For many representatives of Russian business, participation in state and municipal purchases is a significant source of income. This is especially true for small businesses, where each realized contract is a serious and almost basic article of the company's profit. At the same time, participation in state contracts is fraught with many negative aspects, among which the main and most undesirable is the risk of performers entering the register of bad-faith suppliers.For any company that is aimed at developing public procurement, getting on the register of bad-faith suppliers is a strike at the heart.This is a loss of business reputation and the inability to win a state contract for two years.But most importantly, this is a significant limitation of entrepreneurial activity and, as a consequence, lost profit.That is why each supplier strives to fulfill the terms of the contract as much as possible and not to bring the matter to the attention of the Commission of the Office of the Federal Antimonopoly Service (FAS). A fresh example of successful protection of their business reputation is the conflict situation that arose between the Limited Liability Company "MZS" (Moscow) and the Administration of the urban settlement Sofrino of the Pushkin Municipal District of the Moscow Region.
In December 2016 a municipal contract was concluded between LLC MZS and the Administration of the urban settlement Sofrino of the Pushkinsky Municipal District of the Moscow Region for the supply and installation of mechanical, light, sound, projection equipment and stage clothes for the needs of the house of culture "Yubileyny" of the Sofrino urban settlement.
Conscientious performance of its obligations under the contract did not protect LLC MZS from the decision of the Administration of the urban settlement Sofrino of the Pushkinsky municipal district of the Moscow region on unilateral refusal to perform this contract. After The break of the contract the inevitable hit of LLC "MZS" in the register of bad-faith suppliers would be followed. And only the timely application for legal support to Legal Business Solutions helped the company to defend its rights and avoid being excluded from procurement for state and municipal needs.
This case was considered by the Commission of the Moscow Regional Office of Russian Federal Antimonopoly Service(FAS) and during the study of materials it was decided not to include information about LLC MZS in the register of unscrupulous suppliers.
Legal Business Solution’s lawyers managed to close the case, proving that the Customer of this municipal contract violated the order of notification of unilateral refusal to perform the contract. According to the provision of paragraph 12 of Art. 95 of the Federal Law "On the Contract System in the Sphere of Procurement of Goods, Works, Services for Ensuring State and Municipal Needs", the customer is deemed to have duly notified the supplier of unilateral refusal to perform the contract only if the customer's decision is sent to the supplier by registered mail with a notification of Delivery.
In the situation of the company LLC MZS, the Customer notified the Supplier about it’s decision only by e-mail address, referring to the provision of the contract. However, the Customer did not take into account the fact that the possibility of notification of a unilateral refusal to execute a contract only via e-mail provided in the contract does not cancel the Federal Law "On the contract system in the procurement of goods, works, services for state and municipal needs",requiring notification via the Russian Post.
The extensive experience of legal work and attentive attitude to all the details of the case under consideration allowed the lawyers of Legal Business Solutionscompany to detect this non-observance of the provision of the Federal Law and save the business reputation of LLC MZS, which will allow the company to continue participating in auctions of state and municipal contracts and Offer their services.