Problems of Formation of the Initial Price in Public Procorement

Abstract:

The study and analysis of legal features and international experience in the organization and operation of contractual systems allows us to formulate a number of provisions and conclusions of a practical nature regarding the mechanism used to form initial prices in government procurement. The value of the problem lies in the fact that the category “price” has a dual character, since it affects the total income of the producer of goods and services and should allow him to recover costs and ensure profit, by the customer. The basic principle of contractual systems is the saving of state funds with the required quality of goods and services, which explains the problem of pricing. During the study of the pricing mechanism in the implementation of procurement revealed that the key are the issues of understanding, calculating and applying initial prices. The total contract price and, as a result, the effectiveness of budget expenditures as a whole depends on how justified the customer is to set the initial contract price. In this regard, the results of the study may be useful to participants in the field of public procurement, contract managers, economists, as well as representatives of suppliers of goods and services.

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