RECOMMENDATIONS ON IMPROVEMENT OF PUBLIC PROCUREMENT SYSTEM

1. Recommendations were prepared by Anti-corruption Business Council of Kyrgyz Republic RECOMMENDATIONS ON IMPROVEMENT OF PUBLIC PROCUREMENT SYSTEM Experts: BazakeevaJyldyzJamanchaevna AbdymomunonaSainaRyskeldievna

2. Purchasing organization’s potential rise It is necessary to practice annual : Training of procurement department staff and members of tender board on state procurement procedures; Merit ratings of procurement department staff and members of tender board for the knowledge of state procurement legislation.

3. Enhancement of transparency and openness The following information about state procurement must have open access on web-sites: Procurement plan : Developed tender documents; Protocol of tender opening and procurement procedures; Results of tender evaluation, selection of winner ; Information about concluded contract.

4. Creation of suppliers and contractors database Maintain a database of highly specialized contractors in the sphere of electric power industry having license for project engineering, construction and repair service. Given that structural subdivisions (Central Heating and Power Plant, Hydroelectric Station) work with equipments produced in Russia. Procurement and logistics department must have database of direct producers of equipments and spares. This kind of database of producers and dealers must be created for such strategic goods like coal, masout, industrial salt, sodium hydrate, filters etc.

5. Managing and forming procurement plan During managing state procurements company’s demands of goods, work and services should be scrutinized. Taking into account the specificity of works company is recommended to have development plan for the next several years that would allow to determine demands of goods, work and services in advance. There are few recommendations on projecting a procurement plan: Monitor market regularly; Purchases of construction or capital repairs must be included to procurement plan only after defining design and estimate cost of scheme. After issuing a tender for project engineering and development of design and estimate documentation, permitting documents for dismantling and land acquisition must be obtained. Goods must be classified not by groups, but by type; technical and qualitative characteristics of goods must be specified.

6. Open invitation to tender Set terms for final proposal in time provided by Law, publish announcements in the form specified in article 19 of the Law. After announcement publishing invite potential participants to tender directly and through diplomatic representatives Store in documents all copies of announcements published in Bulletin of state procurements and mass media and list of participants invited directly through diplomatic representatives

7. During tender period Practice tendering process with pretender consultation in presence of potential suppliers and contractors. Practice provision of instructional advice to the members of tender board by the established criteria of proposal estimation, conflict of interests and privacy of provided information being commercial secrets.

8. Tender opening In protocols of tender opening the following must be specified : Guarantee period of proposals; Numbers of provided references, information about existence or absence of tax liabilities or payment arrears to Social Fund; Information about attendee in and for an applicant (number of letter of authority, name of an attorney-holder or whether head of an enterprise is present). In order to provide transparency of purchases tender boards must include representatives of civil society (Supervisory board). Moreover the representatives of civil society should have knowledge about state procurement.

9. Tender evaluation and comparison During the process of selection only those criteria specified in tender documentation must be used. Any negotiations about provided proposal with an applicant must not be hold. Each member of a tender board must evaluate and compare proposals of all applicants and make evaluation sheet. Do not accept any changes to proposals after opening, do not evaluate proposals, that were not viewed in the process of tender opening, on the matter of discounting.

10. Tender evaluation and comparison In case of nonbinding tender conclude a contract to that proposal that serves the turn of tender documentation and has lowest appraised value. In case of tender requiring indication of price conclude a contract with a supplier whose prices are satisfactory for purchasing organization and has lowest indication of price.

11. Selection of successful tenderer and conclusion of contract Under clause 13 of the Law procurement department should conclude a contract on the basis of recommendations made by tender board on Successful tenderer consisting of no less than 3 people. In case if the purchases exceed five-time size of a maximum threshold amount, before defining the winner companies should audit correspondence of purchases to the requirements established by Law.

12. Selection of successful tenderer and conclusion of contract In accordance with the applicable legislation contracts should be concluded on terms of successful tenderer’s proposal. Practice the procedure of including collaterals for guarantees to performance of a contract

13. During conclusion of a contract Terms of goods delivery must be indicated in a contract (occasional, in lots, according to schedule). Forms of goods delivery: shipping or transferring goods to purchaser (representative) Transfer of goods ownership should be defined in a contract; In case of violation of supplier’s obligations define the risks (shortfall in delivery, delivery of goods with inappropriate assortment, quality; goods delivery in inappropriate terms); Responsibility of a supplier for packing and wrapping that provides goods safety.

14. Thank You for your attention!