RESTRICTED
WORLD TRADE S/WPGR/W/11/Add.18
13March 1997
ORGANIZATION(97-1186)
Original: Spanish Working Party onGATS Rules
COMMUNICATION FROM MEXICO
Questionnaire onGovernment Procurement ofServices
Addendum
Thefollowing communication isbeing circulated attherequest ofMexico tomembers ofthe
Working Party onGATS Rules.
________________
I. EXISTING PROCUREMENT REGIMES
Where aMember 'sprocurement regime isdifferent forcentral government entities, sub-central
government entities, andother entities, suchaspublic undertakings (e.g.public utilities), itwould be
useful ifthese differences were specified under eachoftheheadings indicated below.
Definition
1. What isthedefinition ofgovernment procurement employed incompleting this
questionnaire?
Asdefined inArticle 1oftheLawonPublic Procurement andWorks, government procurement
inMexico refers toStateexpenditure onandexecution, preservation, maintenance andcontrol ofgoods,
services andconstruction services contracted byFederal Government entities (including ministries and
administrative departments aswellasthedecentralized agencies) andbygovernment enterprises.
Administrative structure
2. Howaregovernmentprocurementactivitiesadministered?Towhatextentareprocurement
activities centralized?
InMexico, eachFederal Government agency andparastatal entity isresponsible forplanning
andcarrying outitsownexpenditures. Thus, thegovernment procurement regime inMexico does
notoperate through offices which centralize allpurchases bytheFederal Government.
Laws andregulations inforce
3(a) Please specify thelaws, regulations, rules, guidelines, decrees, decisions andother measures
governing government procurement. What isthescope oftheirapplication? Inparticular, please
describe anyexemptions thatexist. Please provide abrief summary ofthecontent ofeach of
these measures.S/WPGR/W/11/Add.18
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- Constitution oftheUnited Mexican States (Article 134)
- LawonPublic andProcurement Works
- Regulations totheLawonPurchases, Leasing andSupply ofServices Relating to
Movables/Property
- Regulation totheLawonPublic Works
- FreeTrade Agreements concluded byMexico withCanada andtheUnited States;
Colombia andVenezuela; Costa Rica; andBolivia (specific chapters ongovernment
procurement).
(b) Doestheprocurement regime distinguish between theprocurement ofgoods andservices?
Ifso,thenhowistheapplication ofrules determined incases ofjointprocurement involving both
goods andservices?
No.TheLawonPublic andProcurement Works applies tothepurchase ofgoods, services
andconstruction services. Itscontents areasfollows:
Chapter 1. General Provisions
Chapter 2. Planning, Programming andBudgeting
Chapter 3. Procedures andContracts
- forthepurchase orrental ofgoods and/or services
- forconstruction services
- exceptions tothepublic tendering procedures
Chapter 4. Information andVerification
Chapter 5. Sanctions
Chapter 6. Challenge Procedures
Procurement procedures applied
4(a) What procedures arefollowed intheprocurement process?
Procurement procedures could differ according totheopenness oftheinvitations totender.
Atleastthreebroad categories ofprocedures arecommonly distinguished: (i)public oropentendering
procedures under which allinterested parties maysubmit atender; (ii)selective orrestricted tender
procedures under which participation islimited toacertain number ofselected suppliers, andonly
thesesuppliers areinvited tosubmit atender; (iii)private contract orsingle tender inwhich theawarding
authority contracts suppliers individually, andsometimes onlyasingle supplier.
Article 28oftheLawlaysdown twotypes ofprocurement procedures: public tendering and
restricted invitation:
(1) Public tendering: Aprocedure inwhich allinterested suppliers mayparticipate. Public
tendering istheprocedure generally applied forgovernment procurement inMexico.
(2) Restrictedinvitation:Underthisprocedure,anentitymaycontractsuppliersindividually.
Thismethod provides fortwooptions:
- invitation ofatleastthree suppliers;
- direct award ofthecontract.S/WPGR/W/11/Add.18
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(b) Under what circumstances aredifferent procedures used? Forinstance, ifthemethod
useddepends onthevalue oftheprocurement, thethresholds should begiven.
