Legal and Technological Aspects of Life Cycle Contract Implementation in the Long-Distance Passenger Rail Transportation

The analysis and the experience gained in shaping contractual relations in the LCC format, both on the part of foreign companies and in the domestic market, have resulted in the conclusion that it is beneficial for the customer to conclude LCC. Ultimately, the costs are reduced by about 10-15 % compared to the traditional form of contractual relations (separate contracts for manufacturing and, respectively, service maintenance). LCC is also advantageous since it eliminates the need to search for and subsequently contract the contractors at the stage of operation.

When concluding LCC contract, both purchase and subsequent maintenance of rolling stock can be carried out through a concession agreement in compliance with legislation regulating the procurement procedure. When purchasing, it is necessary to be guided by the requirements of federal law in terms of mandatory tender procedures and selection of potential suppliers.

The analysis of existing models for formation of contractual relations for maintenance of rolling stock under the LCC contract has shown that it is advisable to consider the possibility of extending it to newly manufactured passenger rolling stock used in long­distance passenger transportation.

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