By: LatinAlliance

As of December 1, any public procurement procedure in Costa Rica that involves totally or partially the use of public funds for the acquisition of goods, services, and works, is governed by the new provisions of the General Public Procurement Law, No. 9986; Likewise, in the case of private entities that administer or have custody of public funds or when they are recipients of patrimonial benefits for free or without any consideration from the Public Treasury, as long as the contracting exceeds 50% of the lower limit of the threshold established for the lowest bidding of the ordinary regime; as well as for non-state public entities whose financing comes from more than 50% of their own resources, contributions or contributions from their members.

It is important to mention that all public procurement activities regulated by this Law must be carried out through the unified digital system (currently the Public Procurement System, SICOP); otherwise the procurement will be absolutely null and void, except in cases of unforeseeable circumstances or force majeure.

Additionally, this new Law establishes that in case it is proven that the appellant acted with recklessness, bad faith, or abuse of procedural rights, a fine of 0.5% of the amount of the threshold of the major bidding and of the upper threshold of the minor bidding, as applicable to works, goods or services will be imposed; while, for filing reckless appeals and revocations, a fine of 1% of the amount of the threshold of the major bidding and of the upper threshold of the minor bidding and of the reduced bidding, as applicable to works, goods or services, will be imposed. Such fines are in charge of the Comptroller General of the Republic or the Administration, depending on the corresponding appeals.

The new system establishes an Official Suppliers Registry within the platform and it is estimated that its application will allow annual savings of ¢540,000 million, equivalent to 1.55% of the Gross Domestic Product (GDP).