D.R.Almazbekov, А.K.Dolotbakova
632 | 0
Assessment of efficiency of investments in transport and logistic systems
The article deals with the main issues of assessing the effectiveness of investments in transport and logistics systems, which, within the framework of a program-oriented approach to financing transport systems, may become important from the point of view of rational use of budget funds at various levels. Key words: transport and logistics system, supply chain, investment, financial flows, cash flow, gross profit, total costs, the function of costs, fixed costs, variable costs. The evaluation of investment efficiency in transport and logistics systems within the framework of the application of a software-oriented approach to transportation system financing is of great importance in terms of rational use of budgetary funds at various levels. A regional transport and logistics system is a system that allows for the delivery of the necessary amount of cargo (passengers) to a specified point via an optimal route at the right time with the lowest costs. The cost of product creation consists of production costs and costs associated with the execution of all activities from material acquisition to the acquisition of goods by the end consumer. A significant portion of the costs is the added value associated with transportation and logistics expenses at each link of the "producer-consumer" chain. The movement of the material flow from the primary source of raw materials to the end consumer also incurs costs, which can account for up to 50% of the total logistics costs. Optimizing the movement of material flows in transport and logistics systems is largely achieved through improving their servicing with financial flows. Financial resources can be transformed into various other forms: goods, services, information, labor, etc. Therefore, the rational allocation of financial resources is an important condition for the efficient functioning of the regional transport and logistics system. Financial flow in logistics is the movement of finances not only within the logistics system but also between the logistics system and the external environment, which is necessary to ensure the efficient movement of material flow. Financial flows vary in composition, direction, purpose, and other characteristics. To optimize the flow of financial resources in logistics systems, it is necessary to classify them. Depending on the direction of movement, financial flows can be divided into positive and negative. These flows are interrelated: an insufficient volume of one type over a certain period of time leads to a decrease in the volume of another type. Therefore, in the financial flow management system, they should be considered as a complex object of management. The main goal of optimizing the movement of financial flows in the organization of a regional transport and logistics system is to ensure the movement of material flows with financial resources in the required volumes and at the right time, using the most efficient sources of financing (investments). This movement is influenced not only by the amount of financing but also by the location (site of action) of investments. Such points are considered as nodes of logistics chains. The location of these nodes should be associated with the transport hubs of the regional logistics system. This is necessary for coordinating the management of material flows at the nodes and distributing the functions of the elements (participants) of the transport and logistics system. The main resource flows that form a node are financial, informational, and material flows. These flows are constantly or periodically influenced by factors from the external and internal environment, as well as intentional control measures. A comprehensive approach to managing all types of flows should take into account the following characteristic: the use of management methods and models should be aimed at changing the maximum possible number of resource flow characteristics, which allows controlling the movement of materials by influencing financial flows. The use of pricing methods and cost allocation methods used in calculating the cost of resource extraction and determining the price of the final product allows us to correlate parameters such as "production costs of the product," "marginal utility of the final product for consumers," and "predicted financial performance of the system's operation." In the proposed model, by selecting management tools and methods, it is possible to control flows at the nodes by combining these flows. Management actions at the nodes are purposeful in nature - through modeling, incoming and outgoing parameters of the nodes or values and direction of financial and material flows that form them are changed. Most often, the goal of modeling and, consequently, the management process is to change the volume, time, or cost of the flow (investments) intended for financing the distribution channel. In this regard, nodes that encompass all the flows involved in the distribution process are subject to influence. The location of the nodes in the organizational management structure and the regional transport and logistics system is also taken into account during the modeling process, although it is not the only possible option. In some cases, it may be appropriate to modify the organizational structure or the location of the nodes within it to allow access to them. Bibliography 1. Надирян, С.Л. Влияние транспорта на инвестиционную привлекательность региона. /С.Л. Надирян, Д.Ю. Дудник, А.О. Гибашева // Вестник Сибирской государственной автомобильно-дорожной академии. - 2013. - № 5. - С. 146-150. 2. Коновалова, Т.В. Влияние инвестиций в основной капитал транспорта на развитие экономики региона / Т.В. /Коновалова, С.Л. Надирян // Вестник Саратовского государственного технического университета. -2013. - Т. 2. - № 2 (71). - С. 333-336. 3. Коновалова, Т.В. Оптимизация инвестиций транспортно-логистическую деятельность предприятия. / рян // Гуманитарные, социально-экономические и общественные науки. - 2013. - №3. - С. 208-210.
A.T.Turusbekova, A.V.Litvinova, A.A.Orozonova
611 | 0
Organization of procurement activities of state-owned enterprises
The concept and types of electronic procurement are considered. The drivers of more active implementation of e-procurement technology have been identified. The organization of procurement processes of state organizations of the Kyrgyz Republic is briefly described. Special attention was paid to the legal aspect of public procurement. The main problems of e-procurement and ways to solve them are also considered. Key words: procurement logistics, electronic trading platforms, EDS, electronic bidding, procurement department, public procurement portal Currently, the functioning of both commercial and government organizations cannot be imagined without procurement activities. Any organization, in one way or another, carries out its activities through the procurement of goods, services, raw materials, and consumables: from purchasing office supplies and equipment for administrative work to acquiring high-tech equipment for direct use in production or service provision to clients. The issue of procurement activities for government or municipal organizations is resolved through the conduct of tenders. Government organizations plan the procurement process for the next year starting from September of the current year. The Procurement Department collects applications or requirements for the procurement of goods or construction of facilities from the respective departments. Before the annual plan is approved, the Procurement Department will include the goods and services in the annual list. The task at hand is to prefer one of two alternative solutions: either produce any product, raw material, or component using our own production facilities or procure the necessary inventory items from reliable suppliers or contractors who specialize in providing them. According to the "Public Procurement Law," government organizations can enter into a framework agreement with suppliers. The essence of a framework agreement is: - Procurement of goods at previously agreed prices throughout the year. - In force majeure circumstances, there will be no need for suppliers, as under any circumstances, the second party will fulfill its obligations according to the agreed-upon terms of the contract. - The main reasons why purchasing from suppliers may be more feasible include: - Lower costs of acquiring material resources from suppliers compared to the costs of self-procurement of goods and services. - Higher quality of goods from suppliers. Procurement by government organizations is conducted based on reasonable norms and regulations regarding the use of goods and services. As a result, the quantitative aspects of procurement have a much lower degree of subjectivity compared to specific cases. Government procurement is carried out to address national tasks, with the priority being the satisfaction of societal needs, achieved through the government's fulfillment of its organizational and economic functions. The mechanism of government procurement is structured in a way that gives the state a dominant role. In government procurement, the state acts as a regulator of economic processes. By encompassing both the procurement of goods and the execution of works and services, the term "government procurement" highlights its systemic nature, which necessitates the development of a unified mechanism for legal regulation of the relationships arising during the procurement process. Externally, government procurement, as a procurement itself, does not differ from private procurement. However, as government procurement, it still has its distinctive features that manifest in the nature of the government procurement process: - Public need for the purchase: Government organization's procurement can be seen as purchases made due to some objective necessity that is inherently present in the activities of the state. - Rationality of the purchase: In the case of government procurement, everything that is purchased is theoretically only those things and services that are truly necessary for the functioning of the government organization. The state, as a societal consciousness, cannot afford to buy unnecessary, defective, harmful, etc., items that may pose a danger to the entire state as a whole. For example, purchasing low-quality military equipment can result in defeat in a war. - Quantitative rationality (proportionality) of the purchase: Government organization's procurement is carried out based on reasonable norms and standards of using goods and services. Therefore, the quantitative dimensions of the procurements have a much lower degree of subjectivity compared to specific cases. Government procurement of goods and services beyond their reasonable physical limits for periodic consumption leads to overspending of government funds, unjustified material losses during storage, and shortages. At the first stage, which is the stage of forming the government order, a consolidated list of the government order is created based on the volumes and scope of the government order carried out by the government, recipients, and managers of consolidated budgetary funds. At the second stage, the government order functions as an offer. Government agencies, budgetary institutions, or other authorized recipients of budgetary funds, acting as "state customers," determine the procurement method, set deadlines for bid opening, establish qualification requirements and technical specifications for the procured goods, and announce a tender on the government procurement portal. At the third stage, the tender commission determines the winner