RESTRICTED
WORLD TRADE S/WPGR/W/11/Add.20
15August 1997
ORGANIZATION(97-3443)
Original: Spanish Working Party onGATS Rules
COMMUNICATION FROM PERU
Reply toQuestionnaire onGovernment Procurement ofServices
Addendum
Thefollowing communication isbeing circulated attherequest ofPerutomembers ofthe
Working Party onGATS Rules.
_______________
I. EXISTING PROCUREMENT REGIMES
1. Definition
1. What isthedefinition ofgovernment procurement employed incompleting this
questionnaire?
ThePeruvianlegislationdefinesgovernmentprocurementasatechnicalsupplyprocessconsisting
ofacombination oftechnical, administrative andlegal measures intended toprocure forthepublic
sector entities which make upthecentral government theownership oruseoforaccess togoods and
services andtheexecution ofpublic works. "Non-personal services" means anactivity orwork carried
outbyanindividual orcorporate body notforming partofthepublic entity wishing toprocure the
services, inexchange foreconomic compensation, inorder tomeetanintangible need.
Administrative structure
2. Howaregovernmentprocurementactivitiesadministered?Towhatextentareprocurement
activities centralized?
Ingeneral, thepublic-sector purchasing activities ofthecentral government aredecentralized
sinceeachentity isresponsible foritsowninstitutional purchasing processes, including theprocurement
ofgoods andservices andtheconstruction ofpublic works (awarding public works contracts), through
itscorresponding Administration (Supply) Office.
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.20
Page2
Thebasic legislation isasfollows:
- Political Constitution, Article 76:Theexecution ofworks andtheprocurement of
supplies using public funds orresources shallbesubject tocontract andpublic tender,
asshallthepurchase ordisposal ofgoods. Services andprojects onthescaleandfor
theamounts indicated intheBudget Actareprocured bypublic competition. Thelaw
establishes theprocedure, theexceptions andtherespective responsibilities;
- LawNo.26703, State Budget Management Act;
- LawNo.26706, thePublic Sector Budget Actfor1997 whose Article 6establishes
theamounts applicable topublic tenders, public competition based onprices, public
competition based onmerit, anddirect allocation (1USdollar equals approximately
2.6soles, July1997);
(a) Purchase ofgoods andservices:
- Public tender, iftheunitcostortotalvalue ismore than700,000 soles;
- public competition based onprices, iftheunitcostortotalvalue isbetween
200,000 and700,000 soles;
- direct allocation, iftheunitcostortotalvalue islessthan220,000 soles.
(b) Procurementofnon-personalservicesforstudies,advice,consultancy,expertise,external
audits, inspection andsupervision:
- Public competition based onmerit, ifthetotalcostismore than200,000 soles;
- direct allocation, ifthecostisnotmore than200,000 soles.
(c) Public works procurement:
- Public tender, ifthetotalcostismore than1,800,000 soles;
- public competition based onprices, ifthetotalcostisbetween 600,000 and
1,800,000 soles;
- direct allocation, iftheunitcostortotalvalue islessthan220,000 soles.
Decree LawNo.25565 establishing thepublic tender andcompetition system "Tender
ProcessEvaluation"andSupremeDecreeNo.133-92-EF,establishingthecorresponding
regulations.
Supreme Decree No.065/85/PCM adopting theSingle Regulations ontheProcurement
andProvision ofNon-Personal Services (RUA).
LawNo.23350, Article 167,Budget Act1982, giving effect totheSingle Regulations
onPublic Works Tenders andContracts (RULCOP), adopted bySupreme Decree
No.034-80-VC (21/11/80).S/WPGR/W/11/Add.20
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LawNo.26143, Article 19,adopting theLawestablishing aHigher Council ofPublic
Works Tenders andContracts.
Legislative Decree No.710regulating theaward ofpublic works contracts inpublic
tender proceedings.
3.(b) Doestheprocurement regime distinguish between theprocurement ofgoods andservices?
Ifso,thenhowistheapplication ofrules determined incases ofjointprocurement involving both
goods andservices?
