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18 October 2017

Web Shop for Small and Medium Business will Be Established on the Basis of Avtodor’s Online Marketplace

In 2018, a web shop will be established on the basis of Avtodor’s online marketplace to automate small-scale procurement and sales business. This portal will enable suppliers of goods, service providers and contractors with value below 500,000 rubles net VAT post their offers, including pricing bids. This was reported by Director of Competition Policy Department at a roundtable discussion dedicated to the issue of participation of SME in procurement programs of major state-owned companies and corporations. “This is a serious mechanism to streamline access of small and medium enterprises (SME) to procurement programs of Avtodor Group,” said Alexandr Sokolov.

According to him, in 2017, the State Company Avtodor and its partners will enter into contracts with small and medium enterprises (SMEs) to the value of more than 11 billion rubles. The bulk of the SME contracts relate to construction and installation works.

By the end of 2017, the aggregate value of direct contracts signed by the State Company Avtodor with SMEs as part of procurement programs involving exclusively SMEs will exceed 6 billion rubles.

Plans for 2017 stated that the volume of purchases of innovative products from SMEs would reach 0.5 billion rubles. However, nine months earlier since the beginning of 2017, Avtodor has already almost doubled this figure -- innovative product procurements from SME’s reached 0.9 billion rubles. Small and medium businesses were engaged by the State Company to outfit roads with various components (road stripping, road signs, barriers and fencing, retroreflective posts, etc.), as well as to carry out repair of energy-related facilities.

The Sate Company has instituted a SME partnership program which is participated to date by 74 companies. The program is aimed at establishing a network of skilled and reliable partners from among SMEs that would provide the State Company and other divisions of Avtodor Group goods, services and works through direct contractors and first level subcontractor agreements. Participants of the Partnership Program are being paid no less than 30% of contract value in advance in cases when purchase is effected as part of SME-only procurement projects.

In its procurement business, the State Company Avtodor uses the proprietary Online Marketplace. Accreditation in the Marketplace for SMEs is free of charge. To register, any SME needs only to submit a minimum set of scanned documentation. Accreditation requests are reviewed within one business day. Accreditation provides the opportunity to take part in all the competitive procedures held at the Marketplace.