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Notes on the new General Law on Public Procurement
[/vc_column_text][us_separator][vc_column_text] On December 1, 2022, the new General Law on Public Procurement (Law No. 9986, the "Law") came into effect. It was approved in May 2021 and will completely replace the Administrative Procurement Law, which had been in force since 1996. The Legislative Branch, upon approving the aforementioned Law, granted the Executive Branch 18 months to prepare the Regulations for it. These Regulations were presented on the day the new Law came into force. On May 27, 2021, the Presidency announced that the new General Law on Public Procurement will allow the State to respond more quickly, in an orderly manner, and with greater transparency to public procurement processes. It also emphasized that this is one of the most significant reforms in recent years, as it is framed within OECD best practices. The reform is also intended to reduce government costs, promote competition and the use of technology, and completely modernize public procurement processes in the country. This law will apply toany contractual activity that uses public funds in whole or in part.As for private entities, this Law shall apply when they administer or hold public funds or when they receive free or unpaid patrimonial benefits from components of the Public Treasury.will not beapplicable, among others, to the ordinary activity of the Administration, public employment relations, fuel acquisition, agreements concluded with other States or subjects of Public International Law of a humanitarian nature, or collaboration agreements between entities of Public Law. For the sake of transparency, it is established that all public procurement activity regulated in the new Law must be carried out through theunified digital systemwhich, for the moment, we can identify asSICOPAny activity in which any other means is used for its procedures will be absolutely null and void, with the exception of the formalization of contracts that must be recorded in a public deed. Among the new features of this Law are the following:reckless resources"Under which the Comptroller General of the Republic or the Administration is empowered to impose fines determined by law when it considers that the appellant, whether by filing an objection or appeal, has acted recklessly, in bad faith, or abused procedural rights. Regarding this, the Law provides that reckless behavior will be considered when the appellant abuses by exercising completely unfounded actions, and in bad faith when the appellant alleges facts contrary to reality. One of the reasons the reform was promoted by the Executive Branch is that, among its new features, it offers a mechanism to expedite investment and public works projects. This will be achieved through the creation of an abbreviated contracting process for the pre-feasibility and feasibility phases of public investment projects that are duly registered with the Ministry of Planning. This will allow for the development of the necessary studies and designs more expeditiously. In an almost utopian way, the Law will also reduce procurement process time and simplify processes. As stated, this new Law was created to completely modernize public procurement processes; even the Legislative Branch itself has stated that the Law creates a complete paradigm shift in procurement processes. However, several public institutions, including the University of Costa Rica, have already communicated a series of challenges that the new Law will create for their own public procurement processes. Therefore, only time will tell whether the reform fulfills its lofty aspirations or not. [/vc_column_text][us_separator][vc_column_text]Written by: Daniela Tijerino [/vc_column_text][/vc_column][/vc_row]
