Procurement in an Emergency Situations

Procurement in an Emergency Situations
05/02/2021
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Aidai Baijigitova

Department of logistics

Class of log-1-19

As known, the organization of procurement activities in a state of emergency is carried out within the framework of a different algorithm which is aimed to simplify the procurement process in order to promptly conduct tender procedures and, accordingly, ensure faster deliveries of goods, works and services (consulting / non-consulting).

When an emergency situation is declared in the country, or when it occurs in any specific location, public bodies immediately respond and take appropriate measures, including the purchase and provision of goods, works and services (consulting / non-consulting) necessary for fight against emergencies. Before moving on to procurement procedures in an emergency, it is advisable to briefly describe the concept of emergency.

The Law of the Kyrgyz Republic "On Civil Protection" dated May 24, 2018 No. 54 gives the following definition of the term "emergency situation - a situation that has developed in a certain territory of the Kyrgyz Republic as a result of a dangerous natural or man-made phenomenon, accident, disaster, natural or other disaster, the impact of modern means of destruction that may or have resulted in human casualties, damage to human health or the environment, significant material losses and disruption of the living conditions of people. "

In the event of an emergency, the authorized body in the field of civil protection is obliged to ensure "the priority life support of the population in the emergency zone - the timely satisfaction of the primary needs of the population: in water, food, basic necessities, medical services and facilities, utilities, housing, transport and information support”. Also, this Law determines that organizations in the field of civil protection, among other things, are obliged to create "stocks of material, technical, food, medical, individual and collective means of protection", which in turn implies a significant role in forecasting emergencies and, consequently, appropriate procurement planning.

The main problems of inventory management in an emergency situation is the lack of time for its formation and / or the lack of the necessary financial resources, which often does not allow to fully and timely meet the needs in emergency situations and eliminate their consequences. To solve these problems, it is necessary to be able to simplify procurement procedures and ensure their efficiency.

Below are the procurement methods (excerpts from national legislation) aimed at achieving these objectives. The Law of the Kyrgyz Republic "On Public Procurement" dated April 3, 2015 No. 72 states that:

  • The procuring entity has the right to independently carry out purchases by the method of direct conclusion of an agreement in cases where the purchase of goods, works and services in the event of an emergency situation only in the mode of high readiness and (or) liquidation of the consequences of an emergency to localize the consequences of force majeure, accidents requiring immediate recovery, as well as in the event of an urgent medical intervention; and
  • The procuring entity may select individual consultants without a tender (using the direct contracting method) only in cases where the situation is extraordinary due to force majeure. When using this method, the procuring entity signs a procurement contract after monitoring prices among the received bids (proposals);
  • According to the amendments made (of December 18, 2020) to the Law of the Kyrgyz Republic on Public Procurement, the procuring entity can NOT initiate the inclusion of unreliable (unscrupulous) suppliers (contractors) and consultants, members of collegial executive bodies, persons acting as the sole executive body in the data base, as well as persons included in such a register:
    • if the suppliers (contractors) and consultants recognized as the winner of the tender evaded the conclusion of agreements (contracts) on procurement in connection with the introduction of an emergency or state of emergency, subject to the publication of a procurement notice prior to the introduction of such regimes, or
    • suppliers (contractors) and consultants violated the terms of the declaration guaranteeing a tender if such a violation is related to the introduction of an emergency or state of emergency, subject to the publication of a procurement notice prior to the introduction of such regimes;
  • Also, the guarantee security of the tender by the procuring entity is NOT withheld in cases of refusal to sign the contract on the conditions provided for in the winning bid, due to the introduction of an emergency or state of emergency, subject to the publication of a procurement notice prior to the introduction of such regimes.
  • Due to the current situation with the COVID-19 infection pandemic, as an example of simplifying tender procedures, we can cite recent temporary changes in the legislation of the Russian Federation regarding procurement from a single supplier (non-competitive method):
  • The new edition directly provides for purchases in order not only to eliminate emergencies, but also to prevent them (with the introduction of a high alert regime);
  • The provision that the objects purchased on this basis should not be included in the relevant List of goods, works and services, which significantly expands the scope of application, has been excluded;
  • The rules on preliminary selection and request for quotations were canceled;
  • Customers are given the opportunity, by agreement with the supplier (contractor, performer), to change the term of the contract and (or) its price (unit price), in the event of circumstances that entail the impossibility of performing the contract without changing it;
  • Contracts can be entered without securing their performance, unless the contract provides for an advance.

