The new Public Procurement Law of El Salvador brings about new methods of contracting when it comes to works, goods, and non-consulting services: Competitive Bidding, Direct Contracting, Low-Value Procurement, and Price Comparison.
Price Comparison is emerging as one of the most used methods and is similar to the now-defunct “Free Management.” This approach involves comparing quotations through an open call, receiving offers for a maximum amount of $87,600.00.
“Price comparison is an agile and competitive procurement method, based on comparing quotations obtained through an open call and inviting a minimum of three providers to ensure competitive prices,” says Oscar Giralt, our expert partner in Public Administration.
How is this procurement method carried out?
Our specialist recommends first having training because, even with the existence of guidelines from the National Directorate of Procurement, it is “impossible to generalize the operating procedures of each institution.”
“This is where our standard documents come into play, which are the models to follow to initiate this form of contracting. Our models contain the minimum requirements to be filled out by the intervening actors,” Giralt affirms.
According to our partner, if at least three of the required quotations from providers previously registered in the RUPES are received, the process can be considered valid if it is determined that the prices of the received quotation(s) are reasonable compared to market prices and conditions, in accordance with the evaluation criteria contained in the solicitation documents.
What documents should public institutions use to contract suppliers?
- Request
- Process Implementation Plan
- Invitation to Bid Document or Request for Proposals
- Quotation Reception Register and Quotation Opening Minutes
- Declaration of Impartiality and Confidentiality
- Price Analysis if three offers are not received in the publication
- Evaluation Report and Recommendation for Award
- Financial and Legal Review Report
- Awarding Minutes
- Purchase Order
- Notification to Participating Bidders
- Goods Receipt Minutes
Once the purchase is completed, Vallejo proposes ensuring the consolidation of the acquisitions file, consisting of:
a) Request file prepared by the requesting unit
b) Procurement process file prepared by the UCP
c) Contractual monitoring file prepared by the contract administrator.
“It is important to clarify that there is already a regulation for the application of the law, so there are aspects to be developed for the determination of the purchasing cycle,” emphasizes our lawyer.
-Written by Torres Legal Team.