8. Criteria for assessing bids and awarding contracts

8.1 Criteria

What criteria are considered in award of tenders? Are criteria made available in advance to potential suppliers?

ARGENTINA

The tender must be awarded to the offer that is more convenient for the entity, taking into account the quality, price, capacity of the bidder and other conditions of the offer. In case of tie in prices the bid will be preawarded to the proposal which offers more elements of national origin. If the tie is still maintained, the law provides for offer improvement mechanisms, preference for the proposal which accepted a discount for payment in installments and ultimately a public drawing of the tied offers. For public works, the bid will always be awarded to the "most convenient" offer, according to the conditions established in the bidding documents. For the concession of public works, the award criteria is the "financial and economic equation and the scope of the previous investments to carry-out in each project, in order to obtain an effective lowering of prices in the fees or tolls charged to the users". In the case of "integral projects", if a more convenient offer than the one which originally had the initiative exists, both proposals will be given a chance to improve their offers. When both offers are tied, the one which originally took the initiative will prevail.

BAHAMAS

For the central government, criteria to be considered are prices to be competitive, technical qualifications, past performance, compliance with specifications as outlined in the bid invitation, responsiveness to bid requirement, technical satisfaction/specifications financial satisfaction of pricing and delivery of goods within a specified time. Criteria are not made available in advance.

For the government corporations, the criteria to be considered are that each bid meets eligibility criteria in the bid document, has been properly signed, is accompanied by the required bid securities, is substantially responsive to the requirements of the bidding documents, provides clarification on the breakdown of the bid, and finally on the price, technical proficiency financial capabilities, staffing, materials and plant.

For the corporations, criteria are made available in the section of the bid documents entitled: Instruction to bidders.

BELIZE

Criteria considered in the award of tenders include:

  1. That tenders be completed as required in regards to information requested;
  2. that fees if any are paid;
  3. that prices bid be competitive and reasonable; however, lowest tenders may nor necessarily win awards;
  4. technical capability;
  5. financial and managerial capability; and
  6. past performance.

Criteria are made available in advance to suppliers, tenderers.

BOLIVIA

The bidding documents regulate the procedure and conditions. It also specifies the qualification system being used to assess technical and economical aspects. Among the general criteria, the following can be cited:

  1. Capacity to comply with the terms of the contract must be demonstrated (prior experience, financial and technical competence, etc., and that the price quotation be reasonable). For the price, there are qualification formulas within the qualification procedures of proposals.
  2. Proposals should surpass the bidding documents requirements in the stage of technical qualification "envelope A": this will permit the opening of "envelope B" of the economic proposal.
  3. That the winner be recommended in the report issued by the evaluating commission to the maximum executive authority.
  4. If necessary, at the time of signing the contract, the winner submit a guarantee of execution of works.

BRAZIL

The criteria must be published in the notice and, therefore, known in advance by the eventual suppliers. The award made be done following three basic criteria: the lower price (self explained criterion and mandatory for most of the bids carried out); best technical offer (criterion restricted to certain cases, such as, for example, the contracting of specialists for the restoration of works or monuments, where the technique cannot be evaluated exclusively though objective criteria), and; "technical offer and price" (based on a objective punctuation system, defined in the notice, which authorizes the procuring entity to evaluate the technique and price offer, in order to assure the quality of the good or service offered. In addition, in the case of basic projects or executive projects of goods and services, elements such as the security, functionality and adequacy to the public interest, economy of execution, conservation, operation, etc., are examples of the criteria used for the award of contracts.

CANADA

The objective of federal government procurement contracting is to acquire goods and services and to carry out construction in a manner that enhances access, competition and fairness, and results in best value or, if appropriate, the optimal balance of overall benefits to the federal government and the Canadian people. Award of tenders is based on criteria, such as price or best value, which includes qualifications, follow-on service or experience. All criteria for the award of contracts must be specified in the tender documents.

CHILE

The award criteria are specified in the bidding documents and relate to economy, technical requirements and better price, quality and experience.

