OREANDA-NEWS. February 12, 2009. The FAS Russia's Commission investigated a complaint of a Russian vaccine producer - the "Microgen" Scientific and Production Association regarding unlawful refusal to accept "Microgen" bid for participation on the auction for supplies of Hepatitis B vaccine, organized by the Federal Service for Control over Consumer Rights Protection and Human Well-being (Rospotrebnadzor). In its complaint the "Microgen" Scientific and Production Association states that it had not been allowed to participate in the auction although the vaccine offered by "Microgen" had met Rospotrebnadzor requirements, reported the press-centre of FAS Russia.

Investigating the complaint and carrying out an unscheduled inspection, the FAS Russia's Commission established the following:

Three different suppliers - the "Microgen" Scientific and Production Association, "Shrea" and "MTKh" CJSC submitted their bids for participating in the auction announced by Rospotrebnadzor. All three suppliers offered to supply the vaccine in compliance with all conditions set by Rospotrebnadzor. The Commission of Rospotrebnadzor, however, did not accept the bids of "Shrea" and "Microgen" in breach if the legislation on state procurement. As a result of the illegal actions undertaken by the Commission of Rospotrebnadzor, the government contract for 1.7 billion Rubles must have been signed at the maximum price with the only participant whose bid was accepted - "MTKh" CJSC without an open auction.

Having investigated the complaint and conducted the inspection, the FAS Russia's Commission found the complaint justified and pronounced that actions of the Commission of Rospotrebnadzor, which had refused to accept the bid "Shrea" and "Microgen" for participation in the auction, unlawful because the bid of these companies, including the vaccine proposed for supplies, had met the requirements of Rospotrebnadzor in full. By issuing a determination, FAS Russia cancelled the decision of the Commission of Rospotrebnadzor. At the same time, an authorised FAS Russia officer initiated an administrative investigation regarding members of of the Commission of Rospotrebnadzor, whose actions had the sings of an administrative violation.

Auctions for vaccine supplies that were organized in compliance with the state procurement legislation have already proved to be highly efficient. The price went down when the government purchased vaccine through open auctions (organized by Roszdrav before these functions were transferred to Rospotrebnadzor), in which several bidders that offered vaccine of the required quality were allowed to participate.

If only one supplier was allowed to participate in the action, as it happened with the auction organized by Rospotrebnadzor, for the same vaccines the government would have to pay more than 6 billion Rubles. Russian budget saved around 4 billion Rubles only because several supplies competed with each other for the right to supply vaccines in the auctions organized by Roszdrav. The saved funds can be used for purchasing considerably larger quantity of vaccines (medicines) for the Russian population.

Currently the Commission of Rospotrebnadzor must repeat the procedures for accepting the auction bids and the auction. As a result, vaccines of the required quality will be supplied by the bidder that will offer the lowest price.