The Approved Suppliers Center (ASC) program is part of the Kurdistan Regional Government's Prime Minister's Office. The programme is designed to help modernize the region by making sure suppliers, license holders, and certification bodies meet the highest standards of quality and integrity.

Through its work, the ASC ensures these groups follow the rules, offer quality services or products, and are committed to high standards of operation and improvement. This ultimately helps provide confidence in the business environment in Kurdistan and makes it more reliable for everyone. It also ultimately opens opportunities for international trade.

• To ensure the KRG budget secures high-quality products and services.
• To protect the public interest.
• To align supplier standards in the KRI with global best practices.
• To ensure that certifications are issued based on proper assessments and evaluations, providing trust and confidence in the Certification, in line with International Standards.

The decree will directly impact several key groups, while also having broader, indirect benefits:
Directly affected:

• Certification Bodies
• Suppliers and Contractors of the KRG
• Investors
• Governmental Bodies and Agencies

Indirect Benefits:

The broader population of the KRI will indirectly benefit from improved products, infrastructure, and services. Additionally, the economic environment stands to gain from trust in the certification system. The ASC's public listings of registered certification bodies and suppliers can extend these benefits across the entire economy, enhancing overall quality and reliability.

The ASC conducts sector-specific reviews, in collaboration with KRG entities to identify relevant standards, defines their applicability, mandates certification criteria, sets transition periods, and annually publishes an enforcing list for transparency and compliance clarity.

• Needs Analysis and Standard Identification
• Applicability Area Determination
• Transition Period Definition
• Annual Publication of the Standard Enforcing List

The Approved Suppliers Center (ASC) utilizes a robust operational framework to oversee certification bodies within the Kurdistan Region of Iraq (KRI), ensuring they meet required standards through:

Registration: Registering with the ASC is mandatory for certification bodies to ensure their issued certifications are acknowledged and accepted by any KRG entity.

Validation: The ASC validates the credentials and capabilities of certification bodies.

Auditor Registration: Certification bodies are required to register their auditors, who are active in the Kurdistan Region of Iraq, with the ASC, to provide a level of confidence that they meet the required professional criteria.

Compliance Monitoring: The ASC conducts both initial and annual verification assessments to monitor ongoing compliance.

Publication: A list of registered and compliant certification bodies is published for transparency.

Market Surveillance: Regular market surveillance activities are undertaken to ensure certification bodies continue to operate within established guidelines.

This structured approach guarantees that certification bodies contribute positively to maintaining high-quality standards within the KRI’s economic environment.

All suppliers and license holders will be subject to uniform requirements, which will be determined based on the project's value, sector, and other specific characteristics. The ASC will annually publish the STANDARD REQUIREMENTS LIST, which will detail the requirements based on these factors, ensuring that all stakeholders are informed about the ASC registration and the valid certifications required for their specific projects. This approach ensures that the requirements are transparent and tailored to the nature and scope of the projects undertaken.

The ASC categorizes suppliers and license holders based on the Tier which the project falls into. The Tier is determined by the project value and associated risk level:

• Tier 1: For projects over 5 million US$ (High-Risk Projects).
• Tier 2: For projects between 1 and 5 million US$ (Moderate Risk Projects).
• Tier 3: For projects between 500,000 and 1 million US$ (Moderate Low Risk Projects).
• Tier 4: For projects below 500,000 US$ (Low Risk Projects).

This tiered approach ensures that ASC controls are applied appropriately, reflecting the varying levels of complexity and risk associated with different project sizes.

Note: Typically, the Tiers will be defined as above, but there will be exceptions. For example, a project critical to regional infrastructure of lower value may be considered for a higher tier due to its risk profile.

The ASC ensures that suppliers and license holders adhere to the KRI's quality and legal standards through a comprehensive oversight process, including:

• Registration: Mandatory for all suppliers and license holders to be recognized under the ASC framework.
• Declaration of Certificates: Suppliers and license holders must declare their compliance certifications.
• Compliance Monitoring: Ongoing evaluations are conducted to ensure continuous adherence to standards.
• Approved Suppliers List: A publicly accessible list of all ASC-approved suppliers is maintained and updated.
• Market Surveillance: Regular reviews of the market to monitor compliance and investigate any deviations from standards.

Compliance assessments are tier-based, correlating with the contract levels suppliers aim to secure:

• Tier 1: Yearly assessment.
• Tier 2: Random sample assessments, with at least one every two years.
• Tier 3: Random sample assessments, with at least one every five years.
• Tier 4: Random sample assessments, with at least one every ten years.

This tier system aligns with the significance of the contracts, ensuring that only suppliers from specific tiers can bid for certain contracts. Additionally, KRG procurement organizations may request specific assessments if a supplier's adherence to standards is in question, or an elevated risk profile is observed, ensuring the highest level of integrity and quality in public services and goods procurement.