ThePeruvian Government procurement regime distinguishes between:
- Procurement ofgoods andservices;
- procurement ofpublic works.
Procurement procedures applied
4.(a) What procedures arefollowed intheprocurement process?
Forbothpurchases ofgoods andservices andtheprocurement ofpublic works thefollowing
procedures areapplied:
- Public tender orpublic competition. Procedures characterized byfreecompetitive
bidding starting from acertain monetary reference value established bytheAnnual
Budget Act.
- Selectivetender(directallocation).Anexceptionalprocedureunderwhichtheprocuring
entity invites bidsfrom alimited number ofsuitable suppliers.
4.(b) Under what circumstances aredifferent procedures used? Forinstance, ifthemethod
useddepends onthevalue oftheprocurement, thethresholds should begiven.
On21June1992, Decree LawNo.25565 established thetender andcompetition system known
as"International Tender Process Evaluation". Under thisLaw,public sector bodies andstateenterprises
canentrust Specialized Entities withtheorganization andimplementation of:(a)public tenders for
theprocurement ofgoods andservices andtheexecution ofworks; (b)competitions based onmerit
fortheawarding ofconsultancy, supervision, expertise, study, advice andinspection contracts. These
procedures aregoverned bytheadministrative documentation prepared bytheprocuring bodies in
coordination withtheSpecialized Entity. They arenotsubject tothegeneral rules andregulations
described inthereply toquestion 3.
Thefollowing areSpecialized Entities: (a)international organizations withagencies specialized
inproviding theservice towhich Decree Law 25565 relates, including theUnited Nations;
(b)multilateral credit institutions andgovernment agencies withdepartments specialized inproviding
theservice towhich Decree Law25565 relates; (c)reputable andreliable international consulting
andadvisory entities, public orprivate, which offer theservices mentioned inDecree Law25565.
4.(c) What arethetime-limits forthesubmission ofbids?
Thefollowing periods havebeenestablished forpurchases ofgoods andservices:S/WPGR/W/11/Add.20
Page4
10daysforpublic competition; 15daysforpublic tender; 30daysforinternational tender.
Fortheprocurement ofpublic works thefollowing periods havebeenestablished:
15daysforpublic competition; 15daysforpublic tender when equipment available onthe
localmarket isinvolved; 30daysforpublic tender when equipment andaccessories mustbe
imported; 45daysforinternational tender.
Publicity forinviting tenders
5.(a) How areintended procurements publicized? Areinvitations totender published? Ifso,
where, andinwhat languages?
Invitations toparticipate intender procedures andpublic competition forpurchases ofgoods
andservices known as"Avisos deConvocatoria "arepublished inSpanish intheOfficial Journal and
inanational newspaper withalarge circulation ontwoconsecutive days, inaccordance withthe
following schedule:
- 10daysbefore thedateofreceipt ofbids, forpublic competition;
- 15daysbefore thedateofreceipt ofbids, forpublic tender;
- 30daysbefore thedateofreceipt ofbids, forinternational tender.
Inthecaseofpublic works procurement, invitations inSpanish mustbepublished onatleast
twoconsecutive daysintheOfficial Journal andinalocal newspaper withalarge circulation and
broadcast overtheradio. Thefollowing periods areallowed forthesubmission ofbids:
- 45calendar daysfortenders withfinancing and/or international tenders;
- 30calendar daysfortenders forworks requiring theimportation ofequipment and
accessories;
- 15calendar daysfortenders involving equipment available onthelocalmarket.
5.(b) Dotheextent andformofpublicity differ according totendering procedures applied and/or
thevalue oftheprocurement?
Public tenders andpublic competitions arepublished inthesame way,intheOfficial Journal
andinanational newspaper withalarge circulation. Only inthecaseofdirect allocation (atleast
three bidders invited) isthere nopublicity.
5.(c) What details oftheintended procurement arenormally published? Isthere aminimum
setofinformation thatisrequired tobepublished? Ifso,please specify.
