Public Procurement
The Peruvian Experience
Dr. Gonzalo de la Cruz Salas
Administration Manager
National Registry of Identification and Civil Status
Perú
PREVIOUS LEGISLATION
Single Procurement Regulations (RUA)
Single Regulations for Biddings and Public Works Contracts (RULCOP)
General Regulations for Consultancy Activities (REGAC)
R.U.A
Goods and
Services
RULCOP
Public Works
Construction
REGAC
Advisory and
Consultancy
2
CURRENT PERUVIAN LEGISLATION
PROCUREMENT PRINCIPLES
Ethics
Free competition
Nonpartisanship
Efficiency
Accountability
Economy
Updated technology
Fairness
3
CURRENT PERUVIAN LEGISLATION
It provides for the types of Selection Procedures:
In US Ddollars (*)
Goods
TYPES OF
PROCEDURES
Public Bidding
>= $ 132,353
Open Request for Tenders
Direct Contract Award
Public
Services
Public Works
>= $ 338,235
>= $ 58,824
< $ 132,353
< $ 58,824
< $ 338,235
Selective
Awarding of Minor
Contract
(*) Exchange rate : S/. 3.40 per US Dollar
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GROUNDS FOR EXEMPTION
Impending Shortage
of Supplies
Emergency
Irreplaceable
Goods or Services
(Single Supplier)
 Technical-legal report
 Establishment of responsibility
 Resolution by the maximum State authority
Other grounds for exemption:
 Classified military procurement
 Public services
 Contracting between State entities
 Sole sourcing
5
ANNUAL PROCUREMENT AND
CONTRACTING PLAN
DEFINITION
 Management
instrument,
whereby
contracting
and
procurement procedures are scheduled for a budget year, in
order to meet the needs of the Entity, according to the sectoral
strategic purposes of the State Entity and its annual budget so
as to fulfull its institutional goals.
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ANNUAL PROCUREMENT AND
CONTRACTING PLAN
PURPOSE:
 Schedule, disseminate and assess the procurement of goods,
services, consultancy and public works by State Entities.
FEATURES:
 Public nature.
 Formal nature in terms of its approval and amendment through a
document issued by the competent authority.
 Compulsory for all entities subject to the Government Procurement
and Contracting Law.
 Comprehensive for it contains all procurement and contracting
procedures to be performed by the Entity.
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PROCUREMENT COMMITTEES
SPECIAL COMMITTEE:
A professional body responsible for conducting and executing a
Public Bidding or Open Request for Tenders.
Prepares bidding terms and conditions, answers inquiries and
observations, assesses tenders, and awards contracts.
Comprised of three (3) or five (5) members with an equal number
of substitutes.
STANDING COMMITTEE:
Designated for the Procurement of Goods, Services or Public Works in the case of:
 Public Direct Contract Awarding
 Selective Direct Contract Awarding
 Awarding of Minor Contracts (not exceeding a certain amount - equal to or below
the 1/10th portion of the maximum limit established in the Annual Budget Law).
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ELECTRONIC SYSTEM FOR GOVERNMENT
PROCUREMENT AND CONTRACTING (SEACE)
A comprehensive system based on the compulsory use of
Internet between State Entities.
Allows transparency, and optimizes, updates and yield savings
in public contracting procedures.
Performance
State Entities
Register Annual Plans and
procedures called.
Suppliers and
Public in General
Free access to information
via Internet.
Control Entities
Prompt oversight and timely
follow-up
of
selection
procedures.
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CURRENT PERUVIAN LEGISLATION
PROMOTION OF NATIONAL PRODUCTION
In all goods procurement and contract awarding procedures, an
additional 20% shall be added to the sum of the technical and
economic rating obtained by the bidders that have manufactured
their goods or have rendered services within the national territory.
A sworn statement shall be duly submitted.
