An auction is one of the procurement methods on the Eurasian electronic portal. An auction as a method of purchase is always held on a downgrade, and it is called a "downgrade competition." Do not confuse it with an English or Dutch auction — here the seller sells the property, and he decides whether to sell more expensive or cheaper, and the participants buy. In procurement, on the contrary, the customer always wants to buy the product cheaper, suppliers offer the minimum price for which they are ready to sell. In a downgrade auction, the lowest price wins. We tell you how the auction is going.

First, the draft documentation is published on the portal. A preliminary discussion is necessary for potential suppliers to familiarize themselves with the project, ask questions and give comments on the documentation. For example, suppliers are asked to clarify the vehicle's configuration, engine type, or to correct a typo. The preliminary discussion of the auction documentation lasts 5 days. During this time, potential suppliers send questions and suggestions to the customer or the organizer. 

If the customer has received comments, he/she:

• makes changes and additions to the documentation,
• rejects comments,
• or provides suppliers with explanations to the documentation. 

Another 5 days are allocated for the customer's response.

If no questions or suggestions have been received, the documentation is automatically considered approved. After the preliminary discussion, the minutes of the discussion are publicly available on the portal.

After the auction documentation is approved, the customer publishes an announcement. Suppliers submit bids to participate in the auction. All participants attach the documents required by the auction documentation. 

The application is not accepted if:

1. a potential supplier has already submitted an application for the auction;
2. the supplier was late and submitted the application later than the deadline;
3. the starting price in the application exceeds the amount allocated for the purchase of goods;
4. The supplier is included in the register of unscrupulous participants in public procurement, in the register of unscrupulous procurement participants, in the list of unreliable potential suppliers of the Samruk-Kazyna Fund or in the list of debtors declared bankrupt.

The supplier provides security for the application in the amount of 1% of the amount stated in the purchase. Securing an application is a guarantee that the supplier intends to fight for the lot and conclude a contract in case of winning. For example, a customer buys a car for 10 million tenge. It turns out that the supplier, in order to participate in the auction, contributes security in the amount of 100,000 tenge. The security is returned to all participants of the auction after its completion.

The provision is made in one of two ways:

1. to an electronic wallet,
2. they receive a bank guarantee.

The collateral will not be refunded if the auction winner: 

• evaded the conclusion of the contract;
• entered into a contract and failed to fulfill obligations or performed untimely or improperly.

The auction is held on the portal on the day and time specified in the auction documentation. All participants are assigned a code name at the entrance to the auction hall. None of the other participants knows the real name or organization of the other participants. The Eurasian electronic portal ensures the security and anonymity of trades.

Bidding takes place on a downgrade, starting from the lowest of the prices given by the participants at the time of the bid. For example, applications for 9,990,000, 9,980,000, and 9,970,000 were received from three suppliers. The bidding starts with the amount of 9,970,000. The participants take turns lowering the price of the product.

30 minutes are allocated for bidding. If there are 10 minutes left before the end of the auction and the participant makes a bid at that time, the auction is extended by 10 minutes. For example, the end is scheduled for 18:00. At 17:54, the participant makes a bet. In this case, the auction is extended by 10 minutes from 18:00, that is, the end of the auction is now at 18:10. If there are no more bids within 10 minutes after the last bid, the auction ends and the portal generates an auction protocol. All bets and the final result are indicated in the protocol.

After the bidding, the commission reviews the applications. The Commission considers whether the participant meets the qualification requirements and the requirements of the auction documentation. The commission considers each application for up to two business days.  

Applications are considered starting from the lowest submitted price. For example, the auction ended at 9,940,000, which was submitted by the supplier "Avtohaus". If his qualifications are suitable and the documentation requirements are met, then he becomes the winner, and the applications of the other participants are not opened. If the commission finds the application of Autohouse to be unqualified, the commission proceeds to consider the next supplier in terms of price. For example, the Autotrade supplier submitted a price of 9,950,000, which is the next bid after the lowest. At the same time, if there are no other participants after the last supplier, the auction is considered invalid. The last person admitted cannot be the winner.

The results report is generated automatically and published on the portal. The portal sends notifications about the end of the auction and a link to the protocol to all participants by e-mail.

Purchases by auction method are considered invalid if: 

   1) no one has applied for participation,

   2) Only one supplier has applied to participate in the auction.

  3) all the auction participants were found not to meet the qualification requirements and requirements of the auction documentation;

   4) if out of all reviewed bids, only one auction participant is recognized as meeting the relevant qualification requirements and requirements of the auction documentation. For example, there were 3 participants in the auction. The first one is found not to meet the requirements, then the commission proceeds to consider the second application. If the second application is also not suitable, the third one is considered. Let's say the third bid meets all the requirements, but the supplier cannot be recognized as the winner, because this is the last supplier, and there are no more participants after it.

If the auction did not take place, the customer can announce a repeat purchase, make the purchase in another way, or change the documentation, for example, specify a smaller quantity of goods.