National Administration Contracting Regime
Public Law department report | National Administration Contracting Regime
On July 25, 2024, Decree No. 666/2024 was published in the Official Gazette, which introduces modifications to Decrees No. 1030/2016 that approves the Regulations of the National Administration Contracting Regime, and Decree No. 1344/07 that approves the Regulations of the Financial Administration Law and the Control Systems of the National Public Sector. The main highlights are as follows:
Modifications to the Regulations of the National Administration Contracting Regime, approved by Decree 1030/16
Decentralization of decisions: Article 9 of Decree No. 1030/16 is amended to establish the competencies in contracting, aiming to streamline processes through the decentralization of decision-making. It thus establishes that:
– The highest authority of the contracting jurisdiction or entity will be competent to approve the procedure and award contracts in cases of emergency or urgency (Art. 25, subsection d, item 5 of Decree 1023/01).
– Interventions by the Chief of the Cabinet of Ministers are eliminated, except in the case of contracts within their own jurisdiction.
– Regarding the rest of the procedures, the highest authority to approve them is the Minister or the highest authority of the decentralized body.
Module Value: the value of the module, used as a reference for contracting procedures, has been adjusted to forty thousand pesos ($40,000).
Competent authorities: the competent authorities to approve the different procurement procedures has been modified, which will be as follows:
Modifications to the Regulations of the Financial Administration Law and the Control Systems of the National Public Sector, approved by Decree No. 1344/07
Competent Authorities: subsection b) of Article 35 of Decree No. 1344/07 has been replaced. It determines the authorities empowered to approve expenses, order payments, and make disbursements, based on amounts represented in modules.
Module Value: the value of the module, used as a reference for contracting procedures, has also been adjusted to forty thousand pesos ($40,000).
It should be noted that on July 25, the National Contracting Office issued Communication No. 19/2024, which interprets the changes introduced by Decree No. 666/2024, clarifying that in Article 9 of Decree 1030/16, the matter related to the competent authorities to issue administrative acts during the selection procedures and during the execution and termination of contracts is regulated, while the competencies regulated in Article 35 of Decree 1344/07 are confined to the approval of expenditures, payments, and/or disbursements resulting from procedures not covered by the scope of application of Decree 1030/16.
We remain at your disposal for any additional information you may need.
Oscar Aguilar Valdez
Santiago Barbarán