The rules of state procurement in Kazakhstan are undergoing significant changes. Instead of a competition commission, an automatic system will now determine suppliers based on non-price criteria like qualification and reputation. These changes were revealed by Ruslan Kozhasbayev, a member of the Mazhilis.
President Kassym-Jomart Tokayev has highlighted issues with the current state procurement system in his 2023 address, emphasizing the need for a completely new procurement law. The aim is to simplify procurement procedures, facilitate the contestation of results, and shift the focus from minimal cost to quality by introducing non-price criteria. Public oversight will also be implemented.
One major change is the shift from the competition commission to an automatic selection of suppliers based on a combination of price and quality criteria. This system is already operational in certain sectors like design, construction, and technical supervision. The new law will expand this system to other procurement types, reducing corruption risks by eliminating human intervention.
Additionally, the new law aims to introduce public monitoring of procurement processes, aligning with the recently passed law on public control. This will enhance transparency and accountability in state procurement activities, preventing situations where contracts are signed for non-existent projects.
The revised law will also simplify and expedite single-source procurement procedures, particularly for urgent cases like disaster response. The goal is to streamline the process, allowing local authorities to make purchases without lengthy competitive procedures for amounts up to 3,000 MRP.
Moreover, the law will support local businesses by defining a list of goods and services to be procured from small and medium enterprises. This initiative aims to boost domestic entrepreneurship and align with the country's industrial policy.
The introduction of "sustainable state procurement" is another significant aspect of the new law. This concept involves acquiring goods and services to optimize budget use throughout their lifecycle while promoting social, economic, and environmental development. It includes supporting vulnerable groups, promoting eco-friendly products, and considering the entire lifecycle cost when selecting suppliers.
Furthermore, the law addresses accountability for violations in procurement activities, proposing stricter penalties for organizers and customers. The revision also suggests simplifying the appeals process by granting the right to challenge results only in cases where the competition commission selects the supplier.
These proposed changes, along with other novelties under discussion, aim to enhance the efficiency and integrity of state procurement processes in Kazakhstan. By aligning with international standards and focusing on transparency and quality, the new law seeks to meet the country's leadership's expectations and the public's demands for accountable procurement practices.
