Analysis of Efficiency Repeated Contracts in the Field of Public Procurement on the Example of Purchases of Gasoline in 2011

<p align="right">Vyglovsky Oleg</p><p align="right">&nbsp;</p><p align="center">&nbsp;&laquo;Analysis of Efficiency Repeated Contracts in the Field of Public Procurement on the Example of Purchases of Gasoline in 2011&raquo;</p><p align="center">Abstract</p><p align="center">&nbsp;</p><p>According to the amendments made by the Federal Law № 94-FZ of 2009, state clients have to disclose detailed information about their orders being placed on a single (federal) official website www.zakupki.gov.ru. It is important to highlight that all the information is publicly available. Thus, we can get information not only about the exact specifications of the contract, but also about the number of participants and the winner of the procurement procedure. In this paper we study the effectiveness of procurement regular gasoline-92 in 2011 in the Russian Federation. Particular attention is paid to sustainable relationship between the customer and the example of &quot;repeated&quot; contracts. Contract called &quot;repeated&quot; if during 2011 the customer and the supplier, who sign the contract, concluded at least two contracts more. &nbsp;The study found that the final price for such contracts steadily differ from the prices on &quot;non-repeated&quot; contracts. Depending on whether a positive or negative difference, two hypotheses have been proposed. The first is to reduce the risk of abuse for liabilities under the contract with the customer. Supplier, who has successful experience of cooperation with the customer, can offer a lower cost of the contract. The second hypothesis assumes that the customer agrees to buy a contract at a higher price for the lack of fuel supply disruption risk or the risk of getting goods with poor quality. The study showed that for different procurement procedures either the hypothesis of increasing the value of the contract or the hypothesis of decreasing is hold. Further study can be hold in the field of differences in pricing for &quot;repeating&quot; contracts of different procurement methods. Understanding of the reasons for price differences of sustainable &quot;repeated&quot; contracts comparing with the price for &quot;non-repeated&quot; contracts will allow to define the weaknesses of the previous law 94-FZ and the recently ratified new Federal Law 44-FZ.</p>