of tender procedures conducted, while the volume of purchases in which only the subjects of small and medium-sized enterprises could participate was 1,411 purchases for the amount of RUB 13,710 mln, VAT incl. or 63.90% of the total volume of procurements.

Including by activity types:

• New Construction and Expansion of Electric Grid Facilities – 547 purchases for the amount of RUB 11,636 mln, VAT incl. (36.11% of the total amount of purchases from SMEs, 57.82% of total purchases from SMEs in value terms)
• Reconstruction and Technical Reequipment of Electric Grid Facilities – 328 purchases for the amount of RUB 5,396 mln, VAT incl. (21.65% of the total amount of purchases from SMEs, 26.81% of total purchases from SMEs in value terms)
• Power Repair (Repair) Production and Maintenance – 441 purchases for the amount of RUB 1,561 mln, VAT incl. (29.11% of the total amount of purchases from SMEs, 7.76% of total purchases from SMEs in value terms)
• IT-Procurement – 71 purchases for the amount of RUB 433 mln, VAT incl. (4.69% of the total amount of purchases from SMEs, 2.15% of total purchases from SMEs in value terms)
• R&D – 1 purchase for the amount of RUB 58 mln, VAT incl. (0.07% of the total amount of purchases from SMEs, 0.29% of total purchases from SMEs in value terms)
• Consulting Services – 2 purchases for the amount of RUB 79 mln, VAT incl. (0.13% of the total amount of purchases from SMEs, 0.39% of total purchases from SMEs in value terms)
• Other Purchases – 125 purchases for the amount of RUB 960 mln, VAT incl. (8.25% of the total amount of purchases from SMEs, 4.77% of total purchases from SMEs in value terms)