By promoting global best practices in quality management and operational excellence, the Approved Suppliers Center (ASC) is dedicated to building a culture of quality and excellence within the Kurdistan Region of Iraq (KRI). This pledge is put into practice by:

• Educational Programs: Offer tailored training sessions and workshops for suppliers and license holders to understand and implement global best practices in quality management.
• Resource Development: Create accessible resources, such as guidelines and tools, to assist organizations in achieving and maintaining quality standards.
• Recognition Programs: Implement awards or certification programs to acknowledge and incentivize organizations that demonstrate exceptional adherence to quality and excellence.
• Collaboration and Partnerships: Establish partnerships with global quality organizations to bring international expertise and practices to the KRI.
• Monitoring and Feedback: Develop a structured system for ongoing monitoring of compliance with quality standards and gathering feedback for continuous improvement.

The Approved Suppliers Center (ASC) implements service charges to fund promoting quality and excellence, its operations, and ensuring the delivery of its services to stakeholders within the Kurdistan Region of Iraq (KRI). These charges are needed for covering operational expenses, facilitating the ASC's commitment to upholding quality and integrity among suppliers, license holders, and certification bodies. The surplus generated from these charges is responsibly allocated back to the Ministry of Finance.

Revenue for the ASC is generated through:

• Registration fees and annual renewal charges for certification bodies, suppliers, and license holders.
• Audit fees.
• Penalties due to malpractice identified during oversight activities.

This approach to service charges shows the ASC's commitment to maintaining a transparent financial model that directly contributes to enhancing the economic and regulatory landscape of the KRI.

The required standards for participating in public tenders will be detailed in the Standard Requirements List, annually published by the ASC. Initially, we will commence with the ISO 9001 standard, focusing on quality management systems, to ensure high standards of service and product quality. In addition to ISO 9001, future iterations of the Standard Requirements List will incorporate other essential standards, including ISO 14001 for environmental management and ISO 45001 for occupational health and safety, to underscore our dedication to comprehensive corporate responsibility. Furthermore, sector-specific standards will also be required, ensuring that all aspects of operations and services within the KRI meet the highest international benchmarks of excellence and sustainability.

The Standard Requirements List will detail the transition period provided to achieve Certification to the required Standard(s).

Interested parties can stay informed about ASC program news and updates through various channels to ensure broad and accessible communication. Our primary methods include:

• ASC Website: Visit our official site at www.asc.gov.krd for comprehensive information and updates.
• Mailing List: Sign up via our website to receive direct updates and news in your inbox.
• Social Media Channels: Follow our official accounts on Facebook, X (formerly Twitter), and LinkedIn for real-time updates and community engagement.

These platforms are designed to keep our stakeholders well-informed about our activities, changes, and important announcements, ensuring transparency and accessibility.

No, to participate in KRG tenders using an ISO Certificate, it is essential that both your company and the Certification Body issuing the certificate are registered with the ASC. This dual registration ensures that your ISO certification is validated within the ASC, adhering to ASC procedures. Without this registration, an ISO Certificate alone will not qualify your company for tender participation, highlighting the critical role of ASC assuring quality for KRG providers.

When working with the KRG, suppliers and their sub-suppliers must adhere to certain standards, especially when the sub-supplier plays a significant role in fulfilling a KRG contract. While registration with the ASC for sub-suppliers is not mandatory, it becomes highly recommended for those with substantial involvement in contract execution. The ASC's assessments of a primary supplier may extend to these significant sub-suppliers to ensure compliance and quality throughout the chain. Therefore, for larger sub-suppliers, registration with the ASC is advised to uphold the integrity of services and products provided to the KRG.

Obtaining an ISO 9001 Certificate involves more than just receiving a stamp on a document; it involves defining and operating an effective and compliant quality management system.

Often for organizations this necessitates meaningful changes and adaptations within the organization. This includes reviewing and potentially revising your management practices and processes, quality assurance measures, and operational procedures to meet the rigorous standards set by ISO 9001. This standard focuses on continuous improvement and customer satisfaction, which regularly requires organizations to invest in training, process adjustments, and sometimes infrastructure changes to ensure compliance and enhance the quality management system.

The investment needed to achieve ISO 9001 Certification will typically be internal and external time to define and operate an effective and compliant quality management system. There will also be Certification Body fees to consider.

These costs can vary based on your organization's size, complexity, and the extent of changes needed to meet the standard.

External support can include gap analysis, process and documentation development, staff training, and support during the certification process. For a detailed estimate, it is advisable to contact both ASC Registered Certification Bodies and consulting firms that specialize in ISO 9001 implementation to discuss your specific needs.

The fees associated with registering your organization with the ASC will vary depending on the TIER level you aim to participate in, reflecting the scope and complexity of your operations. Detailed information about these fees is available on our website, providing transparency, allowing for informed planning, and budgeting for your ISO 9001 certification journey and ASC registration.

Should the Certification Body that issued your certificate be suspended by the ASC, any certificates issued prior to the suspension will retain their validity with ASC for twelve months from the date of suspension, providing the Certificate has not expired.

It is essential that you engage with a new Certification Body, duly registered with the ASC to maintain the validity of your registration with ASC, well in advance of your current certificate's renewal date or the twelve months from the date of Certification Body suspension.

Should a supplier be suspended by ASC, ASC will determine with the supplier the improvement actions that are needed to reinstate their ASC supplier registration, and work with the relevant KRG Directorate to determine the impact on existing and potential projects.