in accordance with the qualification requirements, who is subsequently obliged to fulfill the contract. In any country, the sphere of public procurement is always under close scrutiny and attention of the prosecutor's office and the audit chamber. Public procurement is not only a tool for meeting public needs but also a powerful and effective instrument of state policy. For example, through the mechanism of government procurement, it is possible to influence economic growth and development, enhance business activity, manage tax policy, and so on. An important criterion in forecasting and formalizing procurement is the time and delivery schedules of goods. Relatively short delivery times allow for more flexible planning of orders to suppliers, forming smaller but more frequent deliveries. In this case, errors in forecasting the demand for goods can be compensated by fast delivery times. However, for long delivery periods, careful planning of the needs and sizes of orders for goods and materials is necessary, along with determining the delivery schedule. This is because there is a lack of modernized warehousing facilities and equipment for storing goods throughout Kyrgyzstan. Thus, the procurement of necessary goods and services by state enterprises is more efficient than the traditional method used before 2015. The electronic procurement format has reduced corrupt practices across the republic by threefold. This is due to the publication of procurement notices on the procurement portal, allowing all eligible suppliers who meet the qualification requirements set by the procurement department and the purchasing organization to participate. The results of the evaluation by the tender committee are also publicly disclosed within a specified timeframe. Suppliers who disagree with the committee's decision have the right to appeal it through legal procedures. As a result, the tender committee carefully considers its decisions, relying on the law on public procurement. However, just like in any sector, there are drawbacks to the previous interpretation in the public sector. In our final decision, the tender committee is guided by the condition that the lowest bid amount is important. Taking advantage of this, unscrupulous suppliers provide the lowest bid and win the positions specified in the tender lot. As a result, they deliver low-quality goods. According to the author of this article, it is necessary to refine the law on public procurement and address the loopholes in the legislation. As practice shows, goods of inadequate quality do not last long, and the purchasing organizations will have to re-tender for the same goods using the budget of the Kyrgyz Republic. Thus, more money from the budget of the Kyrgyz Republic is spent on acquiring the necessary needs of the purchasing organization for the same goods. The electronic digital signature was implemented nationwide in March 2021. All actions are now verified by an electronic digital signature. The automated processing of electronic documents has reduced the time from creating a request to publishing a purchase to a matter of days and hours. The deep data structure from planning to procurement has allowed for the implementation of a multi-level system of control over incoming information to ensure compliance with legislation. Thus, competitive procedures for the needs of budgetary institutions and state unitary enterprises are conducted according to the principles outlined in the Law of the Kyrgyz Republic "On Public Procurement" through the government procurement portal. These actions have created conditions for competition to thrive in this market segment. Increasing the share of competitive procurement in the overall volume of concluded contracts will lead to positive effects for the budget, such as cost savings. Bibliography 1. Закон Кыргызской Республики «О государственных закупках» от 3 апреля 2015 года № 72 2. Положение о применении рамочного соглашения от 31.12.2019 3. Юдина М. Трудности перевода. Роль закупок в становлении инновационной экономики // Информационно-аналитическое издание «Бюллетень Оперативной Информации «Московские торги». 2015. № 11. С. 46–49. 4. 5. Ассоциация электронных торговых площадок [Электронный ресурс]: офиц. сайт. URL: http://www.aetp.κg
A.S.Umetaliev, U.T.Sultankulov, U.I.Asylbekov
607 | 0
Introduction of artificial intelligence to the public procurement system
This article discusses the main challenges of implementing artificial intelligence in government procurement and provides recommendations for addressing them. Institutional structures can leverage innovations in procurement by taking into account the specificities of artificial intelligence systems. Keywords: artificial intelligence, government services, machine learning, government institutions Government institutions around the world have a tremendous potential to harness the power of artificial intelligence (AI) to enhance government operations and citizen services. However, governments may lack experience in procuring advanced AI solutions and may exhibit caution in adopting new technologies. International organizations such as the World Economic Forum (WEF), along with companies like Deloitte and Splunk, have developed a set of steps for the utilization of AI in government procurement in their guide called "AI Procurement in a Box: AI Government Procurement Guidelines." This article will examine the key aspects recommended to countries for the integration of AI into their government procurement system. What is artificial intelligence? There is significant uncertainty regarding the nature of artificial intelligence (AI) systems and even what should be primarily considered as an algorithm. For example, a recent "algorithm" used by Stanford Medical School to allocate COVID vaccine doses essentially comprised a human-developed set of decision criteria rather than a complex system trained on available data. To discuss procurement-related issues, it is helpful to consider AI in a broader sense as "Automated Decision Systems" (ADS). These decision-making systems encompass "any systems, software, or processes that use computations to support or replace governmental decisions, judgments, and/or policy implementation that affect capabilities, access, freedoms, rights, and/or safety." The fact that these systems are increasingly being integrated into or even replacing governmental functions worldwide is crucial to understanding why they present significant challenges to current procurement processes. AI systems are typically optimized for specific goals, and the degree to which those goals align with their intended functions can vary significantly. They have the potential to improve the processes of governmental institutions and their interaction with citizens, such as using chatbots to facilitate communication and information retrieval. However, they also carry risks, such as when a facial recognition system used by the police mistakenly identifies an individual as a criminal, leading to their wrongful arrest. AI solutions that can be quickly implemented are often provided by private companies. As more and more aspects of government services are integrated into artificial intelligence systems and other privately-provided technologies, we observe a growing network of private infrastructure. As government agencies outsource critical technological infrastructures, such as data storage and cloud systems for data exchange and analysis, under the guise of modernizing public services, we see a trend of losing control over critical infrastructure and reducing accountability to the public that relies on it. Unlike private companies, which are accountable to their shareholders and driven by profit, government organizations are entrusted with considering the welfare of their entire population when providing solutions, and they are tasked with mitigating the harm caused by AI to the communities they serve. Two problems remain: The use of AI by the government is distinct. Governmental use of an algorithmic decision-making system entails different requirements than a product for private use. While it is expected that technology designed for public use will cater to the needs of all citizens, this is not necessarily the expectation for products created in private settings; in fact, many products are specifically tailored to a particular audience and then extended to a broader user base. This disconnect is often overlooked. Public use carries higher standards of compliance. Technologies designed for public use are subject to different requirements and legal criteria than the majority of privately-used technologies. "Government procurement" is one of the most heavily legislated and regulated areas of public administration. Typically, the activities related to government procurement are outlined in procurement guidelines provided by government entities and organizations. The absence of a clear procurement structure can complicate the development of accountability mechanisms that encompass all organizations. In the "AI and Procurement Primer" textbook by New York University, the authors identify six problems: The field of AI as a whole faces numerous terms that remain undefined. The first set of problems with definitions pertains to technologies and procedures: there is no consistent concept of AI or even an algorithm. This can hinder, for example, cataloging existing sociotechnical systems in government and hinder the development of procurement innovations specific to these technologies. Agencies and local authorities sometimes define these technologies for themselves, such as in registries or compliance reports, or as part of new regulations, but there is a lack of interagency coordination. Similarly, there are no agreed-upon definitions and procedures for assessing or auditing the impact of AI and its risks. The second set of problems with definitions relates to legal frameworks and principles, particularly fairness. There are vastly different understandings of what constitutes fairness in the context of AI. To arrive at a working definition of fairness that is truly fair, it is necessary to involve those who have suffered from AI's unfairness. The third set of problems with definitions pertains to metrics, especially success metrics, both for the AI system itself and the process by which it was acquired. There may be a lack of appropriate success metrics, or the success metrics may be contradictory. For example, fraud detection models measure success based on detecting anomalous behavior (e.g., abnormal for a human), which may indicate (but is not limited to) fraudulent behavior. Anyone whose credit card was frozen while on vacation would likely appreciate this distinction. These systems are not only used by banks; government institutions may also employ them to detect benefit fraud. While the technical definition of success may revolve around detecting as much fraud as possible, the practical definition of success may lie in detecting only those cases that are most likely to be fraud. Using the same methodologies, it will be possible to calculate potentially relevant companies and filter out those with a poor reputation and a high risk of misusing government procurement. The procurement process was designed to prevent abuses, but as a result, it contains reinforced sets of procedures that typically allow only large suppliers to meet the standards and compete for government contracts. Long-term contracts arising from these sets of procedures are entrenched within government institutions for many years and can create dependencies on the procedures. These dependencies can also extend to the emerging field of algorithmic auditing, where large suppliers who already have contracts with government institutions