Protection against inclusion on the register of unfair suppliers (RNP)

• Time. No more than ten days usually elapse between the time a contracting authority decides to terminate a contract and FAS Russia hearing. Notifications to attend hearings are typically sent 1–3 days in advance. The earlier lawyers become involved, the more can be achieved, as preparation and justification of key arguments usually allow only a few days

• Irrevocability of decisions. Once a company is included on the Register of Unfair Suppliers (RNP), it is effectively barred from participating in tenders and fulfilling public contracts for two years. Although the law provides mechanisms for appealing FAS decisions, success is rare. Practice is overwhelmingly stacked against the contractor

• The RNP includes data not only about the company itself but also individual members of its group
• Initiation of the RNP procedure indicates that the contracting authority has rejected and cannot, in an uncontested manner, accept contract performance results. Contractors require additional court protection, the FAS Commission’s decision being a key argument in their defence

• If a contractor realises the client intends to terminate or reject the contract, or if the contract is substantially breached or unfulfilled, they have a few days to weeks to substantiate their defence arguments
• If the client has already decided to terminate the contract, notifying the FAS of the request to include the contractor on the RNP is only a matter of time (typically within two days)
• Once materials are submitted to FAS Russia, the contractor has 1–2 to 10–14 days to prepare for the hearing. The antitrust service often summons participants unexpectedly, typically for the following day or the day after that
• FAS Commission hearings are usually conducted at a single session without adjournments and decisions are virtually irrevocable, taking effect within just a few days

• Significant failure in or breach of contract performance
• Delays in contract execution or milestone completions (any delay is critical but 30+ days is especially severe)
• Functional acceptance committees or contracting authorities giving formal reasons to refuse acceptance
• Winning a tender but failing to sign the contract for objective or other reasons

• Analysing circumstances and evidence
• Developing a defence strategy
• Researching relevant legal and judicial practices to draft a legal position
• Preparing objections to RNP inclusion requests and a full document package for court filings
• Communicating with FAS officials and contracting authority representatives, engaging in settlement negotiations
• Representing clients during FAS Commission hearings
• Counselling on legal issues arising during FAS reviews
• Filing complaints with FAS Russia on violations by contracting authorities under the “State Defence Procurement” law
• Representing clients in FAS reviews of complaints against contracting authorities

rnp@bgplaw.com

Phone: +7 (495) 777 28 20