Theinvitations totender generally include thefollowing information:
- Theinviting entity;
- thedescription andidentification number corresponding toeachcompetition ortender;S/WPGR/W/11/Add.20
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- thebasic characteristics ofthegoods ornon-personal services tobepurchased, orthe
tender system andthedescription oftheworks, asappropriate;
- where appropriate, thetimeandplace ofdelivery orsupply ofgoods orprovision of
services;
- theoffices atwhich thedocumentation canbeobtained andconsulted andtheiraddress;
- thereference sumorestimate;
- theprice ofthedocumentation;
- theplace andtimeforthereceipt ofbids;
- where appropriate, thefinancing entity.
5.(d) Arethere anycharges forobtaining thefullsetoftender documents? Ifso,please specify
anddescribe howthese charges areset.
Theadministrative tender documents andtechnical specifications forpurchases ofgoods and
services,containingallthenecessaryinformation,haveacostcalculatedintermsoftheexpensesincurred
bytheprocuring entity. Theselling price maynotexceed 0.2percentoftheamount specified by
lawforthetypeofprocurement inquestion.
Where public works procurement isconcerned, thecostofthedocumentation varies withthe
contract sum.
5.(e) Areelectronic means usedtoadvertise procurement opportunities? What isthenature
ofsystems thatareinplace? Aredifferent tendering provisions applied tocontracts advertised
inthismanner? Ifso,please describe.
NotusedinPeru.
Requirements laiddown forpossible suppliers
6.(a) Arethere registration, residence orother requirements forpotential suppliers?
Inthecaseofthepurchase ofgoods andservices, thesupplier maybeanyindividual orreputable
corporate body operating under thelaw,whether established inthecountry orabroad. Suppliers do
nothavetoberegistered inorder toparticipate inpublic-sector tender andcompetition procedures.
Toparticipate inpublic works tender procedures andtobeeligible forpublic works contracts,
individuals orcorporate bodies mustberesident inPeruandpreviously enrolled inthenational register
ofpublic works contractors administered bytheHigher Council ofPublic Works (CONSULCOP).
Itshould bepointed outthatpublic tender procedures areopentoanytypeofbidders, whether domestic,
foreign orjoint.
6.(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?S/WPGR/W/11/Add.20
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Forsuppliers toparticipate inpublic sector purchases ofgoods andservices thefollowing
arerequired:
- Cover letter;
- customer portfolio;
- business record;
- letter ofguarantee orunconditional, instantly payable cashier 'scheque made outto
theprocuring public entity;
- sworn declarations totheeffect thatthepotential supplier:
- doesnothavepending anylawsuit involving theState;
- hasnotbeendeclared bankrupt;
- isnotapublic official oremployee noraspouse orrelative uptothefourth
degree ofconsanguinity andthesecond degree ofrelationship bymarriage.
Asindicated inthereply totheprevious question, inthecaseofpublic works procurement,
thecontractor must beenrolled intheabove-mentioned register. Heisissued withacertificate of
enrolment valid foroneyear, which must beregularly renewed. Individuals andcorporate bodies
applying forenrolment intheregister must: (a)havethelegalcapacity toenterintoacontract, (b)have
atleastoneyear'sexperience incarrying outpublic works inthecountry, (c)havethenecessary technical
skills, becredit worthy andhave anadequate organization. Ifthese requirements aresatisfied,
CONSULCOP willregister thecontractors, fixing theirpublic works contracting capacity atanamount
equivalent to50times theirpaid-up capital andfreereserves expressed inmillions ofsoles. Where
capital inforeign currency isinvolved, itsequivalent insolesisdetermined. CONSULCOP maintains
anup-to-date fileinwhich itrecords allthedatarelating toeachofthecontractors enrolled, onthe
basis ofthedocuments which thelatter regularly submit andthose which boththeprocuring entities
andthecontracting entities arerequired tosubmit every month.
6.(c) Dothere existlistsofapproved suppliers? Ifso,what aretheprocedures forchecking
thecapability offirms applying forinclusion ontenderers 'mailing lists? Arelistsofapproved
suppliers, ifanyregularly reviewed/updated ?