add algorithmic auditing to their portfolio of services, incentivizing government institutions to contract these services through their existing suppliers. Tensions in the procurement process also arise due to bottlenecks that can exist in procuring different services, such as when delays or distortions occur at various stages of procurement (particularly in the request for proposals, supplier selection, contract award, and execution). As the disproportionate impact of AI systems on individual citizens and communities becomes increasingly apparent, there is a pressing need to determine at what point in the procurement process risk and impact assessment should take place, importantly including the execution stage as well. Fig. 1. Procurement Activity Matrix As shown in the Procurement Activity Matrix, different types of tasks require varying levels of expertise and work volume. As the procurement process undergoes restructuring, it is necessary to identify points at which public participation and informed discussion can occur and be integrated. The incentives underlying both the procurement process as a whole and the various organizations involved in procurement can undermine the establishment of AI impact assessment structures. Sellers are driven by capitalist incentives and focus on generating profit by offering their services to government organizations. The primary responsibility of most suppliers lies with their shareholders, rather than with the clients or the people who use their services and systems. This means that current procedural and cultural procurement settings are supported by incentive structures that do not promote measures to protect the population or mitigate algorithmic harm, not least because they potentially slow down the procurement process. At this stage, the incentives of the government and the suppliers are effectively aligned: both are interested in quickly resolving the problem and transferring it through the contract once it is identified and budgets are approved. Both parties are also interested in presenting the technological solution as the most effective approach to any given problem. Government officials tasked with managing the procurement process may also lack an incentive to change the procurement process to account for potential AI technology harm. Their task is to procure as efficiently as possible, and there is no organizational or career reward for altering existing procedures. The institutional structure of government can pose challenges to innovations in procurement that consider the specificities of AI systems, especially when it comes to problem-solving timelines and implementing such innovations. According to former U.S. Chief Data Scientist DJ Patil, government policy is typically developed over a span of 10 years. Policies aim to exert influence during their (much shorter) tenure, often with the goal of re-election. The industry moves at an even faster pace. Policy and industry converge in speed when decision-makers are faced with the need to address problems within their jurisdiction, which may not necessarily align with government's organizational priorities and timelines. Another issue is that the "government" is often perceived as a monolithic entity, excluding alternative forms of governance from the discussion and, consequently, from innovation implementation efforts. Additionally, current procurement practices can undermine and erode infrastructural sovereignty. Procurement serves as a gateway for the adoption of technological infrastructure and, therefore, has long-term implications for cities, communities, and the agencies themselves. Due to limited capacity and/or resources to develop their own technologies, procurement entails the establishment of large-scale technological infrastructure, including AI, through private suppliers. This dynamic hinders transparency rather than promoting it: often protected by trade legislation, private suppliers are not obliged to open the "black box" and share information about their training data or models. Consequently, the promised outcome or narrative is often considered more important than the technological foundation. These promised outcomes and narratives often serve as a meeting point for agencies and the private sector, prioritized over establishing accountability in the procurement process, for example, in the context of climate emergencies and "clean technologies" or technologies deployed for public health management during the COVID-19 pandemic. AI systems implemented in such a manner that they can harm communities, for example, through excessive surveillance and policing, become infrastructural and are therefore unlikely to be dismantled, even if the harm is proven, such as in the case of smart sensors installed in streetlights. Increasing transparency and oversight in the procurement process (as opposed to focusing on technological prospects) can prevent the deployment of AI infrastructures that may be harmful by design. Agencies need resources to enhance literacy and expand capabilities regarding the consequences of acquiring AI systems, which includes knowledge sharing among agencies. The growing need to develop and ensure accountability structures in the context of procurement and deployment of AI systems by government institutions implies that these processes should be restructured to enable government agencies to understand the compromises and benefits of AI systems more quickly and confidently. Sufficient time should be allocated to identify and document the problem that the AI system should address and how it should address it. Affected communities must be heard. New legislation on artificial intelligence at both national and international levels (e.g., the EU's new AI regulation) should be effectively adopted and translated into changes in AI development, procurement, and usage. Working towards this process can create space for the development of the concept of collective accountability through AI procurement innovations, where government institutions, as buyers, can expand their authority by demanding accountability and transparency from suppliers and where agencies can revisit and iterate when issues arise. This new definition should serve as a reminder that political decisions are often encoded in the definition and construction of AI systems, and therefore, the procurement of these systems should consider nuances and account for other political definitions. Innovations in procurement are not possible without considering the legal implications, particularly those related to protecting purchasing organizations from liability. Government agencies often adhere to higher standards regarding their services and outcomes compared to private companies, and obligations are often seen as pure risks rather than an adaptive foundation for risk management. Furthermore, the influence of AI systems creates new complexities that challenge existing practices and accountability regimes. Currently, there are hardly any significant legislative safeguards to protect against the emerging discriminatory impacts of AI systems, such as human rights violations or anti-discrimination laws. Even when legal obligations concerning AI or other technologies apply to government institutions, these obligations are not necessarily taken into account by private companies when developing and testing technological products for use in the public sector. Instead, companies typically exploit spaces with limited citizen and government sector protections as a testing ground without accountability. Technologies tested in these liability-free spaces are then deployed by local agencies. Moreover, inherent uncertainty regarding the capabilities and functionalities (ex ante) and impact (ex post) of AI systems may require a reassessment of the distribution of obligations along AI supply chains. Direct contractors of government institutions may have multiple different suppliers, raising the question of who is responsible for the performance of the deployed AI system. Key measures that can help achieve greater clarity regarding the distribution of obligations along this AI supply chain include enhancing clarity in applicable contracts with suppliers (e.g., liability allocation, warranties, clarity on trade secret protection or incident insurance), thorough supplier vetting, post-deployment monitoring, and quality standards. The handbook also outlined a series of key actions for implementing AI in government procurement: Improving communication and understanding of AI systems, as well as the risks and harms they can pose, is essential. Procurement staff, policymakers, citizens, and suppliers need to have a better understanding of how specific instances of AI harm and risk are connected to larger structural issues, and vice versa. To create meaningful transparency, it is necessary to establish standards for reporting the goals and assumptions embedded in an AI system, as well as the risks and harms it may pose, along with recommendations for documenting and accounting for such reporting. There is a need for inter-agency communication and the exchange and building of capabilities in the procurement of AI systems. It is also necessary to clearly define intra-agency responsibilities for procuring AI systems and the impact they can have on citizens and the agencies themselves. Resources should be developed and shared to support individuals and communities within agencies working on improving procurement processes to mitigate harm from AI. Similarly, assistance should be provided to communities outside of agencies that are facing harm and issues related to AI. These resources and capacity-building opportunities should be interconnected in a network of procurement staff, AI researchers, advocacy representatives, and others. The realm of technologies that serve the public interest is expanding significantly. Government institutions are increasingly utilizing technologies, including artificial intelligence systems, in all aspects of their work. This means that there is a growing need for technologies that serve the public interest: professionals trained in both technical and social sciences who are capable of adequately assessing the social implications of constantly emerging technologies. Fortunately, among the next generation of technologists, there is also a growing desire to engage in meaningful work that considers the social impact of technology. Therefore, it is crucial that this talent is cultivated early and equitably. At the same time, both government institutions and the private sector need to focus on creating a range of job opportunities in the field of technologies that serve the public interest, hiring and retaining diverse talents at early stages of their careers, and supporting teams working on technologies that serve the public interest both within and beyond their organizations. Bibliography: AI Procurement in a Box: AI Government Procurement Guidelines. Sabine Gerdon, Eddan Katz, Emilie LeGrand, Gordon Morrison, Julián Torres Santeli World Economic Forum Guidelines 2020 AI and Procurement PRIMER Mona Sloane, Rumman Chowdhury, John C. Havens, Tomo Lazovich, Luis C. Rincon Alba 2021 For an up-to-date list of freedom of information laws around the world, see (link as of 29.05.2020). Definition from the Engineering and Physical Science Research Council, a UK government research funding body. Абдыбеков, М.Д. Государственная закупка товаров, работ и услуг / М.Д. Абдыбеков, Н.А. Эшмамбетов. – Бишкек: 2000. Вульф, М. Потребности мира от глобальной торговой системы / М.Вульф. - Издательство Университета ООН, 2001. Джексон, Дж. Всемирная Торговая Организация: Конституция и Юриспруденция / Дж.Джексон. - Королевский Институт Международных дел, 1998.
