Members of the Legislative Assembly have approved the new Public Procurement Law proposed by the Central Government through the Ministry of Finance of El Salvador.

The new regulation will replace the Law of Acquisitions and Contracts of the Public Administration (LACAP), which has been regulating the planning, awarding, contracting, monitoring, and liquidation of works, goods, and services that the State should enter into since May 2000.

The Public Procurement Law will restructure and establish new provisions for the administrative contracting regime, as well as implement the use of technology to “facilitate” the operational management of government purchases.

The law will apply to natural and legal persons, both nationals and foreigners, who offer or contract with the Public Administration, participating individually or jointly in the contracting processes carried out by institutions.

Excluded from its scope will be foreign state funds, banking services, image rights concession, energy and drinking water services, real estate, parametric insurance, memberships, and strategic projects of public utility.

One of the highlights is the implementation of a Single State Supplier Registry (RUPES), where individuals who wish to participate in all procurement processes, except for emergency, urgency, or low-value purchases, will be registered.

The institutions that establish the future regulations of the law must obtain certification and accreditation for the anti-bribery standard under international quality management parameters. Meanwhile, other entities must have a Compliance Officer.

Furthermore, the law creates the National Public Procurement System, which will encompass the essential elements for the administration, implementation, operation, coordination, and monitoring of public procurement.

This system will be composed of the new National Directorate of Public Procurement (DINAC), which will be the governing body for public procurement at the national level, in accordance with the powers granted by the law, its future regulations, and norms.

LACAP mandated the establishment of the Institutional Procurement and Contracting Unit, which will be replaced by the Public Procurement Unit (UCP), responsible for managing contracting processes in each state entity. The UCP will also be part of the National System.

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