The development of an alternate algorithm to be introduced into the initial maximum pricing of contract in view of assessment tools in the government and corporate procurement

The last revision of the Federal Law No. 44-ФЗ on the Contract System in the Central and Local Government Procurement dated April 05, 2013, which came into effect on April 23, 2018, identified five methods for justifying the initial maximum contract price: a comparative market analysis, regulatory, tariff, design and estimate, and cost methods. Due to the fact that the above-mentioned value affects the amount of government procurement, the proper calculation of such a price is a priority for a customer and a contract holder. However, inadequate procurement legislation raises a number of issues faced by both parties. Such conflicts are reflected in the specific nature of pricing when establishing the initial price. They lead to an inefficient use of financial resources as well. The author presents the basic provisions of an alternate algorithm to be introduced into maximum pricing in the field of government and corporate procurement that will not only solve current issues in this regard but also determine the proper value of the initial maximum contract price. The research is based on the following methods: analysis, synthesis and comparison of information; deduction; a regulatory and legal method for an in-depth study of legislation in the field under review.