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Procurement Act allows direct contract after declaration of invalidity



The Legislative Assembly this Wednesday approved all the opinions made by Republic President Naive Bukele on the new Public Procurement Law.

The Administrative Procurement and Contracts Act (LACAP), repealed by new regulations, allows direct contracting “if a bid or contest is declared void for the second time.”

The new Public Procurement Law passed on 25 January caused two void declarations for tenders approving direct contracts, even though the project submitted by the Minister of Finance required a single void declaration. was duplicated.


The purpose of the regulation was to expedite the contracting process in the administration to meet institutional needs, officials said.

In a document received on Tuesday, January 31, but released yesterday afternoon by the Legislative Assembly, “the bidding process must be substantiated twice in order to be able to proceed to third parties (direct contracts). What not to do is inconsistent with such principles,” he explained. , from 2023 to 2:45 p.m., by the legislative administration of the Legislative Branch.

Bukele, referring to LACAP, believes that the new law cannot have “regulations similar to those of the current law” and that it would be sufficient for a bid to be declared void once to make way for a direct contract. I thought there was.

Public Procurement Authority.

Delegates also endorsed the government’s observations on the Act on the Creation of the National Directorate General of Public Procurement (DINAC), which was approved on 25 January with a paperwork exemption. Ministry of Finance.

Bukele also warned them that Article 3 states that “DINAC is responsible for the sanctions proceedings of the law” and that “there is no regime for violations” or sanctions.
Vice Chairman Rene Portillo Cuadra suggested that the Finance Committee consider the sanctions regime, but it did not receive support.


The Public Procurement Act exempts private entities from signing contracts with state agencies, public works strategic projects defined by the Council of Ministers, and all contracts executed by Local Public Works Departments (DOMs). doing.

It also adds direct contracts under six additional conditions: expansion of unfinished work, shortage of health products and services, urgency, acquisition of weapons certified by the Minister of Justice and Safety, standardization of software, and Termination of Agreement.

Direct contract under the Public Procurement Act

The new law replaced LACAP and created a new basis for direct contracting within the state.

work extension
Direct contracting is permitted on job or project expansions and must continue to be contracted with the same supplier for lack of a full work contract for budgetary reasons.

declared invalid
If the bid was once declared void. This was observed by President Naive Bukele and proposed by the Ministry of Finance. Legislators approved two grounds for the declaration of nullity.

It concerns the acquisition of weapons, supplies and special equipment to fight crime, previously qualified by the Minister of Justice and Security. LACAP allowed “war material” and declared it unconstitutional.

Software, equipment, add-ons, or replacement parts must be standardized to be compatible with existing systems and equipment and additionally purchased from the original supplier.

Early termination of contract
When the contract is terminated midway due to reasons attributable to the contractor. In the public interest, contracts may be executed upon expiry of the previous contract.

Source: Diario Elmundo

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