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Working paper

An impact of different regulatory regimes on the effectiveness of public procurement

The reform of budget-sector entities enables us to compare the impact of different types of public procurement regulations in budget and autonomous organizations in Russia. Such analysis is important in light of the critical discussion of the effects of current procurement regulation (94-FL), as well as taking into account the introduction of the Federal Contract System in 2014. Using the difference-in-differences methodology, we shall consider public procurements of two national universities in 2011–2012. All procurements of the first university were regulated by the 94-FL requirements. Procurements of the second university were regulated by the 94-FL until June 2011. Later this university introduced its own Procurements Provision. A comparative analysis of procurements of these organizations enables us to estimate the impact of the different types of regulations on the effectiveness of public procurement, as measured by the level of competition and price decline in public tenders, as well as the timely execution of procurement contracts.