On December 5, 2024, the new regulation for Law No. 19,886 on Public Procurement was published, set to take effect on September 1, 2025. This regulation introduces significant changes to public procurement processes, aiming to enhance efficiency, transparency, and sustainability.

Key Changes

• Standardization and Digitalization:

  • Prioritizes digital technologies in procurement processes.
  • The Mercado Público platform will be the exclusive medium for contracts, with limited exceptions.

• Focus on Sustainability:

  • Incorporates economic, social, and environmental sustainability criteria as mandatory factors in offer evaluations.
  • Bid documents must include specific requirements to promote sustainable contracting.

• New Supplier Classification:

  • Introduces specific categories for suppliers to encourage equitable and competitive participation.

• Stricter Rules for Direct Contracting:

  • Strengthens controls on non-bid contracts, limiting them to previously justified exceptional cases.

• Conflict of Interest Management:

  • Implements new measures to prevent and penalize conflicts of interest in public procurement.

• Performance Evaluation for Suppliers:

  • Public entities can assess contractor performance, impacting their eligibility for future contracts.

Recommendations for Businesses

• Review Regulatory Changes: Update your internal processes to comply with the new provisions.
• Training and Education: Prepare your team to align with the new sustainability and digitalization criteria.
• Supplier Management: Evaluate your classification under the updated Mercado Público registry structure.
• Continuous Monitoring: Identify opportunities and adjust your strategies to compete effectively under the new framework.

This new regulation marks a pivotal shift in the relationship between the public sector and private suppliers, fostering more responsible and efficient management.

Contact us to assess how these changes may impact your operations and ensure your readiness for the new regulatory framework.