New Law on Public Procurement, Leasing and Services in Mexico

Von Wobeser y Sierra - On April 16, 2025, the Decree issuing the Law on Public Procurement, Leasing and Services and amending, supplementing and repealing 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 LAASSP" for its acronym in Spanish) was published in the Official Gazette of the Federation. The New LAASSP aims to modernize and improve the efficiency of public procurement processes by incorporating new contracting mechanisms, procedures, and digital platforms. Below are the most relevant provisions:

1. Modifications and new mechanisms for procurement procedures. The New LAASSP introduces key changes and new mechanisms for procurement procedures to enhance planning and execution of public acquisitions, optimize public resources, promote the participation of strategic sectors, and streamline procedures.

• Consolidated Purchases: A Strategic Procurement Committee (the "Committee") will approve each year which goods and services are to be procured through this mechanism to maximize efficiency and cost savings in the procurement procedure.

• Framework Agreements: The Law introduces the concept of Acuerdo Marco —replacing the previously regulated "contrato marco"—, which will be executed via the Federal Government’s Digital Store or Electronic Catalogs, allowing for immediate and centralized acquisitions.

• Subsequent Discount Offer: Previously only applicable to public tenders, the subsequent discount offer will now allow participants to improve their financial bids without altering technical specifications, also in direct award procedures and in invitations to at least three suppliers. • Pre-Contractual Market Engagement: Government entities may hold strategic dialogues with potential suppliers before the formal procurement process begins, to negotiate terms and conditions such as the description of goods, delivery terms, pricing, etc.

• Quoter: The concept of the "quoter" (cotizante) is introduced, referring to a natural or legal person who formally submits a quotation and confirms their interest in participating in the procurement process.

• New Price Evaluation Criterion: A price will be considered "unacceptable" in a proposal if it exceeds the authorized budget or is more than 10% above the market average. Previously, the only criterion was the 10% limit over the market average.

2. Digital Transformation: New Public Procurement Digital Platform and Digital Store for Procurement. A new Digital Public Procurement Platform (the "Platform") is established, replacing CompraNet as the sole authorized system for managing all stages of public procurement—planning, budgeting, contracting, and contract administration.

The Ministry for Anti-Corruption and Good Governance (the "Ministry") will regulate the operation of this platform. Furthermore, the Digital Store for Procurement is created, which will serve as the platform through which the acquisition of goods or services will be carried out in a more agile and expedited manner via supply/service orders.

3. New Special Procurement Procedures. The New LAASSP also introduces specific procedures to address complex public procurement needs, urgent circumstances, and strategic acquisitions—aiming to provide greater flexibility and ensure more efficient public spending.

• Competitive Dialogue: A special procurement mechanism authorized by the Committee, applicable only to projects requiring a high degree of specialization in specific sectors or fields. This mechanism may be used in the following situations:

- When prior design or customization of available market goods or services is essential to meet the contracting entity’s needs.
- When the goods or services require innovative solutions.
- When the technical specifications cannot be clearly defined due to the complexity of the project.

This mechanism aims to address complex technical requirements, technological innovations, and specific circumstances without the need for a public tender or prior market research.

• Direct Award with Negotiation Strategy: An exceptional procedure that may be authorized by the Ministry in urgent and unforeseeable circumstances when conducting a public tender or inviting at least three participants is not feasible. The Ministry may authorize the procurement when:

- The agency justifies that the procurement is urgently required due to unforeseeable events.
- The situation involves risks of serious harm to the State if delayed.
- Goods or services cannot be provided on time through regular procurement procedures.

• Awarding Specific Contracts under Framework Agreements: The rules for this procedure will be set out in the Regulations to be issued under the New LAASSP.

4. Transitional Provisions.

• The current Law on Public Procurement, Leasing and Services, published on January 4, 2000, and its subsequent amendments, is repealed.

• The Executive Branch must issue the necessary amendments to the Regulation of the Public Procurement Law within 90 business days from April 17, 2025.

• Procurement procedures already underway at the time the new law takes effect will continue to be processed in accordance with the rules in force when they were initiated.

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