Current trends in pricing for state defense order products

The issues of pricing for products of the state defense order are considered. The classification of methods of procurement of weapons, military and special equipment is given. The main types of contract prices and methods of forming the initial maximum contract price are determined. Particular attention is paid to approaches to pricing for products of the state defense order for the case of a single supplier (contractor, execute). The modern norms of the law are presented, which allow optimizing budget funds by choosing an option that ensures the achievement of technical results and minimizing costs throughout the life cycle of weapons, military and special equipment.

ON CERTAIN LEGAL AND ORGANIZATIONAL ASPECTS OF PUBLIC PROCUREMENT IN RUSSIA

The paper is devoted to the analysis of certain organizational and legal aspects of the regulation of the contract system in the field of procurement for state and municipal needs. The purpose of the study is to identify legal and enforcement issues that impede the effective implementation of public procurement procedures in the Russian Federation. In order to achieve this purpose, the author uses a dialectic approach, applying a whole range of general and specific scientific methods, with a special focus on topical statistics. Results: the conclusion is drawn about the instability of the procurement law, its procedural bias, the unresolved issue of determining the initial (maximum) contract price, monopolization of procurement of small quantities of SET (single trade aggregate). It is concluded that there is a need to review approaches to determining the effectiveness of procurement procedures and to increase the responsibility of customers in this area.

TO THE QUESTION OF IMPLEMENTATION IN THE CONTRACTOR'S SAVING PRACTICE

The article examines the concept of contractor's savings in a construction contract, the problems of realizing in practice the contractor's right to demand full payment of the contract price if the cost of actually performed work is less than this price. The author proposes a number of solutions that will allow the contractor to freely exercise the right to pay savings.

Cost-Effectiveness and Budget Impact Analyses of Pneumococcal Vaccination in Indonesia

As a country with the high number of deaths due to pneumococcal disease, Indonesia has not yet included pneumococcal vaccination into the routine program. This study aimed to analyse the cost-effectiveness and the budget impact of pneumococcal vaccination in Indonesia by developing an age-structured cohort model. In a comparison with no vaccination, the use of two vaccines (PCV10 and PCV13) within two pricing scenarios (UNICEF and government contract price) was taken into account. To estimate the cost-effectiveness value, a 5-year time horizon was applied by extrapolating the outcome of the individual in the modelled cohort until 5 years of age with a 1-month analytical cycle. To estimate the affordability value, a 6-year period (2019–2024) was applied by considering the government’s strategic plan on pneumococcal vaccination. In a comparison with no vaccination, the results showed that vaccination would reduce pneumococcal disease by 1,702,548 and 2,268,411 cases when using PCV10 and PCV13, respectively. Vaccination could potentially reduce the highest treatment cost from the payer perspective at $53.6 million and $71.4 million for PCV10 and PCV13, respectively. Applying the UNICEF price, the incremental cost-effectiveness ratio (ICER) from the healthcare perspective would be $218 and $162 per QALY-gained for PCV10 and PCV13, respectively. Applying the government contract price, the ICER would be $987 and $747 per QALY-gained for PCV10 and PCV13, respectively. The result confirmed that PCV13 was more cost-effective than PCV10 with both prices. In particular, introduction cost per child was estimated to be $0.91 and vaccination cost of PCV13 per child (3 doses) was estimated to be $16.61 and $59.54 with UNICEF and government contract prices, respectively. Implementation of nationwide vaccination would require approximately $73.3–$75.0 million (13–14% of routine immunization budget) and $257.4-$263.5 million (45–50% of routine immunization budget) with UNICEF and government contract prices, respectively. Sensitivity analysis showed that vaccine efficacy, mortality rate, and vaccine price were the most influential parameters affecting the ICER. In conclusion, pneumococcal vaccination would be a highly cost-effective intervention to be implemented in Indonesia. Yet, applying PCV13 with UNICEF price would give the best cost-effectiveness and affordability values on the routine immunization budget.

26. Anticipatory breach of contract

This chapter examines the doctrine of anticipatory breach, which occurs where, before the time comes for A to perform their part of the contract, A declares that A is not going to do so. This repudiation of the contractual obligation is itself a breach of contract. The innocent party may choose to either accept or reject an anticipatory breach. If they accept, the contract is terminated and the innocent party can sue for damages immediately. If the anticipatory breach is rejected, then the contract remains on foot. If the innocent party elects not to accept the breach and to keep the contract alive, then they may proceed to perform their side of the bargain and sue for the contract price. However, it appears that this action for the agreed sum, or action in debt, may not succeed if the innocent party had no ‘legitimate interest’ in taking such steps.

Contract for Public Procurement in Terms of Private Law

The authors have analyzed the way of the origin and consolidation of the public procurement procedure in the Ukrainian national law from 1993 till the present day. That allowed us to determine the main conditions of public procurement, which have not changed during the whole period of existence of the independent legal system of Ukraine, and to critically evaluate them. Namely, the basis for payment is a report on the results of public procurement during the procurement of goods, works or services, and the cost of procurement should have been equal to or have exceeded the amount of UAH 200,000. The main scientific works focused on the consideration of public procurement issues in various branches of Ukrainian law have been summarized. The concept of the contract for procurement has been generalized and its features have been listed: the contract for procurement is an agreement between the customer and the participant (most of the parties), aimed at establishing, transferring or terminating property rights and obligations, which is concluded as a result of the procurement procedure and which provides the acquisition of freehold interest in the property, provision of services or performance of works. The main conceptual contradictions between the contract for procurement, the civil contract and the commercial agreement have been established and characterized. Based on the analysis of tender, civil and commercial legislation, the authors have carried out a critical analysis of the contract for procurement in terms of understanding and essential terms of the general civil contract, namely: violation of the concept of free agreement between the parties, non-compliance with equality of the rights, unreasonable narrowing of the contract for procurement up to the provision of services, performance of works or acquisition of ownership for goods, which contradicts the draft contract included in the tender documentation, the impossibility of reducing the contract price in the direction of reduction as agreed by the parties, the lack of electronic form of the contract for procurement provided by the tender legislation.

ANALYSIS OF ECONOMY IN PROCUREMENT FOR PUBLIC NEEDS BASED ON A SYSTEM AND RISK-BASED APPROACHES

The efficiency of public procurement today is considered all over the world as a complex of effects that ensure sustainable socio-economic development of the country. Among these effects, a special role is played by budget savings obtained as a result of tenders. In this case, the average number of submitted bids for one purchase is considered as the main criterion for competition in purchases and a condition for the growth of financial savings. We assume that this criterion is not sufficient for a qualitative analysis of such savings and balanced management of all the beneficial effects of public procurement. Using a systematic and risk-based approach, we have formulated an extended list of indicators that allow us to identify opportunities for increasing savings and risks of deterioration of other characteristics of procurement. The study of the proposed indicators by statistical methods was carried out on the example of purchases by the Kaliningrad customs. A differentiated analysis of the savings obtained as a result of auctions with different numbers of bids submitted showed a relationship between the initial contract price, the level of competition in procurement and the amount of saved financial resources. At the same time, it was revealed that a significant share of auctions in value terms is held without competition, and among those held with high competition, the share of the risk zone is too high, where the winner of the auction reduces the initial contract price by 25% or more. Further testing of the approaches we have formulated to a multidimensional assessment of the budget savings will reveal patterns in ensuring the efficiency of procurement for government organizations of various territorial and departmental affiliations.