Procurement Support

Samruk-Kazyna Contract LLP (hereinafter referred to as SKC) is the Procurement Operator of the Fund group of companies. The company was founded in 2009. SKC provides support and development of the electronic procurement information system (the Fund’s procurement web portal), monitoring of local content and marketing of prices for goods purchased by the Fund group of companies. The company is also the developer of the Unified Stock Item Catalogue of Goods, Works and Services used in the procurement of the Fund group, public procurement, as well as procurement of the quasi-public sector and subsoil users. In addition, SKC carries out the preliminary qualification of potential suppliers and has been designated by the Management Board of the Fund as the Competence Center for Managing Procurement Categories of the Fund.

Key performance results

Implementation of the import substitution program

One of the strategic objectives of the Fund is to participate in the implementation of socially significant, industrial and innovative projects that contribute to the sustainable development of the economy of Kazakhstan.

An effective mechanism for supporting domestic producers has become the Import Substitution Program, under which the manufacturer undertakes to create a new production of imported products, and the Fund companies acquire it on a long-term basis.

To implement this direction, the Fund approves the “Pool of Net Import Goods” on a quarterly basis in which the Fund group of companies has a long-term need. Enterprises are proposed to establish production on the territory of Kazakhstan, and the Fund companies undertake to ensure long-term demand. From 2018 to 2022, 53 projects were approved for the conclusion of offtake contracts. 331 offtake contracts were concluded for a total amount of about KZT101.4 billion.

Potenial supplier pre-qualification (PQ)

Pre-qualification of potential suppliers (PQ) in modern procurement practices is important, indirectly contributes to reducing the risks of subsequent contracting, reduces the cost of procedures, ensures transparency and ultimately contributes to the development of fair competition. Pre-qualification means the selection of precisely such business entities that will be able to satisfy the customer’s needs for goods, works, and services of appropriate quality with the maximum degree of probability.

The Register of Qualified Potential Suppliers includes 243 potential suppliers. For 2020-2021, 83 potential suppliers were included in the QPS Register.

During 2022, together with Portfolio Companies of the Fund, 24 categories of goods, works and services have been developed for which the PQ is applied. In addition, 5 categories have been developed for major investment projects of JSC NC KazMunayGas, JSC NC Kazakstan Temir Zholy, KEGOC JSC, Samruk-Energy JSC.

The ongoing monitoring of the quality of service rendering indicates a 100% level of satisfaction with the PQ process on the part of potential suppliers.

Category procurement management

Categorical procurement management (CPM) is a modern global management practice that can increase the economic efficiency of a company’s procurement.

The CPM is aimed at changing the approach to procurement, taking into account the specifics of a particular business area. The implemented changes contribute to reducing purchase prices, improving the quality of purchased goods, optimizing logistics costs, reducing inventory balances, etc.

The CPM advantage is that the key criterion for choosing a supplier can also be not only the purchase price, but also the total cost of all expenses incurred during the life cycle of a product, work or service from the moment of their procurement to full write-off / disposal.

The List of procurement categories of the Fund and its organizations

In 2021-2022, work was carried out to optimize procurement categories, as a result of which the new version of the List consisting of 21 categories was formed.

Results of the Fund PCS implementation:

Development and implementation of procurement category strategies (PCS) of the Fund

In 2022, the Fund PCSs were updated for the “Special Clothing” and “IT Equipment” categories, and the PCS was developed and approved for the “Pipe Products” category.

Further development of the Unified Stock Item Catalogue of Goods, Works and Services

The total number of codes of the Unified Stock Item Catalogue of Goods, Works and Services as of December 31, 2022 is 52,363, including: goods – 49,982, works – 533, services – 1,848. In 2022, 13,118 applications for the addition of a new code were considered in the USIC GWS information system, 1,527 codes were approved by the USIC GWS Codes Consideration and Approval Commission, 11,591 applications were returned with the proposed code.

As part of the USIC GWS development and improvement, work was carried out on the formation of a list of high-cost goods purchased by the Fund companies (about 906 USIC GWS codes). In order to correctly apply the USIC GWS codes, templates of standard technical specifications for use in the Electronic Procurement Information System have been developed according to these codes. The implementation of the Pilot Project in procurement is expected in 2023, after the modification of the USIC GWS IS and EPIS.

Processes Digitization

For round-the-clock monitoring, identification and response to incidents related to information security of EPIS and USIC GWS, the infrastructure was connected to the operational Information Security Operational Center.

During 2022, according to the Property Realization Rules of JSC SWF Samruk-Kazyna, the Web Portal for the Fund Property Realization information system was developed. In November 2022, a pilot implementation was launched in the perimeter of several Portfolio Companies of the Fund.

The Procurement Data Analysis and Visualization System based on the Qlik BI platform has also been developed and put into operation. This system enables analyzing and report on the indicators of procurement activities in an automated form online.

List of unreliable suppliers

SKC forms and maintains the List of Unreliable Suppliers.

In total, 1,045 applications for inclusion in the List of Unreliable Suppliers were considered in 2022, 972 of them were included in the List, 73 applications were refused.