Tenders and procurement platforms are one of the revenue channels for both large and small companies. But for young entrepreneurs who are just entering the market, tenders may seem like too difficult an area. This is partly true, so I want to help readers figure it out and take the first steps. In the article, I tell you what tenders are, where they are held, and which documents should be prepared first. In the end, I'll give you some tips for beginners.

A tender is a competition in which suppliers participate. Through a competition, the customer selects a supplier to perform services or deliver goods. For example, cleaning services in a business center or the supply of a batch of furniture for a new branch.

Through tenders, companies find goods and services on favorable terms. For suppliers, tenders are one of the revenue channels where large orders are often placed. 

When you need to buy, for example, household appliances, an ordinary individual buys them at any store. It is more difficult with government agencies and quasi-government companies. Government agencies cannot simply open a "Caspi store" or find a product in a search engine. Procurement of government agencies is regulated by the Law of the Republic of Kazakhstan "On Public Procurement". 

The Samruk-Kazyna Group of companies also does not buy from random sellers. The Fund regulates procurementThe procurement procedure of JSC NWF Samruk-Kazyna".

Quasi-governmental companies, such as Baiterek JSC or National Information Technologies JSC, officially conduct purchases on the Eurasian Electronic Portal. Quasi-public sector procurement is regulated by the Law "On Procurement of Certain Quasi-Public Sector Entities".

Any company can apply for participation in the procurement. Sole proprietors compete on an equal basis with legal entities, there are no restrictions on the form of ownership for participants. For example, even foreign companies participate in the Eurasian Electronic Portal. The size of the organization does not matter, each organization selects lots according to its profile and the amount of delivery.

Government agencies, quasi-governmental companies, and companies belonging to the National Welfare Fund Samruk-Kazyna conduct purchases on specialized platforms. The purchases of these companies are not published anywhere else. I will tell you about the three largest portals in Kazakhstan.

Prepare an EDS

Sole proprietors and legal entities enter the procurement portal using an electronic signature, so download the NCA Layer application. Sometimes, at the most inopportune moment, it turns out that the EDS has expired, and then the application may fail. Check the validity period of the EDS in advance.

Prepare the application security 

Some customers ask for a bank guarantee, and in order to participate in quasi-public sector purchases, they need to replenish an electronic wallet or issue an electronic bank guarantee.

Study the tender documentation

The customer may set additional conditions in the specification, so study the documentation carefully in order to fulfill all the conditions under the contract. For example, according to the terms of the customer, your employees must be on staff for at least a year, meaning you cannot hire a contractor to do the work. 

If you need to deliver a shipment to another city, then consider the cost of logistics. Shipping costs money too, and those costs are on your side. Calculate in advance whether it is profitable for you to make a delivery to another city, so as not to work at a loss. In addition, you must fulfill your obligations on time, as penalties and fines are charged for delay.

Make sure your organization is financially sound

Suppliers participating in procurement by tender are checked for financial stability if the purchase amount exceeds 48,000 MCI. 

How is financial stability assessed?:

• The supplier's income for the last three years preceding the previous one is more than 400,000 MCI or 1/2 of the purchase price.
• The rate of taxes paid during the three years preceding the previous year is at least 3% of the income for the same period.
• The average annual cost of the supplier's fixed assets during the three years preceding the previous year is more than 400,000 MCI or at least 1/15 of the purchase price.
• The wage fund for employees during the three years preceding the previous year is more than 400,000 MCI or at least 1/15 of the purchase price. More detailed information on financial stability is provided in paragraph 29 of the Procurement Rules for the Quasi-public Sector of the Republic of Kazakhstan.

At the initial stage, the portals may require a certificate of state registration or constituent documents of a legal entity. Also collect documents confirming work experience, staffing table, certificates and diplomas of employees. Prepare the documents in advance so as not to search for documents at the last moment before the deadline for submitting documents.

There are no tricks or life hacks, modern e—procurement is a fairly open process. For example, on the Eurasian electronic portal, the protocols of the results are published in open form, suppliers can file complaints against customers, send questions and comments on the tender documentation to the procurement organizer. I'll give you some tips for beginners. 

• Offer the best price, conditions and product. Offer shorter delivery times and better product specifications at the same price. For example, a customer asks for Core i5 computers, and you have Core i7 computers in stock at the same price. This is a tempting offer for the customer.
• Respond only to specialized tenders. Do not waste time on tenders that do not correspond to the activities of your organization. For example, if you install automation for gates, you do not need to take out a tender for the installation of windows, hoping to attract third-party installers. If you take on a job outside your field, the supplier runs the risk of not being on time or doing the job poorly.
• There is a myth that it is better to submit applications at the last moment, an hour or even five minutes before the end of the application process. Experienced contractors believe that this is better, because price offers can be compromised, and competitors will simply apply for a couple of tenge cheaper and win the competition. But this is not the case.

For example, on the Eurasian Electronic Portal, all price offers are encrypted until the moment of opening. This means that no one will be able to spy on and pass on the price offers from suppliers to others — this is technically impossible. No one sees the price offers: neither other suppliers, nor customers, nor even the administrators of the portal. Autopsy reports and outcome reports are publicly available on the portal. You will see who won the purchase and at what price, but only after the opening. Any corruption in the CES is technically impossible.

• The Ministry of Finance of the Republic of Kazakhstan has amended a number of orders aimed at stimulating domestic production. Such privileges are now enjoyed by domestic producers.:

• The customer pays a mandatory advance of 30% after the conclusion of the contract.
• OTPs are exempt from the following types of collateral: performance of the contract, advance payment, as well as the amount in case of anti-dumping measures.
• Penalties for improper performance of contractual obligations are reduced from 10% to 3% of the contract amount.
• Priority in the purchase of goods, works, and services is given to domestic producers.

It doesn't matter to the customer whether your company is large or not. The main thing is that the supplier meets the requirements and fulfills the terms of the contract efficiently and on time. Participate in purchases. Good luck!