Seldon.Price: Prompt Initial Maximum Contract Price Justification

How Contract Price Justification Works

Seldon.Price is included in the Russian Software Register.

Seldon.Price: Free and PremiumBefore Seldon.Price was created, searching for contracts, adjusting prices and units of measurement, as well as creating a justification report could only be done manually. It was time consuming and complicated, especially when it concerned medical goods. The Orders of the Ministry of Healthcare No. 871n and No. 1064n from 19.12.2019 complicated the process even more as often you would have to announce the tender several times on account of suppliers not participating because of a low price. At the same time, it is quite difficult to recalculate prices, for example, for solutions that are supplied in ampoules or bottles, but it is necessary to justify in milliliters in accordance with the units of measurement from ESKLP (Unified directory-catalog of medicinal products).

Seldon.Price was created to make this process easier by automating all of its stages, from contract selection to initial maximum contract price justification in compliance with all legal requirements, which helps bidders to avoid common mistakes.

What are common mistakes?

Contracts with fines were used in justification.

Selected contracts have the same supplier.

Permitted variation coefficient was exceeded.

The recalculation of the medicinal product in the units of measurement was made incorrectly.

Products & Services and Drugs

Seldon.Price is divided into two sections:

• Products & Services section is designed for initial maximum contract price justification for tenders in compliance with The Order of The Ministry of Economic Development and Trade No. 567 from 02.10.2013, which contains methodological guidelines for initial maximum contract price calculation, for justification of medical devices prices in accordance with Order No. 450N and Order No. 759n / 3450 (for PVC medical products), as well as for security services justification in accordance with Order of the National Guard of the Russian Federation No. 45.
• Drugs section is designed for initial maximum contract price justification for healthcare-related tenders according to 44-FZ in compliance with The Order of the Ministry of Healthcare No. 1064n from 19.12.2019, which determines the order of initial maximum contract price justification relating to drugs procurements.

Products & Services

Products section was designed for procurement department employees of government agencies participating as customer.

How it works: user specifies the product name in the search field, based on which the service instantly selects relevant contracts. Then, the user can specify the required quantity and measurement unit, set up filtering by OKPD2 code, contract date, region, and price group.

I'm a supplier. How can I use Seldon.Price?The section is useful for suppliers who want to determine the government order market price of their products. All you have to do is specify the product name, time range and region. Seldon.Price will show the average contract prices for this product.

Moreover, Seldon.Price is bringing the suppliers and customers closer to each other. Thanks to the "Recommended Suppliers" feature the customer can get a list of potential suppliers and request the quotations from them. All a supplier has to do is confirm their contact information. The customer will see the information in the supplier's profile and use it to contact them.

Price Adjustment

User can adjust the price of each product in the contract using a multiplying ratio, deflator coefficient or other coefficient (Order 567 states that the adjustments are made at the customer’s discretion).

The multiplying ratio can be used to compensate for the difference between the initial and the final prices and to bring it closer to the average market value. If the initial maximum contract price was 60 rubles and after the procedure it dropped to 40 rubles, Seldon.Price will show the latter. It means you can increase the price by up to 13%.

The deflator can be used to bring the price from the previous period to the current level. The special formula uses the consumer price indices for a month as a percentage to the previous month. Doing it manually would take time. Instead,, Seldon.Price calculates the deflator coefficient automatically and the user decides whether to apply it or not.

Selected contracts specify OKPD2 or KTRU code, depending on the source data in the Unified Information System.

The user can justify either a single product or a list of products. The list can be created manually or imported from an Excel file using the function "Import from Excel". The justification can be downloaded as MS Excel or MS Word.

Medical devices

To justify medical devices, 2 subsections are provided:

• Justification of medical products made of PVC and other plastics (from the list of PP No. 102) in accordance with Order No. 759n / 3450. It is necessary to select the name and type of medical device, and the weighted average price, the recommended values of the localization coefficient and inflation are loaded automatically.
• Justification of medical devices in accordance with Order No. 450N. Enter the name of the product in the search box. If necessary, include the cost of consumables and maintenance. According to the order, it is necessary to calculate 3 prices and select the minimum price as the initial maximum contract price. For the first price, contracts and suppliers are automatically selected for the quotation request. The second price is formed on the basis of selected contracts. The third price is used only if the medical device is included in the list from Order No. 1517 and has a maximum price, which is taken as the price.

Security Services

National Guard of the Russian Federation Order No. 45 established a special initial maximum contract price calculation for the procurement of security services. By default, the calculation is made for one employee at one guard post. If you need to calculate the price for several employees and/or guard posts, add snippets using the "Add guard post" button.

Price calculation requires the time period of services and the post operating mode. All indicators are calculated automatically.

