Flag of Kazakhstan

Kazakhstan Updates State Defense Order Rules to Boost Domestic Manufacturing

in National Security / Kazakhstan - by


The Government of Kazakhstan has introduced changes to the Rules for the formation, placement, and execution of the state defense order by a decree dated April 29, 2024.

The amendments specify that by July 1 of the current financial year, domestic manufacturers of goods, domestic suppliers of works and services included in the registry, and the authorized organization must submit planned calculations along with the competition documentation to the authorized body or recipients for the selection of the contractor.

Domestic manufacturers and suppliers specializing in the production of clothing, special property, personal protective equipment must submit samples of the declared products to the recipients by July 1 of the current financial year for verification of compliance with the technical specifications, accompanied by documents confirming the quality of the raw materials used.

The samples of the declared products are registered in a journal. Providing alternative technical specifications when submitting planned calculations is prohibited.

Furthermore, a competition commission of the authorized body is established for the selection of the contractor when the funds are with the authorized body. The commission includes representatives (specialists) of the recipient with specific expertise in the field of activity.

It is stipulated that the composition of the commission for the approval of samples of clothing, special property, personal protective equipment, and its working procedure are determined by the recipient. The commission for the approval of samples of clothing, special property, personal protective equipment approves the samples and checks their compliance with the technical specifications by August 15 of the current financial year.

The organization must inform the recipient in writing within five working days from the date of receiving the notification about the rectification of identified deficiencies, accompanied by samples. If the revised samples are not submitted within the set deadlines for review by the commission, the submitted planned calculations of the organization will not be considered.

By August 20 of the current financial year, the recipient sends an act of approval of the samples to the authorized body when the funds are with the authorized body.

It is also clarified that the selection of contractors is carried out on a competitive basis by the authorized body or the recipient, from the organizations included in the registry, when the funds are with the recipient.

During the selection procedure of the state defense order contractors, representatives of defense industry organizations participating in the competition are allowed to attend the commission meeting where envelopes (price proposals) are opened, with audio-video recording and signing of the meeting protocol by the commission members.

Organizations that have submitted planned calculations for the selection of contractors are notified by email five calendar days before the upcoming procedure, indicating the date, time, and venue.

When dealing with information classified as state secrets within a specific defense order event, the organization's authorization to work with such information is taken into account.

In exceptional cases, for addressing the tasks of the President of Kazakhstan, the Security Council, or the Republican Operational Headquarters in the event of suddenly arising threats, emergencies, introduction of a state of emergency, or tasks related to ensuring security and public order in the country, as well as maintaining the combat readiness of the Armed Forces, other troops, and military formations of the republic, the authorized body or recipients (depending on who holds the funds) conduct contractor selection procedures as needed.

The decision to conduct the contractor selection procedure is made by the commission for the selection of contractors. Planned calculations are to be submitted within five working days upon receiving the corresponding request from the authorized body or recipient.

At its discretion, the organization informs the authorized body of the increase in volumes or quantities of production facilities, including on the rights of long-term lease for a period of not less than three years, technological equipment on the rights of ownership, and qualified specialists necessary for the production of defense order products.

The decree comes into effect on May 13, 2024.