In 2016 the number of companies that sold goods and services to government institutions grew almost three times compared to 2015.
From the report "V Status Report on the SME Situation in 2016":
The V Status Report on the SME Situation in 2016 in Costa Rica indicates that sales to the state by companies that are registered in the Costa Rican Business Information System (SIEC), increased their share by 11.9%; which implies that the number of companies that sell to the state increased by 285 compared to 2015.
In the past five years direct contracting on the part of the State has increased by 90%, undermining fair competition between suppliers and adequate transparency in the use of public resources.
As the Comptroller General of the Republic points out, although the option to use the mechanism of direct purchase rather than holding a tender is legal, state entities should not abuse its use, as they have been doing in recent years.
From October 28th amendments to the Law on Government Procurement, come into effect, including the concept of open contracts and ERAs.
The decree published in Diaro de Central America indicates that "...The reforms include a total of 25 items. The first of these states that in the process of acquisitions made with resources from external loans originating from public credit operations or donations to the State, its agencies, institutions or municipal councils, policies and established procedures will apply to financial agencies or donors, considering these provisions as a special rule."
The private sector has denounced the "clear abuse on the part of the state by forcing all agencies and public companies to make contracts with each other."
From a statement issued by the Costa Rican Union of Chambers and Associations in the Private Business Sector (UCCAEP):
October, 2016.The Costa Rican Union of Chambers and Associations in the Private Business Sector (UCCAEP), complained to the Commission to Promote Competition (COPROCOM) that the Costa Rican government is using monopolistic practices.
With the approval of the latest amendments to the Law on Public Procurement acquisitions are limited to open contracts and the involvement of public officials and suppliers is prohibited.
Officials and their families are not able to sell goods or services to the state while they are performing their duties, nor may they act as suppliers who have financed election campaigns with annual amounts exceeding $3,800 nor political organizations in the electoral process immediately prior to the administration that is in force.
The new system which has to unify purchases made by the Costa Rican government has been put in the hands of a company characterized by spectacular failures in its management and in the projects it has undertaken.
EDITORIAL
The importance of good management of public procurements is vital in any economy. And not just because of the direct economic impact it has on state finances, but because a system that does not promote transparency of processes and competition among suppliers causes the general productive economy to suffer as a result of the distortions that occur in the market, which is not governed by the competitiveness of products and services, but by cronyism.
The institution plans to spend $55 billion this year to purchase various goods and contracts for services in areas such as construction, computer equipment and office cleaning services and others.
The "Annual Procurement Plan and Procurement for fiscal year 2015," by the Central Bank of Honduras, which includes investment of $55 million in the purchase of goods and contracting of services required for activities this year, is now available.
In a "Solomonic" decision, the Ministry of Finance has decided to settle the dispute between CompraRed and Merlink, ordering the development of a new platform, giving the moribund state telecom company RACSA something to do.
EDITORIAL
With the introduction of the yet to be developed Integrated Public Procurement System (SICOP by its initials in Spanish), an end could be given to the bitter struggle between different groups of state officials and private providers over "their" respective public procurement systems.
The government of Costa Rica has still not been able to establish a single system for state purchases, while the battle continues between the individual interests of the supporters of each of the two systems currently in operation.
EDITORIAL
Roberto Sasso, in his opinion column in Nacion.com notes: "... the opportunity cost caused by this senseless struggle amounts to several percentage points of GDP."
The Law on Efficient and Transparent Procurement Through Electronic Media was published on August 5th in the official newspaper, La Gaceta.
From the text of the Law on Efficient and Transparent Purchases Through Electronic Media
ARTICLE 1. AIM AND PURPOSE OF THE LAW.
This public order Law regulates purchases of goods or services via electronic catalogs, comprising of the following formats; Framework Agreement, Joint Purchase and Reverse Auction, which are performed by the bodies of the Centralized and Decentralized Public Administration.
Mer-Link and CompraRed are fighting each other, "as if they were two private companies seeking to address the issue of the Costa Rican state."
An article on Crhoy reports that "Deputies are asking the government to accelerate the transfer of purchases to the Mer-Link system ... Members of the Committee on Revenue and Public Expenditure yesterday received representatives from Digital Government and the Ministry of Finance, who are fighting over which is the best system to use for public procurement."
The government has launched a website for the State Public Procurement System, Comprasal, where tenders by government institutions will be published.
From a statement issued by the President of the Republic of El Salvador:
The President, Salvador Sanchez Ceren, this morning reiterated his government's commitment to the development of micro and small enterprises in the country with the launch of the Public Procurement Website of El Salvador (COMPRASAL), a tool which will facilitate this industry's participation in State Government tenders.
Ten state institutions have adjusted their catalogs to the concept of acquiring products and services that meet sustainability standards.
Eldis Sanchez, Director of Public Procurement, noted that "the government buys goods and services worth up to $3 billion a year, of that total, $200 million are made through the electronic catalog at website PanamaCompra".
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