LEGAL FRAMEWORK FOR PUBLIC PROCUREMENT IN MEXICO. October 2005

Transcription

1 LEGAL FRAMEWORK FOR PUBLIC PROCUREMENT IN MEXICO October 2005

2 The public procurement market is divided into federal and subfederal levels The federal levels comprises government agencies and parastatal companies The subfederal levels comprises state governments and municipal authorities The subfederal level is autonomous under the Constitution and therefore sets its own rules

3 Most public procurement is carried out by the federal government. In 2005 the federal government will spend about 37 billion dollars on goods (40%), services (27%) and public works (33%) In the same period 32 subfederal entities will spend about 8 billion dollars (equivalent to 21% of the amount budgeted by the federal government)

4 Legal framework for the federal government Article 134 of the Constitution laying down the basic rules: efficiency, effectiveness and honesty public procurement chapters of free-trade agreements to which Mexico is a party Law on Procurement, Leases, and Services by the Public Sector (LAASSP) Law on Public Works and Related Services (LOPSRM) Both laws were published on 4 January 2000 and amended on 7 July 2005.

5 Publication of rules All laws, regulations and other provisions concerning public procurement can be consulted at:

6 Types of tender National in the first instance: suppliers must be Mexican, and any goods must be made in Mexico and have a national content of at least 50% International: Mexican and foreign suppliers may tender, and goods may be imported

7 When are tenders international? a) when required by international agreements b) when there is no national supplier or when the quantity, quality or price warrants it c) when a national tender has been unsuccessful d) when required by external loan agreements

8 Who chooses the procurement arrangements? The entity awarding the contract decides the arrangements and type of procedure for its purchasing: Identifies the need Budgets and requests resources Schedules and specifies arrangement s Issues notice Conducts the procedure Is the procurement subject to a free-trade agreement?

9 What advantages does partnership with Mexico bring in public procurement? Participation in tenders covered by free-trade agreements When procurement is covered by agreements, goods originating in partner countries are not subject to the 10% preference enjoyed by Mexican goods under Article 14 of the LAASSP

10 Mexican procurement under the EU- Mexico free-trade agreement Positive list of entities and parastatal companies of the federal government Thresholds = NAFTA Procurement operations covered (goods, services and public works), in line with corresponding lists No use of transitional or permanent reservations

11 Thresholds In US dollars for 2005 Goods and services Public works Government agencies Parastatal companies

12 Transitional reservations for PEMEX, Federal Power Commission and public works Percentages of total procurement covered that may be reserved FTA NA EU JP

13 Transitional reservations for non-patented medicines purchased by the health sector The reservation applies to all procurement. FTA NA EU J P

14 Mexico has included public procurement chapters in its FTAs with the following countries: US + CANADA BOLIVIA NICARAGUA COLOMBIA + VENEZUELA COSTA RICA Transitional reservations apply to: ISRAEL EUROPEAN UNION (25 countries) EUROPEAN FREE TRADE ASSOCIATION (4 countries) JAPAN

15 Overview of procurement in the Federal District The rules and all information concerning procurement by the Federal District and the other states can be found at: International tenders are an exception to national tenders and are used when no national supply meets the quantity, quality or price requirements

16 Compranet contains: Full information on the legal framework Tender notices Tender databases Follow-up to each stage of the procedure Notices of award Results of procedures, including non- compliance Annual programmes for procurement of goods, services and public works Directory of procurement agencies

17 THANK YOU