Economic Analysis: Theory and Practice

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On increasing the attractiveness of domestic industrial gas-turbine engines when participating in tenders for equipment procurement

Vol. 17, Iss. 12, DECEMBER 2018

Received: 22 October 2018

Received in revised form: 8 November 2018

Accepted: 22 November 2018

Available online: 24 December 2018


JEL Classification: C44, C65, L64, O21

Pages: 1356–1372

Mikhailov A.A. AO United Engine Corporation, Moscow, Russian Federation

ORCID id: not available

Subject The article addresses the tender procedures for gas turbine equipment, where both domestic and foreign suppliers of industrial gas turbine engine participate.
Objectives The aim is to identify weaknesses of domestic industrial engine suppliers, when they participate in tenders together with foreign ones, reasons for and possible ways of problem elimination.
Methods I performed a comparative analysis of model conditions for supply of domestic and foreign industrial engines to identify the ways that help increase the competitiveness of domestic engines.
Results The paper presents a list of institutional arrangements. If implemented, they will increase the competitiveness of domestic industrial gas turbine engines.
Conclusions The improvement of standards, regulations and specifications for domestic industrial gas turbine engines, along with refinement of contracts for equipment supply with regard to additional service provision will increase their competitiveness.

Keywords: industrial gas turbine, after-sales service, guaranteed life, warranty operation time, cost of ownership, lease


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