Company Procurement Activities

When purchasing goods, works, and services, PJSC Kubanenergo follows the norms of the legislation of the Russian Federation, the Company Charter and internal documents:

Principles of procurement activity:

  • timely (long-term and short-term) planning of procurement, rapid decision-making on adjusting the parameters of procurement;
  • equality, justice, non-discrimination and unjustified restrictions of competition to the purchase participants;
  • targeted and cost-effective funds use for the purchase of goods, works and services;
  • absence of restrictions for admission to the purchase;
  • determination of procurement parameters taking into account the specifics of purchased products, markets and situations in which the purchase is performed;
  • competition-based selection of suppliers, contractors, executors, wherever possible and expedient, and, if possible collegial decision-making in the situations where competition-based selection is not possible or expedient;
  • taking into account the necessary combination of price and non-price factors determining the choice of optimal efficiency for the Company offers;
  • procurement transparency;
  • application of advanced information technology, tools of electronic document management and automation of procurement activities, including functional use of electronic trading platforms;
  • collegial decision making on the most critical matters of procurement arrangement and individual purchases;
  • professionalism and competence of the employees of the Company in the preparation and making of decisions on purchases, impeccable in terms of ethical behavior of such employees.

The methods of procurement and their application conditions are established in the above mentioned internal documents of PJSC Kubanenergo.

Procurement methods used by the Company, in order of priority:

  • Tender, auction.
  • Request for offers, competitive negotiations, request for prices.
  • Simple purchase, small purchase.
  • Purchase from a single supplier (service provider, agreementor).

Main Results of the Company Procurement Activities in 2015.

In 2015, the Company conducted 442 procurement procedures for the amount of RUB 8,468 mln  (excluding VAT). 378 purchases for the amount of RUB 6,935mln were made using e-commerce (excluding VAT), which makes up 100 % of the total cost of procurement (excluding purchases from a single source).

According to the results of regulated procurements, in the reporting year the Company obtained an economic effect in the amount of RUB 271 mln (excluding VAT), which makes up 3.8 % of the planned costs on procurement of goods, works and services.

Structure of the Company’s purchases made in 2015 by purchase item, RUB mln (without VAT)

Structure of the Company’s purchases made in 2015 by purchase item, RUB mln (without VAT)

Structure of the Company’s purchases made in 2015 by type of purchase, RUB mln (without VAT)*

Structure of the Company’s purchases made in 2015 by purchase item, RUB mln (without VAT)

The Participation of Small and Medium Businesses in the Procurement Conducted by PJSC Kubanenergo

Within the implementation of the Road Map on the collaboration with small and medium businesses the partnership program between PJSC Kubanenergo and small and medium businesses is effective from 2014. 17 participants have joined the program since its start.
In 2015, the winners of 52.7 % of conducted procurement procedures were small and medium businesses, totaling to RUB 4,460.28 mln.

In 2015 (from 01.06.2015 to 21.12.2015), the Company conducted 133 procurement procedures with small and medium businesses, totaling to RUB 582.082 mln (excluding VAT), which accounted to 12 % of the total purchases in the 2nd half of 2015.

In order to ensure efficient procurement conducted by PJSC Kubanenergo, including from small and medium business, starting from 2014, the Company has an Advisory Body composed not only of the Company’s employees but also of the representatives of the Fund for Infrastructure and Educational Programs for regional offices of the Russian Union of Industrialists and Entrepreneurs, of the all-Russia social organization of small and medium businesses Support. Russia and the representatives of the All-Russian Social Organization Business Russia.

Improvement of Procurement

The Company purchases goods and services predominantly on an open, competitive basis from suppliers offering the best value for money optimizing procurement activities through the following measures:

  • using techniques to reduce the limit purchase price;
  • increasing the share of open competitive procedures; 
  • introducing mandatory actions to reduce prices by participants of the purchase (re-bidding);
  • adherence to the Procurement Policy of the Company and the Partnership Program between PJSC Kubanenergo and small and medium businesses;
  • operation of the Advisory Body to ensure effective procurement conducted by PJSC Kubanenergo, including from small and medium businesses.

 


* The share of purchases from a single source in the total scope of purchases amounted to 19.8 % in terms of value. This high rate is due to the conclusion of two additional agreements with LLC Group of Companies EFESk for a total amount of RUB 1,383.72 mln, excluding VAT, for construction and installation works on the South-European gas pipeline as a part of the construction project: Expansion of the unified gas supply system to ensure gas supplies to the South Stream gas pipeline.

Excluding the above mentioned agreement the share of purchases from a single source in the total scope of purchases amounted to 1.77 %.