On December 11, 2023, Law 21.634 was published, which modernizes the public procurement regime. The following are some interesting modifications introduced by this law:
- New special public procurement procedures are introduced: Purchase by Quotation, Dynamic Purchasing Agreement, Contracts for Innovation, Competitive Innovation Dialogue and Electronic Reverse Auction.
- New standards of probity and transparency in public procurement are introduced (for example, the obligation to identify the final beneficiaries of legal entities registered in the Suppliers Registry).
- Incentives are introduced for the participation of smaller companies in public procurement processes (for example, as a general rule, Temporary Associations of Suppliers must be composed exclusively of smaller companies).
- It establishes the obligation of State agencies to promote the participation of smaller companies, local suppliers and smaller companies led by women in public procurement processes.
- The competence of the Public Procurement Tribunal is expanded, its procedures are modified and its number of members is increased. With respect to the latter, disqualifications and prohibitions are also established.
- The catalog of entities subject to Law 19.886 (Public Procurement Law) in their contracting processes is expanded. For example, corporations, foundations and associations in whose administration or management State Administration agencies participate, which receive transfers of public funds for 1,500 UTM or more in a calendar year.
- Entities receiving public funds subject to Law 19,862 (law that establishes registries of legal entities receiving public funds), will be subject to the provisions of Law 19,886 in the cases defined in the public procurement regulations, with respect to such funds.
- The partial application of Law 19.886 to public works concession and public works execution contracts is established.
The provisions of this new law enter into force on a deferred basis, depending on the respective subject matter.
Contact us for further information:
José Olbrich – Senior Associate Felipe González – Senior Associate
jolbrich@cuevasabogados.cl fgonzalez@cuevasabogados.cl
