Procurement
FESCO Group’s procurement function has its own specifics, as the operations of the Port Division companies are governed by Federal Law No. 223-FZ On Procurement of Goods, Works and Services by Certain Types of Legal Entities dated 18 July 2011, while procurement operations of the other companies are governed by the Group’s internal documents.
FESCO Group’s documents related to procurement:
- Regulations on the Procurement of Goods, Works and Services for the Needs of PJSC Commercial Port of Vladivostok and its SubsidiariesApplicable to the Port Division companies only. available on the official website of the Unified Information System in Public Procurement;
- Uniform Procurement Standard for FESCO and Controlled Entities of FESCO;
- internal regulations that set out the procedure for interaction when carrying out procurement and contractual work.
Information transparency in procurement
Equality, fairness, non-discrimination and no unreasonable restrictions on procurement participants, prevention of corrupt practices and abuse in the procurement process
Implementation of procurement processes to provide FESCO Group companies with goods, works and services in a timely manner and to inform suppliers in advance of planned procurements
Ensuring targeted, economically justified and efficient spending on the procurement of goods, works and services (taking into account life cycle costs) and implementation of measures aimed at reducing the costs of FESCO Group companies
Procurement management and control
Key procurement management and control bodies:
- Central Procurement Commission;
- procurement commissions of FESCO Group companies;
- FESCO’s Procurement Directorate.
Decisions on the selection of suppliers, contractors and service providers are taken by the relevant procurement commissions.
FESCO establishes procurement commissions by line of business rather than by company:
- information technologies;
- liner logistics;
- technical operation of marine vessels.
In 2022, to improve the efficiency of the procurement process, FESCO Service Centre served as the basis for a new vertical procurement and supply management structure of FESCO Group, which includes:
- Procurement Division;
- Supply Division;
- Far East Region Procurement Division;
- Far East Region Supply Division;
- Procurement and Supply Process Analysis and Development Team.
To ensure the transparency of FESCO Group’s procurement, promote competition and empower procurement participants, FESCO’s procurement showcases were created on the RTS-Tender e-commerce platform in 2022:
- commercial procurement
(fesco.rts-tender.ru); - procurement under Federal Law No. 223-FZ dated 18 July 2011
(fesco223.rts-tender.ru).
Digital supply system project
As part of the procurement process digitalisation, a uniform comprehensive information solution was created on the basis of 1C: Holding Management software for the automation of procurement management functions of FESCO Group companies. In 2022, all Group companies resident in the Russian Federation were connected to the system.
Procurement from small and medium businesses
FESCO Group companies whose procurement activities are governed by Federal Law No. 223-FZ dated 18 July 2011 comply with the requirements for procurement from small and medium-sized enterprises (SMEs) established by the Russian Government’s Resolution No. 1352 dated 11 December 2014 On the Specifics of Small and Medium-Sized Enterprises’ Participation in Procurement of Goods, Works and Services by Certain Types of Legal Entities.
In 2022, procurement from SMEs calculated in accordance with the above resolution (in terms of payments) totalled RUB 1.861 billion, or 57.6%, with a quota of at least 25%.
2022 RESULTS
The Company carried out 10,513 procurement procedures totalling RUB 52.6 billion (net of VAT).