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LAW OF THE REPUBLIC OF KAZAKHSTAN

of December 4, 2015 No. 434-V ZRK

About public procurements

(as amended on 19-04-2019)

Chapter 1. General provisions

Article 1. Scope of this Law

This Law is applied to the relations connected with purchase of goods, the works, services necessary for ensuring functioning, and also accomplishment of the state functions or authorized activities of the customer, except for:

1) the services acquired at physical persons according to employment contracts;

2) the services acquired at the physical persons which are not subjects of business activity according to services agreements;

3) the services connected with implementation of traveling expenses;

4) the state task and goods, works, services acquired within its accomplishment according to the budget legislation of the Republic of Kazakhstan;

5) contributing (deposits), including to the authorized capital of legal entities;

6) the goods, works, services acquired by national managing directors of holdings, national holdings, national managing companies, the national companies and legal entities, National Bank of the Republic of Kazakhstan, affiliirovanny with them, its departments, the organizations entering into structure of National Bank of the Republic of Kazakhstan and legal entities, fifty and more percent of voting shares (shares in the authorized capital) which belong to National Bank of the Republic of Kazakhstan or are in its trust management, and legal entities, affiliirovanny with them;

7) the goods of military (products), goods (products) of dual purpose (application), military works and military services which are part of the state defensive order;

8) the goods, works, services acquired by the organization specializing in improvement of quality of credit portfolios of banks of the second level for implementation of types of activity, stipulated in Item 2 articles 5-1 of the Law of the Republic of Kazakhstan "About banks and banking activity in the Republic of Kazakhstan";

9) the goods, works, services acquired within implementation of the investment projects financed by the international organizations which member is the Republic of Kazakhstan. Purchase of goods, works, services within implementation of the investment projects fully or partially financed by other foreign banks is performed by rules of these banks in case of observance in total of the following conditions:

the foreign bank has long-term credit rating in foreign currency not below "And -" the Standard & Poor agencies "s or the rating of similar level of one of other rating agencies;

more than fifty percent of financing are performed by foreign banks;

the realization of the investment project is enabled by the state companies, legal entities, fifty and more percent of voting shares (shares in the authorized capital) which belong to the state, and the legal entities affiliated with them;

implementation of the investment project does not require the state guarantee and does not attract encumbrance of property of the borrower.

Article 2. The basic concepts used in this Law

In this Law the following basic concepts are used:

1) unreliable information - the false data containing in the request of the potential supplier for participation in tender (auction), and which are equally introduced by the corrections distorting the valid content and untrue the provided request of the potential supplier;

1-1) bid increments - cash interval for which the auction subject price falls;

2) the potential supplier - the physical person performing business activity, the legal entity (except for public institutions if other is not established for them by the laws of the Republic of Kazakhstan), temporary consolidation legal entities (consortium), the agreements on public procurements applying for the conclusion. The physical person which is not the subject of business activity can be the potential supplier in case of acquisition by customers of the dwelling belonging on the right of private property to such physical person;

3) affiliirovanny face of the potential supplier - any physical person or legal entity which has the right to determine decisions and (or) to exert impact on the decisions made by this potential supplier, including owing to the transaction made in writing, and also any physical person or legal entity concerning which this potential supplier has such right;

4) the starting price - the price offered by the potential supplier before holding the auction, attached to the auction participation application;

4-1) qualification body - the legal entity performing prequalification of potential suppliers and creating the list of skilled potential suppliers, determined by authorized body;

5) uniform goods, works, services - goods, works, services which, without being identical, have similar characteristics and consist of similar components that allows them to perform the same functions;

6) affiliirovanny persons of the state companies, legal entities, fifty and more percent of voting shares (shares in the authorized capital) which belong to the state, - legal entities in whom fifty and more percent of voting shares (shares in the authorized capital) directly or indirectly belong to the state companies, legal entities, fifty and more percent of voting shares (shares in the authorized capital) which belong to the state. Indirect accessory means accessory to each subsequent affiliirovanny person of fifty and more percent of voting shares (shares in the authorized capital) other legal entity;

7) No. 202-VI ZRK is excluded according to the Law of the Republic of Kazakhstan of 26.12.2018;

8) works - activities, having material result, and also other activities referred to works according to the laws of the Republic of Kazakhstan;

9) the competitive price offer - the price offered by the potential supplier for participation in public procurements by tender method, attached to the bid;

10) the contest committee (the auction commission) - the collegiate organ created by the organizer of public procurements for accomplishment of the procedure of carrying out public procurements by the method of tender (auction) provided by this Law. The contest committee (the auction commission) shall consist of odd quantity, but at least three people;