Article 81oftheLawspecifies thetypeofcontracts thatmaybeobtained through restricted
invitation (invitation ofatleastthree suppliers orcontractors, ordirect award ofthecontract). These
are,interalia,contracts relating totheprotection ofpatents, copyrights orother exclusive rights;
contracts inwhich thegoods orservices maybepurchased fromaspecified person only; consulting
services involving confidential information; cases where twosuccessive callsfortenders havenot
produced anysolvent bids; purchases made withaviewtocommercial resale bygovernment-owned
retail stores.
With thisauthority, entities mayapply arestricted invitation procedure when theestimated
value ofthecontract inquestion doesnotexceed theamounts specified onanannual basisinthefederal
budget ofexpenditures. These amounts aredetermined according tothebudget allocated toeachentity.
Article 31oftheLawstipulates thatinternational tenders shalltakeplace onlywhen theycan
bejustified bytheentity, subject tomarket research; when theresources areobtained through foreign
credits; orwhen thecontract iscovered byinternational agreements.
(c) What arethetime-limits forsubmission ofbids?
Thetime-limitwithrespecttointernationaltenders(participationofdomesticandforeignbidders)
forpurchases, leasing, services andpublic works, andwithrespect todomestic tenders (participation
ofdomestic bidders) forpublic works, isnolessthan40daysfollowing thedateofpublication ofthe
invitation totender.
Thetime-limit fordomestic tenders (participation ofdomestic bidders) inconnection with
purchases, leasing andservices isatleast15calendar daysfollowing thedateofpublication ofthe
invitation totender.
Thistime-limit maybereduced onlyincases ofurgency dulyjustified bythepurchasing entity.
Publicity forinviting tenders
5(a) How areintended procurements publicized? Areinvitations totender published? Ifso,
where, andinwhat languages?
Inaccordance withArticle 32oftheLaw, invitations totender arepublished inthespecial
section which appears every Tuesday andThursday intheOfficial Journal oftheFederation (nationwide
distribution) aswellasinanewspaper ofthefederative entity (state) inwhich thegoodistobeused,
theservice supplied orthework executed. Only when theprocurement requirement covers three or
more federative entities aretheinvitations published inanationwide newspaper, suchpublication
substituting forpublication inthenewspaper ofthefederative entity.
How farinadvance theinvitations arepublished isdetermined according tothetime-limits
setforth inthereply tosubparagraph 4(d)above; thelanguage usedisSpanish.
(b) Dotheextent andform ofpublicity differ according totendering procedures applied and/or
onthevalue ofprocurement?
Only public invitations totender arepublished inaccordance with subparagraph 5(a)above.
Theprocedures forrestricted invitation donotcallforpublication.S/WPGR/W/11/Add.18
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Tenders financed entirely orpartly through foreign credits arepublished according tothe
guidelines ofthecredit institution.
No.Allinvitations totender must bepublished inaccordance withArticle 32oftheLaw.
(c) What details oftheintended procurement arenormally published? Isthere aminimum
setofinformation thatisrequired tobepublished? Ifso,please specify.
Details could include adescription ofservice tobeprocured, tender opening andclosing dates,
conditions ofparticipation, procuring entity, enquiry point, procurement plans, procurement outcomes -
contract award notices, etc.
Article 33oftheLawprovides foraminimum amount ofinformation tobeincluded inthe
invitations totender, which mayconcern oneormore goods, services orworks. Asarule, this
information consists essentially of:
I. Titleorbusiness name oftheinviting agency orentity;
II. place, dateandtime-table forobtaining thebasic tender information andspecifications and,
where appropriate, theprice andform ofpayment;
III. date, timeandplace ofthepresentation andopening ofbids;
IV. indication ofwhether thetender isdomestic orinternational, whether itiscovered byaparticular
agreement andthelanguages inwhich bidsmaybesubmitted.
