A Public Guarantee as a Way of Securing Obligations of the Social Service Provider

The paper highlights that the legal mechanism of public procurement from socially-oriented entrepreneurs needs to be improved. In particular, one of such issues that needs to be addressed is the problem of providing a proper collateral to secure an obligation of a social services provider. It is noted that aspiring entrepreneurs claiming the status of "a social service provider" do not possess property necessary to secure a state contract and have difficulty in contacting financial credit organizations that issue bank guarantees. The paper provides scientific and practical guidance on how to address this issue. The author justifies the necessity to entrench the requirement of a free public guarantee as a means of securing the obligation of the social services provider. The author supports a consideration in favor of a complex, polysectoral legal nature of the public guarantee. It is noted that without substantial state financial support granted to non-state actors of the social services market, it is difficult to expect fair competition in the sphere of providing social services.

public procurement, socially oriented entrepreneurs, commitment, bank guarantee, legal nature, gratuitousness, state (municipal) guarantee, collateral, public financial support, social service provider

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