A.S.Umetaliev, A.K.Karmysheva
418 | 0
Study of public procurement practices
This article discusses the issues of improving legislation in the field of public procurement, the possibility of applying international experience. Among the significant changes that may affect the area of public procurement, one can note the simplification of procedures for conducting small purchases, support for the use of e-commerce tools, maintaining a common electronic database (archive) of current and completed purchases, and creating a statistical base for further analysis. Key words: public procurement, procurement plan, legislation. Introduction. The public procurement system is an integral part of the domestic trade sector for specific types of goods and services and serves as a mechanism for maintaining competition. The material and technical support for the implementation of government and municipal programs is one of the key factors contributing to the existence and gradual development of the public procurement system in the national economies of many countries. In the context of limited financial resources, countries pay increased attention to improving the legislative framework in the field of public procurement due to the fact that public procurement is one of the main directions of economic activity for any state. The legislative framework in the field of public procurement, regulating contractual relations between the public and private sectors, determines how the purchasing power of the state is realized in practice and is also intended to promote transparent and fair competition for obtaining government contracts. Thus, the quality of legislation on public procurement directly affects the quality of goods, works, or services delivered under government contracts and can significantly influence the volume of government expenditures. Outdated or ineffective legislation in the field of public procurement can lead to the wastage of limited budgetary resources and hinder fiscal reform implementation. Main Part. What is the work involved in government procurement? What are the main functions of public procurement? Ensuring compliance with and implementation of legislation on the contract system in the procurement of goods, works, and services to meet government needs, including the determination of suppliers (contractors, performers). Overall, as demonstrated by advanced international experience in the field of public procurement, it is necessary to eliminate factors that reduce efficiency and increase the costliness of the procurement process. However, we believe that ensuring a balance between the often competing principles of competitiveness, transparency, and efficiency should play a crucial role in the policy-making process in public procurement, taking into account the peculiarities of the local market, legal framework, and entrepreneurial culture. One of the most important factors that continue to influence the field of public procurement is the implementation of anti-corruption measures, particularly in countries with underdeveloped entrepreneurial culture. In relation to criteria based on advanced practices in developing public procurement models, they were subsequently transformed into indicators and evaluation criteria. The evaluation criteria are based on the idea that the primary function of legislation on public procurement is not to facilitate unhindered international trade or save public funds, but to establish minimum standards for procurement in the public sector. Legislation on public procurement regulates the processes of acquiring goods, performing works, and providing services for government clients. These processes are part of resource and budget management systems. The procurement process begins with the identification of the needs of government clients, followed by the development of a sourcing strategy, allocation of budgetary funds, and the implementation of tendering procedures, evaluation, and supplier selection. In the interest of a potentially significant number of end-users, after the contract is awarded, monitoring its execution is crucial. In public procurement rules, these processes are often reflected as three main stages: pre-tender stage, competitive bidding, and post-tender stage. In the case of government clients, the complex process of entering into commercial contracts must take into account the principles of the public sector, such as transparency in decision-making processes and accountability of the public sector to taxpayers, who are the ultimate beneficiaries of the goods provided under government contracts. The content of national legislation on public procurement depends on the goals of the government's procurement policy and the contractual and legal culture within a particular country. Fig. 1. Key Stages of the Public Procurement Process. Legislation in the field of public procurement should comply with international standards in order to uphold the principles of good governance. One of the main challenges in modeling the legal framework for public procurement is determining the extent to which advanced international experience is relevant to the socio-economic conditions of a particular country. For any state, the complexity lies in developing national legislation in the field of public procurement that adequately takes into account advanced international experience while also considering: (a) the specific characteristics of the local market (suppliers and contractors present in the market),/p> (b) the peculiarities of the country's business culture, (c) the level of development of communication technologies in the country. Additionally, the public procurement regulatory system should take into account the differences between government contracts funded from the state/municipal budget (classic government procurement) and contracts in the field of communal services (procurement in the communal sector). Normative gaps reflect how national legislation in the field of public procurement aligns with benchmark indicators. The greater the coverage of the legal regime of public procurement in a particular country, the smaller the normative gap will be. Therefore, the normative gap is calculated as the difference between the maximum value of a specific benchmark indicator and the scores given for the quality of national legislation in public procurement, including the institutional framework. The normative gap demonstrates the extent to which opportunities for improvement are identified through the evaluation of existing legislation in the country (the "law on paper"). Conclusions and Recommendations. The public procurement system, for example, in Russian practice is a relatively new tool in the relationship between the government and business, and it began to develop shortly after the transition to a market economy. However, public procurement in other countries has a longer history, organically shaped under the influence of historical, economic, political, and other factors. While the institution of public procurement in Russia is based on adapting foreign experience, the process of its organization in the original conditions presents scientific interest. Below are the main provisions of the formation of public procurement in the USA and Europe. Foreign experience. The greatest experience in this field has been accumulated in the USA, where the first law on public procurement was adopted in 1792 [1]. The total volume of procurement is divided into several parts, the main ones being procurement for the needs of federal authorities (with the responsible body being the General Services Administration), as well as procurement for the needs of national defense, where the responsible body is the US Department of Defense. It should be noted that the legislation and organization of the procurement process in the country underwent significant changes in 1994 when a complete revision of public procurement was carried out. Among the most significant changes, the following should be noted: a) Simplification of procedures for conducting small procurements with a value of less than 100,000 dollars, which facilitated the participation of small and medium-sized businesses. b) Support for the use of e-commerce tools (email, payment systems, etc.) and parallel facilitation of paper document flow. c) Support for maintaining a comprehensive electronic database (archive) of current and completed procurements, which has created a statistical foundation for subsequent analysis. The Federal Contracting System (FCS) in the United States is a crucial element of government regulation and planning, serving both economic functions (such as facilitating the government's connection with the market economy, stimulating scientific and technological development, and supporting military production) and social functions (such as advancing healthcare, education, and other social sectors). This system is built on the principle of professionalism of the contracting authority, represented by the Office of Federal Procurement, established in 1974. It is important to highlight the protectionist policy in the country regarding American manufacturers. According to the package of laws known as the "Buy American" Act, issued by the U.S. Congress in 1933, there was a prohibition on the use of any foreign goods to meet government needs, except in cases where they significantly surpassed domestic goods in terms of quality and cost. In the European Union countries, the system of public procurement is largely based on the American experience. Firstly, it is worth noting the division of organizational methods into two main types: centralized and decentralized procurement. In the case of centralized procurement, purchases for various departments and agencies are conducted by a single entity, which then resells the goods or services to specific government entities at wholesale prices, minus a small margin. The advantage of this approach is the ability to secure low prices due to the large-scale wholesale nature of the purchases. However, the drawback is the loss of flexibility and the ability to accommodate various nuances and specifications of individual departments. Centralized systems are present in countries such as Bulgaria, Cyprus, the Czech Republic, Estonia, Poland, and others. In the second case, each department independently conducts procurement for its own needs, usually through a specially organized department. In contrast to the centralized system, the advantage here is the flexibility in procuring goods and services with specific characteristics, while the disadvantage is the significant costs involved in maintaining procurement departments within each department. This system is used in Finland and Portugal. Finally, among most European countries (such as Austria, Germany, France, Italy, etc.), a popular approach is the combined structure, where there is a single entity responsible for coordinating, planning, and monitoring procurement, while each department directly carries out the procurement process. A unique feature of the European Union is the fact that access to a unified database of orders is available for certain countries. Alongside the obvious advantages of such organization, the protection of domestic suppliers becomes a significant concern. Therefore, in many countries, preferential treatment is granted to local producers. In conclusion, despite the influence of foreign countries' experience on the formation of the Federal Contract System (ФКС) in our country at the present stage, it is important to take into account both the historical development and, as mentioned earlier, the contractual and legal culture of each individual country, within which fundamental principles of the procurement institution were established. It is worth noting that "Every form of government, once established, contains within itself the material for its own improvement," which implies that young countries have the opportunity to distinguish inherent aspects in the search for research, improve, and keep pace with the times. Bibliography: Баранова, В.П. Экономика и организация научной и хозяйственной деятельности // Инноватика и экспертиза. – М.: 2015 Mortgages in transition economies, Европейский банк реконструкции и развития, Лондон, 2007. Доступное по адресу: guides/mit.pdf Журнал институциональных исследований Учредители: Humanitarian Perspectives Publishing House ISSN: 2076-6297eISSN: 2412-6039
1033 | 0
Application of elements of behavioral science in public procurement