Specifically asregards purchases, leasing andservices, thefollowing additional information
must beprovided:
I. General description, quantity andunitofmeasurement ofthegoods orservices;
II. place anddeadline ofdelivery andpayment conditions;
III. indication ofwhether ornotthere isanoption tobuyinthecaseofleasing.
Inthecaseofpublic works thefollowing information must alsobeincluded:
I. General description oftheworks andthesiteatwhich thework istobecarried out,and,where
appropriate, mention thatpartofthework maybesubcontracted;
II. estimated starting andfinishing dates;
III. experience andtechnical andfinancial capacity required according tothecharacteristics ofthe
works, aswellasother general requirements tobemetbytheinterested parties;
IV. percentages tobepaidasadvance payments;
V. general criteria onthebasis ofwhich thecontract istobeawarded.
(d) Arethere anycharges forobtaining thefullsetoftender documents? Ifso,please specify
anddescribe howthese charges areset.
Asarule,thebidding conditions dohaveaprice, thesolepurpose ofwhich istorecover the
costofpublication oftheinvitation totender andofthedocuments supplied.S/WPGR/W/11/Add.18
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(e) Areelectronic means usedtoadvertise procurement opportunities? What isthenature
ofsystems thatareinplace? Aredifferent tendering provisions applied tocontracts advertised
inthismanner? Ifso,please describe.
According toArticles 36and45oftheLawinforce, offers mustbesubmitted inwriting in
sealed envelopes. TheMexican system doesnotcurrently permit theuseofelectronic means to
participate intendering procedures. However, Mexico doeshaveanewsystem, "Compranet", through
which invitations totender maybeconsulted electronically.
Requirements laiddown forpossible suppliers
6.(a)Arethere registration, residence orother requirements forpotential suppliers?
TheMexican procurement system doesnotregard registration ofsuppliers asaprerequisite
forparticipating inatender. Theonlyrequirement consists inobtaining theconditions, andtheyare
soldwithout distinction orpreference whatsoever astothenationality orresidence ofthesuppliers
orastothetypeofpurchase. Information, documentation andother requirements mustinanycase
besatisfactorily metbyallbidders wishing toparticipate inthetender.
Article 33oftheLawstipulates thatalloftheconditions must besetforth intheinvitation
totender andthebidding conditions, thereby ensuring thatallsuppliers areinformed sufficiency in
advance oftheparticipation requirements.
(b) What isthenature ofanyconditions forparticipation required from suppliers -suchas
financial guarantees, commercial standing andtechnical qualifications? Dotheconditions of
participation varyaccording tothenature ofthetender process and/or thevalue oftheintended
procurement?
Theprovisions governing thelodging offinancial guarantees arelaiddown inArticle 38of
theLaw, which stipulates thatpersons participating intenders orconcluding contracts mustprovide
bidsecurity andguarantees withrespect totheiradvance payments andfulfilment ofthecontract.
Theinviting entity retains therelevant guarantees untilthedateoftheaward, atwhich timetheyare
returned tothebidders, except thebidder towhom thecontract wasawarded, whose guarantee isretained
untilthecontract isfulfilled.
(c) Dothere exist listsofapproved suppliers? Ifso,what aretheprocedures forchecking
thecapability offirms applying forinclusion ontenderers 'mailing lists? Arelistsofapproved
suppliers, ifany,regularly reviewed/updated?
InMexico there arenolistsorregisters ofapproved suppliers.
However, Article 41oftheLawonPublic Procurement andWorks identifies thenatural and
legalpersons whoarenotentitled tosubmit tenders orconclude contracts intheareaofgovernment
procurement. These include:
- Persons employed byordischarging adutyoramission forthepublic service, and
those disqualified from doing so;
- suppliers andcontractors towhom penalties have been applied bytheMinistry of
Comptrollership andAdministrative Development forcancellation ofacontract bytheir
fault, forearlier breach ofcontract resulting indamage, forsupplying falseinformation
orforacting fraudulently orinbadfaith;
- persons whohavebeendeclared bankrupt orareundergoing insolvency proceedings;S/WPGR/W/11/Add.18
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- persons whohave family orbusiness tieswith thecivil servant involved inthe
procurement process;
- persons whoindividually orthrough thecorporate group towhich theybelong issue
opinions, expert appraisals orassessments inconnection withthesettlement ofdisputes,
orwhowillcarry outprevious work which could affect thetenders relating thereto.