11) the tender documentation (auction documentation) - documentation submitted to the potential supplier for preparation of the bid (auction) which contains requirements to the bid (auction), conditions and procedure of public procurements by method of tender (auction);

12) services - the activities directed to requirements satisfaction of the customer, which do not have material result;

13) residents of the Republic of Kazakhstan are the citizens of the Republic of Kazakhstan including who are temporarily abroad or being in public service beyond its limits, except for the citizens having the document on the right of permanent residence in foreign state issued according to the legislation of this state;

the foreigners and stateless persons having the document on the right of permanent residence in the Republic of Kazakhstan;

the legal entities created according to the legislation of the Republic of Kazakhstan with the location on its territories, and also their branches and representations with the location in the Republic of Kazakhstan and beyond its limits;

the diplomatic, trade and other official representations of the Republic of Kazakhstan which are beyond its limits;

14) public procurements - acquisition by customers of goods, works, services fully or partially at the expense of budgetary funds and (or) own income, except for the income connected with rendering services to nonresidents of the Republic of Kazakhstan;

15) the web portal of public procurements - the information system of state body providing single point of access to electronic services of public procurements;

16) the single organizer of public procurements - the legal entity determined by the Government of the Republic of Kazakhstan, akimat of area, city of republican value and the capital or akimat of the area, city, area in the city, performing performing procedures of the organization and carrying out centralized public procurements;

16-1) regulation of public procurements - establishment of requirements to the purchased goods, works, services, including the natural regulations developed and approved according to the budget legislation of the Republic of Kazakhstan;

17) identification code of public procurement - the identification number assigned to each public procurement (lot) which contains information on all stages of public procurement;

18) the procedure of the organization and carrying out public procurements - complex of the interconnected, consecutive actions, the public procurements conducted by the organizer, the relevant commission according to this Law, for the purpose of the conclusion with the potential supplier of the agreement on public procurements;

19) subjects of system of public procurements - the potential supplier, the supplier, the customer, the organizer of public procurements, the single organizer of public procurements, the single operator in the sphere of public procurements, authorized body, the expert;

20) the single operator in the sphere of public procurements - the legal entity determined by authorized body in the sphere of public procurements, the single owner of shares (shares in the authorized capital) which is the state;

21) authorized body in the sphere of public procurements (further - authorized body) - the state body performing management in the sphere of public procurements;

22) the agreement on public procurements - the civil agreement signed by means of the web portal of the public procurements between the customer and the supplier, certified by digital signatures, except as specified provided by this Law;

23) the instruction - the act of authorized body, obligatory for execution, sent to objects of control for elimination of the revealed violations of the law of the Republic of Kazakhstan about public procurements and (or) the reasons and conditions promoting them and also taking measures of responsibility provided by the laws of the Republic of Kazakhstan to persons which allowed these violations;

24) the supplier - the physical person performing business activity, the legal entity (except for public institutions if other is not established by the laws of the Republic of Kazakhstan), temporary consolidation legal entities (consortium), acting as the customer's partner in the agreement on public procurements signed with it. The physical person which is not the subject of business activity can be supplier in case of acquisition by customers of the dwelling belonging on the right of private property to such physical person;

25) commission of experts - the collegiate organ created by the organizer of public procurements or the customer with involvement of experts for participation in development of the specification and (or) the technical specification of the purchased goods, works, services and (or) preparation of the expert opinion concerning compliance of proposals of potential suppliers of the technical specification of the purchased goods, works, services;

26) the expert - the physical person having special and (or) technical knowledge, experience and qualification in the field of the carried-out public procurements, the confirmable relevant documents (diplomas, certificates, certificates and other documents), attracted by the organizer of public procurements or the customer to participation in development of the specification and (or) the technical specification of the purchased goods, works, services and (or) preparation of the expert opinion concerning compliance of proposals of potential suppliers of the technical specification of the purchased goods, works, services;

27) customers - state bodies, public institutions, and also the state companies, legal entities, fifty and more percent of voting shares (shares in the authorized capital) which belong to the state, and the legal entities affiliated with them, except for:

national managing holdings, national holdings, national managing companies, the national companies and the legal entities affiliated with them;

National Bank of the Republic of Kazakhstan, its departments, the organizations entering into structure of National Bank of the Republic of Kazakhstan and legal entities, fifty and more percent of voting shares (shares in the authorized capital) which belong to National Bank of the Republic of Kazakhstan or are in its trust management, and the legal entities affiliated with them;

the state companies as property complexes, legal entities, fifty and more percent of voting shares (shares in the authorized capital) which belong to the state, and the legal entities affiliated with them delivered in trust management to physical or non-state legal entities with the right of the subsequent redemption;

