Article 7. Restrictions related to participation in public procurement of the Law on Public Procurement

Home / RLA / Article 7. Restrictions related to participation in public procurement of the Law on Public Procurement

1. A potential supplier is not entitled to participate in ongoing public procurement if:

1) close relatives, spouse or relatives of the managers, founders, major shareholders of this potential supplier and (or) an authorized representative of this potential supplier, as well as the founder himself, major shareholder and their affiliated persons have the right to make a decision on the choice of supplier or are representatives of the customer or organizer in the ongoing public procurement;

2) a potential supplier and (or) his employee provide and (or) provided to the customer or the organizer expert, consulting and (or) other work, services for the preparation of ongoing public procurement, participated as a customer, general designer or sub-designer in the development of a feasibility study and (or) design (design and estimate) documentation for the construction of an object where the subject of public procurement is construction and installation work, engineering services for technical supervision and project management, with the exception of the participation of the developer of the feasibility study in public procurement for the development of design (design and estimate) documentation.

This requirement does not apply to turnkey construction contracts, as well as projects implemented in accordance with international construction standards.;

3) the head, founder or major shareholder of a potential supplier applying for participation in public procurement and their affiliated persons are associated with the management, establishment, participation in the authorized capital of legal entities listed in the register of unfair participants in public procurement;

4) the head of a potential supplier applying for participation in public procurement is associated with the management, establishment, participation in the authorized capital of legal entities affiliated with the customer;

5) the head, founder or major shareholder of a potential supplier applying for participation in public procurement is an individual engaged in entrepreneurial activity included in the register of unscrupulous participants in public procurement;

6) a potential supplier, who is an individual engaged in business activities, applying to participate in public procurement, is the head, founder or major shareholder of a potential supplier who is included in the register of unscrupulous participants in public procurement;

7) the potential supplier is on the register of unscrupulous participants in public procurement;

8) a potential supplier and (or) his supervisor(s), founder(s) or a major shareholder have previously committed a corruption offense;

9) a potential supplier and (or) a subcontractor (co-executor) attracted by him, their head, founder or major shareholder, as well as persons affiliated with them have unfulfilled obligations under executive documents and are included in the unified register of debtors by the state body implementing state policy and state regulation of activities in the field of enforcement of executive documents.

This requirement does not apply to potential suppliers and suppliers identified in the cases provided for in subparagraphs 1), 25) and 26) of paragraph 3 of Article 16 of this Law.;

10) the activity of a potential supplier and (or) a subcontractor (co–executor) engaged by him has been suspended in accordance with the legislation of the Republic of Kazakhstan or the legislation of the state of the potential supplier - a non-resident of the Republic of Kazakhstan;

11) a potential supplier and (or) a subcontractor (co-executor) engaged by him, and (or) their head, founders (shareholders) are included in the list of organizations and persons related to the financing of proliferation of weapons of mass destruction, and (or) the list of organizations and persons related to the financing of terrorism and extremism, in accordance with the procedure established by the Legislation of the Russian Federation. established by the legislation of the Republic of Kazakhstan;

12) the potential supplier and (or) its founders (shareholders) and (or) affiliated companies of their founders (shareholders) are legal entities whose place of registration is the state or territory included in the list of states approved by the state body responsible for ensuring tax revenues and other mandatory payments to the budget. preferential taxation (offshore zones);

13) a court decision has been issued against a potential supplier, which has entered into force, on overdue and unfulfilled contractual obligations under previously concluded contracts.

2. Restrictions stipulated by the sub-paragraphs 3), 4), 5), 6) and 7) of paragraph 1 of this Article also apply to potential suppliers who are in the register of unscrupulous procurement participants provided for by the legislation of the Republic of Kazakhstan on procurement of certain entities of the quasi-public sector, and (or) the list of unreliable potential suppliers (suppliers) The National Welfare Fund.

3. A potential supplier and an affiliated person of a potential supplier do not have the right to participate in the same lot when conducting public procurement through a tender, auction, or request for price proposals.

A potential supplier recognized as the winner of a public procurement competition for construction and installation works and its affiliated person are not eligible to participate in public procurement of engineering services at the same construction site.

A potential supplier recognized as the winner of a public procurement competition for engineering services and its affiliated person are not eligible to participate in public procurement of construction and installation works at the same construction site.

4. Applications from potential suppliers who are state-owned enterprises, government agencies, and legal entities, fifty percent or more of whose voting shares (stakes in the authorized capital) belong to the state, are subject to automatic rejection by the web portal if there are at least two applications from potential suppliers who are private business entities.

5. The customer in whose interests public procurement is carried out has no right to participate in such procurement as a potential supplier.

6. Violations of the requirements of this article may be established by the customer, the organizer, the single organizer, the authorized body or the authorized body for internal state audit, as well as by subjects of public control in accordance with the Law of the Republic of Kazakhstan "On Public Control" at any stage of public procurement.

7. The authorized body or the authorized body for internal state audit shall notify in writing no later than five working days from the date of establishing the fact of violation of the requirements of this article.:

1) the customer, if such a fact is established after the conclusion of the contract;

2) the organizer, the single organizer, if such a fact is established before the conclusion of the contract.

At the same time, copies of documents confirming this fact must be attached to the notification.

8. Insurance agents and insurance brokers are not entitled to participate in public procurement for the provision of services related to the conclusion of an insurance contract, except in cases provided for by the Law of the Republic of Kazakhstan "On Insurance Activities".

The Law of the Republic of Kazakhstan dated July 1, 2024 No. 106-VIII The Law of the Republic of Kazakhstan.

President

Republic of Kazakhstan

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