Construction company given task to design and maintain five bridges in Omsk region.
In a move aimed at boosting rural infrastructure in the Omsk Region, the Road Management Department has signed five contracts for the development of project documentation for the capital repair of bridges. The contracts, which were awarded through a competitive bidding process, have been given to a single contractor, LLC "Avtodorproekt."
The decision to award multiple contracts to one firm has led to a significant reduction in contract prices. The price for bridge design through Uk on the bypass of the village of Bolshe Uki was reduced from 7.3 million to 3.1 million rubles, while the price for bridge design through Osha on the "Bolshe Kuchki - Bolshe Turaly" road was cut from 5.9 million to 2.7 million rubles. Similar reductions were seen in the prices for bridge design through Karasuk on the "Omsk - Tara" highway, Om on the "Kalachin - Arhangelsk" highway, and Baselka on the "Bolshe Uki - Znamenskoye" road.
So, what factors led to this consolidation of contracts and the subsequent price drop?
### Possible Reasons for Awarding Multiple Contracts to LLC "Avtodorproekt"
1. Proven Expertise and Reliability: With a strong track record and technical expertise in bridge design, "Avtodorproekt" was a preferred choice by procurement officials. By consolidating contracts, regions can streamline workflows and ensure consistent standards.
2. Competitive Pricing Strategy: Awarding multiple contracts to one firm might have encouraged volume discounts or package deals, allowing "Avtodorproekt" to leverage economies of scale in design processes and offer lower prices per contract.
3. Simplification of Project Management: Having a single contractor handle multiple bridge designs simplifies communication, coordination, and oversight, reducing administrative costs and risks.
4. Procurement Rules and Tender Process Structure: The tender design might have favored bundling several bridge projects into a single package or multiple lots awarded to one contractor to increase competition or realize cost savings.
5. Strategic Regional Policy: The Omsk Region may have aimed to foster long-term relationships with local or specialized companies to develop regional infrastructure sustainably. Supporting "Avtodorproekt" with multiple contracts could be part of a strategic approach to build local expertise and reduce costs over time.
### Why Did Contract Prices Drop Significantly?
The reduction in contract prices can be attributed to several factors:
- Volume Discounts: The larger volume of work likely led the contractor to reduce unit prices. - Reduced Competition and Administrative Costs: Consolidated contracts reduce competition but can also decrease overhead and tender-related expenses. - Increased Efficiency: Handling multiple designs concurrently can lower resource use and improve productivity. - Negotiation Power: The region possibly negotiated better terms due to the scale of contracting.
In essence, awarding five bridge design contracts to LLC "Avtodorproekt" in the Omsk Region likely resulted from the company’s expertise, the procurement strategy favoring bundling contracts, and the desire to reduce costs via economies of scale. These factors collectively contributed to the significant reduction in contract prices, benefiting the region’s infrastructure development budget.
Under the contracts, LLC "Avtodorproekt" is responsible for carrying out engineering surveys, preparing project and working documentation, passing state expertise, and obtaining a positive conclusion. The documentation must be handed over to the customer by the end of November of the current year.
I'm not sure if the significant reduction in contract prices is solely due to a competitive pricing strategy by LLC "Avtodorproekt." Other factors, such as increased efficiency, reduced competition, and negotiation power, might also play a role in this price drop. The industry of bridge design and finance landscape in the Omsk Region seems to support the awarding of multiple contracts to a single entity. However, the exact combination of factors leading to this consolidation is not entirely clear and could be a result of a mix of the reasons mentioned above.