With respect tothepurchase ofgoods andservices, Legislative Decree No.717(10.11.91)
abolished theprocedure ofenrolment inaSingle Register ofSuppliers. Thepublic entities annually
review orupdate listsofdisqualified suppliers.
Where public works procurement isconcerned, thereexists aNational Register ofPublic Works
Contractors consisting oftheRegister ofDomestic Contractors, theRegister ofForeign Contractors
andtheRegister ofJoint Contractors. Theenrolment requirements aredetailed inthereply tothe
previous question.S/WPGR/W/11/Add.20
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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 into
account.
Inthecaseofthepurchase ofgoods andservices, thecriteria forassessing bidsinclude technical
considerations (quality, quantity) andeconomic considerations (price, installation costs, transport costs,
toolsandother operating costs, statutory taxes, discounts, andprice basis where multiple deliveries
areconcerned). Theawarding committee selects, among theacceptable bidssubmitted, themost
advantageous foreachtypeofgoods orservices. Other things being equal, thelowest bidisgiven
preference. Thebidqualification criteria andthecorresponding points areindicated intheadministrative
tender orcompetition documents, sothatallthepotential suppliers areaware ofthecriteria inadvance.
Asregards public works procurement, theprocuring entities mustaward thecontract tothe
lowest bidder, taking intoaccount, inaddition totheprice indicated inthebid,other factors suchas
theproposed completion timerelative tothatindicated inthedocumentation. Thebidqualification
criteria andthecorresponding points areincluded intheadministrative public tender orcompetition
documents, sothatallthepotential suppliers areaware ofthecriteria inadvance. Iftwoormore bidders
obtain thesame score, thesuccessful bidder isdetermined bydrawing lots.
7.(b) Isprocurement subject toanyoffset provisions, suchaslocalcontent, technology transfer
orcounter trade requirements?
Public sector purchases arenotsubject toanyoffset provisions.
7.(c) Ispreference given toanyparticular enterprises orgroup ofenterprises? Ifso,please
specify.
There arenopreferences.
7.(d) Dotheprocurement criteria differ according tosector orregion oftheeconomy?
They differ onlyinrelation totheamounts towhich public tenders, public competitions based
onprice andmerit, anddirect allocation aresubject, which increase according totheregion.
7.(e) What isthemargin ofchoice ordiscretion allowed tothepurchasing authority? What
doestheextent, ifany,ofdiscretion allowed depend upon?
Thepurchasing entity hasamargin ofdiscretion onlywithrespect totheallocation ofpoints
foreachqualifying factor, inaccordance withtheproduct tobepurchased. Thisprocedure isdescribed
intheadministrative tender documents andisknown toallthebidders before theytender.
Disclosure ofbidsreceived andcontracts awarded
8.(a) How aretenders received, registered andopened?
Thebidders publicly deliver theirrespective bidstotheChairman oftheawarding committee
inclosed andsealed envelopes. Inthissameceremony theenvelopes areopened andthecontents read
out,sothatallthebidders areaware ofthem.S/WPGR/W/11/Add.20
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8.(b) Areentities required topublish details ofthecontracts awarded and/or notify unsuccessful
tenderers?
Inthecaseofthepurchase ofgoods andservices, oncetheaward hasbeenmade, theChairman
communicates theresults totheparticipating bidders. Healsonotifies thesuccessful bidder whohas
amaximum of5daystosignthecorresponding contract. Theresults ofthetender process arepublished,
onceonly, intheOfficial Journal andinthenewspaper withthelargest circulation inthecorresponding
departmental jurisdiction, within three daysoftheevent.
Where public works procurement isconcerned, oncethecontract hasbeenawarded, anotice
ispublished intheOfficial Journal containing: (a)thename ofthesuccessful bidder andtheamount
ofhisbid,(b)thenumber ofbidders whoparticipated, and(c)theamount oftheestimate.
8.(c) Areentities required topublish, orprovide tounsuccessful bidders, pertinent reasons
whytheir bidwasrejected?