The International School of Logistics at the Kyrgyz State Technical University has launched a new teaching course "Application of elements of behavioral science in public procurement". Developed with the support of the World Bank, this course will be integrated into the curricula of students studying the logistics of public procurement in the program of "Logistics". The procurement specialist must have the knowledge to ensure a reasonable balance of requirements - to carry out all procurement procedures in good faith and take into account the priorities of the state. In addition to the standard process of control and audit, the system of punishment, there are personal behavioral mechanisms that affect decision-making - fear of making a mistake, rejection of uncertainty, reassessment of negative consequences, readiness to act within the framework of known and standard behavior. These are the elements of behavioral science. The purpose of the new teaching course is to study psychological phenomena, emotions, moods and group interests in the process of public procurement. The key point of behavioral science is the importance of taking into account the behavior of the individual. A person is considered as an intuitively and rationally acting person. The main features of behavior and factors that influence the behavior of the individual are revealed. The popular behavioral model "prospect theory" is chosen as a reference point for the presentation. Prospect theory is compared with the standard microeconomic expected utility model. Key elements of Prospect Theory are emphasized, detailing with examples the different perceptions of utility from losses and gains, and the replacement of event probabilities with "weights" that reflect overestimation of the probability of bad outcomes and underestimation of the probability of good outcomes. Part of the material is devoted to the effect of ownership (endowment) in order to understand its presence in the life of every person. An explanation is given of such concepts as framing and its presence in rational behavior during public procurement. The teaching of this course is based on interactive practical work on real examples of procurement entities in the Kyrgyz Republic. Full text of the teaching course at the link:
Kalieva Aian
1988 | 0
Sustainable Public Procurement in the Kyrgyz Republic
Abstract: The article discusses "sustainable" public procurement (Sustainable Public Procurement), which, along with economic efficiency, takes into account the positive impact on the environment and solves social problems. How public procurement can contribute to the sustainable development of the country and an overview of the current state of the Kyrgyz Republic on the introduction of sustainable public procurement. Keywords: public procurement; sustainable development; sustainable public procurement. Due to the deterioration of the environment and a number of environmental problems causing global warming and increasing social and economic tensions in countries, in particular in recent years due to the COVID-19 coronavirus pandemic, the issue of ensuring sustainable development, identified at the UN World Conference in 1992 (UN Convention on Environment and Development, 1992), has become acute for the world community. According to the UN, the global economy shrank by 4.3% in 2020. The crisis caused by the virus has been called the strongest in the last 90 years. The emerging situation with the COVID-19 pandemic showed all the inequalities between people and countries and made it clear once again that the world needs sustainable development. Sustainable development involves ensuring economic stability, environmental protection and achieving social justice (UN Conference on Sustainable Development, 2012). Environmentally safe production, rational consumption, reduction of social imbalance in society, economic support for developing industries and countries allow countries to move towards sustainable development. One of the effective mechanisms for implementing the sustainable development strategy for States is public procurement. Acting as the largest buyer in the market and having the political will and authority, the state can influence producers and consumers through public procurement and promote sustainable production and consumption. A number of countries at different levels of economic and social development apply sustainable procurement in practice, stimulating the production of environmentally friendly products, the secondary use of resources, supporting small businesses, addressing issues of social equality of national and ethnic minorities, creating new jobs and stimulating fair trade. Thus, public procurement really contributes to sustainable development. Sustainable development and sustainable public procurement in the Kyrgyz Republic. Sustainable development is a process that meets the needs of the present without undermining the ability of future generations to meet their own needs (Our Common Future, 1987). Sustainable development "includes components such as social justice, environmental protection and economic development" (Weybrecht, 2010). Social justice includes issues such as human rights, peace, security, justice, gender equality, cultural diversity, etc. Environmental protection implies protection in the field of water supply, energy, agriculture, biodiversity maintenance, protection of animals, fish, forests, etc. Economic development refers to "understanding the potential of economic growth and includes issues of poverty reduction, responsible consumption, corporate responsibility, energy efficiency, rational waste management, education issues, etc." ((Weitbrecht, 2010). Public procurement can be one of the effective mechanisms for the transition to sustainable development. There are several reasons for this. First of all, a huge share of budget funds is spent on public procurement. According to the European Commission, public procurement expenditures in European countries account for 13.67% of GDP (Public Procurement Indicators, 2014). According to the International Institute for Sustainable Development, in OECD countries, expenditures on public procurement of goods and services range from 45% to 65% of the national budget, which is 12-17% of GDP (Procurement&Public-PrivatePartnerships). According to data taken from the official portal of public procurement of the Kyrgyz Republic( ) in 2020, the total cost of completed tenders amounted to 36.7 billion soms, which is equal to 21% of the total amount of state budget expenditures for 2020. ( ). However, the share of successfully completed lots was only 54%, which indicates the inefficient work of purchasing organizations to assimilate the state budget. Compared with the indicators of the OECD countries, expenditures on public procurement of goods and services in the Kyrgyz Republic are lower, but despite this, the state is still the largest customer of goods and services in the country. The demand for ecological products from the state gives a signal to the market and promotes the spread of the "useful habit" of purchasing environmentally friendly goods, fair trade goods by private consumers. This, in turn, stimulates the production of environmentally friendly products and the development of socially responsible business (Preuss, 2009). As a result, all this contributes to solving economic, environmental and social problems. What does it look like in practice? The state, being the largest customer on the market, makes a decree to budget organizations to purchase only energy-saving lamps, this will increase the demand for energy-saving light bulbs on the market. In order to support small and medium-sized businesses, when concluding contracts, the state could first of all give preference to suppliers who are residents of the Kyrgyz Republic. Often, in practice, situations arise when factories themselves or exclusive distributors of goods and equipment that are located on the territory of the Russian Federation, the Republic of Kazakhstan or China participate in certain large contests on the EGZ portal. Of course, in such cases, all profits from the transaction and taxes go to the treasury of another state. As for the above-mentioned countries, public procurement in these countries takes place on official portals that are available only to residents of the country. On the part of the state , the following benefits are provided by the state to maintain domestic products: when purchasing goods that are produced in the Kyrgyz Republic by internal suppliers, the purchasing organization is obliged to provide benefits in the amount of 20 percent on the offered price when evaluating competitive bids, if there are necessary certificates for the supplied goods confirming the safety and quality of products. If the subject of procurement is work that can be performed by internal contractors of the Kyrgyz Republic and foreign contractors, the procuring entity is obliged to provide benefits in the amount of 20 percent to internal contractors, provided that the internal contractor uses at least 70 percent of local labor resources and at least 30 percent of local raw materials and materials. (According to article 4, paragraph 3, 4 of the Law "On Public Procurement" dated April 3, 2015 No. 72). On the environmental side of sustainable development, the Kyrgyz Republic needs decisive reforms. The revealed environmental damage at the Kumtor gold mine, as well as the primacy of the city of Bishkek in the rankings of the world's cities with the dirtiest air, make it clear that the environmental component must also be taken into account in setting priorities for the state. To date, the introduction of sustainable public procurement is only being introduced in the Kyrgyz Republic. Kyrgyzstan is one of the countries for the implementation of the UNDA SPP Project, which is led by the European Office of the United Nations Environment Programme (UNEP) and implemented jointly with the United Nations Economic Commission for Europe (UNECE) and the Green Growth Knowledge Platform (GGKP), aimed at strengthening the capacity of individual countries in the EECCA region in the field of sustainable public procurement and increasing the ability of businesses to respond to public auctions with sustainability criteria. The project is being implemented in the period from 2018 to 2021. In the document NSR-2040, for focused and active movement towards such a picture of the country's future, the priority directions of the Kyrgyz Republic until 2023 are defined: Stimulating technological modernization Modernization and implementation of energy-efficient technologies. Increasing the participation of renewable energy sources. Expansion of the area of green spaces. Conservation of tailings dumps and ensuring safety Rational management of water resources. Development of waste disposal and recycling infrastructure. According to the program for the development of the "green" economy in the Kyrgyz Republic for 2019-2023, which is currently at the stage of approval in the Government of the Kyrgyz Republic, the goals for sustainable public procurement are also outlined. The goal is to increase the share of sustainable public procurement to 30% by 2023, and to 50% by 2040. To achieve it, the following tasks will be solved: 3.1. Improve legislation in the field of public procurement. Improvement of legislation in the field of public procurement, including provisions on technical specifications and relevant certificates for goods supplied, works performed and services rendered, confirming environmental criteria, product safety and quality, including requirements for social aspects. The Government's activities will be aimed at promoting the implementation of sustainable procurement and trade policies within the framework of multilateral and regional cooperation with the EAEU and the WTO. Regulations and instructions on evaluation criteria will be developed for purchasing organizations to determine sustainable/ "green" goods and services. 3.2. Promote the development of environmental certification. The development of environmental certification will be implemented through the introduction of international standards for sustainable procurement. Organizations will be assisted in the development and implementation of successful practices and policies for the implementation of sustainable purchases. It is also planned to introduce criteria that will allow the evaluation of goods and services produced according to established international labor standards (ILO, Fair Trade, etc.). Mechanisms will be developed to stimulate sustainable public procurement for suppliers, including providing access to preferential sources of financing. 3.3. To increase the potential of suppliers and purchasing organizations for the transition to sustainable public procurement. Increasing the capacity of purchasing state organizations and suppliers will be carried out through the development and implementation of training programs for both universities and training centers. Specialized courses for university teachers on sustainable/"green" public procurement will also be held on an ongoing basis. Conclusion In world practice, sustainable public procurement as a mechanism for implementing sustainable development policy is becoming increasingly widespread. For the successful implementation of the principles of sustainable public procurement in the Kyrgyz Republic, it is necessary first of all to improve legislation in the field of public procurement, in which it is necessary to stimulate the work of domestic producers and suppliers of residents of the Kyrgyz Republic, as well as pay more attention to the environmental component of the country. List of used literature Shadrina E.V., Romodina I.V. Article: PUBLIC PROCUREMENT FOR SUSTAINABLE DEVELOPMENT: INTERNATIONAL EXPERIENCE URL:,%20%D0%A0%D0%BE%D0%BC%D0%BE%D0%B4%D0%B8%D0%BD%D0%B0%201-2017.pdf The future we want. UN Conference on Sustainable Development RIO+20. 2012. URL: les/a-conf.216-l-1_russian.pdf.pdf (дата обращения: 07.07.2016). Convention on Environment and Development. The agenda for the XXI century. 1992, Rio de Janeiro. URL: (дата обращения: 02.05.2016) Official portal of public procurement URL: Overview of the current state of the Kyrgyz Republic on the implementation of sustainable public procurement (UGP) The Law "On Public Procurement of the Kyrgyz Republic ( Open budget website (
