Skip to main content

Government procurement: what will change very soon

Submitted by Вера Александрова on

In Kazakhstan, the rules for state procurement are set to change. Instead of a tender committee, an automatic system will now determine the supplier. 

According to informburo.kz, the draft law "On State Procurement" and its accompanying bills have already been approved in the first reading by deputies of the Mazhilis. 

It is reported that the new rules will create a unified procurement platform, improve the quality of purchased goods, works and services, and simplify and automate the state procurement procedure. 

According to the document: 

  • The deadline for conducting a state procurement tender will be reduced from two months to one month. 
  • Simplification of single-source procurement procedures is envisaged. For example, for rural akimats, it is proposed to purchase goods, works and services up to 3000 MCI without holding a tender. 
  • To avoid delays in procedures, the procurement appeal mechanism has been simplified. The function of reviewing results is now transferred to the procurement organiser, which will establish a commission to consider complaints, including representatives from a higher authority, control bodies and the National Chamber of Entrepreneurs. 
  • The introduction of a rating system for potential suppliers is proposed, which will allow a shift to automatic selection and the development of non-price criteria. It is planned to further move all procurement to tenders using a rating and scoring system. 
  • An institution of public monitoring is being introduced, particularly for construction-related works. 
  • A list of goods, works, and services, which will be procured from small and medium-sized businesses, is being introduced. 
  • It is proposed to assign a conditional discount (amounting to 1%) based on territorial criteria. 

At the same time, the Code of Administrative Offences (CAO) is proposed to include provisions to strengthen the responsibility of customers and organisers of state procurement. For violations in the field of state procurement, it is proposed: 

  • To establish administrative liability for the procurement organiser (for failure to apply or untimely application to the court claiming suppliers be recognised as dishonest participants in state procurement in the event of providing false information) – a fine of 30 MCI, and 60 MCI in the event of a repeat offence. 
  • To supplement the grounds for bringing officials of the customer to administrative liability (for failure to provide or untimely provision to the authorised body of information about the supplier's evasion of concluding a contract by failing to provide contract performance security) – a fine of 30 MCI, and 60 MCI in the event of a repeat offence. 

The new draft law also proposes to simplify the procedures for appealing procurement results. Specifically, to exclude the right of the authorised body to cancel procurement results. Furthermore, it is proposed to transfer the function of reviewing results to the procurement organiser, in order to avoid delays in procurement procedures.