This Corporate Procurement Policy Summary has been prepared to assist the vendor community in understanding how to do business with LLP “Ansa Silicon”, hereinafter written as “the Company”.
The Company is carrying out a Green field technical silicon metal production plant project of 35000 mt per year capacity at Ekibastuz city, Republic of Kazakhstan
The Company spends for goods, services, works and consulting services for its own requirements to support the Company’s project operations. Most of the Company’s procurement is handled directly by the Company’s Commercial Department (“Corporate Procurement”).
The goal of corporate procurement is to obtain the best overall value for the company through an open and competitive process that is fair and transparent. Depending on the needs of the Company, Corporate Procurement formally solicits bids and offers from suppliers or, in some cases, issues purchase orders without an official tender.
The Company’s procurement process reflects its commitment to fair labor practices, appropriate wages and benefits, safety, environmental programs, and the diversity of its suppliers. Our Procurement Policy governs all procurements made for, or on behalf of, the Company.
3.1. Corporate Procurement has the functional authority for the Company’s corporate procurement. Corporate Procurement exercises its authorities by setting policies, procedures, and standards designed to provide an appropriate balance between the institutional requirements and the needs of the business managers.
Corporate Procurement staff have the authority to send RFQs, IFBs, RFPs and negotiate terms and conditions on behalf of the Company contracts, purchase orders, agreements and other instruments associated with the purchase, sale or disposal of goods and services.
3.2. Supplier may not commence work or deliver goods until a formal Purchase Order, agreement or contract has been issued by the Company. The supplier bears independent responsibility and risks for the commencement of works, services or goods provided by the supplier prior to the issuance of a Purchase Order approved by the Company or a contract.
4.1. Vendors must meet the Company’s standards related to product/service quality, delivery systems, price, and service objectives. Some of the more important vendor attributes the Company considers in supplier selection are performance history, facilities and technical strength, financial status, organization and management, reputation, systems, data and information security, privacy policy, risk management, procedural compliance, communications, labor relations, environmental performance, diversity achievements and location.
4.2. The company will review and process suppliers that have been selected to supply goods or services through a competitive process or contract with a single supplier. The company sends an email requesting the necessary information and documents to suppliers .
4.3. Completion of a Vendor selection does not guarantee a Vendor will be approved as a Company Registered Vendor.
4.4. At the Company, a Vendor is defined as:
4.5. Vendor eligibility is measured by reviewing vendor applications against the following Vendor Registration Criteria:
4.6. Company Policy Restrictions Related to Current and Former Company Staff and their Close Relatives
4.7. The Company, at its sole discretion, reserves the right to remove a Vendor from the Company’s Vendor File. Reasons for removing a Vendor from the Vendor File could include:
4.8. Only responsible vendors are eligible to receive Company contracts. Vendors found to be non- responsible may be excluded from future contract awards.
5.1. The procurement activities of the Company are carried out flawlessly, with complete impartiality and without any preferences. Company personnel will not demand or accept, directly or indirectly, any thanks, gifts, services, entertainment, loans or anything of monetary value from anyone who: (a) has or seeks to enter into an agreement with the Company; or (b) has interests that could be materially affected by the award of a procurement contract.
5.2. The Company’s vendors and their employees are expected to abide by the highest ethical, legal and moral standards in all business relationships. As such, all vendors are obliged to respect the Company’s policy and refrain from placing Company staff in an ethical dilemma by offering entertainment, hospitality or gifts.
6.1. Vendors must comply with the following integrity documents:
7.1. The company promotes open competition through a procurement process using various traditional RFP tools such as requests for quotations, invitations to tender, requests for proposals, etc. The purchases made by the Company go through a competitive selection process whenever possible.
7.2. The Company’s contract terms and conditions are posted in the Company’s RFQs, IFBs and RFPs
7.3. Vendors must meet all eligibility requirements and provide all required documentation.
8.1. Best Value
The Company bases procurement decisions on best value. Best value is defined as the outcome that provides the optimal combination of elements such as lowest total cost of ownership; technology, innovation and efficiency; assurance of supply; quality; and other factors relative to the Company’s needs. When sourcing, the best value is generally achieved through competition.
