diff --git a/tcp_tests/fixtures/k8s_fixtures.py b/tcp_tests/fixtures/k8s_fixtures.py
index 409034e..8cf5bc0 100644
--- a/tcp_tests/fixtures/k8s_fixtures.py
+++ b/tcp_tests/fixtures/k8s_fixtures.py
@@ -171,6 +171,30 @@
 
 
 @pytest.fixture(scope='function')
+def conformance_helper(request, func_name, k8s_actions):
+    prepare_log = request.keywords.get('prepare_log', None)
+    merge_xunit = request.keywords.get('merge_xunit', None)
+    download_target = request.keywords.get('download', None)
+
+    def test_fin():
+        if hasattr(request.node, 'rep_call') and \
+                (request.node.rep_call.passed or request.node.rep_call.failed)\
+                and download_target:
+            files = utils.extract_name_from_mark(download_target) \
+                    or "{}".format(func_name)
+            logfile = utils.extract_name_from_mark(prepare_log, 'filepath')
+            if prepare_log:
+                k8s_actions.move_file_to_root_folder(logfile)
+            if merge_xunit:
+                path = utils.extract_name_from_mark(merge_xunit, 'path')
+                output = utils.extract_name_from_mark(merge_xunit, 'output')
+                k8s_actions.combine_xunit(path, output)
+            k8s_actions.download_k8s_logs(files)
+
+    request.addfinalizer(test_fin)
+
+
+@pytest.fixture(scope='function')
 def k8s_cncf_log_helper(request, func_name, underlay, k8s_deployed):
     """Finalizer to prepare cncf tar.gz and save results from archive"""
 
diff --git a/tcp_tests/managers/k8smanager.py b/tcp_tests/managers/k8smanager.py
index 79974d3..3ae1a1b 100644
--- a/tcp_tests/managers/k8smanager.py
+++ b/tcp_tests/managers/k8smanager.py
@@ -41,6 +41,7 @@
         self._api = None
         self.kubectl = K8SKubectlCli(self)
         self.virtlet = K8SVirtlet(self)
+        self.conformance_node = None
         super(K8SManager, self).__init__(config=config, underlay=underlay)
 
     def install(self, commands):
@@ -299,6 +300,61 @@
             timeout_msg="Timeout for CNCF reached."
         )
 
+    def start_conformance_inside_pod(self, cnf_type='k8s', timeout=60 * 60):
+        """
+        Create conformance pod and wait for results
+        :param cnf_type: k8s or virtlet. choose what conformance you want
+        :param timeout:
+        :return:
+        """
+        if cnf_type == 'k8s':
+            pod_mark = 'conformance'
+        elif cnf_type == 'virtlet':
+            pod_mark = 'virtlet-conformance'
+        else:
+            LOG.error("Unknown conformance type or it even not set")
+            raise RuntimeError("Unknown conformance type")
+        conformance_cmd = "kubectl apply -f /srv/kubernetes/{}.yml" \
+                          "".format(pod_mark)
+        self.controller_check_call(conformance_cmd, timeout=900)
+
+        cnf_pod = self.api.pods.get(pod_mark, pod_mark)
+        cnf_pod.wait_running()
+
+        pod = cnf_pod.read()
+        target = "{}.".format(pod.spec.node_name)
+        self.conformance_node = self.__underlay.get_target_node_names(
+            target)[0]
+
+        def cnf_status():
+            pod = cnf_pod.read()
+            status = pod.status.phase
+            LOG.info("Conformance status: {}".format(status))
+            return status
+
+        LOG.info("Waiting for Conformance to complete")
+        helpers.wait(
+            lambda: cnf_status() == ('Succeeded' or 'Failed'),
+            interval=120, timeout=timeout,
+            timeout_msg="Timeout for Conformance reached."
+        )
+
+        pod = cnf_pod.read()
+        status = pod.status.phase
+        if status is 'Failed':
+            describe = "kubectl describe po {0} -n {0}".format(pod_mark)
+            LOG.info(self.controller_check_call(describe, timeout=30))
+            raise RuntimeError("Conformance failed")
+
+    def move_file_to_root_folder(self, filepath):
+        cmd = "mv {0} /root/".format(filepath)
+        if self.conformance_node:
+            self.__underlay.check_call(
+                cmd=cmd, node_name=self.conformance_node,
+                raise_on_err=False)
+        else:
+            LOG.info("Node is not properly set")
+
     def extract_file_to_node(self, system='docker',
                              container='virtlet',
                              file_path='report.xml',
@@ -343,11 +399,16 @@
         :param files:
         :return:
         """
+        if self.conformance_node:
+            node = self.conformance_node
+        else:
+            node = self.controller_name
+        LOG.info("Trying to get logs at {}".format(node))
         master_host = self.__config.salt.salt_master_host
         with self.__underlay.remote(host=master_host) as r:
             for log_file in files:
                 cmd = "rsync -r \"{0}:/root/{1}\" /root/".format(
-                    self.controller_name, log_file)
+                    node, log_file)
                 r.check_call(cmd, raise_on_err=False)
                 LOG.info("Downloading the artifact {0}".format(log_file))
                 r.download(destination=log_file, target=os.getcwd())
@@ -362,7 +423,12 @@
         :param output: Path to xml file where output will stored
         :return:
         """
-        with self.__underlay.remote(node_name=self.controller_name) as r:
+        if self.conformance_node:
+            node = self.conformance_node
+        else:
+            node = self.controller_name
+        LOG.info("Trying to combine xunit at {}".format(node))
+        with self.__underlay.remote(node_name=node) as r:
             cmd = ("apt-get install python-setuptools -y; "
                    "pip install "
                    "https://github.com/mogaika/xunitmerge/archive/master.zip")
diff --git a/tcp_tests/settings.py b/tcp_tests/settings.py
index fca6a6d..e1fa137 100644
--- a/tcp_tests/settings.py
+++ b/tcp_tests/settings.py
@@ -64,6 +64,9 @@
 
