On April 16, 2025, Mexico’s President published in the Official Gazette of the Federation the new Law on Public Procurement, Leasing, and Services (the "Law"), through the decree that enacts the Law on Public Procurement, Leasing, and Services and amends, adds, and repeals various provisions of the Federal Law on Republican Austerity, the Law on Social and Solidarity Economy, and the General Law on Cooperative Societies.
The new law repeals the previous law and its modifications, with the aim to regulate the administration of economic resources managed by the Federation, the Federal Entities, Municipalities, and the territorial demarcations of Mexico City. In general terms (i) the Digital Platform for Public Procurement is created, which replaces the CompraNet System, (ii) sustainable procurement is promoted so that the public procurement system of the Federal Public Administration adheres to principles such as equity, social inclusion, respect for Human Rights, and economic development, and (iii) reallocates powers and competencies of the Ministry of Anti-Corruption and Good Governance and the Ministry of Finance and Public Credit, harmonizing them in matters of republican austerity.
Following is a summary of the main aspects of the new law:
The new legislation applies to (i) Administrative units of the Office of the President, (ii) Agencies of the Federal Public Administration, (iii) Decentralized organizations, (iv) State-Owned enterprises, (v) Trusts in which the trustor is the Federal Government or a parastatal entity, and (vi) Federal Entities, Municipalities, territorial demarcations of Mexico City and their public entities, when they use federal resources. However, State Public Enterprises, and with respect to federal public entities with constitutional autonomy with a specific procurement regime are excluded from the application of this Law. In these cases, the Law will only apply in a supplementary manner and in matters not covered by their own regulations.
The Law expressly prohibits entities and agencies from creating trusts, mandates, or contracts to avoid the Law. Contracts between public agencies or entities are excluded from the scope of the Law, unless they subcontract third parties for more than 30% of the contract value, in which case they are subject to the provisions of the contracts themselves, and in cases not provided for, the Federal Civil Code will apply supplementarily.
The Strategic Procurement Committee is created as a collegiate body of the Ministry of Anti-Corruption and Good Governance, whose main function is to approve goods or services that may be acquired, leased, or contracted in a consolidated manner, with the aim of obtaining the best conditions for the State and supporting, under competitive conditions, the priority areas of economic, environmental, and social development. The Committee is composed of a representative of the Ministry of Anti-Corruption and Good Governance, who presides and has a casting vote; three representatives of the Ministry of Finance and Public Credit; one representative of the Ministry of Economy; and three representatives of the Ministry of Anti-Corruption and Good Governance. Finally, it is specified that the Ministry of Finance and Public Credit will be responsible for bringing forward consolidated procurement procedures.
The new Law introduces a robust and detailed structure of procurement procedures, with the aim of ensuring transparency, efficiency, and the best conditions for the State.
The ordinary procedure remains public bidding, which continues to be the general rule for awarding contracts. This mechanism is characterized by its openness and competition, allowing the free participation of any interested party that meets the requirements established in the call, and ensuring that the award is made under objective and transparent criteria.
Additionally, the Law contemplates the procedure of invitation to at least three people, which may be used in specific cases provided for by the Law itself, allowing for greater agility in procurement without sacrificing competition, as it requires the participation of at least three potential suppliers. On the other hand, direct award is reserved for exceptional and duly justified cases or when the amount of the procurement does not exceed the limits established in the Federal Expenditure Budget. This procedure requires documented justification and the conduct of a market investigation to support the decision.
As a relevant and substantial modification, it should be noted that the Law incorporates a new procedure identified as competitive dialogue. This mechanism requires the participation of at least three prequalified candidates and allows the public administration to interact with these participants to jointly define the object and scope of the procurement, ensuring that the proposed solutions respond to the State’s complex and specific needs. In turn, it will be developed in two stages, (i) the preparatory stage and (ii) the concluding stage.
Likewise, a direct award with a negotiation strategy is introduced, applicable in duly accredited urgent cases, where immediacy and obtaining optimal conditions for the State are the main concern. This procedure allows direct negotiation with suppliers, always under the supervision and guidelines of the corresponding Ministry.
The Law also regulates the execution of specific contracts derived from framework agreements, which are instruments previously entered into with one or more suppliers to establish general conditions of price, quality, and delivery, allowing agencies and entities to carry out agile and standardized procurements under these conditions. Additionally, the use of supply orders through the Federal Government’s Digital Store is enabled, an electronic platform that facilitates the expedited acquisition of standardized goods and services, promoting efficiency and transparency in public procurement.
A central aspect of the new regulation is the reinforced obligation to conduct a market investigation prior to any procurement procedure, except for competitive dialogue. This investigation must be thorough, documented, and function as the basis for justifying both the selection of procedure and the selection of the supplier, ensuring that the conditions obtained are the most favorable for the State in terms of price, quality, financing, and correctness. The market investigation thus becomes an necessary requirement for the planning and execution of any public procurement. The Ministry of Finance will be responsible for proposing the procurement procedure to be carried out according to the results obtained from the market investigation.
Regarding the evaluation of proposals, the Law establishes clear and objective criteria, favoring the use of point and percentage systems, cost-benefit analysis, or binary criteria, depending on the nature of the goods or services to be procured and what is established in the call. These mechanisms seek to ensure that the award is made impartially, transparently, and based on objective merits, fostering competition and the participation of qualified suppliers.
Finally, the Law regulates the use of subsequent discount offers, a modality that allows participants to improve their economic proposals after the initial opening, without modifying the previously established technical conditions. This mechanism, which can be applied in public biddings, invitations to at least three persons, and direct awards with negotiation, aims to foster price competition and maximize the value obtained by the State in its procurements. Together, these procedures and mechanisms reinforce the regulatory framework for public procurement, promoting efficiency, transparency, and the achievement of the best conditions for the public sector.
The Digital Platform for Public Procurement is an official and transactional electronic tool that centralizes and manages all procurement procedures of the federal public sector, from planning to contract administration, ensuring transparency, standardization, and free access to relevant information for suppliers and citizens. Unlike CompraNet, which has previously been the electronic system used for the dissemination and management of procurement procedures, the new Platform is designed to be the only mandatory resource for carrying out these processes, integrating more advanced modules and expanded functionalities, such as the management of framework agreements, electronic notifications with legal validity, and an electronic registry of participants.
The instance for filing complaints before the Ministry of Anti-Corruption and Good Governance is maintained, with detailed deadlines and procedures to challenge acts of bidding, invitation, award, cancellation, and contract formalization. Arbitration and other alternative dispute resolution mechanisms are also permitted for the interpretation and execution of contracts, except for administrative rescission and early termination. The conciliation procedure is regulated to resolve contractual disagreements, as well as enforcement measures (fines, arrest, use of public force). Disputes not resolved by these means will be under the jurisdiction of the federal courts.
Procurement procedures and disputes in progress at the entry into force of the Law will continue under the previous legislation until their conclusion. Specific deadlines are granted for the issuance of guidelines, installation of committees, certification of cooperatives, and operation of electronic systems for the formalization of articles of incorporation. The Digital Platform for Public Procurement must be fully operational within a maximum period of 30 months; the modules necessary for procurement procedures must be ready within 18 months. Previous environmental guidelines and provisions remain in force until the issuance of new rules. The Federal Executive must adapt the corresponding regulations within ninety business days.
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