Breaches in the Completion of Agreements from a Single Provider
Spilling the TEA on Single-Source Procurement in Kazakhstan
📜 Know Your Stuff: Single-Source Procurement Method (SSPM)
Single-source procurement is a method of public procurement that, under certain circumstances, allows procuring entities to bypass the traditional competitive bidding process. By following procedures outlined in the Law "On Public Procurement," such an exception can be made, starting from January 1, 2025.
💰 When's it OK to Go Solo?
The conditions that allow for single-source procurement are delineated in Article 16 of the Law. Here are some general grounds that might warrant going it alone:
- Urgent situations where immediate action is necessary and normal procurement procedures would cause delays or risk worsening problems.
- Instances where only a specific supplier offers the required goods, services, or works due to their uniqueness or exclusivity.
- Technical reasons may justify single-source procurement, such as specialized equipment or specific expertise to address a particular problem or project.
📜 Kazakhstan's Antimonopoly Authority's Role
When it comes to single-source procurement, the antimonopoly authority must give its seal of approval before the contract is signed. They'll examine the justification for using this method and determine if the situation calls for such an exception.
💼 What's Up, Department of Internal State Audit?
It's the Department of Internal State Audit in Astana's job to keep an eye on compliance with the single-source procurement regulations. Between January 1 and March 31, 2025, they issued 61 notifications about violations of SSPM contract rules. Improper justifications for using the single-source procurement method were one of the main issues they highlighted.
🚨 The Caveats of Skipping the Bidding Game
It's crucial to note that the antimonopoly authority's justification for approving a single-source procurement request must be clear, substantiated, and transparent to demonstrate that the chosen method is both necessary and reasonable. This information should also show how the selected supplier offers the best possible solution for the procuring entity, all while protecting public interest and maintaining competition.
So, there you have it! Now you're all clued up on Kazakhstan's single-source procurement method and the importance of following the rules to maintain fairness and transparency in public procurement.
In the context of Kazakhstan's single-source procurement method, businesses may opt for this approach when seeking specialized equipment, unique or exclusive goods, or specific expertise that only a certain supplier can provide (finance and business). It's essential to secure the approval of the antimonopoly authority and demonstrate a clear, substantiated, and transparent justification for doing so, as improper justifications can lead to violation notifications from the Department of Internal State Audit (finance and business).