COLOMBIA

The selection must be objective and based on the most favorable offer without taking into account subjective factors. The most favorable offer is the one that best fulfills all requirements and conditions established in the bidding documents.

The bid should be offered to the best and most convenient proposal for the firm., considering quality, price, capacity and experience. The award criteria taken in consideration include the conditions of the bidding documents, which should be notified to suppliers in advance.

COSTA RICA

According to the criteria indicated in the bidding documents, the offer that best meets the requirements, according to what was previously established.

In the case of public bids, Art. 56, Item 2 of regulation, the Law for Administrative Contracting indicates that the Administration should consider and evaluate the offers in accordance to bidding conditions and specifications of established rules. Those offers that do not comply with the essential bases of bidding regulations will be remove from the process.

Also those with an unacceptable price, as mentioned in Article 56, item 3 of regulations will not be considered for competition.

Once the offers are legally, financially and technically eligible, the Administration will award the bid to the most convenient offer.

In the case of registered bidding and restricted bidding, the regulation establishes that principles and rules for public bids will be implemented, particularly concerning to the conditions of the selection and awarding process, compatible with the nature of each bidding.

For the concession of public works, the Administration must assign the Evaluation Committee, which will be in charge of the analysis and evaluation of each offer. This process must comply with the set conditions, specifications and methods determined for this purpose in the bidding documents. Offers that do not fulfill the estimated values proposed by the Administration must no be excluded. As a result, the best offer(s) must guarantee the fulfillment of the contract always taking into account the concession and the particular characteristics of the work or services to be rendered.

Criteria based in terms of price, service, quality, suppliers background, services after the sale of the goods, and any other element to be considered in the awarding process must be notified in the bidding documents. Should specify in general terms the criteria to be used.

ECUADOR

In accordance with the Public Contracting Law, in the documents prior to the contracting, the principles and criteria to evaluate the offers must be established; for example, the percentage of goods and services of national origin offered within the requirements for technical and quality specifications. These principles and criteria are given in advance to the possible providers. In all cases, in view of the national and institutional interests, the most convenient offer wins.

The Law of Consulting Services establishes that the qualification and selection of bids is based in the available technical and administrative competence, background and experience in the execution of similar works, background and experience of the staff assigned to the execution of the contract, the work plan, the proposed methodology, an adequate economic capacity, and the procedures and methodology offered by foreign consulting services in order to provide an adequate technology transfer and a greater and better utilization of the technical competence of the Ecuadorian professionals.

EL SALVADOR

Listed below are some of the criteria taken into consideration for the appropriation of a contract:

  1. An analysis of the completion of indicated specifics in the tender bases, base of documentation, and proportioned information.
  2. Qualification of factors such as: completion of specific techniques, commercial, experience, support and maintenance.
  3. A financial analysis of the supplying companies, in order to determine if they can boast an acceptable financial situation for the appropriation of goods or services.

This criterion is noted on the tender bases, which are turned over to the possible suppliers, regardless if the tendering is open or limited.

GUATEMALA

Quality, price, time and other characteristics and conditions, which are provided in the tender documents. All the criteria are communicated except for the price.

JAMAICA

In the award of tenders, the Government of Jamaica considers only those criteria that aid in achieving the objective of fair competition and resulting in overall best value and benefit to the country. Some of these criteria are as follows:

Public Works

1. responsive tender and adherence to conditions of the bid;

2. adequacy of tender security;

3. competitive tender prices; and

4. adherence to tender requirements.

Services

1. experience of the firm;

2. technical capability;

3. financial standing where applicable; and

4. qualifications of personnel.

Goods

1. adherence to specifications;

2. time of delivery;

3. warranty; and

4. cost.

Criteria are made available to interested potential bidders, through bid documents.

MEXICO

Only the criteria specified in the invitation for bids and bid documents are to be considered in the proposals? evaluation process. As provided for in Article 134 of the Constitution of the United Mexican States, procurement procedures are based on the principles of efficiency, effectiveness and integrity, in order to guarantee best conditions in terms of prices, quality, and financing. The same principles are established in Article 30 of the Law.

