PUBLIC PROCUREMENT IN KAZAKHSTAN : reforming for efficiency.

Description

Foreword Acknowledgements Executive summary Key findings Key recommendations 1 Legal and institutional framework of the public procurement function in Kazakhstan 1.1. The normative framework for Public Procurement in Kazakhstan 1.2. Governance of the Public Procurement Function 1.2.1. Role of the Ministry of Finance 1.2.2. Defining government organisations and state-owned enterprises 1.2.3. Role of single organisers 1.2.4. Strategic vision for public procurement 1.3. Revising the Public Procurement Law 1.3.1. Centralisation of public procurement 1.3.2. Procurement of national holdings and national companies (“quasi state sector”) 1.3.3. Exceptions to competitive tendering 1.3.4. Trademarks, brands and company names in technical documentation 1.3.5. Bid bonds requirements 1.3.6. Increasing the threshold for direct award procurement 1.4. Towards more concentrated and centralised procurement in Kazakhstan 1.4.1. Centralised procurement offers numerous benefits to countries 1.4.2. Introducing framework agreements References Notes 2 Increasing efficiency and fairness along the public procurement cycle in Kazakhstan 2.1. Introduction 2.2. The Procurement cycle in Kazakhstan 2.2.1. Budgeting and planning 2.2.2. Adopting a strategic approach to market studies 2.2.3. The development of technical specifications 2.2.4. Procurement methods 2.2.5. Submission periods and the submission process 2.2.6. Bid evaluation New financial qualifications requirements 2.2.7. Improving contract management and payment of suppliers 2.3. Challenges and areas of opportunity towards achieving value for money along the procurement cycle 2.3.1. Data on procurement methods show excessive use of direct awards 2.3.2. The different types of direct award: an analysis Direct award based on exceptions Direct award below the value threshold Direct award after failed bidding Dumping prices in open tenders 2.3.3. Clarification meetings and debriefings 2.3.4. Access to public procurement opportunities References Notes 3 E-procurement to strengthen transparency and develop performance evaluation of public procurement in Kazakhstan 3.1. Main features of Kazakhstan’s e-procurement system 3.2. Using digital technologies to increase transparency and integrate Goszakup with other government IT systems 3.2.1. Improving the public availability of high quality procurement data 3.2.2. Providing adequate and timely information to suppliers Reciprocal review of offers from other bidders in open tenders Preliminary discussion of technical specifications in tenders Introducing prequalification of suppliers 3.2.3. Pursue integration with other Government IT systems 3.3. The e-procurement system provides opportunities to strengthen evaluation and performance management 3.3.1. Monitoring key performance indicators to provide strategic guidance of the e-procurement system Kazakhstan already monitors a few performance indicators on an ad hoc basis Best practices from OECD countries regarding performance indicators in public procurement 3.3.2. Using data on past procurements to inform future budgeting and procurement decisions 3.3.3. Making better use of e-procurement to implement Kazakhstan’s procurement strategy References Notes 4 Managing risks and supporting accountability through the public procurement cycle in Kazakhstan 4.1. Introduction 4.2. Developing a coherent and comprehensive integrity system 4.2.1. Elaborate a procurement-specific integrity strategy 4.2.2. Leverage the position of the Ethics Commissioner to coordinate the procurement-specific integrity strategy across ministries 4.2.3. Revise and simplify the existing Code of Ethics and adapt the Code of Ethics for public procurement officials to guide their behaviour 4.2.4. Expand the conflict of interest rules to address procurement-specific conflicts of interest 4.2.5. Develop procurement-specific integrity training and awareness raising to cultivate a behaviour change 4.2.6. Ensure robust requirements for internal controls, compliance measures and anti-corruption programmes for suppliers. 4.3. Integrating effective risk-based internal control in procurement activities 4.3.1. Using fraud and corruption risk management throughout the entire procurement cycle 4.3.2. Provide guidance and tools for conducting risk assessments related to procurement 4.3.3. Expand the system of desk control to all phases of the procurement cycle 4.4. Providing opportunities for direct involvement of relevant external stakeholders in the procurement system to increase transparency and integrity 4.4.1. Enhance the integrity of the entire procurement process by enabling independent oversight by civil society 4.5. Developing an effective complaint and sanction system, including for suppliers 4.5.1. Advance measures to enhance the complaints management system 4.5.2. Include corruption-related offences in the List of Unreliable Suppliers References Note 5 Strengthening public procurement capacity and enhancing the implementation of strategic procurement in Kazakhstan 5.1. Strengthening the use of complementary policy objectives 5.2. Enhancing capacity development in the public procurement workforce in Kazakhstan 5.2.1. Understanding the institutional framework of capacity building 5.2.2. Understanding capacities in the public procurement workforce across governmental bodies 5.2.3. Strengths and weaknesses of the public procurement workforce 5.2.4. Strengthening existing training and capacity building measures 5.3. Professionalising the public procurement workforce to achieve strategic objectives through public procurement 5.3.1. Adopting procurement-specific strategies and action plans 5.3.2. Attracting high-skilled professionals 5.3.3. Developing a framework for professionalising public procurement References Notes 6 Public Procurement Procedures for State-owned Enterprises in Kazakhstan 6.1. Importance and relevance of SOEs and their procurement in Kazakhstan 6.1.1. Definition of SOEs in international best practice as well as in Kazakhstan – and the main groups of SOEs. JSC Samruk-Kazyna (Samruk-Kazyna) JSC Baiterek National Management Holding (Baiterek) JSC National Management Holding KazAgro (KazAgro) 6.2. Weight and structure of public procurement by SOEs 6.2.1. High share of direct awards (single source procurement) 6.2.2. Reducing the use of direct awards for increased efficiency 6.3. Procurement rules and practices for SOEs in Kazakhstan 6.3.1. Legal and institutional structures 6.3.2. Ongoing reform of public procurement and the SOE sector in Kazakhstan 6.3.3. Increasing competition is the pressing challenge for SOEs 6.3.4. SOEs have innovated with regards to some procurement practices Profile of the procurement function in SOEs Prequalification based on categories in Samruk-Kazyna Ethics and Integrity References