Ministry of Defense intends to spend $17bn without tender

Ministry of Defense intends to spend $17bn without tender
Sergey Shoigu Photo: Alexander Miridonov / Kommersant

The military department has chosen 12 organizations, which would fullfil state orders on special-purpose facilities instead of the abolished Spetsstroy.⁠

Defense Minister Sergey Shoigu has selected 12 contract organizations that will be engaged in the implementation of works on the design, construction, overhaul and reconstruction of special purpose facilities. All of them will receive the status of "sole" executors of state orders from the Ministry of Defense. Shoigu addressed the relevant letter to Vladimir Putin, who supported the proposal, on November 20, Kommersant reports.

In total, for these works, according to the state program of armaments for 2018-2027, the Ministry will receive about 1 trillion ruble ($17bn). And the status of "sole" performers will allow distributing orders without tenders and competitions.

Maintenance of the Ministry's needs without a tender is connected with the liquidation of the Federal Agency for Special Construction (Spetsstroy), which ceased its activities on September 28. From that moment, all functions of the agency were assumed by the military department. Now, instead of 45 separate organizations that used to be part of the structures subordinated to the Ministry of Defense, the Ministry proposes to distribute all orders for servicing the military construction complex between 12 executives subordinate to it directly. Previously, most of them were subordinate to Spetsstroy. After its abolition, the military decided to reform the military construction complex.

Recall, Defense Minister Sergey Shoigu announced the abolition of the Federal Agency for Special Construction Spetsstroy in December 2016. In exchange, it was planned to create eight federal state unitary enterprises, which would be engaged in the construction of special facilities of the Defense Ministry. Inspections on the effectiveness of spending budget funds began in Spetsstroy in October last year, after the President received a devastating report on the activities of the department.

At a closed meeting with the head of the General Staff of the Russian Armed Forces, vice-director of the Spetsstroy Alexey Mogilnikov said that only 11 objects out of 83 that are being built in the interests of the Ministry of Defense are keeping pace with the schedule, while the state of 61 objects was rated as "critical." Spetsstroy, among other things, was responsible for the construction of the Vostochniy spaceport, which is known for multi-billion theft and dozens of criminal cases.



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