The contract is awarded to the firm or person who fully complies with the requirements of the bidding process, guarantees a satisfactory completion of works and submits the lowest price.

The criteria for the award of the contract, as well as the indication that the use of point-based systems are not allowed, are established in the tender notice and the tender documents and can not be modified unless all potential bidders are notified through the same means.

NICARAGUA

The technical and economic offers are taken into account to determine the award. This criteria is communicated through the bidding documents.

PANAMA

When the criteria for award are that of the lesser price the bid will not be subject to evaluation. However, when the criteria used is that of the proponent which best meets the conditions established in the bidding documents an evaluation is carried out for a period of not less 10 working days and not more than 30 working days. After this period the commission shall issue a technical report and may request clarifications and explanations from the proponents. Once this report is finished, which is does not determine the award in itself, it is put at the proponents disposal so that they make the pertinent observations in writing within a period of five days.

PARAGUAY

The bidders in every type of procedure are subject to Article 207 of the Ley de Organización Administrativa, which provides that the contract will be awarded to the most advantageous offer provided that it is strictly in line with the bidding conditions that were established for the bid; however, the administration reserves the right to award or reject all the proposals. Accordingly, Article 208 of the same law establishes that the Executive may award the contract to an offer, which although not the lowest one, its proponent offers more guarantees for the fulfillment of the contract, provided its value does not exceed 3% of the lowest offer.

PERU

Procurement of goods and services

The following criteria is considered when evaluating the bids:

Quality

Considers the study of catalogues and literature submitted by the potential providers on aspects such as design specifications, visual inspection and, if possible, comparison in order to evaluate the product. It is also convenient to consider as a quality indicator the degree of recognition a product may have acquired in the market.

Besides the indicators each institution may choose to employ, the following indicators will be considered:

Quantity

Verification of the capacity to comply with the volume of the requirements.

In addition, when applicable, the following indicators may be employed:

The sum of merit points will award the potential provider a place in the list.

After the technical evaluation, the economic evaluation of the qualified technical proposals must take place. Another factor will be employed as indicator: the cost.

The Awarding Committee will choose, among those with acceptable scores, the most convenient offer for each type of goods or services. The lowest economic proposal will be preferred.

The criteria and scores for the qualification of offers are recorded in the administrative bidding or public competition documents.

Construction (contracting) of public works

The bidding entities will award the lowest bid. When other factors aside from the price in the proposal are considered, these should be established in the bidding documents.

The following are some indicators to determine a proposal to be evaluated as the lowest:

Among tenders and public competition invited under the conditions of lump sum or unit prices, the proposal evaluated as the lowest will be the one with less score

The score is obtained from the sum of the following elements:

  1. Price: The result is obtained by dividing the price offered by the amount of the base budget, affected by the factor 90.
  2. Time frame: The result is obtained by dividing the time frame for execution, indicating the basis, affected by factor 10.

The calculation to obtain these scores will be done to the hundredth, rounding up the second decimal point to the immediate higher if the decimal is equal or greater than five.

When the offers are lower that 90% of the base budget, the potential providers must attach to the offer a security deposit issued in the form of a letter of a bank or a financial entity, which should be solidary, unconditional, irrevocable, and of immediate execution, valid until the signing of the contract, and the amount will be equivalent to the difference between the amount of the base budget and the submitted offer.

The bidding entities are not to establish additional or different criteria than those mentioned above in the evaluation of offers for which they are responsible.

Likewise, it is necessary to state that the Reception and Awarding Commission will indicate the order of precedence for each proposal. In the case of a tie, there will be a draw to carry out the awarding process.

TRINIDAD AND TOBAGO

Specification, delivery, spare parts/maintenance, track record and cost are the main criteria for suppliers. Other criteria are used to obtain the lowest evaluated bid for contractors and consultants. Generally, a two-envelope system is used for the contracting of consultants.

