Could public procurement become an incentive for developing the non-profit sector in Russia?

Journal of Social Policy Studies. 2020. Vol. 18. No. 1. P. 115–128.

Sirotkina N. G., Zuyeva E. E., Pavlovskaya S. V.

Non-profit organizations deliver a wide range of meaningful resources to communities in such diverse areas as education, arts, culture, medicine, social service and others. However, as compared to the private sector, their funding potential is much more limited. Increasing social and economic impact of the non-profit sector is a reason why there is a need in persistent efforts to enhance these opportunities. State contracts have a good potential to be regarded as one of the most essential sources of funding for non-profit organizations in the social sphere. Recently passed laws ensure substantial benefits for socially oriented non-profit organizations when participating in public procurement. Nevertheless, despite existence of norms allowing socially oriented NPOs to get preferences in tenders, presence of the non-profit sector in Russian public procurement market is still insignificant. The study seeks to analyze peculiarities of Russian public procurement legislation. Another purpose of the study is to investigate barriers to   functioning of Russian NPOs in the public procurement market.  The major question of the study to be asked is the following: why did the state order fail to become one of the drivers for the development of the non-profit sector in Russia? First, we consider the functioning mechanisms of socially oriented NPOs in the public procurement market. Then, we analyze the results of the expert interview, which let us identify the following barriers limiting participation of NPOs in public procurement: economic, financial, social and organizational barrier. Finally, we make a conclusion that for the majority of non-profit organizations state order is an optional source of funding in view of the identified barriers, and make recommendations on attracting socially oriented NPOs in the field of public procurement. The study is relevant for the government and public authorities, since it can serve as a starting point for improving the mechanisms of attracting the non-profit sector in the sphere of public procurement.

Keywords: государственные закупки, НКО, некоммерческий сектор, социальные услуги, social services, socially oriented non-profit organizations, non-profit sector, public procurement, procurement procedures, процедуры закупки