Amendments to the Argentine Public Administration Procurement Framework

By means of Decree No. 963/2016, published in the Official Gazette on October 26, 2018 (“Decree No. 963”), the Argentine Executive adjusted certain aspects of the Regulation of the Federal Public Procurement Framework approved by Decree No. 1030/2016 (the “Procurement Regulation”) and modified the value and quantity of units (módulos) allocated for determining the contractor selection proceeding applicable in each case.

Said aspects had become outdated since the publishing of Decree No. 802/2018 which included  reorganizing the ministerial structure of the Federal Public Administration and created the position of the Government Secretariat within several Ministries (“Decree 802”).
 

1. New Value and Quantity of Units Allocated

Decree 963 fixed the new value for public procurement units at ARS 1,600. It also amended Section 27 of the Procurement Regulation which establishes, for those contracts for which the applicable selection proceeding depends on the amount of the contract, a scale of values applicable for each proceedings.

For abbreviated proceedings (compulsas abreviadas), the maximum was fixed at 1,000 units (equivalent to ARS 1,600,000 — USD 43,100 [1]), while for private biddings and private tenders it was set at 5,000 units (equivalent to ARS 8,000,000 -USD 216,000). Those contracts whose value is over 5,000 units can only be executed as a result of a public bidding or public tender.

Additionally, and in line with the adjustment in the unit’s value, Decree 963 established an exception to the obligation of filing guaranties for those offers and/or contracts, sales or purchase orders which amount does not exceed the equivalent to 1,000 units. 
 

2. Government Secretariat of Modernization’s Competences

Decree No. 802 created the position of Government Secretariat of Modernization as a Vice Chief of Ministers to assist the Chief of Ministers in the design of the modernization policies applicable to the Argentine Government (the “GSM”)

With the purpose of granting the relevant competences related to the Federal Public Procurement Regime approved by means of Decree No. 1,023/2001 (the “Public Procurement Framework”), —as implemented through Decree No. 1,030/2016—Decree 963 introduced amendments to Sections 9 and 35 of the Procurement Regulation and their annexed charts.

The GSM was granted the power to (i) authorize the call and election of the applicable proceeding; (ii) approve the bidding terms and conditions in multiple stage proceedings; (iii) revoke proceedings; y (iv) declare a proceeding void when the  amount of the contract is over 100.000 modules (equivalent to ARS 160.000.000 - USD 4,313,000) for both public and private biddings and tenders, and when the amount is over 65,000 modules (equivalent to ARS 104.000.000 - USD 2,803,000) for abbreviated proceedings and simple awards.

Similarly, the GSM was granted the power to approve the proceeding and award agreements, and to declare the failure of a proceeding, when the amount of the contract is up to 80.000 units (equivalent to ARS 128.000.000 - USD 3,450,000) for private and public biddings and tenders, and up to 50.000 (equivalent to ARS 80.000.000 - USD 2,156,000) units for abbreviated proposal proceedings and simple awards.