Procurement simplification procedures in emergency situations are also spelled out in the guidelines of donor organizations. For example, according to the World Bank's Procurement Rules for FIP Borrowers, emergencies “include those situations where the Bank believes that the Borrower / Recipient or, as the case may be, a member country has an urgent need for assistance due to a natural disaster, man-made disaster or conflict. In the event of an emergency in the Borrower's country, the specified World Bank Rules assume:

  • Implementation of purchases at the stage of emergency response without prior consideration by the Bank;
  • Streamlined competitive procedures with shorter application times (5 days);
  • Elimination of the waiting period applied to give Bidders / Applicants / Consultants time to examine the Notice of Intent to Award a Contract and assess whether it is appropriate to file a complaint;
  • Use of framework agreements including existing ones,
  • Using simple and fast procurement and selection methods

The Request for Proposals is a competitive method and is applied if, due to the nature and complexity of the purchased goods, works or non-consulting services, the Borrower will best meet its production needs if it allows Applicants to propose customized solutions or submit Proposals that may differ in how they fulfill or exceed the requirement of the RFP document.

Request for quotations is a competitive selection method based on the comparison of price quotations of firms. This method may be more effective than more sophisticated methods for purchasing limited quantities of off-the-shelf finished goods or non-consulting services, standard specification commodities, or simple, low-cost construction work.

Direct selection is used when proportionality, eligibility for funding, and value for money may require an approach such as direct selection, that is, inviting and negotiating with only one firm. This selection method may be appropriate if there is only one suitable firm, or there is a reason to use a preferred firm in an emergency.

Also, in emergency situations, selection is applied based on the qualifications of consultants, within which it is impractical to draw up and evaluate bids, as this requires additional time.

In addition, the World Bank Disaster Rules propose the cancellation of collateral and performance guarantees. For small contracts for the supply of goods or the execution of works, you can speed up the preparation of bids for small and medium-sized suppliers and contractors by removing the requirement for collateral. Nevertheless, when performing work, the customer can carry out a guarantee withholding of funds for the duration of the contractor's liability; when it comes to the delivery of goods, a manufacturer's warranty is required.

In an emergency situation, where suppliers and contractors have difficulty obtaining a credit line from banking institutions, it is possible to increase the amount of prepayment for contracts for the supply of goods and performance of work to 40% of the total contract value, provided the supplier provides a bank guarantee for an equivalent amount.

An additional measure is that in an emergency, UN Agencies can act as contractors on an out-of-competition basis to perform work that requires unique experience in emergency response, and take part in activities funded by the World Bank or a trust fund managed by the World Bank, one of the in the following ways:

  • The UN implements a number of activities or the entire project entirely on behalf of the host country;
  • The UN acts as a supplier of critical commodities (for example, vaccines) in the framework of the WB-financed project; and
  • The UN acts as a provider of technical services for the WB-financed project.

The following projects financed by the World Bank and currently being implemented in Kyrgyzstan can serve as an illustrative example of the application of the above procedures.

“Building resilience to disaster risks in Kyrgyzstan”, namely the “Emergency Response Component for Immediate Response in the Event of a Declared Crisis or Emergency,” within which funds are allocated for the procurement of the following items of goods for rapid response teams, hospitals assigned for observation , primary health care centers, intensive care units: personal protective equipment; disinfectants; laboratory reagents required for diagnostics; medicines; medical devices; medical equipment; breathing support equipment; other goods (paper towels, liquid soap, shipping containers, etc.) as well as the purchase of fully equipped ambulances.

