Author: Dmitry S. Khvalynsky

Abstract:

The author investigates the reasons behind declining competition in English auctions used in the Russian system of public procurement since 2006. The paper considers the negative impact of the initial valuation of contracted items, participants’ inequality and costs of participation on the competition in the auction. The author puts forward suggestions about improving the existing mechanism of bid security, which can substantially reduce the amount of funds taken out from company working capital to participate in auctions. At this, a greater responsibility of participants for bids is ensured. Moreover, the competition in auctions is significantly enhanced as well, particularly, the implementation of the proposals strengthens the competition not only for the first place, but also for the last, what leads to the maximum effect in auctions with small number of bidders.

Keywords: contract system in procurement; auction; auction theory; reserve price; competition; efficiency of public expenditures; bid security

For citation:

Khvalynskiy D. S. Sovershenstvovanie mekhanizma gosudarstvennykh zakupochnykh auktsionov v Rossii  [Improving the Mechanism of Public Procurement Auctions in Russia]. Izvestiya Uralskogo gosudarstvennogo ekonomicheskogo universiteta – Journal of the Ural State University of Economics, 2016, no. 2 (64), pp. 31–38.