Criteria for contractors

Criteria for consultants

UNITED STATES

Criteria for award, known as evaluation factors, are found in section "m" of the solicitation, as published in the CBD.

URUGUAY

Criteria for the award of contracts must take into account the experience of the bidders, their technical and financial capacity, as well as price, quality and quantity of the offers. The criteria are set out in advance in the bidding documents. When two or more offers are similar in price, terms or quality, the bidders may be invited to better their offers within 24 hours. If the similitude subsists and the object of the contract allows for the division of the award, provided this was established in the bidding documents, the contract may be awarded to all the bidders proportionally. Accordingly, if provided in the bidding documents, in the case of similar offers, reserved and parallel negotiations may be conducted with the bidders who prequalify, in order to obtain better technical, quality or price offers. Similar offers are considered to be those with 5% of the lower price.

VENEZUELA

Conditions of experience, specialization, technical and financial capacity as well as all the requisites set forth in the tender conditions. These conditions are communicated to the bidders, through the tendering conditions provided by the contracting entity.

 

8.2 Offsets/local content requirements

Is procurement subject to any offset provisions, such as local content, technology transfer or other trade-related requirements? If so, please describe the requirements, including the procurements to which they are applied.

ARGENTINA

No offsets exist. However, local content is only taken into account when two or more offers are tied in their price. Accordingly, in that case, the offer with the highest local content will prevail. If the tie still persists the award will go to the offer which provides the best quality. If the tie is still maintained the law provides for offer improvement mechanisms, preference for the proposal which accepted a discount for payment in installments and ultimately a public drawing of the tied offers.

BAHAMAS

Yes, some corporations inform the existence of offsets. For the central government, the procurement of goods are not subject to any offset provisions.

BELIZE

No

BOLIVIA

Bolivia, as an incentive to the national industry and services, adds 10% to the total points of the technical and economic proposals of national companies who meet the minimum or maximum requirements for the bid.

In the case of associations among foreign and local companies, the 10% incentive in the final score is proportional to the percentage of local participation.

BRAZIL

No offsets or local content requirements exist. In case of a tie, there will be preference for those goods of Brazilian origin, notwithstanding the nationality of the stock of the company.

CANADA

Offset provisions may apply to procurements, which are not covered by international agreements, or are subject to exceptions set out in those agreements. For example, special provisions are allowed for regional and economic development purposes, and a preference may be accorded for Canadian value-added benefits.

CHILE

Chile?s legislation does not contain this type of provisions, nor does use any offsets infomally.

COLOMBIA

There are no offsets or local content requirements. In the case of a tie there is a preference for national goods, services or suppliers.

COSTA RICA

Not in the national legislation. However, international loan agreements may require them.

ECUADOR

The Public Contracting Law states that among the principles and criteria for the evaluation of offers, the percentage of goods and services of national origin should be considered, in the requirements of technical and quality specifications.

The Law of Consulting Services establishes that the procedures and methodology on foreign consulting services should be evaluated to procure an adequate technology transfer, and a greater and better use of the technical competence of Ecuadorian professionals.

EL SALVADOR

No.

GUATEMALA

No offsets exist according to the law.

JAMAICA

As a general rule there are no offsets. However where ICB procedures are used, there is a margin of preference of 5% for companies that have good experience within the region or in Jamaica.

MEXICO

No. Federal Government entities are not authorized to consider or implement offsets for qualification and selection of bidders, goods or services as well as in proposals? evaluation or contract award.

NICARAGUA

No offsets exist.

PANAMA

The law states that all necessary provisions for the type of procurement may be included in the bidding documents, provided that they do not contravene the law. Law 56 does not state compensatory provisions.

PARAGUAY

No offsets exist.

PERU

Public sector procurement is not subject to offsets.

TRINIDAD AND TOBAGO

Local content requirements and 10% preference given to local manufacturers over foreign bidders/manufacturers/agents.