28) goods - objects (things), including semifinished products or raw materials in strong, liquid or gaseous state, electrical and heat energy, objects of intellectual property right, and also the corporeal rights with which it is possible to make transactions of purchase and sale according to the laws of the Republic of Kazakhstan;

29) the database of goods prices, works, services - the information subsystem which is part of the web portal of public procurements, containing data on the developed minimum, average and maximum prices of goods, works, services following the results of public procurements;

30) the reference book of goods, works, services (further - the reference book) - the systematized list of commodity codes, works, services determined by authorized body used for implementation of public procurements;

31) national treatment - the mode providing the admission of the goods, works, services of foreign origin and potential suppliers offering such goods, works, services to participation in public procurements on equal terms with goods, works, services of domestic origin and the potential suppliers offering such goods, works, services if the requirement about provision of such mode is established by the international treaties ratified by the Republic of Kazakhstan;

32) the conditional price - the price calculated taking into account application to the competitive price proposal of the participant of tender of relative value of the criteria provided in the tender documentation, and used only in case of assessment and comparison of competitive price offers for the purpose of determination of the winner of tender.

Article 3. Legislation of the Republic of Kazakhstan on public procurements

1. The legislation of the Republic of Kazakhstan on public procurements is based on the Constitution of the Republic of Kazakhstan and consists of regulations of the Civil code of the Republic of Kazakhstan, this Law and other regulatory legal acts of the Republic of Kazakhstan.

2. If the international treaty ratified by the Republic of Kazakhstan establishes other rules, than those which are provided by this Law then are applied rules of the international treaty.

Article 4. Principles of implementation of public procurements

Implementation of public procurements is based on the principles:

1) optimum and effective expenditure of the money used for public procurements;

2) provisions to potential suppliers of equal opportunities for participation in the procedure of carrying out public procurements, except the cases provided by this Law;

3) fair competition among potential suppliers;

4) openness and transparency of process of public procurements;

5) support of goods to domestic manufacturers, and also domestic suppliers of works and services in that measure in which it does not contradict the international treaties ratified by the Republic of Kazakhstan;

6) responsibility of participants of public procurements;

7) non-admissions of corruption manifestations;

8) acquisitions of innovative and high-technology goods, works, services;

9) observance of the rights to the intellectual property items containing in the purchased goods.

Article 5. Process of public procurements

1. Process of public procurements includes:

1) development and approval of the annual plan of public procurements (preliminary annual plan of public procurements);

2) choice of the supplier and conclusion of the contract with it on public procurements;

3) agreement performance about public procurements.

2. Based on the relevant budget (development plan) or individual funding plan the customer develops and approves the annual plan of public procurements according to the procedure and form, the public procurements determined by rules of implementation.

Based on the positive offer of the relevant budget commission the customer the preliminary annual plan of public procurements having the right to develop and approve before approval (refining) of the relevant budget.

Customers, being the state companies, legal entities, more than fifty percent of voting shares (share in the authorized capital) which belong to the state, have the right to develop and approve the preliminary annual plan of public procurements before approval of the development plan or individual funding plan.

The preliminary annual plan of public procurements is developed and affirms as the specified cases separately both at stages before approval, and at stages before refining of the relevant budget (development plan) or individual funding plan.

The preliminary annual plan of public procurements is effective before approval (refining) of the annual plan of public procurements.

Data on the public procurements provided in the preliminary annual plan of public procurements pass into the annual plan of public procurements.

The annual plan of public procurements affirms (is specified) by the customer within ten working days from the date of approval (refining) of the relevant budget (development plan) or individual funding plan.

The annual plan of public procurements (the preliminary annual plan of public procurements) shall contain the following data:

1) identification code of public procurement;

2) the nomenclature of goods, works, services according to the reference book, including the amounts allocated for implementation of public procurements, excluding tax for value added;

3) method and terms of implementation of public procurements;

4) the planned terms and the place of delivery of goods, performance of works, rendering services;

5) the planned delivery dates of goods, performance of works, rendering services according to the schedule and breakdown by years within the allocated and provided amounts for each financial year in cases, the stipulated in Article 43 presents of the Law;

6) conditions of implementation of public procurements according to article 51 of this Law.

The data on public procurements specified in subitems 1), 2), 3), 4), 5) and 6) to part eight of this Item in the cases provided by subitem 2-1) of part two of Item 2 of Article 79 of the Budget code of the Republic of Kazakhstan affirm the customer as the annual plan of public procurements.

The annual plan of public procurements affirms the customer within ten working days from the date of execution of Item 7 of Article 153 of the Budget code of the Republic of Kazakhstan.

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