Author — Azat Masaurov.
A dumping price is a price cut below the allowed threshold. You can still win with it, but you will have to provide more performance security.
A price is considered dumping if it is lower than the procurement amount by more than:
| What is procured | Threshold |
|---|---|
| Goods, works, services | 10 % |
| Construction and installation works | 2 % |
| Medium repair of roads | 5 % |
| Routine repair of buildings and structures | 20 % |
| Design, engineering, technical supervision | 10 % |
In requests for quotations the threshold is 10 %. For auctions it is set in the procurement documentation.
The winner provides, in addition to the performance security, an amount equal to how far the price is below the minimum allowed. Example: procurement amount 10 000 000 ₸, goods (threshold 10 %), minimum price 9 000 000 ₸. You offered 8 500 000 ₸ — 500 000 ₸ is added to the performance security.
Sources: Law No. 106-VIII (Art. 13), the Rules (Order of the Ministry of Finance No. 687, paras. 85–94 and 97).
| What is procured | Threshold | Calculated |
|---|---|---|
| Construction and installation works | 5 % | from the customer price |
| Design, expert review, technical supervision | 10 % | from the customer price |
| Goods | 15 % | from the average of all bids |
| Other works and services | 20 % | from the average of all bids |
The Fund's procurement procedure changes often — check the tender documentation.