Drugs

Drugs section was designed for procurement department employees of Government Healthcare Institutions that participate in 44-FZ tenders as customer. It complies with the Order of the Ministry of Healthcare of the Russian Federation No. 1064n from 19.12.2019, which determines the initial maximum contract price justification procedure for drugs procurements.

According to the Order, the following four methods must to be used for initial maximum contract price justification for drugs:

• Comparable uncontrolled price method
• Tariff method (marginal prices for VED from state register of maximum selling prices and unified directory of drug catalogues)
• Calculation of weighted average price
• Referential method

The user indicates in the search field the international non-proprietary name of the drug, hereinafter referred to as INN, sets the dosage form, dosage, and quantity. User can set multiple values to account for equivalent dosage forms and dosages. The service instantly selects relevant contracts and the corresponding price caps for the given medicinal product. After that, you can proceed to calculation using the following methods.

Comparable Uncontrolled Price Method

Similar to the Products section, contracts can be filtered by contract date, region, or price group. The price can be adjusted by applying the multiplying ratio or deflator.

Also, in accordance with Order No. 1064n, the user is obliged to calculate the NMCC in units of the medicinal product excluding VAT.

Since drug price justification requires the indication of units of measurement, e.g. pieces, milligrams, milliliters, etc., we have introduced prompts that let you know which unit of measurement applies to certain drugs. The information is taken from the Single Medication Catalogue (ESKLP).

The amount of the wholesale charges is frequently omitted in the Unified Information System. For user's convenience the contracts with indicated wholesale charges are marked in Seldon.Price with a special icon. This way users can quickly find contracts for justification complying with all legal requirements.

Tariff-Based Method

The method is used for drugs that are included in the Essential Drugs Register. You can select ESKLP or GRLS as a source of prices. You should be careful when choosing a source, because in practice, data may vary.

The user manually selects the minimum value from the loaded current price limit values.

Calculation of Weighted Average Price

User specifies the organization's TIN (you can specify several), which Seldon.Pro uses to load the list of relevant contracts from the Unified Information System: all completed contracts for the given INN in the 12 months preceding the month of calculation (according to information from the documents on goods acceptance). The contracts conducted as procurement from a single supplier (according to item 28, part 1 of Article 93 of 44-FZ), as invitation to tender (acc. to item 7, section 1 of Article 83 44-FZ), and as e-invitation to tender (item 3, section 2 of Article 83 44-FZ), are not loaded as they cannot be used. Initial maximum contract price calculation in product units without VAT is also required, similar to the comparable uncontrolled price method. And also you need to deduct the wholesale markup.

Often, the amount of the wholesale markup applied in the contract is not indicated on the source (EIS), therefore, for the convenience of the user, we mark contracts with a special icon in which the wholesale markup is indicated.

Referential Method

At the moment, the method is not used in the calculation of the initial maximum contract price.

Then, Seldon.Price automatically chooses the lowest price calculated by the four listed methods, which will be the initial maximum contract price.

Similar to working with products, you can justify the price either of one drug or a list of drugs.

We recommend to download the justification in MS Excel format and then add VAT and wholesale charges to the final price (the size of the allowance is in the tooltip when you hover the cursor over the field). To do this, you need to enter the data in the appropriate cells. The calculation will be done automatically.

Customer Tools

A section with useful tools for customers is freely available to all users.

• OKPD2/KTRU Catalogue helps to find the OKPD2 code of interest and related KTRU items, as well as related laws and regulations
• Special conditions of procurement contains all laws and regulations that establish special conditions for procurement
• Calculation of deadlines: to calculate the timing of each procurement stage, enter the expected date of notice publication and select 44 or 223-FZ
• Search for standard terms of reference: helps find a suitable terms of reference by the name of the goods, works or services.

Technical Requirements

Do you need to download it?

No, Seldon.Price is a web service and is accessible in any browser. To log in you need to specify the login and password you created during the account registration.

Minimum System Requirements

Processor: Intel Core i3 or similar

RAM: 8 GB

Supported browsers (browser must be up to date, JavaScript and cookies must be enabled):

• Chrome
• Firefox
• Opera
• Safari (Mac)
• Yandex Browser
• Microsoft Edge

Summing Up

• Seldon.Price optimizes initial maximum contract price justification by significantly reducing the time and effort spent on it by users.
• Seldon.Price prevents users from making common mistakes.
• Seldon.Price helps to establish a competitive initial maximum contract price and ensure bids from suppliers.
• Seldon.Price allows users to not depend on the suppliers' responses to requests for quotations.
• Seldon.Price helps to save money.
• Seldon.Price makes the job of procurement department employees easier.

Read more about justification of drugs, medical devices from PP No. 102 fromOrder No. 450, as well as security services in the previous Seldon posts.