UNITED STATES

Federal executive agencies do not apply offsets, but there are certain Buy American requirements, set asides and other restrictions.

URUGUAY

Preference will be given to national products when similar in quality or performance with foreign ones. For the award of public works, when there similitude within the different elements comprising the offer, preference will be given to those which will use more national materials and labor. To this effect bidding documents require the calculation of an estimated percentage of national materials and labor comprised in the offer. Foreign offers are quoted in FOB, CIF, CYF values, all factors comprising the price shall be added to the effect of their comparison with merchandise or products of national origin. When procuring foreign merchandise or products, the central administration, municipalities, autonomous entities and decentralized services shall preferably consider the proposals which offer solutions that are favorable to placed national products overseas.

VENEZUELA

No offsets exist.

8.3 Preferences to particular enterprises or groups

Is preference given to any particular enterprises or groups? If so, specify.

ARGENTINA

No preferences are given in their legislation to particular enterprises or groups

BAHAMAS

Most corporations inform that they have no preferences. The central government gives no preferences to any particular Enterprises or groups. The corporations as a matter of policy will give first preference to a local concern and in cases where the competition is both local and overseas, only in marginal cases, the corporations will prefer the local concern to a foreign one.

BELIZE

Preference would be given to domestic suppliers or tenderers. Foreign suppliers are entertained if domestic suppliers cannot meet the criteria. Where funds are from loan and are tied, specific groups may be entertained but this is on account conditions of loan.

BOLIVIA

No.

BRAZIL

No preferences are given in their legislation to particular enterprises or groups

CANADA

No preference is provided to any enterprise or group of enterprises that would violate provisions of international trade agreements. However, for procurements not covered by international agreements, under limited circumstances special provisions allow preferential treatment of groups or enterprises for regional and economic development purposes or for Canadian value added benefits.

CHILE

No preferences are given in their legislation to particular enterprises or groups

COLOMBIA

No preferences are given in their legislation to particular enterprises or groups

COSTA RICA

No preferences are given in their legislation to particular enterprises or groups

ECUADOR

In the national legislation, no preferences for a specific company or group of companies are mentioned; however, since imports of the public sector are exempt of all kinds of duties, taxes and tariffs, there are levels of compensation when comparing offers between national goods and foreign goods. The comparative price of the foreign product is the CIF price, plus the handling costs in the port, and the local transportation costs; the rights of duties or imports and port tariffs are excluded. The following charges are added to this price: capital, intermediate and consumer goods: 15%; automotive category 1: 35%; automotive category 2: 10%.

EL SALVADOR

No.

GUATEMALA

There are no preferences.

JAMAICA

The criteria are the same for all groups, enterprises, etc. In the circumstance where a margin of preference has been established for the use of indigenous materials, this condition is clearly stated in the bidding documents.

MEXICO

No. Article 33 of Law provides that all requirements and conditions of bid documents should be the same for all bidders.

NICARAGUA

No preferences are given in their legislation to particular enterprises or groups.

PANAMA

No preferences exist.

PARAGUAY

Article 2 of law 1045/83 establishes that all public works shall be executed by Paraguayan professionals or companies, with the modalities provided for that law.

In public works where the contracting is of foreign companies is required, these shall be associated with national companies, whose participation will be up to their capacity or production limit, but shall not be in any case inferior to 40%.

In public works executed by virtue of an agreement between the Government and International Financial Institutions and other foreign financial agreements, Paraguayan companies shall be assured their participation according to their capacity which in any case shall be inferior to those established in the previous paragraph..

PERU

No preferences exist.

TRINIDAD AND TOBAGO

All local manufacturers who wish to bid.

