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Direct Awards Absorb Nearly Half of the Total Value of Public Procurement

Direct Awards Absorb Nearly Half of the Total Value of Public Procurement

In financial terms, contracts awarded through direct adjustment amounted to Kz 528.2 billion, equivalent to 45.6% of the total value of Kz 1.15 billion contracted in December.

Simplified Contracting remained, in December, the most widely used modality by the Government in public procurement, both in terms of the number of procedures and financial volume. Simplified contracting, also known as direct adjustment or direct award, is a form of public procurement that allows a public entity to contract a supplier directly, without the need for a public tender.

According to the Monthly Public Procurement Bulletin released by the National Public Procurement Service (SNCP), 372 procedures were notified in December. Of these, 218 corresponded to direct awards, representing 58.6% of the total. Compared to November, contracts awarded through this modality increased by approximately 6% in December, when 206 procedures were carried out.

In financial terms, according to the SNCP, contracts concluded through direct adjustment amounted to Kz 528.2 billion, equivalent to 45.6% of the overall value of Kz 1.15 billion contracted in December. This total exceeds the Kz 920.5 billion recorded in November.

The Bulletin shows that electronic procedures also recorded significant growth. In December, they accounted for 68 processes, generating Kz 513.5 billion, corresponding to 44% of the total value transacted. In November, this model recorded only 21 awards, amounting to Kz 7.6 billion.

During the period under review, 13 public tenders were conducted, totalling Kz 36.1 billion, compared to the 25 tenders carried out in November, which amounted to Kz 11 billion. Limited Tenders by Prior Qualification totalled two procedures, with an overall value of Kz 17.5 billion, below the four tenders of the previous month, which generated Kz 48.6 billion.

In turn, Limited Tenders by Invitation recorded 29 contracts, worth Kz 3.3 billion, compared to the 54 procedures in November, which amounted to Kz 2.3 billion. Emergency Contracting maintained two procedures, but with a sharp increase in contracted value, rising from Kz 2.8 billion in November to Kz 59.1 billion.

Regarding the nature of expenditure, public works contracts totalled 19 procedures, with a value of Kz 565.7 billion. The acquisition of goods amounted to Kz 517.5 billion and the acquisition of services to Kz 74.5 billion. In percentage terms, the acquisition of goods represented 56.2% of the total, services 37.6%, public works 5.9% and concessions 0.3%.

With regard to contracting entities, Provincial Governments led with 206 procedures, followed by Ministries, with 141 contracts. The remaining public administration bodies recorded, together, 205 procurements.

The National Public Procurement Service is a public institute within the administrative sector, endowed with legal personality and administrative, financial and asset autonomy. Its mission is to support the Executive in defining and implementing public procurement policies, as well as to inspect, audit, supervise and promote good practices in public procurement, in accordance with current legislation.

Source: Economia & Mercado

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