Public Procurement Law (LCP)

On January 17 of this year, the Legislative Assembly was presented with the bill of the draft Legislative Decree comprising the new regulatory body called PUBLIC PROCUREMENT LAW, which will enter into force eight days after its publication in the Official Gazette. It is composed of one hundred and ninety-five articles that comprise the norms that regulate the acquisitions and contracting of works, goods and services of the public administration.



The main purpose of this new regulatory body is to modernize its application by using new technologies, with the purpose of streamlining the contracting processes to be carried out; these consist of using information and communication technologies, in real time, or according to the nature of the process, as well as the public procurement cycle, which is composed of the following phases: planning, selection of the contractor, contracting, follow-up and liquidation.



Likewise, a new mechanism will be implemented in this regulatory body consisting of the presentation of electronic verifications, which will replace the delivery of physical documents with electronic ones in order to avoid the accumulation of files and institutional wear and tear.



On the other hand, among the novelties introduced in this law is the creation of the Public Procurement System (SINAC), integrated by the National Directorate of Public Procurement (DINAC) and the Public Procurement Units (UCP).



This system replaces the Institutional Procurement and Contracting Unit (UACI), as established in Article 8 of said law.Among the new contracting methods contemplated by the law are the contractor selection procedures to be used by each institution to contract works, goods, services and consulting services. The selection process is as follows: Competitive Bidding, Price Comparison, Direct Contracting and Low Amount.



Another new figure provided by this law are the regulated contracts, contained in Article 131 and following; in spite of that, it has maintained 2 of the types of contracts regulated by the repealed Public Administration Procurement and Contracting Law (LACAP), which are: the Concession Contract and the Lease of Movable Property, with certain modifications introduced with the purpose of ensuring compliance with the general principles of public contracting and promoting equity between the institutions of the Public Administration and the contractor.



The Public Procurement Law seeks to modernize and take advantage of the use of new technologies, so that all administrative processes are resolved in an agile and efficient manner, respecting the deadlines regulated by law; also, with the implementation of electronic verifications, which replace the presentation of physical documents, which is a more feasible method to avoid the accumulation of files and the wear and tear of the same.