National Regulation of Public Procurement
Key features of public procurement system
- A scoring rating system for suppliers (for re-procurement, priority is given to the suppliers with a higher rating)
International Agreements
- USMCA, 2020, Chapter 13 (Government Procurement)
National Law
- Constitution of Mexico, 134.
- Law on Procurement of Goods, Leasing and Other Services in the Public Sector (Ley de Adquisiciones, Arrendamientos y Servicios del Sector Público), 2000, last amended in 2021.
- Law on Public Works and Related Services (Ley de Obras Públicas y Servicios Relacionados con las Mismas), 2000, last amended in 2021.
- Law for the Development of Competitiveness of Micro, Small and Medium Enterprises (Ley para el Desarrollo de la Competitividad de la Micro, Pequeña y Mediana Empresa), 2002, last amended in2023.
- Agreements on the Creation of the Interdepartmental Commission of the Federal Public Administration for Procurement and Works of Micro, Small and Medium Enterprises (Acuerdo por el que se crea con carácter permanente la Comisión Intersecretarial de Compras y Obras de la Administración Pública Federal a la Micro, Pequeña y Mediana Empresa), 2009.
- Law on Public-Private Partnership (Ley de Asociaciones Público Privadas), 2012, last amended in 2018.
- Law on Hydrocarbons (Ley de Hidrocarburos), 2014, last amended in 2018.
- Law on Electrical Industry (Ley de la Industria Eléctrica), 2014, last amended in 2022.
At the state level, there are local regulations governing the procurement process.
SAI Mexico Cases
General Issues Related to Public Works and Related Services, 2011-2016
SAI: Mexico
Title: General Issues Related to Public Works and Related Services, 2011-2016
n 2012, SAI Mexico presented the results of an audit of 80 major infrastructure projects implemented from 1999 to 2010. For all projects, government contracts have been amended several times, resulting in a significant increase in the final investment amount and in the timeframe for their implementation.
To identify the status of the problem after five years, SAI Mexico re-audited the infrastructure projects:
- Ninety-two projects were selected, each with a contract value over USD 5.5 million and contract changes that resulted in project costs increasing by 30% or more.
- Two categories were analyzed: the causes and the frequency of their occurrence.
The following reasons for the increase in the time and cost of implementing infrastructure projects were identified:
- incorrect estimation of the scope of projects, their profitability and sources of financing;
- selection of inappropriate contractors, underqualified technical staff to prepare draft tenders and evaluate bids;
- inadequate design and study of geological conditions for erection of structures, unclear technical standards, the contractors not having the required licenses;
- failure to take into account the complexity of work, to meet deadlines at all stages of project implementation (including test operation), absence of controls;
- extended terms of transfer of budgetary funds between state programs, reduced budgeting during contract performance, unpredictability of the global problems impact in the capital goods market, which affect the cost and terms of delivery.