Obstacles to the Development of Effective Competition in Corporate and Government Procurement

Competition in public procurement is a significant component of relations between the state and the private sector, as it primarily affects the quality of the purchase, which produces an effect on the welfare of society as well as on the economy of budgetary funds. The comparison of the implementation of competition in state and local government procurement and corporate purchasing is of concern, as this comparison shows how the tools ensuring competition in the government and corporate procurement and incorporated in the Russian legislation are effective in achieving their goals. The aim of the work is to study the functioning of competition in the government and corporate procurement and to set the recommendations for improving the tools aimed at ensuring competition in the procurement system within the legislation. The paper analyzed the legal framework for the presence of the considered tools, and data was based on purchases made by 44-FZ and 223-FZ to compare the actual level of competition in the two systems. The results of the analysis revealed fewer tools and less competition in the system of corporate procurement. The hypothesis of the lack of regulation of competition in the corporate procurement system in comparison with the public procurement system has been proven. On the basis of the findings of data, the recommendations about increasing the number of legal instruments aimed at ensuring competition have been developed.