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CURRENT PERUVIAN LEGISLATION
PROMOTION OF SMALL AND MEDIUM-SIZED ENTERPRISE
Should a tie arise between or among two or more bidders in the technical
and economic rating, the contract award procedure shall be carried out as
follows:
Micro and small-sized enterprises shall be given preference in the case
of direct contract awarding and awarding of minor contracts.
The contract shall be awarded to the bidder that obtained the highest
score of economic tender in the case of goods and public works, and the
highest score of technical tender in the case of services.
 The contract shall be awarded by random draw in the same act.
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ENTREPRENEURIAL INTEREST
The entrepreneurial interest shows the following
trends:
> Micro and Small-Sized
Enterprises (MYPES) prove to
be more interested in
procedures for selective
direct contract awarding and
awarding of minor contracts
not exceeding certain
amount.
> That is to say, in 99% of the
contracts that account for
40% of the expenses.
> Medium and Large-Sized
Enterprises prove to be
more interested in
procedures for public
direct contract awarding,
open request for tenders
and public bidding.
> That is to say, in 1% of the
contracts that account,
nevertheless, for 60% of
the expenses.
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SPECIAL PROCUREMENT METHODS
Corporate Procurement
Reverse Auction
Framework Agreement
for Prices
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SPECIAL PROCUREMENT METHODS
CORPORATE PROCUREMENT
 State Entities, by agreement or legal ruling, gather together in
order to jointly procure or contract goods and/or services.
PURPOSE:
 Decrease transaction costs and enjoy the advantages of the
economy of scale.
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SPECIAL PROCUREMENT METHODS
ADVANTAGES:
 Uniformity of goods and services contracted by the Government.
 Easier ovesight of procedures.
 Increased added value to public funds.
 Obtaining of better prices and additional benefits.
 Greater incentive for manufacturers’ involvement.
 Appropriate streamlining of resources.
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SPECIAL PROCUREMENT METHODS
CASE 1: Procurement of motor vehicles by the FONAFE
(National Fund for the State’s Entrepreneurial Activity)
GOODS
METHOD
PARTICIPANTS
REFERENTIAL
AMOUNT
80 trucks
Facultative,
Corporate
Procurement
13 State-owned firms
US $ 1,844,300
Advantages obtained
US $ 147,000
Price improvement
US $ 467,500
Savings
US $ 320,000
Additional benefits
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SPECIAL PROCUREMENT METHODS
CASE 2: Procurement of office supplies and others by the
PCM (Prime Minister’s Office)
BIENES
GOODS
MODALIDAD
METHOD
PARTICIPANTES
PARTICIPANTS
REFERENTIAL
VALOR
REFERENCIAL
AMOUNT
Paper, ink, toner,
files, CDs, etc.
Facultative,
Compra Corporativa
Corporate
Facultativa
Procurement
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16Empresas
State-owned
Estatales
firms
US $ 1,800,000
aprox.
Ventajas
Advantages
obtenidas
obtained
US $ 130,000
Price improvement
US $ 200,000
Estimated savings
US $ 70,000
Additional benefits
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SPECIAL PROCUREMENT METHODS
REVERSE AUCTION
 State Entities procure common goods through an open bid, where
the tender that offers the lowest price will be the successful bidder; it
may be electronic or may require attendance of the participants, and
it may apply to procedures for public bidding, public direct awarding,
selective direct awarding and awarding of minor contracts not
exceeding certain amount (equal to or below the 1/10th Portion of
the Maximum Limit Established in the Annual Budget Law)
ADVANTAGES:
 No waste of time or money, greater accountability.
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SPECIAL PROCUREMENT METHODS
PROCEDURE:
Invitation to
bidders
1
Contract
Award
3
Registration of
participants
2
Bidding
Submission of
tenders
OFFICIAL ACT
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SPECIAL PROCUREMENT METHODS
FRAMEWORK AGREEMENT FOR PRICES
 Direct contracting of goods and services by means of a
catalogue (virtual supermarket) where determined conditions
and prices are previously established.
AGREEMENT MANAGER:
 Control Council for Government Procurement and Contracting
(CONSUCODE)
This body manages the definition and supervision of all related
procedures, as well as the handling and registration of the
Commitment Accords.