UNITED STATES

The United States provides a preference under the Buy American Act to domestic products. However, products of countries that are signatures to the WTO, NAFTA and the U.S. Israel FTA are exempt from the Buy American Preference in accordance with the Trade Agreements Act. The TAA requires that procurement of products from countries that are not signatories to the WTO GPA and have not taken on equivalent reciprocal obligations be prohibited from Federal goods contract that are covered by the GPA. Amendments to TAA contained in the Uruguay Round Agreements Act (URAA) of 1994 permit the President to waive the purchasing prohibition and apply Buy American Preference to countries that are not signatories of the GPA but agree to apply equivalent competitive procurement procedures and effective anti-corruption measures. Finally, The Small Business Act requires that awards of any size shall be set aside for small business participation when there is a reasonable expectation that offers will be obtained form from at least two small businesses and awards will be made at fair market prices.

URUGUAY

No preference is given to specific companies or groups. However, preference will be given to national products when similar in quality or performance with foreign ones. For the award of public works, when there similitude within the different elements comprising the offer, preference will be given to those which will use more national materials and labor. To this effect bidding documents require the calculation of an estimated percentage of national materials and labor comprised in the offer. Foreign offers are quoted in FOB, CIF, CYF values, all factors comprising the price shall be added to the effect of their comparison with merchandise or products of national origin. When procuring foreign merchandise or products, the central administration, municipalities, autonomous entities and decentralized services shall preferably consider the proposals that offer solutions that are favorable to place national products overseas. If the goods are to be procured overseas, the agreements with countries from international trade organizations, communities, customs or integration arrangements in which Uruguay is a party will be respected, specially those signed within the framework of the Latin American Integration Association.

VENEZUELA

The Commission will analyze the bids, choose those offering the best advantages, and submit its recommendations within the time limit established. This report will have to provide detail on every issue related to technical, economic, and financial aspects and, in particular related to the price (art.48 and 49).

For the selection of bids presenting similar conditions, the following shall prevail:

  1. Higher participation of national engineering and technology.
  2. Higher use of national human resources.
  3. Higher national added value or higher use of national production.
  4. Higher national share in the company?s equity.
  5. Ownership of NORVEN brand.
  6. Better conditions for the transfer of technology.
  7. Strengthening of small and medium companies and cooperatives.
  8. That suppliers operate within the area or region where the bid has been promoted.

8.4 Different criteria according to sector or regions of the economy

Do the criteria differ according to sector or region of the economy?

ARGENTINA

Criteria do not differ according to sector or region of the economy.

BAHAMAS

No

BELIZE

Criteria are the same for all sectors and regions of the economy.

BOLIVIA

Criteria do not differ according to sector or region of the economy.

BRAZIL

Same criteria are applied to economic region or sector of the economy. .

CANADA

Procurements that are subject to international agreements cannot contain criteria that differ according to sector or region of the economy. For procurements over C$2 (US$1.44) million that are not subject to international agreements, but are subject to the Agreement on Internal Trade, evaluation criteria may be used to achieve industrial and regional benefits, as long as the benefits are sought in a non-discriminatory manner with respect to regions for which there exists a general framework or regional development. Procurements over C$2 (US$1.44) million, that are not covered by any of the trade agreements, are examined on a case-by-case basis and may include criteria according to a sector or region of the economy.

CHILE

Criteria do not differ according to the region or sector of the economy.

COLOMBIA

Same criteria are applied according to economic region or sector of the economy .

COSTA RICA

Criteria do not differ according to sector or region of the economy.

ECUADOR

Because goods imported by the public sector are not subject to tariffs, taxes or fees, compensation margins exist when comparing national and foreign goods. The comparative price of the foreign product is the CIF price plus the stowage and transportation costs minus the import tariffs and fees. To that price the following charges are added: capital goods and consumer goods 15%; Cars category 1: 35%; cars category 2: 10%.

EL SALVADOR

No.

GUATEMALA

The criteria do not differ.

JAMAICA

The criteria do not differ according to sector or region of the economy.

MEXICO

No. Article 33 of Law provides that all requirements and conditions of bid documents should be the same for all bidders.

NICARAGUA

Criteria do not differ according to sector or region of the economy.