The implementation of the Agreement on financing the "Emergency COVID-19 Project" between the Kyrgyz Republic and the International Development Association, signed on April 7, 2020 and ratified by the Law of the Kyrgyz Republic No. 46 dated April 20, 2020, has begun. This project, funded by the World Bank, aims to prevent additional infiltration of infected persons and to limit the spread of infection within the country, which also applies procurement procedures in an emergency.

  • The UN implements a number of activities or the entire project entirely on behalf of the host country;
  • The UN acts as a supplier of critical commodities (for example, vaccines) in the framework of the WB-financed project; and
  • The UN acts as a provider of technical services for the WB-financed project.

The following projects financed by the World Bank and currently being implemented in Kyrgyzstan can serve as an illustrative example of the application of the above procedures.

“Building resilience to disaster risks in Kyrgyzstan”, namely the “Emergency Response Component for Immediate Response in the Event of a Declared Crisis or Emergency,” within which funds are allocated for the procurement of the following items of goods for rapid response teams, hospitals assigned for observation , primary health care centers, intensive care units: personal protective equipment; disinfectants; laboratory reagents required for diagnostics; medicines; medical devices; medical equipment; breathing support equipment; other goods (paper towels, liquid soap, shipping containers, etc.) as well as the purchase of fully equipped ambulances.

The implementation of the Agreement on financing the "Emergency COVID-19 Project" between the Kyrgyz Republic and the International Development Association, signed on April 7, 2020 and ratified by the Law of the Kyrgyz Republic No. 46 dated April 20, 2020, has begun. This project, funded by the World Bank, aims to prevent additional infiltration of infected persons and to limit the spread of infection within the country, which also applies procurement procedures in an emergency.

  • The UN implements a number of activities or the entire project entirely on behalf of the host country;
  • The UN acts as a supplier of critical commodities (for example, vaccines) in the framework of the WB-financed project; and
  • The UN acts as a provider of technical services for the WB-financed project.

The following projects financed by the World Bank and currently being implemented in Kyrgyzstan can serve as an illustrative example of the application of the above procedures.

“Building resilience to disaster risks in Kyrgyzstan”, namely the “Emergency Response Component for Immediate Response in the Event of a Declared Crisis or Emergency,” within which funds are allocated for the procurement of the following items of goods for rapid response teams, hospitals assigned for observation , primary health care centers, intensive care units: personal protective equipment; disinfectants; laboratory reagents required for diagnostics; medicines; medical devices; medical equipment; breathing support equipment; other goods (paper towels, liquid soap, shipping containers, etc.) as well as the purchase of fully equipped ambulances.

The implementation of the Agreement on financing the "Emergency COVID-19 Project" between the Kyrgyz Republic and the International Development Association, signed on April 7, 2020 and ratified by the Law of the Kyrgyz Republic No. 46 dated April 20, 2020, has begun. This project, funded by the World Bank, aims to prevent additional infiltration of infected individuals and to limit the spread of infection within the country, which also applies procurement procedures in an emergency.


1 http://cbd.minjust.gov.kg/act/view/ru-ru/111787?cl=ru-ru
2 http://cbd.minjust.gov.kg/act/view/ru-ru/111125
3 01.04.2020 N 98-ФЗ Федералдык мыйзам, https://kodeks63.ru/news/read/zakupki-v-usloviyah-chs-srochnyeizmeneniya-v-44-fz/novosti-v-sfere-zakupok
4 https://projects.vsemirnyjbank.org/ru/projects-operations/project-detail/P162635
https://projects.worldbank.org/en/projects-operations/project-detail/P172761
5 https://projects.worldbank.org/en/projects-operations/project-detail/P173766