When determining winners during LCC bidding, both cost and non-cost-related criteria are taken into consideration. The latter includes availability of production facilities, past LCC experience and performance, and the bidder's proposed coefficients and interest rate for the instalment plan.
"The life-cycle contracts we enter into, in accordance with Federal Law No. 223, allow us to basically halve equipment procurement costs. The contract execution period is 10 to 13 years, depending on the equipment delivery schedule. The purchaser pays in instalments for 3 years under a plan with an interest rate equal to the key rate set by the Central Bank of the Russian Federation, with consideration to the reduction factor, which is one of the tendering criteria. The contractor is obligated to ensure the equipment remains operable with minimal downtimes throughout the entirety of the LCC. In addition to delivering the equipment and ensuring its operability, the contractor is responsible for training the customer's physicians and engineers, as well as for updating all equipment software," explained Alexander Prokhorov, Head of the Department of Investment and Industrial Policy of Moscow.