PANAMA

No

PARAGUAY

No

PERU

They vary only with respect to thresholds to which tendering procedures are subject: in 1996 the following variations are produced:

TRINIDAD AND TOBAGO

Criteria do not differ according to sector or region of the economy.

UNITED STATES

Generally, criteria do not differ according to sector or region of the economy. However, where there is a labor surplus area set-aside, geographical location is designated.

URUGUAY

No, this has not been contemplated by the Procurement legislation.

VENEZUELA

No

 

8.5 Margin of discretion allowed to the purchasing authority

Is there a margin of choice or discretion allowed to the purchasing authority? If so, describe extent of discretion and factors it depends upon.

ARGENTINA

The procuring entity shall follow the evaluation criteria established in the legislation in effect.

BAHAMAS

Corporations:

Most corporations inform margins of discretion related to minimum thresholds and tendering methods employed.

Central Government:

When purchasing goods or acquiring services, three quotations are requested, and if all the other factors conform to requirements, it is the norm to accept the lowest bid which in most cases, although not all, the lowest dollar value. The alternative is then to consider the second lowest bidder in the event of non-performance.

For the purchases up to a value of $500., autonomy has been given to the particular ministry or department to approve without reference to the Central Purchasing Unit or Treasury. The Permanent Secretary is the accountable officer.

Purchases exceeding a value of $500 and up to $50,000 must be forwarded to both the Treasury and the Central Purchasing Unit for approval. This requirement is now being revised due to the introduction of the Treasury?s C.A. system and the modernization of procedures.

For the purchases of goods and services and award of contracts over $50,000, and up to a value of $250,000, these must be approved by the Minister of Finance based on the recommendations of the Tenders Board in accordance with Regulation 57 of the Financial Regulations, 1975.

For the purchase of goods, services and award of contracts in excess of $250,000.00 these must be referred to the Cabinet for approval in accordance with Regulation 58 of the Financial Regulations, 1975.

BELIZE

Margin of choice may be exercised. Extent of discretion, however, is limited mostly to variation (of about 14%) on prices of a preset value. Discretion may depend on weights assigned to criteria.

BOLIVIA

The highest executive authority of the public institution is the main responsible for the contracting of goods and services, and of its results. Authorizes the onset of the contracting process, designates responsibilities, may contract technical advisors specialized in contracting and delegates the management of the process permanently, temporarily or for each contract, including the award.

The highest executive authority of the entity may accept or reject the recommendation of the commission of qualification.

  1. If the recommendation of the commission of qualification is accepted, the award will be in favor of the proposed offer. In this case, the commission will share the responsibility of the awarding decision.
  2. If the recommendation is rejected, the commission should be notified. The document will be submitted for revision, including the objections to the recommendation, and must be revised in five calendar days. The recommendation of the commission could be reaffirmed, complemented or modified if necessary. The executive may ask for an audit of the process of qualification in order to establish the fairness of the recommendation.
  3. If the highest executive authority decides to award to a different proposal than the recommended one, the decision must be justified in writing.

BRAZIL

All contracts must be awarded according to the predetermined criteria. Negotiation is allowed when the procuring entity determines that the conditions are above the ones practiced in the market.

CANADA

The purchasing authority is expected to make the best choice among bids, based on the criteria specified in the bid solicitation, taking into account the best value for taxpayers and national and international trade agreement obligations.

CHILE

According to the criteria which was set out in the bidding documents.

COLOMBIA

Contract award is effected in accordance with the preestablished evaluation criteria.

COSTA RICA

Administration?s authority is subject to limits imposed by law. In the case of direct contracting and somehow in the restricted contracting, margin of discretion for selection of suppliers is higher.

ECUADOR

The procuring entity (committees) establishes the relative importance and the award criteria. Generally, every entity uses similar criteria.

EL SALVADOR

In each and every institution, centralized, decentralized, or autonomous, exists a unit of provision or supplies. A committee of appropriation studies the offers, also relying on technical support and the documents and information provided by the possible supplier. The criteria for appropriation of a contract, however, is determined by law, just as the procedures that do not require competition are, for example, as in the case of direct contracting, or the case of a declared emergency; the same law determines when and how the purchase will be completed.