8.2. Procedures and types of requests for proposals.
The sales department prepares and sends out invitations to potential suppliers through invitations or advertisements. The invitation may include, depending on the purchased goods and services, specifications or schedule of work, price list, questionnaire, proposed contract terms, evaluation criteria and any other necessary information. RFQs for multi-year contracts may require respondents to submit financial statements for the previous two years in order to determine the financial position / stability of the respondents. All requirements must be clearly stated in the invitation text, and all must be specifically addressed by the bidder.
8.3. Business Opportunities
Corporate Procurement’s solicitation methodologies are consistent with the industry norms for the goods and services and the need for adequate competition. Company procurements are open to competition from vendors in all countries, subject to the competitors being eligible and legally able to conduct business in the country of performance/delivery. Opportunities may be by invitation to a sufficient number of vendors to ensure adequate competition,
8.4. Exceptions to Competition
It is the Company’s policy to procure goods or services through a competitive process to the maximum extent possible. However, instances arise when a noncompetitive procurement selection is justified.
9.1. Submission of quotations/bids/proposals is to be in accordance with the instructions contained in the solicitation document.
9.2. Rejection of Quotations/Bids/Proposals
9.2.1. The Company at its sole discretion reserves the right to reject any quotation, bid or proposal without recourse. Quotations/bids/proposals may be rejected for the following reasons:
9.3. The Company, at its sole discretion, reserves the right to request substantiation or clarification for any or all information received, and to ask for interviews with the management staff of bidders/offerors when necessary.
9.4. The Company, at its sole discretion, reserves the right to cancel a solicitation without recourse, at any time during the solicitation and evaluation process and prior to contract award.
10.1 To increase the development and awareness of environmentally responsible procurement (ERP), the acquisitions of goods and services will ensure that, wherever possible, specifications are written to provide for the expanded use of environmentally preferred products such as: durable products, reusable products, energy-efficient products, low-pollution products, products (including those used in services) that contain the maximum level of post-consumer waste and/or recyclable content, and products that in any other way have a minimal harmful impact on the environment.
10.2 The Company’s policy on Environmentally Responsible Procurement will be reflected in solicitations issued by Corporate Procurement as determined appropriate by Corporate Procurement. Applicable evaluation criteria will be included in the technical evaluation and considered in the cost analysis of all quotations, bids, and proposals received in determining the successful bidders/offerors.
10.3 It is recognized that cost analysis is required to ensure that the products are made available at competitive prices, and that the environmental benefits provided by a product or service do not undermine its overall performance. Given that many environmentally preferred products and services can produce a variety of tangible benefits, full consideration should be given to the long-term and complete costs and benefits of environmentally responsible procurement.
11.1 Basis for Award
Following a selection process, the vendor is selected in accordance with the basis for the award as specified in the solicitation, and as described below:
11.2 Notice of Award
The selected bidder/offeror will receive notice of the award and the Company contract will be issued in accordance with the solicitation requirements.
11.3 Contracting Instruments
Company purchase obligations are executed in the form of written agreements that establish binding legal relationships obligating the vendor/contractor to furnish goods, works, services, or data and obligating the Company to pay for them. Examples of contracting instruments used by the Company are as follows:
11.3.1 Purchase Orders: a template form contract that is issued subject to the Company’s commodity specific General Terms and Conditions.
11.3.2 Contracts: written commitments between the Company and vendors based on a set of agreed- upon terms and conditions.
11.4 Acceptance
Acceptance of the contract or purchase order by the supplier constitutes his agreement to continue execution. Company rules do not allow oral contracts, with the exception of cases provided for by the Legislation of the Republic of Kazakhstan; therefore, suppliers are not allowed to continue deliveries or begin work prior to the issuance of a written contract or purchase order approved by the Company. In addition, all changes or modifications to the contract must be in writing and fully complied with by both parties.
12.1 The Company’s Commercial Department has the responsibility to monitor contractor performance through meetings, reports, and inspection in order to ensure contract compliance. The Contract Manager must also require deliverables for all services and document contractor performance.
12.2 Changes to the contract will only take effect after the purchasing officer has issued a written change to the contract, which will be accepted and signed by the supplier.
12.3 Payment to Vendors
12.3.1 Vendors must immediately provide the Company with invoices in accordance with the instructions in the contract and the requirements of the Legislation of the Republic of Kazakhstan.
12.3.2 Upon receipt of proper invoices, the Company will pay Vendors at the prices/rates stipulated in the contract, for goods delivered and accepted or services delivered or rendered and accepted, minus any deductions or discounts provided for in the contraPolicies