Criteria forassessing bidsandawarding contracts
7(a) What criteria aretaken intoaccount intheaward oftenders? Arecriteria foraward
ofcontracts made available inadvance topotential suppliers?
Forinstance, whether obtaining thebestvalue formoney spent istheaimandwhether
criteria other thanprice aretaken intoaccount.
Onlythecriteria specified intheinvitation totender andthebidding conditions mustbetaken
intoaccount intheevaluation leading totheselection oftenders.
According toArticle 134oftheConstitution oftheUnited Mexican States, procurement
procedures inMexico mustbebased ontheprinciples ofeffectiveness, efficiency andhonesty inorder
toensure thebestpossible conditions withrespect toprice, quality, financing, opportunity andother
relevant factors. These same objectives aresetforth inArticle 30oftheLaw.
Thus, thecontract isawarded tothefirmornatural person among thebidders whobestmeets
theconditions described intheinvitation totender andthebidding conditions established bytheinviting
agency orentity, whoprovides satisfactory guarantees offulfilment ofcontractual obligations andwho
offers thelowest price.
These criteria fortheaward ofthecontract, together withastatement totheeffect that
mechanisms involving scores andpercentages willinnocasebeusedforthepurpose, arecommunicated
tothepotential suppliers intheinvitation totender andthebidding conditions, andcannot bemodified
without notifying allofthepotential bidders through thesame channels usedtotransmit theabove-
mentioned documents.
(b) Isprocurement subject toanyoffset provisions, suchaslocalcontent, technology transfer
orcountertrade requirements?
No.Agencies andentities ofthefederal public administration arenotauthorized toconsider,
seekorimpose anyoffsets inthequalification andselection ofsuppliers, products orservices orin
theevaluation oftenders oraward ofcontracts.
(c) Ispreference given toanyparticular enterprises orgroup ofenterprises? Ifso,please
specify.
No. Article 33oftheLawstipulates thattherequirements andconditions setforth inthe
bidding conditions shallbethesame forallparticipants.
(d) Dotheprocurement criteria differ according tosector orregion oftheeconomy?
No.Article 33oftheLawstipulates thatalloftherequirements shallbespecified inthebidding
conditions andshallbethesame forallparticipants.S/WPGR/W/11/Add.18
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(e) What isthemargin ofchoice ordiscretion allowed tothepurchasing authority? What
doestheextent, ifany,ofdiscretion allowed depend on?
Themargin ofchoice ordiscretion could relate to(i)therelative weight/importance ofeach
contract award criterion; (ii)margins ofpreference, ifany,inrespect ofspecific criteria; and(iii)
threshold values, ifany,above which referral toahigher levelofpurchasing authority isrequired.
Thediscretion allowed tothepurchasing authority could varyaccording towhether there is
(i)automatic tender, where thecontract isawarded onthebasis ofpredetermined criteria, either the
simple criteria ofprice, orprice andother criteria; (ii)discretionary tender procedures which involve
acceptance ofthebidwhich ismostadvantageous -theaward ofthecontract isbased onseveral criteria,
some ofwhich arepredetermined, butwhich ingeneral leave theawarding authority acertain measure
ofchoice; and(iii)negotiated tender inwhich theawarding authority negotiates freely withthepotential
supplier orsuppliers astotheconditions ofthecontract.
Thecriteria applied totheevaluation oftenders arepredetermined intheinvitation totender
andthebidding conditions.
Tenders aresubmitted intwosealed envelopes. Thefirstenvelope contains alloftherequired
technical specifications regarding theproduct orservice andthesupplier. Thesecond envelope contains
theprice oftheproduct orservice bid.
Only tenders which meetallofthespecified requirements mayproceed tothesecond stage,
whichinvolvesopeningtheenvelopecontainingthepricebid.Throughthismechanism,priceconstitutes
thecriterion which determines whoisawarded thecontract.
According toArticle 33,entities inMexico arenotqualified tonegotiate anyoftheprovisions
contained inthebidding conditions.
Disclosure ofbidsreceived andcontracts awarded
8(a) How aretenders received, registered andopened?