GUATEMALA

The point of equilibrium between price and quality.

JAMAICA

The purchasing authority is expected to evaluate tenders fairly, according to the criteria listed in part 8.1, which are set forth in the bidding documents.

MEXICO

The criteria for evaluation of proposals are specified in the invitation to bid as well as in the bidding documents.

Offers are submitted in two sealed envelopes. The first envelope contains technical specifications concerning the goods or services offered and bidder. The second one contains the price of the bid.

Only the offers that meet the technical requirements will be considered for the opening of the second envelope, which contains the price of the bid. The contract will be awarded to the lowest price bid.

In compliance with Article 33 of the Law, Mexican entities are not allowed to negotiate any of the conditions specified in the bidding documents.

NICARAGUA

The procurement procedure is done in a way as to minimize discretionality. For that reason all the elements of evaluation are included in the tender documents. If, for any particular reason the offers received do not fulfill the requisites established in the tender documents, the Evaluation Committee decides by majority of votes if the criteria are applied. In this case, the decision is communicated to all tenderers.

PANAMA

Generally, each entity uses its own selection criteria or discretion, in accordance with the bidding documents. The law establishes thresholds (contracts of more than $500,000) over which authorization form the Cabinet Council is required.

Offers may be rejected provided the awarding process has not taken place, which compromises both the bidder and the beneficiary of the award. The contractor may formalize the contract, or the bidder will have to indemnify.

The procuring entity reserves the right of rejecting one or all the offers, or to accept the one that is more convenient to its interests. The margin of discretion given to the procuring entity may also vary in bids where the entity can directly select the supplier for consulting services, technical services and specialist professionals, without regard to the official price.

PARAGUAY

The contract will be awarded to the most advantageous offer provided that it is strictly in line with the bidding conditions that were established for the bid; however, the administration reserves the right to award or reject all the proposals. Accordingly, the Executive may award the contract to an offer, which although not the lowest one, its proponent offers more guarantees for the fulfillment of the contract, provided its value does not exceed 3% of the lowest offer.

PERU

It may differ as per the amount of competitive bidding, competitive price, and direct contracting, increasing according to the region.

TRINIDAD AND TOBAGO

A 10% preference margin is allowed for local suppliers.

UNITED STATES

Contracts are always awarded on the basis of specified criteria in the solicitation. These criteria may be weighted for purposes of making the best overall value awards. Preferences under the "Buy American Act". Negotiated procedures are generally only used to select a supplier from the competitive range.

URUGUAY

Each entity will have one or various Procurement Advisory Commissions designated by the maximum authority of the entity. These Commissions will determine or inform on which is the most convenient offer according to the interest of the Government and its needs, in procurements over the provided thresholds. Preference will be given to national products when similar in quality or performance with foreign ones. For the award of public works, when there similitude within the different elements comprising the offer, preference will be given to those which will use more national materials and labor. To this effect bidding documents require the calculation of an estimated percentage of national materials and labor comprised in the offer. Foreign offers are quoted in FOB, CIF, CYF values, all factors comprising the price shall be added to the effect of their comparison with merchandise or products of national origin. When procuring foreign merchandise or products, the central administration, municipalities, autonomous entities and decentralized services shall preferably consider the proposals that offer solutions, which are favorable to place national products overseas. When two or more offers are similar in price, terms or quality, the bidders may be invited to better their offers within 24 hours. If the similitude subsists and the object of the contract allows for the division of the award, provided this was established in the bidding documents, the contract may be awarded to all the bidders proportionally. Accordingly, if provided in the bidding documents, in the case of similar offers, reserved and parallel negotiations may be conducted with the offerers who prequalify, in order to obtain better technical, quality or price offers. Similar offers are considered to be those with 5% of the lower price.

VENEZUELA

Small since the analysis is determined by the report submitted by the Commission.