Selection of Procurement Method

Article 13 of the Republic of Kazakhstan’s Law on “Public Procurement” specifies the methods available to contracting entities for carrying out public procurements. Each procurement method has its organizational peculiarities and types of typical violations.

A detailed description of the requirements and procedures is provided in the Procurement Rules:

1) Tender (Chapters 9 – 13 of the Rules):

• open tender;
• tender using two-stage procedures;
• tender with preliminary qualification selection;
• tender using framework agreements;
• tender using a scoring system; 

Regulatory acts regarding the procurement method of “Bidding employing the calculation of the life cycle cost of procured goods, works, services” are currently under development.

2) through auctions – (Chapter 14 of the Rules);

3) request for price quotations – (Chapter 15 of the Rules);

4) from a single source – (Chapter 19 of the Rules):

• by directly concluding a contract;
• for procurements that did not come to fruition;

5) via commodity exchanges – Governed by the Exchange Trading Rules;

6) through an electronic storefront – (Chapter 16 of the Rules).

According to Section 6 of Article 51 of the Public Procurement Law, the participation in procurement of certain categories of suppliers also takes into account specific features defined by the Public Procurement Rules:

• Services stipulated by the state social order (Chapter 17 of the Rules);
• Residential property owned by an individual who is not an enterprise entity (Chapter 18 of the Rules);
• Procurements from persons with disabilities (Article 51, Chapter 10. Special and Final Provisions of the Public Procurement Law)

Regulatory legal acts (RLAs) specifying the nuances of certain procurement methods

In addition to the general Public Procurement Rules, RLAs are introduced for specific procurement methods, detailing the specifics (lists of GWS [Goods, Works, Services], special conditions) of procurement. Examples of such RLAs include:

• On approval of the list of goods, works, services for which public procurement is carried out through a tender using two-stage procedures
• On the approval of the list of goods, works, and services for which public procurement is carried out through a contest using a framework agreement.
• On the approval of the list of goods, works, and services for which public procurement is carried out through a contest considering the lifecycle cost of the acquired goods, works, and services.
• On the approval of the list of goods, works, and services for which public procurement is carried out through a contest using a scoring system.
• On the approval of the list of goods, works, and services for which public procurement is carried out through a contest with preliminary qualification selection.
• On the approval of the list of goods for which public procurement is made from an electronic product catalog.
• On the approval of the list of types of goods, works, and services, the public procurement of which is conducted according to standard contest documentation (auction documentation).
• On the state social commissioning, state commissioning of strategic partnerships, grants and awards for non-governmental organisations in the Republic of Kazakhstan

Justifications for Sole Source Procurement

For the use of sole source procurement by directly concluding a contract, the purchaser must choose one of the justifications outlined in Article 39 of the Public Procurement Law. Appropriate regulatory legal acts (RLAs) are introduced based on these justifications, examples of which are:

• On approval of the list of goods, works, services procured in accordance with international treaties of the Republic of Kazakhstan
• On the approval of the rules for issuing conclusions by the antitrust authority regarding the absence of private enterprise entities producing similar goods, works, or services.
• On the approval of the list of goods, works, and services of daily and (or) weekly necessity for the period up to the summing up of public procurements by contest or auction and the entry into force of the public procurement contract.
• On the approval of the list of state enterprises of the criminal-executive (penitentiary) system from which produced, performed, and provided goods, works, and services are procured, as well as the list and volume of goods, works, and services procured from state enterprises of the criminal-executive (penitentiary) system producing, performing, and providing them; and on amendments to the resolution of the Government of the Republic of Kazakhstan dated December 31, 2014, No. 1423 “On the approval of the standards of minimum subsistence for the population in an emergency situation.