Gazprom-AR2014

Corporate Governance
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In 2014, OAO Gazprom and its subsidiaries entered into more than 23.5 thousand contracts
through competitive procurement worth RUB 817bn and saved over RUB 35bn (or 4.1% of the
initial price).
To control procurement from a sole supplier (contractor, service provider) OAO Gazprom has
a Budget Committee in place, reviewing price bids to assess whether pricing is reasonable. Such
reviews help reveal opportunities for a 10–15% price reduction, which is higher than average cost
saving through competitive procurement.
As part of the national SME development policy and pursuant to resolutions issued by Russian
Government, OAO Gazprom implements a set of initiatives to widen access for SMEs to the
Company’s procurement. According to 2014 procurement results, OAO Gazprom entered into
1,185 contracts with SMEs to an amount of RUB 3,882 mm, including through competitive procurement,
where SMEs, on a common basis, won 93 contracts to a total of RUB 2,835mm, and
1,092 contracts with a sole supplier (contractor, service provider) to the total of RUB 1,047 mm.
Initiatives to expand SMEs access to procurement
i
See more detail in the Innovative
Activity section
— Single-window system was developed for introduction of SMEs’ innovative products and results of scientific
research, design and technological projects and mutual technology transfer.
— OAO Gazprom–SME Partnership Programme was approved, including innovative companies.
— Procurement procedures were simplified to the maximum possible extent and shifted to an electronic format by
using the capabilities of Electronic Trading Platform of Gazprombank (ETP-GPB) and OAO Gazprom’s Automated
electronic procurement system.
— Request for proposal (RFP) form was developed and is currently used; it contains minimum required list of
documents, which simplifies procurement procedure for SMEs.
— No bid bond requirement is applied to SMEs in procurement of items to which they are eligible.
— Specifics and priorities were specified for SMEs participating in procurements: the Procurement Regulation was
supplemented with section 17, Specifics of Competitive Procurement from SMEs, which, in accordance with the
law, will become effective on 01 July 2015 (Resolution of OAO Gazprom’s Board of Directors No. 2375 dated
27 June 2014).
— List of products procured only from SMEs was prepared; it includes over 390 items of goods, works and services.
— To simplify small procurement procedure (for an amount of up to RUB 500 thousand) an electronic procurement
service was developed and launched at the Electronic Trading Platform of Gazprombank (ETP-GPB). The above
initiatives will grant access to Gazprom Group procurement for medium-sized as well as small businesses.
Since the procurement is ultimately necessary for continuous operation of Gazprom Group, the
ultimate criterion and high efficiency indicator of the current procurement system is OAO Gazprom’s
performance in terms of gas supply reliability, capacity additions in Russia and abroad, and success
of investment projects and programmes, i.e. contribution to national energy security.
OAO Gazprom Annual Report 2014