 DOCKER_REGISTRY = os.environ.get('DOCKER_REGISTRY',
                                  'docker-prod-local.artifactory.mirantis.com')
+BINARY_REGISTRY = os.environ.get('BINARY_REGISTRY', 'https://'
+                                 'docker-prod-local.artifactory.mirantis.com/'
+                                 'artifactory/binary-prod-local')
 DOCKER_NAME = os.environ.get('DOCKER_NAME',
                              'mirantis/oscore/rally-tempest:latest')
 DOCKER_IMAGES_SL_TAG = os.environ.get('DOCKER_IMAGES_SL_TAG', 'latest')
diff --git a/tcp_tests/settings_oslo.py b/tcp_tests/settings_oslo.py
index 0a447d6..a689b07 100644
--- a/tcp_tests/settings_oslo.py
+++ b/tcp_tests/settings_oslo.py
@@ -325,11 +325,14 @@
     ct.Cfg('kubernetes_admin_password', ct.String(),
            default='sbPfel23ZigJF3Bm'),
     ct.Cfg('kubernetes_docker_package', ct.String(), default=''),
-    ct.Cfg('kubernetes_hyperkube_image', ct.String(),
-           default='{}/mirantis/kubernetes/hyperkube-amd64:v1.11.3-2'.format(
-               settings.DOCKER_REGISTRY)),
+    ct.Cfg('kubernetes_hyperkube_source', ct.String(),
+           default='{}/mirantis/kubernetes/hyperkube-binaries/'
+                   'hyperkube_v1.12.3-2_1544133573591'.format(
+               settings.BINARY_REGISTRY)),
+    ct.Cfg('kubernetes_hyperkube_source_hash', ct.String(),
+           default='md5=fc23eaf3ba63d9ed9d141f465f584012'),
     ct.Cfg('kubernetes_pause_image', ct.String(),
-           default='{}/mirantis/kubernetes/pause-amd64:v1.11.3-2'.format(
+           default='{}/mirantis/kubernetes/pause-amd64:v1.12.3-2'.format(
                settings.DOCKER_REGISTRY)),
     ct.Cfg('kubernetes_calico_image', ct.String(),
            default='{}/mirantis/projectcalico/calico/node:v3.1.3'.format(
diff --git a/tcp_tests/templates/k8s-ha-calico/core.yaml b/tcp_tests/templates/k8s-ha-calico/core.yaml
index 1d0a8d2..e5ff52e 100644
--- a/tcp_tests/templates/k8s-ha-calico/core.yaml
+++ b/tcp_tests/templates/k8s-ha-calico/core.yaml
@@ -13,14 +13,14 @@
     -C 'I@docker:host' state.sls docker.host
   node_name: {{ HOSTNAME_CFG01 }}
   retry: {count: 3, delay: 5}
-  skip_fail: false
+  skip_fail: true
 
 - description: Check docker
   cmd: salt --hard-crash --state-output=mixed --state-verbose=False
     -C 'I@docker:host' cmd.run 'docker ps'
   node_name: {{ HOSTNAME_CFG01 }}
   retry: {count: 1, delay: 5}
-  skip_fail: false
+  skip_fail: true
 
