Rostelecom and Technoserv try to prove they legally created Safe City complex that cost 800 million rubles

The dispute of FAS, the customer, Rostelecom and Technoserv around the large project of implementation of Bezopasny gorod agrarian and industrial Complex in the Vologda region goes since 2018. The customer on behalf of the Center of ensuring regional security of the Vologda region (TsORB) and developers try to prove that they did not break the law on protection of the competition in this project.

The OFAS across the Vologda region thinks differently: in their opinion, TsORB not only had no powers for creation of Bezopasny gorod agrarian and industrial Complex, but also created the conditions on the tender limiting the competition. And in actions of Rostelecom and Technoserv with which Rostelecom which won the tender of TsORB and signed the contract for accomplishment of these works, anti-monopolists saw cartel collusion.

The court in January, 2020 sided with OFAS, but TsORB is going to continue to dispute the solution of antimonopoly management. In parallel in other courts there are trials with OFAS of Rostelecom and Technoserv.

2019-2020: Court of FAS with the customer, Rostelecom and Technoserv

In December, 2019 the Arbitration court of the Vologda region refused to recognize illegal the decision of regional OFAS that the Center of ensuring regional security of the Vologda region (TsORB) broke the law on protection of the competition. Case was considered in the claim of TsORB which does not agree with the decision of the Vologda OFAS.

Within this case the court considered only disputed issues concerning enlargement of lot of purchase due to inclusion in it creation of Bezopasny gorod agrarian and industrial Complex at the same time in several municipal entities of the Vologda region and also inclusion in one purchase of diverse project works. Outputs of OFAS about cartel collusion in this case were not a trial subject.

In addition to TsORB claims to OFAS for the Vologda region on the case of creation of Bezopasny gorod agrarian and industrial Complex in the region were also submitted by Rostelecom and Technoserv (a photo - the account in Oleg Kuvshinnikov's Twitter)

The court agreed with outputs of FAS that consolidation as a part of one purchase of works on design and creation of Bezopasny gorod agrarian and industrial Complex in different municipal entities of the Vologda region led to unreasonable enlargement of a subject of purchase and restriction of number of procurement participants.

It is connected, including, with need of execution of works, rendering services in the territory of considerable number of administrative regions of the Vologda region in one time frame in need of presence at the procurement participant in each such region of the appropriate material and labor resources, said in court's decision.

TsORB and Rostelecom consider that the Arbitration court of the Vologda region partially recognized the decision of OFAS on this case illegal, without explaining a detail. In the text of court's decision there is mentioning that the OFAS did not provide the bases in confirmation of the output that inclusion in one purchase of works, and on design, and directly on creation Bezopasny gorod agrarian and industrial Complex breaks the law on protection of the competition too. TsORB proved in court that project development is a part of creation of an information system.

But in the summarizing formulation of court's decision it is said that case papers do not confirm existence of the bases for recognition illegal the decision of OFAS. Thus, the court refused to meet this requirement of TsORB.

The claimant, however, will continue attempts to dispute the decision of OFAS.

KU WO "TsORB" does not agree with the conclusions drawn both by OFAS, and Arbitration court of the Vologda region therefore it intends to appeal against the judgment in 14 Arbitration Court of Appeal. Under the law term on the appeal is 1 month from decision date court of first instance (production in full). At the moment the petition for appeal is in a drawing up stage, - told TAdviser in TsORB in February the 2020th.

Rostelecom also reported to TAdviser that as of the beginning of February petitions for appeal prepare. The company at the same time emphasized that in court's decision on losses for the region nothing is specified.

The Vologda OFAS told TAdviser that the decision made in 2018 which tries to dispute TsORB in 2019 was followed by two resolutions on administrative cases – separately concerning Rostelecom and Technoserv. Directed to pay the companies penalties for the allowed violations. Decrees were issued on December 23.

The representative of the Vologda OFAS reported to TAdviser that as of February, 2020 Rostelecom tries to dispute the resolution concerning itself in Arbitration court of St. Petersburg, and Technoserv - in Arbitration court of the Moscow region. The sizes of the penalties ordered to the companies in antimonopoly management were not sounded, having preferred to wait for the end of judicial proceedings.

Rostelecom and Technoserv already have an experience of the trials with FAS concerning large regional projects. So, for example, in 2017-2018 like those arose around the project of creation of a system of photovideo fixing of violations of traffic regulations in the Novgorod region. As well as in a case with the Vologda region, then the antimonopoly authority also saw the anti-competitive agreement between Rostelecom and Technoserv which was attracted as subcontractor. Read more here.

2018: FAS revealed antitrust violations, cartel collusion

In 2018 the Vologda OFAS started the case of antitrust violation connected with this purchase. In base of FAS decisions it is specified that as the applicant on case the prosecutor's office of the Vologda region acted.

The decision was made in January of the 2019th. Having investigated circumstances of purchase, the Vologda OFAS of Russia revealed a number of violations. First, in antimonopoly service considered that the Center of Ensuring Regional Security (CERS) was not given authority on creation of Bezopasny gorod agrarian and industrial Complex for pilot municipal entities of the region.

The carried-out purchase on creation of Bezopasny gorod agrarian and industrial Complex does not belong to needs of the Center of providing with regional security, - note in the Vologda OFAS.