Sharipova Elmira
854 | 0
Application of analytical data from the website of the Public Procurement and Logistics Observatory for analysis Public Investment Projects (PIP)
Annotation: I examined the use of the database of the "Analytics" module of the BI site at the design stage of public investment projects of the Kyrgyz Republic by procurement specialists. BI (Business Intelligence) is a business intelligence, an application to the site analytics section. This application is integrated with the API and processes data from the public procurement website online. I offered my recommendations on how and to what extent the use of the data in the "Analytics" section can affect the successful outcome of the projects. Keywords: public investment projects, public procurement, procurement of goods, works and services, disbursement of state funds investment, project implementation. Sharipova Elmira, master of the International School of Logistics of KSTU named after I. Razzakov. The Kyrgyz Republic has been dependent on foreign assistance for many years and calls on donors (EBRD, ADB, WB, etc.) to implement national development strategies, to support the budget, to carry out reforms, and to implement infrastructure projects. This assistance is intended for the people of the Kyrgyz Republic, but it is used through state institutions and its use is subject to laws and regulations. Today, all assistance provided to the Kyrgyz Republic is carried out through state institutions. The procedure for initiating, selecting and preparing projects is spelled out in the regulation on public investment management. At the project preparation (design) stage, the Implementing Agencies involve independent experts, representatives of public or private organizations, and may also apply to donors for grant technical assistance for the preparation of project documentation or a feasibility study. Further, we will talk about projects financed by the World Bank (WB). One of the key areas influencing the successful implementation of the project is the proper development of a procurement plan, in accordance with the planned activities of the Project and writing a procurement strategy. The Bank requires the Borrower to develop a Project Procurement for Development Strategy (PPSP) for each project financed under Investment Project Finance (IPF). The PPSP considers how procurement activities will support project development objectives and deliver Value for Money (VPM) using a risk-based approach. It shall provide adequate justification for the choice of selection methods contained in the Procurement Plan. The level of detail and analysis in the PPSP should be proportionate to the risk, cost and complexity of project procurement. The Initial Procurement Plan usually covers at least the first eighteen (18) months of the Project. All procurement under the Project is carried out in accordance with the procurement guidelines of a particular donor organization (Procurement Guidelines of the WB, ADB, EBRD, SFD, etc.). All project tenders, within the framework of projects, the implementation of which began after July 2016, must be registered and carried out on the state e-procurement portal. The government has adopted a new e-procurement procedure that includes a section related to market assessment and the establishment of a tender commission. In this edition, in chapter 2, paragraphs 13 and 14, states the following: In developing a procurement plan, the procurement department monitors the market for purchased goods and services. In the course of monitoring, the procurement department, in addition to prices, conducts a study on the availability of the declared subject of the purchase of goods, services on the market and the ability of suppliers to supply the goods / provide services, as well as other essential conditions of the future contract, such as production time, delivery time, in the absence of goods, availability spare parts and service center on the territory of the Kyrgyz Republic. When purchasing goods and services, the procurement department monitors prices by studying publicly available sources, and analyzes the prices of previous purchases on the web portal by other procuring organizations, and also has the right to analyze prices in public Internet sources or send requests to suppliers to provide commercial offers. A well-designed procurement plan and a well-designed procurement strategy contribute to the successful implementation of the Project, the achievement of its goals and a high percentage of disbursement of funds. Here one cannot do without a deep analysis of many aspects, which is mentioned in the paragraphs above, and this work can be carried out on the basis of using the database of the "Analytics" module of the BI site, since BI (Business Intelligence) is a business intelligence, an application to site analytics. This application is integrated with the API and processes data from the public procurement website online. There are three modules in this section: Evaluation of the effectiveness of the public procurement system Research on public procurement practices Search for new opportunities for private corporate business in public procurement. Let's take a closer look at the first module. 1. Evaluation of the effectiveness of the public procurement system The Public Procurement Business Intelligence Module is a free multifunctional tool that quickly and accurately helps you navigate the world of public procurement and gain insights into the performance of the public procurement function. The analytics module includes data on all public procurements that were carried out through the public procurement system of Kyrgyzstan. There are many approaches to analyzing the effectiveness of public procurement. For the macro level, we are offered to evaluate the quality of the procurement process, to make sure that market relations work and there is no monopolization of the market. Here for analysis, you can find charts for your analysis, such as: There are many approaches to analyzing the effectiveness of public procurement. For the macro level, we are offered to evaluate the quality of the procurement process, to make sure that market relations work and there is no monopolization of the market. Here for analysis, you can find charts for your analysis, such as: The diagrams “Ratings. This a diagrams gives us detailed information about tenders, namely: what purchases are mainly tendered, about participants and suppliers, in which region of the country tenders are held the most and what procurement methods are used. This diagram can be analyzed in other sections, for this it is necessary to use filters. After analyzing all this information, Procurement specialists can start from the data received and, based on this, choose the most appropriate procurement method, the optimal time for holding a tender. The "Lot Status" chart shows the percentage of the status of lots in real time. For example, as of February 21, 2023, 30.5% of lots were canceled, 53.9% of lots were completed, 9.4% of lots were not held, 4.4% are in process for 60+ days, and 1.8% are in process. As you can see, there is a very high percentage of canceled lots here, and having already this data, the Procurement Specialist needs to study in more detail the reason for the canceled lots in order to avoid mistakes in upcoming tenders. The diagram "Dynamics" reflects changes in the number of lots of announced tenders and their statuses on a monthly basis. This chart helps to see the time period when the problems started in the procurement of a particular sector, region or a particular customer. The "Market Concentration" chart gives a good overview of the market structure in terms of product groups and suppliers within each individual product group. It allows you to make sure that there are a sufficient number of suppliers of a particular product group or service on the market, whether there is competition among suppliers, which in turn will affect price and quality, or show whether the market is monopolized or not. In case of market monopolization or lack of competition among suppliers in the market, the Procurement specialist needs to take appropriate measures in advance. This is especially true for tenders for the construction or purchase of some specific equipment. All these modules work online and the information is relevant for study, in-depth analysis and application. All these tools and diagrams give us the opportunity to deeply analyze ongoing tenders in the country and review the overall picture and the situation in the market of suppliers and goods, and already having all this data, we can begin to develop a procurement strategy for the Project. Unfortunately, not every Procurement specialist is familiar with this site, as a result of which he is deprived of an additional informative and analytical tool for analyzing data on tenders and procurement in the country. To do this, more work needs to be done to publicize the existence of this platform, as well as to s in the Terms of Reference for Procurement Specialists, the section “Responsibilities of the Consultant” the following paragraph: “The Procurement Specialist needs to review and study the website, in addition to other information platforms and portals, conduct an analysis, and apply the results obtained in the development and writing of the PPSD and the procurement plan. Literature:
Anastasia Goloshchapova
1146 | 0
Changes in the Law "On Public Procurement" and their impact on its effectiveness
We are starting to publish analytical notes of students, teachers, experts and consultants based on the database of the BI analytics module of our website BI - Business Intelligence, an application to the site analytics section. This application is integrated with the API and processes data from the public procurement website online. Anastasia Goloshchapova, a 1st-year master of the International Higher School of Logistics, chose the module "Evaluation of the effectiveness of the public procurement system" and, based on the processed actual data, conducted an analysis. Anastasia Goloshchapova, master of the International Higher School of Logistics of KSTU named after I. Razzakov. Changes in the Law "On Public Procurement" and their impact on its effectiveness. Currently, we have great opportunities and a variety of tools for the analysis of public procurement in our country. The source of information in my work was the tool for monitoring public procurement data from the website. It should be noted that in the spring of 2022, a new version of the Public Procurement Law (hereinafter referred to as the Law) came into force. At the same time, this Law does not regulate procurement carried out by state and municipal enterprises, joint-stock companies, where 50 percent or more of the share in the authorized capital belongs to the state, including their subsidiaries. At the moment, these organizations are regulated by the available internal tender documentation, and data on tenders are not published on the official state portal ( In this regard, to present a general picture of the state system in the Kyrgyz Republic, we lack sufficient information about all state organizations. However, the information received from the website provides us with the opportunity to see the operation of the Law and the public procurement process.