 - description:  Install keepalived on first node
   cmd: salt --hard-crash --state-output=mixed --state-verbose=False
diff --git a/tcp_tests/templates/shared-salt.yaml b/tcp_tests/templates/shared-salt.yaml
index 2746d2f..c3bc0f3 100644
--- a/tcp_tests/templates/shared-salt.yaml
+++ b/tcp_tests/templates/shared-salt.yaml
@@ -288,6 +288,7 @@
     find ${REPLACE_DIRS} -type f -exec sed -i 's/==IPV4_NET_EXTERNAL_PREFIX==/{{ IPV4_NET_EXTERNAL_PREFIX }}/g' {} +
 
     find ${REPLACE_DIRS} -type f -exec sed -i 's/apt_mk_version:.*/apt_mk_version: {{ REPOSITORY_SUITE }}/g' {} +
+    find ${REPLACE_DIRS} -type f -exec sed -i 's/mcp_version:.*/mcp_version: {{ REPOSITORY_SUITE }}/g' {} +
 
     {%- if IS_CONTRAIL_LAB %}
     # vSRX IPs for tcp-qa images have 172.16.10.90 hardcoded
@@ -615,6 +616,7 @@
   cmd: |
     export REPLACE_DIRS="/srv/salt/reclass/classes/ /srv/salt/reclass/nodes/"
     find ${REPLACE_DIRS} -type f -exec sed -i 's/apt_mk_version:.*/apt_mk_version: {{ REPOSITORY_SUITE }}/g' {} +
+    find ${REPLACE_DIRS} -type f -exec sed -i 's/mcp_version:.*/mcp_version: {{ REPOSITORY_SUITE }}/g' {} +
   node_name: {{ HOSTNAME_CFG01 }}
   retry: {count: 1, delay: 1}
   skip_fail: false
diff --git a/tcp_tests/tests/system/test_install_k8s.py b/tcp_tests/tests/system/test_install_k8s.py
index 67d3635..bc57e38 100644
--- a/tcp_tests/tests/system/test_install_k8s.py
+++ b/tcp_tests/tests/system/test_install_k8s.py
@@ -186,18 +186,17 @@
             k8s_deployed.run_conformance()
         LOG.info("*************** DONE **************")
 
-    @pytest.mark.extract(container_system='docker', extract_from='conformance',
-                         files_to_extract=['report'])
-    @pytest.mark.merge_xunit(path='/root/report',
+    @pytest.mark.prepare_log(filepath='/tmp/conformance/conformance.log')
+    @pytest.mark.merge_xunit(path='/tmp/conformance',
                              output='/root/conformance_result.xml')
-    @pytest.mark.grab_k8s_results(name=['k8s_conformance.log',
-                                        'conformance_result.xml'])
+    @pytest.mark.download(name=['conformance.log',
+                                'conformance_result.xml'])
     @pytest.mark.grab_versions
     @pytest.mark.fail_snapshot
     @pytest.mark.cz8116
     @pytest.mark.k8s_calico
     def test_only_k8s_install(self, config, show_step,
-                              k8s_deployed, k8s_logs):
+                              k8s_deployed, conformance_helper):
         """Test for deploying MCP environment with k8s and check it
 
         Scenario:
@@ -211,5 +210,5 @@
 
         if config.k8s.k8s_conformance_run:
             show_step(5)
-            k8s_deployed.run_conformance()
+            k8s_deployed.start_conformance_inside_pod()
         LOG.info("*************** DONE **************")
diff --git a/tcp_tests/tests/system/test_virtlet_actions.py b/tcp_tests/tests/system/test_virtlet_actions.py
index d3b6c27..9ca2fe6 100644
--- a/tcp_tests/tests/system/test_virtlet_actions.py
+++ b/tcp_tests/tests/system/test_virtlet_actions.py
@@ -88,12 +88,16 @@
         show_step(4)
         vm_pod.delete()
 
+    @pytest.mark.prepare_log(filepath='/tmp/virtlet-conformance/'
+                                      'virtlet_conformance.log')
+    @pytest.mark.merge_xunit(path='/tmp/virtlet-conformance',
+                             output='/root/report.xml')
+    @pytest.mark.download(name=['virtlet_conformance.log',
+                                'report.xml'])
     @pytest.mark.grab_versions
-    @pytest.mark.grab_k8s_results(name=['virtlet_conformance.log',
-                                        'report.xml'])
     @pytest.mark.fail_snapshot
     def test_virtlet_conformance(self, show_step, config, k8s_deployed,
-                                 k8s_logs):
+                                 conformance_helper):
         """Test run of virtlet conformance tests
 
         Scenario:
@@ -102,4 +106,4 @@
         """
 
         show_step(1)
-        k8s_deployed.run_virtlet_conformance()
+        k8s_deployed.start_conformance_inside_pod(cnf_type='virtlet')