OREANDA-NEWS. October 19, 2010. The Federal Antimonopoly Service (FAS Russia) found that “Russian Railways” OJSC (“RZhD” OJSC) violated Part 1 Article 17 of the Federal Law “On Protection of Competition” - actions (omissions) in course of auctions and tenders that have resulted or can result in preventing, restricting or eliminating competition, reported the press-centre of FAS Russia.

In 2009-2010, a branch of “RZhD” OJSC - the Central Directorate for freight wagon repair – organized two open tenders for awarding the contracts for technical maintenance of wheel-lathes for car-repair enterprises. The bids were evaluated under two criteria: scores and evaluation of financial and commercial offers. Bids comparison and allocation of scores were carried out in accordance with the procedures established by “RZhD” OJSC; information about them was given to the bidders only after the tender results had been announced.

The FAS Russia Commission established that although the subjects of the tenders were the same works, “RZhD” OJSC applied different procedures for determining the winner (different indicators for bids evaluation and score criteria). Nevertheless, both tenders were won by the same person.

Thus, information about the procedures for determining the winner of the tenders was not given to the economic entities wishing to participate in the tenders. Until the winner was determined, the bidders did not know how their submitted documents and information would be evaluated, which could have adversely affected the quality and content of presented materials. In its turn, by failing to publish the procedures for determining the winner, including score criteria, “RZhD” OJSC was able to unilaterally change the criteria to create preferential conditions for a particular bidder.

Having investigated the case file and having heard the arguments of the respondent, the FAS Russia Commission concluded that such actions of “RZhD” OJSC could have resulted in preventing, restricting or eliminating competition in organizing the tenders.

Part 2 Article 448 of the Civil Code of the Russian Federation specifies that tender notices should contain information about the time, place and form of bidding, the subject of bidding and bidding procedures, including bidders registration, determination of the winner, and information about the initial price.