Tenders arereceived intwosealed envelopes attheplace, dateandtimeindicated inthebidding
conditions. Thefirstenvelope contains thedocumentation bywhich itispossible toidentify andconfirm
theexistence andparticipation ofthebidder, andadescription oftherequired technical specifications
oftheproduct orservice inquestion. Thesecond envelope contains thefinancial bidfortheproduct
orservice together withthebidsecurity document.
During thefirstphase, known asthe"technical phase", allofthebidsareopened inthepresence
oftheparticipants, andtheircontents verified. Onlythose which meetthetechnical requirements set
forth inthebidding conditions arequalified fortheirsecond phase.
During thesecond phase, known asthe"financial phase", theenvelopes containing thefinancial
bidsbythesuppliers whopassed thefirststage areopened, alsointhepresence oftheparticipants,
andtheircontents verified. Thefinancial envelopes ofthebidders eliminated during thefirstphase
arereturned unopened.
Through thismechanism, thewinner isdetermined andthecontract awarded onthebasis of
thebestprice bidaccording totheevaluation criteria setforth inthebidding conditions.S/WPGR/W/11/Add.18
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Theaward isannounced inapublic meeting which bidders whoparticipated inthepresentation
andopening oftenders arefreetoattend. Theagencies andentities mayalsodecide, inlieuofsuch
ameeting, tocommunicate theaward toeachofthebidders inwriting.
(b) Areentities required topublish details ofthecontracts awarded and/or notify unsuccessful
tenderers?
Theagencies andentities draw uptheofficial record oftheaward ofthecontract tobesigned
bythebidders whoattended theaward proceedings, eachoneofwhom receives acopy. Similarly,
thecontracting party mustsupply thebidders, inwriting, withtheaward or,where applicable, with
thereasons whytheirbidwasnotchosen.
Within atime-limit of72daysfollowing thedateoftheaward, thecontracting agency orentity
mustpublish, intheOfficial Journal oftheFederation, theidentity anddetails oftheenterprise ornatural
person towhom thecontract wasawarded aswellastheamount, thecharacteristics oftheproduct
orservice inquestion andanyinformation considered relevant tothecontract.
(c) Areentities required topublish, orprovide tounsuccessful bidders, pertinent reasons
whytheir bidwasrejected?
Thecontracting party mustinform thebidders inwriting oftheaward orthereasons whytheir
bidswere notselected.
Treatment granted todomestic andforeign services and/or suppliers
9. What laws, regulations, procedures orpractices accord domestic services and/or suppliers
treatment more favourable than thataccorded toforeign services and/or suppliers, oraccord
services and/or suppliers ofamember more favourable treatment thanthose ofanother member?
Please specify how,ifatall,more favourable treatment isaccorded. Please alsospecify theworking
definition of"domestic" inrelation todomestic services andsuppliers.
Domestic goods aredefined asthose which contain atleast50percentofdomestic content.
Thiscategory doesnotinclude foreign goods which aresimply packaged, packed, labelled, diluted
inwater oranyothersubstance which doesnotaltertheircharacteristics, orwhich aremerely assembled
orputtogether inthecountry.
Thetermnational suppliers isunderstood tomean anyenterprises and/or natural persons that
exercise their economic/productive activities inthenational territory andareadministratively,
economically andlegally constituted inaccordance withdomestic legislation.
Current Mexican legislation inthefieldofgovernment procurement doesnotestablish any
quantitative preferences fornational suppliers andgoods overforeign suppliers andgoods.
However, asexplained above, international tenders onlytakeplace when theentities justify
theneedforthem, subject tomarket investigation; when theresources areprovided through foreign
credits; orwhen thecontract iscovered byinternational agreements.
Moreover, Article 31oftheLawstipulates thatforeign suppliers orcontractors mayberefused
therighttoparticipate ininternational tenders when anagreement hasnotbeenconcluded withthe
countryofwhichtheyarecitizensorthatcountrydoesnotgrantreciprocaltreatmenttoMexicansuppliers
andcontractors orgoods andservices.S/WPGR/W/11/Add.18
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Procedures forhearing andreviewing complaints/appeals
10. What, ifany,aretheprocedures available forparties, domestic andforeign, tolodge
complaints against theaward ofacontract? Please provide fulldetails.
