IBLF assisted the Department for Competition Policy at the Moscow Government to complete the survey on potential execution of life cycle contracts

On the 17th of June, 2014, the Department for Competition Policy at the Moscow Government held the regular meeting with business community members who have submitted their proposals and the officers of the involved departments of the Moscow Government. The meeting was designed to clarify several issues arising in the process of consideration of proposals and economic feasibility reports. 

Following the meeting, the report was delivered to Sergey Sobyanin, the Mayor of Moscow.

The following has been subsequently resolved:

- The state-financed Moscow Urban Investment Management Agency shall complete expert due diligence of economic proposals provided by business community;

- Moscow Healthcare Department shall provide analytical study on current expenditures under the contracts for medical equipment maintenance, statistics on equipment downtime connected with the lack of financing for repair and for extension of service contracts, as well as proposals on feasibility of a pilot project on implementation of the business-proposed contract scheme. 

Provided that the procurement of high technology medical equipment for the Department of Healthcare and subordinate network for use in 2015, proves economically effective in course of the study, the certain set of lots will be drawn up in September, for experimental procurement according to proposed contract scheme.”

Delivery deadline is 01.10.2014.

Preceding events:

As a follow up to the meeting between Sergey Sobyanin, Mayor of Moscow, and business community on the 23rd of April 2014, with foreign companies presence supported by IBLF, the Department for Competition Policy at the Moscow Government has been committed to analyze whether long-term and life cycle contracts can be used in municipal procurement practice in Moscow. 

To implement the assignment, the Department for Competition Policy at the Moscow Government held kickoff meeting with the involved departments of the Moscow Government and business community members on the 14th of May 2014. IBLF was called to provide involvement of international companies in the process. Two market segments were selected for consideration: lifts and medical equipment. 

As a follow up to the meeting in May 2014, the companies have, within two weeks, prepared their long-term contract samples and economic feasibility studies for municipal procurement.

On the 29th of May, 2014, IBLF have forwarded the proposals by GE Healthcare, Philips, Siemens, Abbott, Johnson&Johnson to the Department for Competition Policy at the Moscow Government.