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October 27, 2003

Original: Spanish
Translation: FTAA Secretariat





This project conforms to the principles, objectives, and general characteristics of the Hemispheric Cooperation Program (HCP). In particular, it will allow Peru to participate more beneficially and equitably in the FTAA negotiations on government procurement.

1. Title of the Project

Systematization and standardization of information on government procurement carried out since 1999.

2. Background

The government procurement system in Peru can be defined as the rules, institutions or organizations, and public entities or companies that regulate, oversee, and carry out government procurement for the Peruvian State.

The entity responsible for government procurement at the national level is the State Council on Procurement and Acquisitions—CONSUCODE1, created through Law 26850 of 30 July 1997.

Government procurement regulations apply to all public sector entities and other agencies covered by Article 2 of the aforementioned law. In other words, the users and beneficiaries of CONSUCODE are: the national public sector, which includes the central government and decentralized entities, local governments, charity organizations, and State-owned companies, in addition to suppliers and contractors.

In the fulfillment of its duties, CONSUCODE maintains ties with the entire State apparatus; hence, it plays an important role in the state’s selection processes, which are carried out in accordance with the law. CONSUCODE must therefore ensure that these processes comply with the corresponding legislation.

Some 850,000 selection processes are carried out each budget year. These are divided into unpublished processes (limited tendering procedures and small contracts) and published selection processes (price-based open tendering, merit-based open tendering, and selective tendering).

Consequently, within this context and in the performance of the aforementioned activities, CONSUCODE has and receives only partial information on published selection processes and lacks real information on unpublished processes. The information on published processes includes:

a. The Annual Acquisitions and Procurement Plans (PAACs) of public sector entities, a certain percentage of which are published on CONSUCODE's webpage.

b. Publications of invitations to tender and awards for price-based open tenders, merit-based open tenders, and selective tenders.

c. Quarterly information from the Registry of Tendering Processes and Contracts of Public Sector Entities.

d. The National Registry of Contractors of Consultants and Executors of Works.

e. The Registry of Persons Disqualified to Enter into Contracts with the State.

f. Records of Non-Disqualification to Enter into Contracts with the State.

g. Consortia.

h. Records of the Capacity to Freely Enter into Contracts.

i. Maximum Contracting Capacity.

3. Rationale
• An integrated information system that will serve not only to gather information but also to issue systematic reports.

• Monitoring selection processes, so that statistical information can be generated to set up a database for the analysis of trends or projects.

• Dissimilar data stored under different operating systems must be unified into a common language allowing for its subsequent systematization.

• Calculating the total amount spent on selection processes conducted by public sector entities and the total amounts spent on the individual selection processes, in order to determine public expenditures for selection processes.

• Identifying which selection processes concluded correctly, with the awarding of the bid, and which processes did not, so as to identify problems and devise solutions.

• Preparation to implement the Registry of Public Sector Suppliers and the Registry of Procuring Entities, for which purpose a System of Registry Information will need to be created for CONSUCODE. This would allow CONSUCODE to manage a registry of approximately 300,000 suppliers, out of a potential universe of 1,800,000 that possess unique taxpayer identification numbers (R.U.C.).

4. Objectives of the Project

a) General

• To standardize information used in monitoring selection processes and to systematize the main variables of government procurement carried out since 1999.

• To generate statistical reports
b) Specific

To systematize the information and to build the following databases:
-  The Acquisitions and Procurement Annual Plan for Public Sector Entities.

-  Notifications published in the Official Gazette—El Peruano—of selection processes related to invitations to tender, awarding of bids, declarations of invalidity, process cancellations, ex officio nullifications, exonerations, errata, and postponements.

-  Registry of Selection Processes and Contracts Awarded through Them.

-  National Contractor Registry.

-  Registry of Persons Disqualified from Entering into Contracts with the State.

-  Records of Non-Disqualification to Enter into Contracts with the State.

-  Consortia.

-  Capacity to Freely Enter into Contracts.

-  Maximum Contracting Capacity.

5. Inputs: Resources Required for the Project

For the first part of the project, information received by CONSUCODE must be gathered and standardized.2

Likewise, the first part of the project must be executed in accordance with a methodology and it must be supervised by specialists.

Once the information has been standardized, the second part of the project will consist in systematizing this information.

For this purpose, the following will also be needed:
- Licenses for software applications suitable for the objective of this project.

- Training of personnel in managing the system that is to be developed.

- Technical assistance from an international expert in government procurement.

6. Expected Results

- We expect CONSUCODE's organizational, operational, and functional capacity to be expanded and strengthened.

- We expect to have relevant, necessary information that will contribute to decision-making in the international negotiations on government procurement in which Peru is taking part, such as those at the FTAA.

- An analysis of the influence of the government procurement system on Peru's economic development.

All users of the government procurement system as well as all State entities.


1 For more information on CONSUCODE's organization and duties, please visit the following webpage:

2 The necessary hardware must be obtained for this.

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