Problems and development issues of the state of the procurement system in the Russian Federation are analyzed in the paper. The state (municipal) order as a competitive method for the determination of the contractor (supplier) is considered in order to formulate its optimal characteristics and competition (bidding) as the best method to select the contractor (supplier). The methods of increasing economic interest of private organizations in public services provision are examined. The differentiation of public services prices as a tool of increasing economic interest is researched in two aspects: differentiation of prices on public services based on standards and division of public service rates by groups of agents (suppliers). The barriers hindering the access of non-governmental organizations to public service markets are identified. Also the analysis of normative regulation of the public procurement system and its disadvantages, statistical data, problems encountered by the participants is done. The actions of customers and suppliers are considered to identify the presence of weak points in the legislation. The costs incurred by customers including mandatory staff training, preparation of extracts from USRLE, certificate of origin ST-1 form, obtaining digital signatures, postage are analyzed. The ROS and UIS systems and their new options useful for participants are compared. The method of assessment of contracts for monetary and non-monetary criteria is proposed. International practice of state procurement is investigated; the public procurement system of the Russian Federation is evaluated by objective indicators, the main directions limiting access of foreign companies to the public procurement market are identified. The combined analysis included a comparison of the public procurement systems of the Russian Federation and countries of the Organization for Economic Cooperation and Development (OECD) as a group of countries with the highest incomes per capita.