Socially oriented NGOs to have rights of small businesses

Socially oriented NGOs to have rights of small
businesses for state orders

The State
Duma adopted a federal law on Contracts for Procurement of Goods and Services
for State and Municipal Needs. The law states that from 1 January 2014 when goods
and services for state and municipal needs are purchased from socially oriented
NGOs (SONGOs), they will have the same rights and privileges as small businesses.


State and
municipal organisations will be obliged to buy 15% of such goods and services from
NGOs and small businesses. The price paid may not be more than 2% higher than
the maximum price of the contract. Purchases will have to be by open competitive
tender in two stages and with limited participation, by electronic tenders and
bids, in which only small businesses and SONGOs may participate and the basic
price of the contract may not exceed 20m roubles. The purchaser has to submit
within a year all accounts for purchases from small businesses and SONGOs and put
them into a united information base. These provisions will not apply to SONGOs
set up by the Russian government, regional or municipal administrations and SONGOs
have to be recognised as such under the law or local regulations.

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