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In the general public procurement market (valued at around US$19 billion annually), direct awards have dropped from 81% of the value of all procedures in 2017 to 23.5% New suppliers are entering the market and bidding more actively too. The number of suppliers per buyer increased from 8.0 on average in 2021 to 10.23
Affecting around 4000 public buyers, the decree defines procurement as ‘green’ if it uses green criteria, recognized certificates, ecolabels or environmental management systems for no less than 50% of total procurement value. The LPPO had to learn on the go about the challenges of using green criteria.
In late 2022, this question led them to look at value added tax (VAT), the second highest source of revenue for Kazakhstan’s budget. But, with millions of contracts awarded every year, they couldn’t manually check the VAT status of every supplier. After 15 minutes of initial research , Adildik Joly found their first violation.
They are also working on tools to help contracting authorities to analyze their own data, for example, to monitor the average lead time of their tenders, or decide which awardcriteria to use when preparing a tender. They used the data to address specific agencies, and posted about it on LinkedIn.
Regulators can better promote green procurement by sharing guidance in simpler language that can more readily be reused in procurement notices (and understood by potential suppliers). With richer data, we would be able to describe in greater detail the opportunities and limitations of applying AI techniques to procurement data.
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