Procurement Process
Procurement Process at Buzachi Operating Ltd.
Buzachi Operating Ltd. conducts its procurement activities with a focus on ethical standards, fairness, transparency, and non-discrimination. The company adheres to the principles outlined in its internal Code of Ethics and ensures compliance with all applicable legislation in the Republic of Kazakhstan. A selective competitive tendering method is employed to reach contract award decisions, treating all tenderers with absolute fairness and maintaining confidentiality throughout the process.
Vendor Qualification
The Vendor Qualification & Market Intelligence department at Buzachi Operating Ltd. manages the prequalification process, aiming to populate the company's Vendors List. This list contains details of each supplier evaluated against the requirements associated with specific commodity classes relevant to the company's operations. Prequalified vendors are considered for participation in tenders, ensuring that they meet the necessary standards and criteria set by the company.
Market Intelligence and Registration
Buzachi Operating Ltd. is committed to identifying potential vendors for involvement in its projects. Vendors can be contacted directly by the company or may submit a self-request to provide general information about their business. Upon registration, vendors become visible in a dedicated database, which stores information on potential suppliers for use by the company. It's important to note that registration does not automatically result in qualification; a separate qualification process is initiated if the company decides to move a vendor from the Market Information Database to its Vendors List. Once registration is completed, Vendor will be visible in a dedicated NCOC vendors database which stores information on potential suppliers for use by Company. Please note that registration does not automatically result in qualification. In case Company decides to move a vendor from the Market Information Database to its Vendors List, a qualification process will be started and the vendor will be assigned to specific Supplier Quality Engineer (SQE). The SQE will contact, guide and assist the vendor through the qualification process from start to end. The SQE will contact, guide and assist the vendor through the qualification process from start to end. During this phase, the vendor is required to provide the engineer with all requested, relevant and necessary information. Failure to provide the information may result in the process being cancelled.
Vendor Evaluation
The vendor evaluation phase assesses the capabilities and compliance of vendors with Buzachi Operating Ltd.'s prequalification criteria and specific commodity classes. This evaluation includes analysis of the vendor's profile, meetings or on-site visits (if applicable), and information gathered from other relevant sources. Upon completion of the evaluation, the company issues certification of the result to the vendor, confirming their qualification status.
Tendering and Contract Awarding
Buzachi Operating Ltd. aims to award contracts to tenderers who submit the most economically advantageous and technically acceptable offers. The company ensures a competitive tender process by preparing Invitation to Tender (ITT) packages and seeking sealed offers from a minimum of three tenderers, whenever possible. Communications with tenderers are managed through a single point of contact within the relevant Contracts and Procurement (C&P) section, ensuring that all tenderers receive equal information and clarification.
- Vendor Registration
Buzachi Operating Ltd. maintains a comprehensive Vendors List, comprising suppliers who have undergone a thorough evaluation process. To be considered for tenders, vendors must either be registered or have achieved prequalified status. This ensures that all potential suppliers meet the company’s standards for quality, safety, and reliability. - Emphasis on Local Content
In alignment with Kazakhstan’s local content policies, Buzachi Operating Ltd. actively seeks to maximize the participation of Kazakhstani suppliers. The company prioritizes local businesses in its procurement processes, provided they meet the required technical and commercial criteria. This approach supports national economic development and fosters the growth of domestic industries. - Tender List Compilation
For each procurement requirement, the Contracts and Procurement (C&P) department compiles a specific Tender List. This list includes all eligible vendors from the company’s Vendors List who are deemed suitable for the particular tender. By doing so, Buzachi Operating Ltd. ensures a competitive and fair selection process, inviting bids from qualified suppliers. - Structured Tendering Process
Buzachi Operating Ltd. employs a structured tendering process to ensure transparency and fairness. Invitation to Tender (ITT) packages are prepared, detailing the scope of work, technical specifications, and delivery requirements. Sealed bids are solicited from selected vendors, and the evaluation process considers both technical compliance and commercial competitiveness. - Continuous Improvement and Feedback
The company values continuous improvement in its procurement practices. Feedback is provided to vendors post-evaluation, highlighting areas of strength and opportunities for enhancement. This collaborative approach encourages suppliers to elevate their performance, aligning with Buzachi Operating Ltd.’s commitment to excellence and mutual growth.