Thelegislation inforce doesnotrequire thepublication ofthereasons whybidshavebeen
rejected. However, ifabidder (tenderer) sorequests, hewillbesupplied withacopyoftheminutes
containing thisinformation. Where public works procurement isconcerned, thelegislation requires
theprocuring entity todisplay, initsoffices, anotice containing alistofallthebidders present, the
amounts oftheirbidsandthebidsrejected.
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.
There arenolaws, regulations, procedures orpractices which accord preferential treatment
toforeign goods, services, public works and/or suppliers.
Procedures forhearing andreviewing complaints/appeals
10. What, ifany,aretheprocedures available forparties, domestic andforeign, tolodge
complaints against theaward ofacontract? Please provide details.
Details could include:
- Institutional status: whether challenges areheard byanadministrative tribunal,
acourt oranyother review body;
- time-limits forcomplaints/appeals;
- typeofremedy, ifany,thatmaybegranted.
Inthecaseofpurchases ofgoods andservices, bidders maysubmit complaints andchallenges
atanytimeduring theprocess. Administratively, thefollowing proceedings arepossible:
Complaints against irregularities orflaws intheproceedings. Submitted inwriting totheHead
ofAdministration ofthepurchasing entity. Must bedealt withwithin 3(three) days. TheS/WPGR/W/11/Add.20
Page9
complaint doesnothaltordelay theawarding ofthecontract andtheinterested party isnotified
oftheresult.
Challenges maybemade against thedecisions oftheAwarding Committee or,inthecaseof
direct allocation, against thedecisions oftheHead oftheSupply Directorate. Challenges may
bebased onthefollowing: (a)improper application ofthelawsandregulations, (b)blatant
discriminationagainstthesupplier,(c)non-compliancewiththeadministrativetenderdocuments
ortechnical specifications, (d)other.
Theremedies include:
Reconsideration. Must bedealtwithbytheAwarding Committee within 3days.
Appeal.Mustbedealtwithbythesecond-rankingofficialofthepurchasingentitywithin5days.
Review. Must bedealtwithbytheDepartmental Awarding Committee responsible forthe
tender within 8days.
Challenges haltonlytheawarding oftheitemoritems questioned.
Where public works procurement isconcerned, achallenge canonlyvalidly bemade from
thedayfollowing thepublication oftheaward intheOfficial Journal. Theremedies available are:
Reconsideration. Must bedealtwithbytheprocuring entity within sixdays. Ifthematter
isnotdealtwithwithin thisperiod, thechallenger mayassume thathischallenge hasbeendenied
andmayinitiate thereview procedure.
Review. Must bedealtwithbytheHigher Tribunal ofPublic Works Tenders andContracts,
atthehighest administrative level, within fourdays.
Apart fromadministrative channels, theparties mayresort toarbitration orthecourts. Thus,
inanystage oftheprocess, theparties maysubmit thedispute toarbitration. Ontheother hand, the
decisionsoftheHigherTribunalofPublicWorksTendersandContractscanonlybechallengedjudicially
before thecompetent division oftheHigher Court ofLima within 15working daysofthenotification
orpublication ofthedecision. Intheirturn, thedecisions ofthiscourt maybechallenged inthe
Administrative Division oftheSupreme Court oftheRepublic.
II. MEMBERSHIP OFPLURILATERAL REGIONAL AND/OR BILATERAL AGREEMENTS
11. IstheMemberpartytoanyplurilateral,regionaland/orbilateralagreementswithprovisions
ongovernment procedure? Ifso,please describe therelevant provisions.
No.
III. ECONOMIC IMPORTANCE OFSERVICES PROCUREMENT
12.(a) Please provide statistics (ifavailable) onthenumber andvalue ofservices procurements:
- onbothanaggregate andsectoral basis;
- byorigin ofservices andsuppliers.S/WPGR/W/11/Add.20
Page10
Inorder toenhance thecomparability ofdataprovided, Members maychoose toprovide
statistics according totheservices sectoral classification indocument MTN.GNS/W/120 (dated
10July1991) attheappropriate levelofaggregation.
Nostatistics ofthiskindareavailable.
12.(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.
Nostatistics ofthiskindareavailable.