Tyumenenergo

The main provisions of the policy of JSC Tyumenenergo in the field of procurement activity are reflected in the Regulations on the procedures governing the procurement of goods, works and services for the needs of JSC Tyumenenergo (hereinafter the Procurement Regulation) approved by resolution of Company Board of Directors dated 27 June 2013 (Minutes No. 10/13). The Procurement Regulation is an internal document of the Company and is made for the purpose of the Federal Law No. 223-FZ dated 18 July 2011 “On procurement of goods, works and services by separate legal entities”. The Procurement Regulation controls procurement procedures, regardless of their cost.

JSC Tyumenenergo procurement activity is based on the following principles:

• Informational availability of a procurement;
• Equality, justice, non-discrimination and absence of unjustified limitations of competition in respect of participants of procurement;
• Targeted and economically efficient use of money for procurement of goods, works and services (with due account of a cycle cost of products being purchased, if necessary) and implementation of measures aims at cost reduction;
• Absence of limitations for participation in procurement by means of introducing extraordinary requirements to procurement participants.

The Company procurement management system includes:

• The Company Board of Directors;
• The Company Sole Executive body;
• The Company Central Procurement Commission;
• The Company Procurement Commissions;
• The Company Procurement Initiators;
• The Company structural subdivision for procurements — the Department of Regulated Procurement within the Office of Logistics and Material Readiness Management.

The Procurement Regulation of the Company provides for the following means of procurement: competitive tender, auction, request for quotations, request for proposals, competitive negotiations, simples procurement, small procurement, procurement from a single supplier, and procurement by means of participating in procedures established by product sellers.

The Company Procurement Regulation provides for the following forms of procurement, special procedures:

• open and closed;
• in e-version or on paper;
• with or without rebidding;
• with or without preliminary qualifying selection;
• with or without a possibility of alternative submission;
• in a single-, two- or multi-staged form;
• with or without post-qualification;
• special procurement procedures of complex products.

In compliance with requirements of the Federal Law №223-FZ dated 18 July 2011, JSC Tyumenenergo publishes the following information on an official procurement website and the Company's corporate website:

• Procurement, Works and Services Plan;
• Goods, Works and Services Procurement Regulation;
• Information on procurements;
• Data on a number and total value of contracts concluded by the Company on the results of goods, works and services procurement;
• Data on a number and total value of contracts concluded by the Company on the results of procurement from small and medium business.

Information on the main indicators of the annual comprehensive procurement program (ACPP)

The Annual comprehensive procurement program of JSC Tyumenenergo was fully completed in 2014. Procurements were pursued with regard to the Procurement Regulation requirements.

The volume of procurement of JSC Tyumenenergo amounted to 16, 588 mln RUB.

The volume of open procedures amounted to 16, 383 mln RUB or 98.76%. The volume of purchases made from a single source was 205 mln RUB or 1.24%. Moreover, in 2014 there were made 193 semi-fixed purchases (in accordance with art. 5.13. Procurement Regulations) for mln RUB.

Share of purchases made using e-commerce means was 98.27% in 2014.

The effectiveness of procurement procedures carried out (excluding semi-fixed procurement from a single source) amounted to 1,107 mln RUB or 6.3% of the planned procurement cost.

In 2014, JSC Tyumenenergo adopted a Partnership Program between JSC Tyumenenergo and small and medium enterprises, the purpose of which was to ensure the state policy for small and medium business development be means of the Company procurements.

The Partnership Program between JSC Tyumenenergo and small and medium business was developed in order to implement the Russian Federation Government Regulations dated 29 May 2012 No.867-p regarding approval of an actions plan (“roadmap timeline”) “Promote access of small and medium enterprises to procurements of infrastructure monopolies and companies partially owned by the government”.

The Partnership Program between JSC Tyumenenergo and small and medium enterprise establishes a set of measures aimed at creating and supporting a class of reliable, qualified and responsible suppliers (contractors, performers) among small and medium business entities. The Partnership Program establishes requirements for small and medium business, the terms and conditions of accession to the Program.

At the end of 2014, 93 small and medium business entities joined the Company`s Partnership Program.

In 2014, small and medium entities were actively involved into the Company`s procurement procedures. 2394 among 3132 participants are small and medium business entities.

In order to optimise and effective spending of the Company in 2014, measures were taken to improve procurement activities in the following areas:

Procurement automation

In 2014, JSC Tyumenenergo developed and implemented a system of procurement activities automation on SAP ERP platform with regard to the Company`s Procurement Plan formation; application procedure for procurements adding to the Company`s Procurement Plan was automated. “Procurements Register” module was developed.

“Procurement Card” module enables to track the procurement “life cycle” — the progress from the procurement notice to the contract conclusion according to procurement`s results.

Improvement of procurement planning and consolidation

JSC Tyumenenergo performs centralised procurements of material and technical resources, equipment, works and services securing reduction of purchase prices and optimization of the Company expenses. Reduction of purchase process is reached by a combination of requisitions from all JSC Tyumenenergo branches (combination of lots with analogous goods, works and services) within the frames of the whole Company, which makes another purchase amount, more interesting for manufacturers, which makes it possible to reduce supply prices. Thus, JSC Tyumenenergo receives two discounts: reduction of request cost after rebidding and additional discount for all the products after summing up amount of the requests.

E-auction development

Competitive procurement activities for purchasing of goods, works and services for the needs of JSC Tyumenenergo are held using functional of b2b-mrsk electronic trading floor. Annual share of procurement activities held in the electronic trade floor is no less than 95% of total amount of procurements.

These are obvious advantages of electronic trade floors for a customer in deciding on a supplier offering the most profitable conditions of supplies:

• Considerable economy of labour hours;
• Cutting of costs of procurement organization and conduct;
• Transparency and disclosure of a procurement process;
• Honest competition excluding work of dishonest employees with “their” supplier companies;
• A customer has an opportunity to hold e-auctions — tenders, requests for quotation and proposals — with cost optimization;
• Auctions are available from any part of the world online, from the comfort of the customer`s office.