Aldabergen Maksat Abunasyruly, Ashikeev Nursultan Zhilkeldievich
1078 | 0
Features of transportation of precious metals, ores and concentrates.
In this article we have considered aspects of the movement and legislative regulation of precious metals. They gave their recommendations for optimizing not only the logistics chain of this process, but also improving the information flow of the state in relation to legislative regulation. In this article we have considered aspects of the movement and legislative regulation of precious metals. They gave their recommendations for optimizing not only the logistics chain of this process, but also improving the information flow of the state in relation to legislative regulation. Keywords: precious stones, customs authorities, logistics, license, supply chain management, foreign economic activity, EAEU, smuggling, paperwork, precious stones, customs authorities, logistics, license, supply chain management, foreign economic activity, EAEU, smuggling, paperwork Precious metals have always been the object of close attention of states, collectors, smugglers and many others. They are gifted with this attention because they are very rare in nature. In nature, precious metals are almost always found in a free (native) state. In this regard, control over their extraction and transportation is quite often a problematic issue in many countries, and therefore a large number cannot be processed in time or encrusted in technology of global importance. The Kyrgyz Republic, being a state dominated by mountain chains, is rich in deposits of noble (precious), non-ferrous and rare metals. The mining industry is one of the leading sectors of the economy, and precious metals are of particular value to the state. No less important value is provided by the process of movement of precious metals from the point of view of logistics and economics. All cargo transportation of precious metals in the country is regulated by regulatory legal acts of the Kyrgyz Republic, where an important link is played by the Order of export from the territory of the Kyrgyz Republic and import into the territory of the Kyrgyz Republic of ores, concentrates and waste containing precious metals and related recoverable metals from September 14, 2017. Regulation and movement of precious metals are the objects of the Criminal and Administrative Code. These and other regulations regulate such logistics links in the handling of precious metals and stones as: mining; transportation and storage; processing and recycling; distribution and marketing. The cross-border movement of precious metals is of particular importance and requires close attention both from the state, represented by customs authorities, and from the participants of foreign economic activity. The movement of precious stones across the state border is subject to special state control, since the object of movement is of special value [1]. An important role in the customs clearance of goods and customs procedures is provided by the transport on which the cargo is transported. Let's consider the process of customs clearance from the moment of filing the declaration for goods (DT) to the customs authority without reference to the place of registration and without considering certain types of goods. The basis for the application of a permit document for precious stones will be: Decision of the EEC Board No. 30 dated 21.04.2015 "On Regulatory legal acts in the field of non-tariff regulation". Section 2.10 of the unified list (precious metals and commodities containing precious metals); Resolution of the Government of the Kyrgyz Republic No. 156 dated April 20, 2021 "On Approval of the List of Expert Organizations for Issuing Expert Opinions and Authorized Bodies for Issuing Permits for the Export and Import of Goods Included in the Unified List of Goods to Which Non-Tariff Regulation Measures are Applied in Trade with Third Countries, and Amendments to Some Decisions The Government of the Kyrgyz Republic in the field of non-tariff regulation"; Laws of the Kyrgyz Republic "On State regulation of foreign Trade activity", "On Licensing and Licensing system in the Kyrgyz Republic" and "On Export Control"; The final authorization document for foreign economic activity in the field of precious metals is a license issued by the Ministry of Economy and Commerce of the Kyrgyz Republic. Another necessary document is the certificate of origin. The final stage after the submission of the DT is the verification of funds for payment of customs duties. It is worth noting that from a logistical point of view, the process of registration and document management itself can significantly reduce the efficiency of the supply chain, if we consider the transportation of precious metals as one of its links. It is also important that difficulties with the transportation of precious metals arise due to the specifics of the EAEU regulatory legislation, gaps in the interpretation of a number of terms and significant differences from the international classification. In recent years, the number of offenses related to the illegal export of precious metals from the Kyrgyz Republic has sharply increased, which negatively affects this area. It is becoming increasingly important to strengthen the forms and methods of customs control of precious metals transported across the customs border of the Customs Union, the search and timely application of new technologies for the detection and identification of certain types of precious metals and precious stones in transported luggage [3]. It is important to combat the smuggling of products and other cultural values made of precious metals. This regulation could complement the technical regulations of instrument diagnostics. Summing up the results of this article, the transportation of precious metals according to the legislation of the Kyrgyz Republic was considered, touching upon other subtleties of the bureaucratic component, as well as the proposed recommendations and the expected result of these introductions, which optimizes the logistics chain at the stage of transportation, which will significantly affect these logistics operations and the exclusion of the smuggling sphere arising in the presence of precious metals. Based on the above, we can assume that the investigation of criminal cases of crimes related to the illegal (shadow) turnover of precious metals and stones requires special training of customs officers and the introduction of specialization in their training course. Simplification of license registration procedures significantly reduce the total cost of customs documentation. At this stage, a complete introduction to the electronic document management system is recommended, which will have a positive impact on all hidden aspects of customs documentation. The need for bilateral cooperation between state regulatory bodies and the business community of entrepreneurs, which will be based on the principles of openness, honesty and responsibility. Timely provision of reports on exported quantities of precious metals outside the state. It is also important to note that within the unstable economic situation in the world, monitoring of the legislative regulation of precious metals is necessary. This contributes to a timely solution and more efficient construction of the supply chain. List of literature Kalyabina K.I. Movement of precious stones across the customs border // In the collection: Current issues of education and science. Collection of scientific papers based on the materials of the international scientific and practical conference. - 2018. – pp. 72-74 Tarasova N.A., Bezrukova O.A. Improving the mechanism and procedure for the movement of precious metals and precious stones across the customs border of the Customs Union // In the book: Regions of the EAEU countries in the conditions of modern transformations. Collection of materials of the international scientific and practical conference. Responsible editor V.I. Tarasov. – 2017. – pp. 79-85. - Website of the Ministry of Economy and Commerce.;-106#pos=3;-106
Goloshchapova Anastasia
1006 | 0 | 15
Comparative analysis Public Procurement Law (PPL) the Kyrgyz Republic and the Agreement on Government Procurement of the World Trade Organization (GPA WTO)
At the end of 2021, procuring entities signed about 8.538 contracts for a total amount of more than 5 billion dollars and with a wide variety of goods, works and services. Public procurement plays a key role in the "National Development Strategy of the Kyrgyz Republic for 2018-2040" as one of the market-based tools for achieving smart, sustainable and inclusive growth with the most efficient use of public funds. Regulation public procurement should be modernized for broad participation in the procurement of representatives of small and medium businesses in order to mitigate unemployment and increase employment in the country. However, despite the increase in the volume of public procurement of goods, works and services, the savings of public funds after the procurement procedures in 2021 fell down by more than 38%. Given the above, it can be argued that the existing legal regulatory in the of public procurement, unfortunately, are ineffective sufficiently, especially in terms of covering the entire volume of goods, works and services procured by the government for public needs. To present date, 3240 procuring entities and 9510 suppliers registered on the portal of the public procurement website. According to the statistics of 2021, the most frequently used method "Direct contract" amounted to 41% among all procurement methods. I believe that this is a large percentage for this method and allows us to think about the imperfection of the procurement methods proposed in the PPL. It can also be assumed that this is the result of a trend in recent periods: state-owned enterprises and joint-stock companies with a state share did not begin to apply the PPL, attempts to ignore or not apply the PPL under various pretexts are intensifying, very often and in large volumes, goods, works and services are procured by the method “Direct contract” instead of open competitive bidding. In my final paper, the objects of analysis are: Public Procurement Law of the Kyrgyz Republic (Edition 14.04.22)Agreement on Government Procurement of the World Trade Organization (GPA WTO) (2012) The area of analysis “Legal, Regulatory and Policy Framework” implies a reliable system for conducting public tender procedures in a transparent and fair environment for all parties. The following criteria are included in the Legal and Regulatory Framework area of analysis: Scope of application and coverage of the regulatory frameworkProcurement methodsProcurement processSustainable public procurement Author: Goloshchapova Anastasia, Bachelor of the International School of Logistics and Public Procurement at the Kyrgyz State Technical University. The full text of the final paper can be downloaded from the link:
Kalieva Ayan Askatovna
825 | 0 | 12
Procurement logistics: the impact of supplier selection on the efficiency of the supply chain
International procurement practice shows that companies that accept the logistics concept and build their strategy on its basis have the best indicator, reflecting the ratio of profit received from the sale of goods or services to the invested capital. Procurement logistics affects the costs associated with the sale of the organization's finished products. The policy of government procurement can contribute to solution key tasks of priority directions the national socio-economic policy. For example, support for small and medium enterprises, certain regions, sensitive groups of the population, environmental protection. At the same time, the objectives of economic policy may not always be consistent with rational guidelines for the management of government contracts, which mainly include ensuring competition through tendering and procuring goods with the best price-quality ratio. Thus, the policy of supporting national suppliers through price preferences violates these principles, but can be justified from the point of view of industrial policy. With regard to foreign suppliers, each country establishes an access regime, which often has significant restrictions. In an environment where import tariff rates have been significantly reduced and continue to decline, public procurement remains one of the key impetuses for further liberalization of international trade. Thus, two opposite trends are currently developing in the field of foreign trade regulation of the state order sphere - protectionism and liberalization of access for foreign companies. The latter is expressed not only in the formation and development of regulatory instruments at the multilateral level within the framework of the WTO Public Procurement Agreement, but also in the penetration of similar processes at the regional level due to the need to identify and use additional sources of growth and intensify foreign economic cooperation. The first trend is expressed in the fact that many countries use public procurement as a non-tariff barrier in international trade. Author: bachelor student Kalieva Ayan Askatovna Scientific adviser: Prof. Umetaliev A.S. Full text of the final paper
Beck Victoria
1820 | 0
Improvement of modern logistics in the field of tourism
Abstract: this article discusses the improvement of modern logistics in the field of tourism. Keywords: logistics, tourism, transport, route. Currently, the development of logistics processes and technologies has covered various areas of production, economic, social and economic activities, as well as the use of logistics in the field of tourism product circulation. It should be noted that tourism should be approached as a separate large and independent economic complex of the national economy, since this sphere unites different industries, covering a certain wide space that includes enterprises and firms of various industries. Tourists, in turn, fall into the role of buyers, where everyone strives to satisfy all their needs during their holidays by virtue of their capabilities. Paying for services, goods and various tourist works, the demand for travel by tourists is formed and, therefore, the industry itself is financed in this way. In the context of growing globalization, the world tourism industry is of priority interest and great prospects for the Kyrgyz Republic. Using the unique potential of nature and cultural heritage of Kyrgyzstan, it is necessary to integrate harmoniously into the tourism industry of the world economy and achieve intensive development of tourism in the republic, ensuring steady growth of employment and income of the population, stimulating the development of tourism-related industries and increasing the inflow of foreign investment into the economy. The steady growth of the influence of tourism both on the world economy as a whole and on the economy of individual countries and regions is one of the most significant, permanent and long-term trends that accompanies the formation and development of the world economy. It is becoming obvious that tourism is becoming a large independent branch of the national economy, whose activities are aimed at meeting the specific needs of the population. The diversity of these needs is met not only by tourism enterprises, but also by enterprises of other industries, which determines the importance of tourism as one of the factors of multiplicative impact on the development of the economy. Tourism is one of the factors of global integration processes, and the tourism business is now becoming a significant sector of the economy. The Kyrgyz Republic has the necessary initial prerequisites for the development of a viable tourism industry. Today, when widespread interest in untouched places and adventure tourism is growing in the world, Kyrgyzstan can take a worthy place in the world tourism market. The Kyrgyz Republic is located in the center of Eurasia, at the junction of promising aviation, transport and economic arteries between Europe and Asia, North and South. The main task in this area is to make the republic accessible to foreign tourists by establishing direct international air links, for which it is necessary to carry out a number of measures, including: to create conditions for the functioning of competitive airlines in the air transportation market, to improve flight safety and the quality of passenger service. In tourism, logistics is understood as: the organization of the movement of tourist flows on the basis of competent management of material and information flows; rational organization of the development of a new product and its distribution. The task of logistics is to minimize the costs of bringing the product to the consumer. At the same time, much attention should be paid to advertising logistics. It is necessary to clearly identify the areas of advertising activity, priority advertising methods, marketing research based on statistical data. All systems should work to reduce costs and ensure the quality of tourist products. For the best functioning of logistics in the company, a system of specific questions is used in each situation, i.e. certain tasks are set. In addition to the above, logistics links the tasks of quality and safety with legal responsibility. When performing any task set by the firm, there is a constant process of linking this task with the legal basis. The logistics system (LS) of a travel company is an adaptive system in which the elements are the divisions of the enterprise that perform the functions of optimizing the movement of service flows and the flow of tourists. One of the main ways of intensive development of domestic and inbound tourism is to improve the quality of service in the practical activities of all organizations of the tourism industry. The Kyrgyz Republic is located in the center of Eurasia, at the junction of promising aviation, transport and economic arteries between Europe and Asia, North and South. The main task in this area is to make the republic accessible to foreign tourists by establishing direct international air links, for which it is necessary to carry out a number of measures, including: to create conditions for the functioning of competitive airlines in the air transportation market, to improve flight safety and the quality of passenger service. To ensure a high quality of tourist service, it is necessary to equip these highways accordingly, improve the quality of the roadway, increase the safety of highways, equip the routes with signs and information boards in foreign languages, etc. The construction of essential road service facilities (roadside hotels, paid parking lots, catering facilities and other recreation and entertainment facilities) is of great importance. To date, the expansion of the tourism sector directly depends on the use of logistics technologies that minimize transport costs, deliver passengers and cargo on time and safely, and minimize damage en route. It should be noted that tourism should be approached as a separate large and independent economic complex of the national economy, since this sphere unites different industries, covering a certain wide space that includes enterprises and firms of various industries. Tourists, in turn, fall into the role of buyers, where everyone strives to satisfy all their needs during their holidays by virtue of their capabilities. Paying for services, goods and various tourist works, the demand for travel by tourists is formed and, therefore, the industry itself is financed in this way. As for tourism within the country, one of the urgent problems is the provision of the transport component. This problem applies to air traffic, rail, as well as automobile traffic and road construction. Due to the low level of organization of air flows within the country, which in comparison with international transportation is one of the main factors that limits the development of tourism in the regions of the country. Solving these problems will attach great importance to the development of tourism within the country. List of used literature: Yankovenko V.A. "Logistics in tourism".Konchenkova A.I. "Science today: theoretical and practical aspects".
Simulation modeling in AnyLogic
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Management of the public procurement – effective tool for government fiscal politic
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Scientific and practic journal, Moscow, Russia
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Сonsulting services, selection and use of consultants
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