SYSTEM OF STATE PROCUREMENT IN KAZAKHSTAN ASTANA 2017 - - PowerPoint PPT Presentation

Ministry of Finance of the Republic of Kazakhstan

SYSTEM OF STATE PROCUREMENT IN KAZAKHSTAN

ASTANA 2017

Institutional Structure of the Public Procurement System

• f the Republic of Kazakhstan

Web portal

www.goszakup.gov.kz

Ministry of Finance of the Republic of Kazakhstan Methodology

Technical Support Web Portal

Monitoring

Department of Public Procurement Legislation LLP “Center of Electronic Commerce” Committee for Internal State Audit

Customers Suppliers

State Institutions State-owned Enterprises JSCs, LLPs at Central State and Local Exec. bodies Total: over 20 thousand Legal Entities

Individual Entrepreneurs

Total: about 110 thousand

Other Controlling Bodies

Accounting Committee Prosecution authorities, state bureaus, etc. Auditing Commissions

Internal Audit Services

Single Organizer

Public Procurement Committee LEGAL FRAMEWORK

The Eurasian Economic Union (EAEU) Treaty (Article 88 and Annex 25) WTO Commitments Law “On Public Procurement” and by-laws of the Republic of Kazakhstan

GENERAL FIGURES

Annual Volume (average): 2.5–3.2 trln tenge Number of customers: over 20 thousand Number of potential suppliers: about 110 thousand

HISTORY

• 1. Law on Public Procurement of 1997.
• 2. Law on Public Procurement of 2002.
• 3. Law on Public Procurement of 2007.
• 4. Law on Public Procurement of 2015.

1

1.Preliminary Annual Plan This allows customers to initiate procurement procedures based on the positive conclusion by the budgeting commission without waiting for the approval of the budget. 2.Preliminary Discussion of Technical Specifications Preliminary Discussion is a prerequisite for approval of the technical specification. This allows the suppliers to familiarize themselves with the project in advance and, if there are any comments, appeal against it. 3.Preliminary Clearance Protocol This allows suppliers to finalize the tender application within 3 days. 4.Mutual Review of Applications Mutual review of applications ensures transparency and allows evaluating feasibility

• f the decisions made by the customer.

5.Contract Conclusion Waiting Period (5 working days) If complaint is received within this period, the concluding of the contract is suspended for the period of consideration (10 working days).

• 6. Exceptionally Electronic Format of Public

Procurement All public procurement processes from planning to payments are carried out in electronic format only.

Progressive Norms of the Law

2

Advantages of the New Platform

High resistance to loads Adaptability of business processes to any changes in the PPL Risk Management System + Remote Desk Review Open source technologies Simplified use of EDSs + Vendor price encryption Easy integration with data recipient systems Availability of national staff for further support and development of the system Import substitution Annual saving of over $ 1 mln

• n tenders only

Low computing requirements (no need to purchase powerful servers)

3

In the Past Now

— electronic format — paper format

Automation of procurement processes

4

PREVENTIVITY

• f Desk Review

2015г. 2016г.

Кол-во конкурсов, охваченных контролем Кол-во выявленных нарушений

70,000 8,500 201,000 40,000

Камеральным контролем

3 times more

DESK REVIEW COVERS 100 % OF TENDERS

5 times more

The review is carried out online, without visiting the site.

9,200

TOTAL COST OF VIOLATIONS KZT 232 BLN

NUMBER OF DEFENDATNTS

— violations detected POST FACTUM

Over 10,000 986 TOTAL COST OF PREVENTED VIOLATIONS KZT 370 BLN NUMBER OF EXEMPT OF LIABILITY

— violations detected at EARLY STAGES Number of entities having eliminated violations following the desk review reports

2015

2016

For the purposes of quality desk review, from July 2016, the review is applied to the tenders with the cost over KZT 5 mln (about 90 % of the total amount

• f

procurement under tenders).

5

Number of tenders covered by the review Number of violations detected

2015 2016

Every other tender document undergoes changes! Number of Complaints Accepted Tender Applications

6

3778 TDs 3396 Ts Измененные КД Без изменений

7174 TDs

Results of Preliminary Discussion of Tender Documents 2016

40% 60% 60% 40%

2015г. 2016г.

Не подтвержденные жалобы Подтвержденные жалобы

4 377 8 359 Number of complaints increased 2 times!

40%

70%

60%

30% 2015г. 2016г. отклоненные заявки допущенные заявки 102 083 446 438 4 times more!

2015г. 2016г.

3 times more

Conditional Savings

43 BLN 130 BLN Changed TDs Unchanged TDs Not confirmed complaints Confirmed complaints

Rejected applications Accepted applications 2015 2016 2015 2016 2015 2016