Besides, came to a conclusion in the Vologda OFAS, consolidation as a part of one purchase of requirements for design and creation of Bezopasny gorod agrarian and industrial Complex in the different municipal entities differing in the technical and functional characteristics caused restriction of the competition and led to cartel collusion (the anti-competitive agreement) between Rostelecom and Technoserv.

Restriction of the competition consists in reductions of number of economic entities and in failure of hozsubjekt - potential procurement participants from participation in it and also in creation for two economic entities - Rostelecom and Technoserv - opportunities to influence unilaterally general terms of the address of goods in goods market, - anti-monopolists explain.

The government contract between TsORB and Rostelecom on execution of works on creation of Bezopasny gorod agrarian and industrial Complex was concluded for the amount about 809.4 million rubles. Further Rostelecom and Technoserv signed the agreement on accomplishment of similar works for the amount about 483 million rubles. The difference between the cost of the government contract and agreement made 326.8 million rubles.

When comparing technical specifications of TsORB and Rostelecom their identity is set that is confirmed by the persons who are involved in consideration of the case, said in the decision of the Vologda OFAS. Taking into account it, in the Vologda OFAS believe that damage was caused to the state.

Taking into account explanations of Presidium of FAS Russia of 10/11/2017 No. 11 "By determination of the size of the losses caused as a result of antitrust violation", approved as the protocol of Presidium of FAS of 10/11/2017 No. 20, the approximate extent of damage caused to the state made 326,856,214 rubles 55 kopeks, says about case on the website of FAS[1].

It should be noted what at the same time in the text of the decision of the Vologda OFAS on this case is not talked about damage, such statement is only in the news message on the website of FAS.

After the introduction of the solution in force the Vologda OFAS was going to consider a question of initiation of proceedings of administrative offense against perpetrators and also to report information to law enforcement agencies.

2016

Experiment of the Vologda region on implementation of end-to-end systems of security will be applied in regions of the country

The governor of the Vologda region Oleg Kuvshinnikov during the meeting of the Interdepartmental commission of the Government of the Russian Federation on the questions connected with implementation and development of the Safe City system told about the main stages of program implementation and shared experience on system implementation of HSC in the territory of the region ^[2].

According to him, for the purpose of increase in level of public security and law and order upgrade of video surveillance systems in Vologda, Cherepovets and Vytegra was made. Outdated cameras were replaced with modern digital, the center of processing and data storage is created.

On all digital cameras function of automatic recognition and automatic detection of the purpose, fixing of accumulation of people and the left objects, etc. is configured. In total 124 stationary complexes of automatic fixing are delivered.

Also the list of the fixed violations on routes and roads of street network of the cities is expanded. Now not only speeding, but also journey on an inhibit signal of the traffic light, departure on a band of oncoming traffic, the parking at bus stops and another is controlled.

Besides, within the project the system of search of Flow vehicles is started. Police officers daily use information of this system when holding operational investigative actions, with its help solve different offenses and the crimes. Also in Vologda, Cherepovets and Vytegra within Bezopasny gorod agrarian and industrial Complex the systems of complex monitoring of parameters of the environment (KMOS) are created.

The governor of the region Oleg Kuvshinnikov commented on meeting results:

The Vologda region became the pilot region on system implementation of Bezopasny gorod agrarian and industrial Complex. We became one of the first in the Russian Federation regions which started implementation of orders of the Russian President and Prime Minister. In 2015 we began work: the regional interdepartmental working group is created. At the end of 2015 competition at the choice of contract organization is announced. In February, 2016 competition was won by federal company "Rostelecom" together with "Tekhnoserv" who got to mounting work and a commissioning of the equipment in the territory of three municipal entities, federal highways and a road network of the cities.

On efficiency and timely assignment for program implementation we are in the first place. Only the off-budget investments this year nearly 1 billion rubles are attracted. The equipment is mounted, works in the test mode from the middle of this year, and we already see real results, - the head of the region noted. - So, from the moment of commissioning of mobile and stationary surveillance cameras abuses of regulations of public order - more than were reduced by 10%. On routes we note decrease in number of violations on a third, and the number of the dead - for 13%, - the governor noted.

The Deputy Prime Minister of Russia Dmitry Rogozin noted progress of the Vologda region on system implementation of Bezopasny gorod agrarian and industrial Complex and set the task – to broadcast an example of the Vologda region in regions of the Russian Federation.

Choice of Technoserv by subcontractor

In April, 2016 Rostelecom selected subcontractor who will create HSC in the Vologda region. The Technoserv company which suggested to perform work for 482.8 million rubles at the starting price in 514 million rubles^[3] became it].

The request of the second participant - the AT Service company entering into the AT Consulting group was not allowed before consideration because of mismatch of contract dates.

Signing of the government contract

In February, 2016 Rostelecom signed the government contract with the government of the Vologda region on sale of a hardware-software complex "Safe city". The company was selected by the contractor, having won the tender with the starting price of 809.7 million rubles against Technoserv company^[4].

Three pilot municipal entities of area for deployment of Bezopasny gorod agrarian and industrial Complex were defined: Vologda, Cherepovets and the Vytegra district in which 55% of inhabitants of the region live.

Implementation of the Safe City complex is aimed at creation of a common information space for effective interaction of services of public security, maintenance of public order and comfortable conditions of accommodation of citizens. The circuit of HSC includes outside video surveillance, points of an emergency communication "citizen police" and cameras of photovideo fixing of violations of traffic regulations. A system will look for in real time the vehicles which are wanted.

Notes