National Regulation of Public Procurement
Key features of public procurement system
- Significant amount of reference materials on the preparation and organization of procurement
- A convenient digital system for organizing tenders and selecting suppliers
National Law:
- Contracting Regime for the National Administration (Executive Order No. 1023/2001)
- Rules of the Contracting Regime for the National Administration (Executive Order No. 1030/2016)
- National Public Administration Contracting Procedures Handbook (National Contracting Office’s Disposition No. 62/2016)
- Contracting General Terms and Conditions (National Contracting Office’s Disposition No. 63/2016)
- Public Administration’s Providers Database Registration Handbook (National Contracting Office’s Disposition No. 64/2016)
- National Administration Contracting Electronic System COMPR.AR (National Contracting Office’s Disposition No. 65/2016)
- National Administration Contracting Electronic System CONTRAT.AR (Executive Order No. 1336/2016)
- Law on the Market Competition Protection (Law No. 25,156)
Under the federal system of government, the Argentine provinces and the autonomous city of Buenos Aires may establish their own public procurement rules (usually similar to the national rules).
The Argentine government also promotes import substitution and support for domestic producers (Law No. 25,551). The document applies to all public contracting procedures and obliges specific authorities and entities to give preference to national goods and services under certain conditions, as well as to comply with disclosure obligations during contracting procedures. It establishes the priority of Argentine suppliers in public procurement, as well as possible sanctions for non-compliance with the regime.
SAI Argentina Cases
Audit of the National Procurement Directorate at the Secretariat for Public Innovation of the Office of the Head of the Cabinet of Ministers
SAI: Argentina
Title: Audit of the National Procurement Directorate at the Secretariat for Public Innovation of the Office of the Head of the Cabinet of Ministers
SAI Argentina audited the management of the COMPR.AR electronic public procurement system (hereinafter referred to as the System) from the point of view of information security and data quality.
The System was launched in 2016, and its main objectives include promoting transparent and efficient practices in public procurement in line with national policy priorities related to SDG 12.7.
This objective aims to promote three dimensions of sustainable development: economic, social and environmental.
Audit Objectives:
- To verify the development of sustainable public procurement practices in line with national policies and priorities.
- To evaluate information systems and the National Administration's e-procurement system (COMPR.AR) in terms of information security and quality of data
Audit Criteria:
- Environmental sustainability in procurement.
- Adherence to ethical standards in procurement.
- Socio-economic sustainability in procurement.
- Development and implementation of electronic procurement systems.
During the audited period (September 1, 2017 – September 30, 2019), the National Administration agencies used two different platforms for the procurement of goods and services, contrary to the provisions of Executive Order No. 1030/2016, which requires to implement a single window system to simplify and streamline procurement processes.
Moreover, it does not allow stakeholders, civil society organizations and monitoring bodies to have insight into the effectiveness of the procurement process.
From a review of the Administration's regulatory framework, it appears that sustainability criteria in procurement activities are recommended (rather than required).
The National Contracting Office of the Administration lacks an Information Security Policy, does not adequately manage COMPR.AR users and does not monitor potentially risky activities or those that could jeopardize information security.
It was noted that the COMPR.AR system did not cover the entire procurement life cycle; the process search did not automatically provide information on the total amounts, quantities and volumes of goods purchased or suppliers.
As a result of the audit, the SAI noted that there is a need to update current regulatory framework to improve management of the System.
Based on the audit outcomes, SAI recommended:
- To establish a system for backing up contract data.
- To draft and approve internal documents (regulations and “policies”) on data handling.