Details could include:
- Institutional status: whether challenges areheard byanadministrative
tribunal, acourt oranyother review body;
- time-limits forcomplaints/appeals;
- typeofremedy, ifany,thatmaybegranted.
Withrespect tomechanisms forchallenging actions thatviolate theLawonPublic Procurement
andWorks orthatstemfromtradeagreements concluded byMexico, theonlyadministrative authority
inMexico empowered toreview andadopt resolutions istheMinistry ofComptrollership and
Administrative Development (SECODAM), through theGeneral Directorate ofComplaints, itbeing
understood thattheinterested parties maydrawtheattention oftheprocuring entity 'ssupervisory body
beforehand toanyirregularities which theyconsider tohavebeencommitted inthecontract awarding
procedure withaviewtotheirbeing corrected.
Thechallenge procedure isopentobothpersons andcompanies whoconsider thattheirrights
havebeeninfringed either inrespect oftheaward decision oratanystage ofthetendering procedure
from themoment atwhich theinvitation totender ispublished untiltheaward ofthecontract.
Thecomplaint mustbesubmitted inwriting totheGeneral Directorate ofComplaints within
aperiod ofnotmore than10working daysfollowing thedateonwhich theinfringement occurred;
theinfringing party istheninformed ofthealleged violation ofthelaw. Itshould benoted inthis
connection thatwhen theinterested party decides tolodge apreliminary complaint withthesupervisory
bodyreferred toabove, thisstepdoesnotaffect thedeadline forsubmitting thecomplaint totheMinistry.
Thecomplaint ofinfringement must bemade under oath.
TheGeneral Directorate ofComplaints mayissue thefollowing resolutions: cancellation of
theprocedure asfromthecommission oftheinfringement(s) orasfromtheissuing ofrecommendations
tothepurchasing entity establishing guidelines toensure thattheprocedure takes place according to
thelaw; fullcancellation oftheprocedure; ordeclaration thatthechallenge isnotreceivable.
Once theGeneral Directorate ofComplaints issued itsresolution oninfringement, asupplier
maylodge anappeal withtheSub-Secretariat ofCitizens 'Affairs andSocial Comptrollership of
SECODAM within 15working daysfollowing thedateofnotification oftheresolution.
Allinfringements thathavebeenbrought before acourt, before oraftertherecourse tothe
Ministry ofComptrollership andAdministrative Development, areexcluded from theMinistry 's
intervention.
II. MEMBERSHIPOFPLURILATERAL,REGIONALAND/ORBILATERALAGREEMENTS
11. IstheMemberpartytoanyplurilateral,regionaland/orbilateralagreementswithprovisions
ongovernment procurement? Ifso,please describe therelevant provisions.
Mexico hasconcluded freetrade agreements withCanada andtheUnited States (NAFTA),
withColombia andVenezuela (G-3), withCosta Rica, andwithBolivia. These agreements containS/WPGR/W/11/Add.18
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specific chapters ongovernment procurement. Mexico isnotamember oftheWTO Agreement on
Government Procurement.
III. ECONOMIC IMPORTANCE OFSERVICES PROCUREMENT
12(a) Please provide statistics (ifavailable) onthenumber andvalue ofservices procurements
- onbothanaggregate andsectoral basis;
- byorigin ofservices andsuppliers.
Inorder toenhance thecomparability ofdataprovided, Members maychoose toprovide
statistics according totheservices sectoral classification indocument MTN.GNS/W/120 (dated
10July1991) attheappropriate levelofaggregation.
(b) Please provide statistics (ifavailable) onthe
- share ofservices procurement intotalprocurement;
- share ofprocurement ofeachservice intotaldomestic output oftheservice;
- share ofprocurement ofeachservice intotaldomestic consumption oftheservice.
Total domestic consumption isdefined asthesumofpublic andprivate consumption or
thesumofdomestic output andnetimports (i.e.imports minus exports) oftheservice inquestion.
Thestatistics available withrespect togovernment procurement in1990 are:
STATISTICS
(Millions ofDollars)
1990
Goods Services Construction services Total
8,715 4,879 4,846 18,440