The Law of The Republic of Kazakhstan

An effective system of public procurement enhances the government’s ability to regulate business, creating forms of the impact of the system of state orders on the economy, stimulating its development. This is an effective way for the state, when choosing the most acceptable method of satisfying state needs, and for the supplier, when receiving an order and the chance to recommend oneself with the best hand. The Law of the Republic of Kazakhstan “On Public Procurement” regulates relations arising in the process of implementation by state bodies, state institutions, state enterprises, as well as joint-stock companies, controlling interest of which belongs to the state and affiliated with them legal entities for the procurement of goods, works and services from suppliers in effective use of the means at their disposal.

According to the Law “On Public Procurement”, public procurement is carried out in one of the following ways: tender; request for quotations; from a single source; auctions; commodity exchanges. Except as provided for by Clause 1 of Article 4 of the Law. The method of public procurement is selected by the customer without coordination with the Ministry of Finance of the Republic of Kazakhstan. The types of procurement indicated above can be carried out through electronic public procurement in the manner specified by the rules for electronic public procurement.

Public procurement by the way of tender The potential suppliers, included in the register of qualified potential suppliers, participate in the public procurement by the way of tender with preliminary qualification selection. In the public procurement by the way of tender, the organizer of public procurement develops tender documentation, which states:

• name and location of the organizer of public procurement;
• technical specification specifying the required functional, technical, quality and performance characteristics of the purchased goods, works, services;
• amount of goods, volume of work performed, services provided, which are the subject of public procurement;
• place of delivery of goods, works, services;
• required terms of delivery of goods, performance of work, provision of services, provision of guarantees for the quality of the proposed goods, works, services;
• terms of payment and draft contract on public procurement;
• criteria, except the price, on the basis of which the winner of the tender will be determined, including the relative importance of each of these criteria and the calculation of the conditional price;
• requirements for the content of the tender quotation, including instructions, in addition to the price of the purchased goods, works, services, transportation and insurance costs, customs duties, taxes and fees, as well as other costs stipulated by the terms of delivery of goods, performance of work, rendering services, after deduction of the amount of value added tax; currency or currencies in which the tender qutation of the tenderer is to be expressed and the rate that will be applied to bring the conditional price to a single currency in order to compare and evaluate them;
• requirements for the language of compilation and submission of applications for participation in the tender, contracts on public procurement in accordance with the law;
• conditions of deposit, content and types of security of the application for participation in the tender; indication of the right of the potential supplier to modify or withdraw its application for participation in the tender before the expiry of the deadline for their submission; procedure, method and deadline for submission of applications for participation in the tender and the required period of validity of applications for participation in the competition; procedure for preliminary discussion of the draft tender documents; date and time of opening of applications for participation in the tender;
• description of the procedure for opening applications for participation in the tender, examining applications for participation in the competition, evaluating and comparing tender quotations;
• information on the representatives of the customer and organizer of public procurement, who are authorized to represent them in the forthcoming public procurement through a tender;
• conditions, types, scope and manner of deposit the execution security of the contract on public procurement; information on the amounts allocated for the acquisition of goods, works, services, which are the subject of public procurement by the way of tender.

The organizer of public procurement shall post the text of the announcement on the conduct of public procurement by the way of tender on the public procurement web portal within 3 working days from the date of approval of the draft of the tender documentation. The application for participation is submitted via the web portal of public procurement in the form of an electronic document before the expiry of the deadline for its submission specified in the tender documents. A potential supplier deposits security of a bid in the tender as a guarantee. Ensuring the application for participation in the tender is paid in the amount of one percent of the amount allocated for the purchase of goods, works, services, in accordance with the rules of public procurement.

A potential supplier has the right to choose one of the following types of bid security: guaranteed monetary contribution that is deposited in the bank account of the organizer of public procurement or in an account provided for by the budget legislation of the Republic of Kazakhstan for public procurement organizers who are state bodies and state institutions; bank guarantee on paper or in the form of an electronic document.

The tender quotation is opened by the web portal of public procurement automatically based on the results of consideration of the application for participation in the competition for compliance with the qualification requirements and the requirements of the tender documents. The participant of the tender who has taken the second place according to the results of the evaluation and comparison of tender quotations is determined on the basis of the price following the lowest conditional price.

When the conditional prices of tender quotations are equal, the winner (participant of the competition who took the second place according to the results of the evaluation and comparison of tender quotations) is the bidder who has more experience in the market of purchased goods, works, services, including similar types of goods, works , services, which are the subject of the competition. If the experience of several potential suppliers having equal conditional prices is equal, the winner (the participant of the competition who took the second place according to the results of the evaluation and comparison of tender quotations) is the participant of the competition, the application for participation in the tender of which was received earlier than the applications for participation in the tender of other potential suppliers.