Defence against blacklisting of suppliers

What is happening

The winning bidder failed to sign on time: the electronic signature certificate had expired, the bank was slow issuing the security, the responsible employee fell ill. To the customer this is evasion; to the company it is a glitch whose causes must now be proved.

The contract was being performed, but problems arose: the manufacturer failed to deliver, the site was not ready for work, the customer did not hand over the design documents. The customer announced a unilateral withdrawal and immediately reported the company for blacklisting.

The company learned of the hearing with only days to go. The position, correspondence and evidence have to be assembled very quickly, or the commission will only see the customer's version.

What the law says

• The register of unreliable suppliers is kept under Federal Law No. 44-FZ of 5 April 2013 "On the Contract System for Procurement of Goods, Works and Services to Meet State and Municipal Needs" (Law 44-FZ). The grounds for inclusion are evading the signing of a contract and termination of a contract by a court or following the customer's unilateral withdrawal for a material breach.
• The competition authority decides after reviewing the customer's report. Inclusion is not automatic: the bidder's conduct, its intention to perform and the steps it took are all assessed.
• Entries stay on the register for two years. Throughout that time, customers that require bidders not to be on the register may reject the company's bids.
• A customer's unilateral withdrawal takes effect ten days after the supplier has been duly notified. If the breach is remedied within that period, the customer must, with some exceptions, reverse its decision.
• For tenders under Federal Law No. 223-FZ of 18 July 2011 "On Procurement of Goods, Works and Services by Certain Types of Legal Entities" there is a separate register with its own grounds for inclusion.
• A decision to blacklist may be challenged in the commercial court under the Commercial Procedure Code (APK), including with an application for interim measures.

What we do

• We reconstruct the timeline: what happened at signing or during performance, where things went wrong and why.
• We gather evidence of good faith: correspondence, applications to the bank, suppliers' letters, proof of attempts to perform.
• We check whether the customer followed the unilateral withdrawal procedure and the notice deadlines.
• If the breach can be remedied within ten days of the withdrawal notice, we help you do so and record it properly.
• We prepare written explanations for the competition authority and represent the company at the hearing.
• We challenge a blacklisting decision in the commercial court.

What we will need from you

• The competition authority's notice of the hearing, if already received.
• The contract, the tender protocols and the customer's decision on withdrawal or evasion.
• All correspondence with the customer, including through the information system and by email.
• Documents showing attempts to perform: orders with suppliers, payment orders, delivery notes, photos, correspondence with the bank.
• Details of contracts performed previously, which show the company to be a reliable bidder.