Academic appendix

The following article focuses on identifying the specific features of an auction, organized in order to purchase certain goods (the buyer’s auction). The mentioned features cast doubt on the possibility of using auctions as an effective tool for state procurements. Among the listed dangers are inevitable purchase of less preferable goods (which is possible in case of buying heterogeneous wares) and multiple stimuli for dumping and suppliers’ collusion.

The subject of this article is one of the most important directions in the modernization of the state procurement system, which is formation and development of the electronic state procurement system that would work both on federal and regional level. The authors therefore provide a definition of electronic procurement and share their ideas on the prerequisites of the electronic state procurement system formation in Rostov region. Moreover, the article provides a thorough analysis of the problems in the electronic auctions organization and maps out the possible solutions. These include changing of the legislation and other regulatory and legal norms that might help to ensure the most efficient expenditure of the budget.

The author suggests a number of ideas for customers on how to insure themselves against numerous risks that tend to appear due to negligent conduct of suppliers. Besides that, the article answers such question as: how do the risks appear, how to deal with them in the most effective way and how should the risk distribution be organized between all the participants of bidding while the process of purchase is in progress.