 It constitutes a special committee, with a representative of the
Civil Society.
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SPECIAL PROCUREMENT METHODS
WHEN IT IS USED:
 If it is necessary to subscribe frequent contracts due to the
features of the goods or services.
 Periodic supply of goods with partial deliveries is more advisable.
 The nature of the object does not make it possible to previously
define or quantify the demand.
 It is more convenient for dealing with more than one entity.
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ESTIMATED VALUE OF PUBLIC
PROCUREMENT
> The Government’s annual average expenses amount to 14
billion Nuevos Soles or 4 billion US Dollars in the
procurement of goods and service contracting.
> This figure accounts for:
 40% of the State budget.
 1.5 times all the State payroll.
 75% of the funds collected by the Tax Authority.
22
THE GOVERNMENT IS THE BIGGEST
CONTRACTOR
In Peru contracts are entered into for around 14 billion Nuevos
Soles each year (4 billion US Dollars)
Public Works
10%
Services
37%
Goods
53%
2706 State Entities execute contracts
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NUMBER OF CONTRACTS
NORTHEAST
Contracts:
10.52%
METROPOLITAN
LIMA
Contracts:
76.97%
CENTER
Contracts:
3.45%
SOUTH
Contracts:
9.05%
Total Selection Procedures:
850,000
Total Estimated Amount: 14 Billion
Nuevos Soles or 4 Billion US
Dollars
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PUBLIC PROCUREMENT CONTROL
> There are around 2,400 State entities, which have some
120,000 suppliers.
 Each year, the government machinery enters into 70,000
monthly contracts on average, i.e. 2,300 daily transactions
for the purchasing of goods and services. Against these
figures we have the following:
 The Comptroller General’s Office (CGR) conducted 931
control actions and activities of all kinds.
 For its part, CONSUCODE processes 802 complaints on
average.
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PUBLIC PROCUREMENT CONTROL
Should the CGR and CONSUCODE devote all their efforts to
supervise public contracting procedures, the almost 2,500
actions they would jointly conduct would not cover all
contracting acts performed by the Government in one single
day of the year.
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PROCUREMENT AND CONTRACTING
CONTROL
BY:
PERUVIAN
COMPTROLLER GENERAL’S OFFICE
Governing Body
NATIONAL
CONTROL SYSTEM
INSTITUTIONAL
CONTROL BODY
(O.C.I)
AUDITING FIRMS
CITIZEN’S
OVERSIGHT
COMMITTEE
Regulates and provides
guidelines on control
procedures, and carries
out external supervision.
Execute control subject
to
guidelines
and
policies established by
the Governing Body.
Comprised of institutions’ representatives with the
purpose of following-up on the fulfillment of
obligations, committments, competences and
duties of State entities.
It monitors the procedures through SEACE.
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PROCUREMENT AND CONTRACTING
CONTROL
CONTROL METHODS :
PREVIOUS
INTERNAL CONTROL
SUBSEQUENT
INTERNAL CONTROL
SUBSEQUET
EXTERNAL CONTROL
Exclusive responsibility of public officers and civil
servants as part of the duties inherent to their
positions.
Carried out by the responsible parties or executing
officers as an activity of the administrative cycle OCI
Responsibility of the Peruvian Comptroller General’s
Office, or any other body appointed by the Governing
Body.
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CHALLENGES FOR THE FUTURE
> Less complex procedures and document handling.
> Common terminology at regional level.
> Streamlining of transactions
> Seek greater participation of citizens in accountability of
procedures.
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CHALLENGES FOR THE FUTURE
> Systematization of suppliers in a regional integrated
system (Software).
> Seek and optimize common legal frameworks at
regional level and be able to manage a common
technology.
> Active exchange of documents relating
procurement and contracting procedures.
to
> Incorporation of an Association that brings together
all institutions responsible for procurements and
contracts throughout the continent in order to make
viable the challenges mentioned above.
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