New Public Procurement Law

New Public Procurement Law

April, 2025

On April 16, 2025, the “Decree Issuing the Public Procurement, Leasing, and Services Law and Amending, Adding, and Repealing Various Provisions of Other Laws” was published in the Official Gazette of the Federation. The New LAASSP aims to modernize and streamline public procurement processes.

New Public Procurement, Leasing, and Services Law. On April 16, 2025, the “Decree Issuing the Public Procurement, Leasing, and Services Law and Amending, Adding, and Repealing Various Provisions of the Federal Republican Austerity Law; the Social and Solidarity Economy Law; and the General Law of Cooperative Societies” (the “New LAASSP”) was published in the Official Gazette of the Federation. The New LAASSP seeks to modernize and streamline public procurement processes by incorporating new mechanisms, procedures, and contracting platforms. Below are the most relevant aspects of the New LAASSP:

1. Modifications and new mechanisms for procurement procedures. The New LAASSP introduces modifications and new mechanisms in procurement procedures to strengthen the planning and execution of public acquisitions, optimize resources, promote the participation of strategic sectors, and expedite procedures.
• Consolidated Purchases: A Strategic Procurement Committee (the “Committee”) is created, which will annually approve which goods and services will be acquired under this modality, aiming for efficiency and savings in procurement procedures.
• Framework Agreements: The concept of framework agreements is introduced—replacing the previous concept of master contracts—which will be managed through the Digital Store or Electronic Catalogs, enabling immediate and centralized acquisitions.
• Subsequent Discount Offers: Previously limited to public tenders, the subsequent discount offer will now allow participants to improve their financial bids without altering technical specifications, also applicable in direct award and restricted invitation procedures.
• Pre-Contractual Interaction: Agencies may hold strategic dialogues with potential suppliers before the formal contracting process begins, to negotiate terms and conditions such as the description of goods, delivery conditions, prices, etc.
• Bidder: The figure of the “bidder” is introduced, representing the individual or legal entity that formally submits a quotation and confirms their interest in participating in the procurement process.
• New Price Evaluation Criterion: A price will be deemed “unacceptable” in a proposal if it exceeds the authorized budget or is 10% above the market average. Previously, it was only limited to 10% of the market average value.

2. Digital Transformation: New Digital Procurement Platform and Federal Government Digital Store. The Digital Public Procurement Platform (the “Platform”) is created, replacing CompraNet as the sole authorized system for all stages of the procurement process: planning, budgeting, awarding, and administration. The Secretariat for Anti-Corruption and Good Governance (the “Secretariat”) will regulate its operation. Additionally, the Federal Government Digital Store is established, serving as the platform through which goods or services will be acquired more quickly and efficiently via supply/service orders.

3. New special public procurement procedures. The New LAASSP also incorporates new procedures to address specific public procurement needs in highly complex projects, urgent situations, or strategic purchases, aiming for greater flexibility and efficiency in public spending.
• Competitive Dialogue: Competitive dialogue is a special procurement procedure authorized by the Committee, applicable only to works requiring high specialization in specific sectors or areas of knowledge. This mechanism may be used in the following cases:
- When it is essential to carry out preliminary design or adaptation work for goods or services available in the market to meet the needs of the user area.
- The provision of the service or acquisition of goods involves innovative projects or solutions.
- It is not possible to precisely define the technical specifications of the project due to its complexity. This mechanism seeks to address complex technical requirements, technological innovations, and specific circumstances without requiring prior public tender or market research.
• Direct Award with Negotiation Strategy: This is an exceptional procedure that the Secretariat may authorize when, due to urgency arising from unforeseen events, it is not feasible to conduct a public tender or restricted invitation. The Secretariat may authorize contracting through this procedure when:
- The agency or entity justifies to the Secretariat that the procurement is urgent due to unforeseen events.
- It is necessary to resolve matters that cannot be delayed because there is a risk of causing serious harm or damage to the State.
- It is not possible to receive the goods, leases, or services on time through public tender or restricted invitation procedures. Under this scheme, the procurement must be carried out by the Ministry of Finance as the agency responsible for consolidated procurements, with prior authorization from the Committee and the participation of the Secretariat.
• Assignment of a Specific Contract Derived from a Framework Agreement: The rules and characteristics of this procedure will be established in the Regulations of the New LAASSP to be issued for this purpose.

4. Transitional Provisions
• The Public Procurement, Leasing, and Services Law, published in the Official Gazette of the Federation on April 4, is repealed.