ORDER OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

of October 14, 2019 No. 759

About approval of Rules of forming, placement and accomplishment of the state defense order

According to the subitem 6) of article 5 of the Law of the Republic of Kazakhstan of March 18, 2019 "About defense industry and the state defense order" the Government of the Republic of Kazakhstan DECIDES:

1. Approve the enclosed Rules of forming, placement and accomplishment of the state defense order.

2. Recognize invalid some decisions of the Government of the Republic of Kazakhstan according to appendix to this resolution.

3. This resolution becomes effective after ten calendar days from the date of its first official publication.

Approved by the Order of the Government of the Republic of Kazakhstan of October 14, 2019 No. 759

Rules of forming, placement and accomplishment of the state defense order

Chapter 1. General provisions

1. These rules of forming, placement and accomplishment of the state defense order (further - Rules) are developed according to the Law of the Republic of Kazakhstan of March 18, 2019 "About defense industry and the state defense order" (further - the Law) and determine procedure for forming, placement and accomplishment of the state defense order (further - the defense order).

2. Forming, placement, cross-industry coordination and control over the implementation of the defense order are performed by authorized body.

Chapter 2. Forming and placement of the defense order

3. Forming and placement of the defense order are made in the limits set on these purposes of the expenses provided by the republican budget for the three-year period.

4. Receivers of the defense order (further – receivers) create the tactical specification (the technical specification, tactical technical characteristic) (further – the specification) according to national standards.

When forming the specification inclusion of additional requirements on picking of acquired products of the defense order is allowed.

In the absence of national standards, for the purpose of unification, standardization, operational compatibility and acquisition of new (pilot) samples of arms, military equipment receivers independently create the specification on the goods offered to purchase military (products), goods (products) of dual purpose (application), military work and military service (further – products of the defense order), with indication of required functional, technical, quality and operational characteristics.

In the absence of national standards it is allowed to specify trademarks, service marks, trade names, patents, useful models, industrial designs, the name of the country of goods' origin and the name of the producer.

The receiver in case of creation of the specification on ware property provides the requirement to the intra country value of raw materials at least 30%, except for the ware property intended for divisions of special purpose.

5. No later than December 1 of prior financial year receivers when budgetary funds within the defense order are provided in the budget of authorized body (further – when means at authorized body), direct to authorized body the request in form according to appendix 1 to these rules with appendix of the approved specifications on necessary products of the defense order for the corresponding planning period in paper and electronic type with indication of data on quantity (amount) and places of delivery of products of the defense order planned to acquisition. At the same time the period in two years prior to the corresponding planning period prior financial year is.

6. Till January 5 of the current financial year the authorized body sends specifications to the domestic producers, domestic suppliers of works, services included in the register of domestic manufacturers of goods of military (products), goods (products) of dual purpose (application) and domestic suppliers of military works and military services of the state defense order (further – the register), on activities and to authorized organization.

At the same time the year preceding planning period is current financial year.

7. Till January 5 of the current financial year receivers when budgetary funds within the defense order are provided in the budget of receivers (further – when means at the receiver), specifications independently send to the domestic producers, domestic suppliers of works, services included in the register in activities and to authorized organization.

8. The authorized organization from the moment of receipt of the specification carries out procedures for working off of specifications with foreign producers with involvement of representatives of the receiver.

9. Till March 1 of the current financial year the domestic producers, domestic suppliers of works, services included in the register and authorized organization represent to the address of authorized body or receivers when means at receivers, planned calculations according to the Rules of pricing on goods military (products), goods (products) of dual purpose (application), military work and military service within the state defense order approved by the order of the Government of the Republic of Kazakhstan of October 17, 2019 No. 772 (further – Rules of pricing).

10. Till April 1 of the current financial year the authorized body sends to the receiver's address when means at authorized body, the list of actions on which planned calculations were not provided, and also the smallest prices for products of the defense order provided by the domestic producers, domestic suppliers of works, services included in the register and authorized organization.

Actions on which planned calculations are not provided are acquired according to the legislation on public procurements.

11. Till May 1 of the current financial year the receiver when means at authorized body, according to the provided prices submits to the address of authorized body the specified request in form according to appendix 1 to these rules for inclusion in the budget request for the corresponding planning period within the amount approved by earlier defense order for the corresponding planning period.

12. Till May 15 of the current financial year authorized body, when means at authorized body, and receivers when means at receivers, in the procedure established by the budget legislation send budget requests for the corresponding planning period to authorized body on budgetary planning.

13. Till June 1 of the current financial year for the purpose of implementation of the choice of contractors of the defense order the authorized body sends specifications to the domestic producers, domestic suppliers of works, services included in the register in activities and authorized organization.

14. Till June 1 of the current financial year for the purpose of implementation of the choice of contractors of the defense order receivers when means at receivers, send specifications to the domestic producers, domestic suppliers of works, services included in the register in activities and authorized organization.

15. Till July 1 of the current financial year for the purpose of the choice of the contractor the domestic producers, domestic suppliers of works, services included in the register and authorized organization represent to the address of authorized body or receivers when means at receivers, the tender documentation - planned calculations according to Rules of pricing.

The domestic producers, domestic suppliers of works, services included in the register, specializing in production of ware and special property, individual protection equipment till July 1 of the current financial year represent to the address of the receivers samples of the declared products for implementation of check on products compliance to requirements of the specification with application of documents confirming quality of the used raw materials.

Samples of the declared products are registered in the magazine in form according to appendix 1-1 to these rules.

Representation by the domestic producers, domestic suppliers of works, services included in the register, planned calculations is confirmation of their consent and opportunity to perform delivery of products of the defense order with observance of the conditions provided in the specification.

By provision of planned calculations it is forbidden to provide alternative specifications.

16. For the purpose of the choice of the contractor when means at authorized body, it is created (are created) competitive (competitive) the commission (commissions) of authorized body (further - the commission on the choice of contractors).

The commission on the choice of contractors joins representatives (specialists) of the receiver having special knowledge on activity.

For the purpose of approval of samples of ware and special property, individual protection equipment and their check on compliance to requirements of the specification the commission from among the receiver's representatives is created.

Structure of the commission (commissions) according to samples of ware and special property, individual protection equipment and procedure for its work are determined by the receiver.

17. The decision is deemed accepted by a simple majority vote. In case of equality of votes the decision for which the receiver's representative voted is made.

18. Structure of the commission (commissions) at the choice of contractors and operating procedure are determined by authorized body, and its activities are performed behind closed doors using audio-and video fixing.

19. Receivers, when means at the receiver, own commission on the choice of contractors is created. The decision is deemed accepted by a simple majority vote.

20. The commission on approval of samples of ware and special property, individual protection equipment till August 15 of the current financial year approves samples of ware and special property, individual protection equipment and checks them for compliance to requirements of the specification.

Till August 1 of the current financial year in case of identification by the commission of discrepancy of samples of ware and special property, individual protection equipment to requirements of the specification the receiver in writing notifies the organization on need of elimination of the revealed discrepancies.

The organization within five working days from the date of receipt of the notification in writing notifies the receiver on elimination of the revealed shortcomings with appendix of samples. In case of non-presentation at the scheduled time of the finished samples for review by the commission the submitted planned calculations of the organization are not opened.

Till August 20 of the current financial year the receiver when means at authorized body, are sent to the address of authorized body by the act of approval of samples.

21. From July 1 to September 25 the current financial year authorized body and the receiver when means at the receiver, are carried out procedures for the choice of contractors.

22. The choice of contractors is made on competitive basis by authorized body or the receiver when means at the receiver, from among the organizations included in the register.

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