El Salvador: Reforms to Public Acquisitions Law

One of the proposed reforms is to increase the amount of the direct purchases from $16,000 to $32,000.

Tuesday, September 14, 2010

Another modification to the Law of Acquisitions and Contracting of the Public Administration (LACAP for its acronyms in Spanish) tries to eliminate excessive red tape in most procedures, give more transparency to the bidding processes and to include more SMEs (small and medium businesses) in these processes.

Rafael Mendoza in its article at Elsalvador.com writes, "one of the points being discussed is to analyze a contracting figure known as 'turn-key', which allows companies to create the design, supervise and execute state projects."

More on this topic

El Salvador: Prisons Contracts to be Made Without Tenders

April 2016

Direct procurement of works, goods and services for the operation and expansion of prisons in the country has been allowed.

The Ministry of Justice and Public Security may, in the next 12 months, sign direct contracts without putting out to tender all kinds of works, goods and services for the improvement, operation and expansion of prison infrastructure.

Purchases Without Bidding in Guatemala

July 2013

Faced with criticism over multi million dollar direct purchases, the chief of Government justified these measures saying "a bidding tender does not guarantee transparency and honesty."

In interview for Elperiodico.com.gt with Mauricio López Bonilla, Minister of the Interior, the official said that several strategic materials needed for the National Civil Police (PNC by its initials in Spanish) such as weapons, equipment, technology and infrastructure construction, will be some of the purchases made without tender processes.

Guatemalan Government Avoids Tenders

April 2012

Purchases are awarded on a competitive basis only 18% of the time. This was the previous government’s usual practice, and it seems to be same under the administration of Perez Molina.

According to Marvin Flores, expert from transparency watchdog Acción Ciudadana (AC in Spanish), this practice lends itself to anomalous acts in government, by public officials.

The "Direct" Governing Style of Martinelli

December 2010

Martinelli, after 16 months in office, is about to exceed the amount of direct contracts done in four years of administration by his predecessor.

Although during his campaign Ricardo Martinelli questioned direct purchases conducted by the administration of Martin Torrijos, his strong executive style of management leads to avoid bidding processes accumulating $ 490 million in direct contracting, while during the whole Torrijos administration such purchases came out to add about $ 540 million.

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