Types of public procurement procedures in Costa Rica

Public procurement in Costa Rica is regulated by the General Law on Public Procurement (LGCP). This law establishes various procedures to ensure transparency, efficiency, and proper use of public resources.

Here we explain the existing procedures along with the corresponding articles. These are classified into ordinary, extraordinary, and special procedures, according to Article 36 of the LGCP. This classification depends on whether the Public Administration conducting the tender is under the ordinary or differentiated regime and the economic thresholds updated annually by the General Comptroller of the Republic.

Index

Ordinary Procedures:

Major Tender (Articles 55-60 of the LGCP)

This process begins with an initial decision and verification of sufficient budgetary resources to cover costs. The major tender applies in the following cases: a) According to the respective threshold, in accordance with Article 36 of the LGCP. b) For contracts with an indeterminate amount.

The contracting entity must have adequate personnel and the necessary technical and financial resources. A specification document is prepared, defining the object of the contract, evaluation criteria for the quality of goods or services, and indicators to verify the results of the procedure. All stages of the process must be published in the unified digital system, ensuring transparency.

The minimum deadline for receiving offers is fifteen working days, and bidders can improve their financial offers and correct errors in their proposals. A performance guarantee is required, and both the specification document and the final act of the procedure can be challenged.

There are also major tenders with financing (Article 57 LGCP), major tenders with prequalification (Article 58 LGCP), and major tenders by stages (Article 58 LGCP).

Minor Tender (Articles 60-61 of the LGCP)

This procedure follows steps similar to the major tender, with some differences. In addition to the initial decision and budgetary resource availability, the accreditation of adequate human resources is required. Offers must be received within a period of five to fifteen working days, depending on the complexity of the object of the contract. The minor tender applies in the following cases:

1. According to the respective threshold in accordance with Article 36 of the LGCP.
2. When using the delivery on demand modality, if a consumption limit has been chosen that, including extensions, does not exceed the threshold for the minor tender.
3. When using the new adjudication in works, according to Article 54 of the LGCP.
4. When the Costa Rican Social Security Fund (CCSS) acquires medical-surgical implements, medicines, reagents, and biologicals, raw materials, and packaging materials required for drug manufacturing, and the conditions of Law 6914 (Reform of the Constitutive Law of the Costa Rican Social Security Fund, November 28, 1983) are not met.

Minor tenders can also be conducted with financing, minor tenders with prequalification, and minor tenders by stages, applying, where appropriate, the provisions in Articles 57, 58, and 59 of the LGCP.

Reduced Tender (Articles 62-63 of the LGCP)

The reduced tender will apply in the following cases:

1. According to the respective threshold in accordance with Article 36 of the LGCP.
2. When contracting consultancy services, regardless of the amount, for public interest projects listed in the Public Investment Projects Bank (BPIP) of the Ministry of National Planning and Economic Policy (Mideplán).
3. When using the delivery on demand modality, if a consumption limit has been chosen that, including extensions, does not exceed the threshold for the reduced tender. Reduced tenders can also be conducted with financing, reduced tenders with prequalification, and reduced tenders by stages, applying, where appropriate, the provisions in Articles 57, 58, and 59 of the LGCP.

This process begins with an invitation through the unified digital system (SICOP) to a minimum of three suitable bidders. If the Administration deems it appropriate, all suppliers listed in the system may be invited. In cases where a prequalified registry is used, only companies meeting that prequalification can participate before the opening of offers, regardless of whether they have been invited or not.

Offers must be received within three to five working days. An initial decision and verification of necessary budgetary and technical resources are also required.

Extraordinary Procedures:

Auction (Article 64 of the LGCP)

The auction is an extraordinary competitive procedure that the Administration can use to sell or lease movable or immovable property when this constitutes the most appropriate means to meet the public interest, in accordance with Article 64 of the LGCP.

The base price of the auction cannot be less than the appraisal value performed by a specialized entity. The auction invitation is published in the digital system (SICOP) and may include other media. The goods are awarded to the highest bidder, and payment must be guaranteed by a performance bond.

Reverse Electronic Auction (Article 65 of the LGCP)

The reverse electronic auction is used to acquire common and standardized goods and services or technology. In this process, a registry of prequalified suppliers is created. The basis of the auction is the price estimated by the Administration, and the invitation is published in the digital system and optionally in print media. The procedure is quick, with a minimum of five working days between the invitation publication and the auction.

Special procedures:

Emergency Contracts (Article 66 of the LGCP)

The emergency procedure is used when the Administration faces situations requiring immediate action to prevent serious or irreparable damage. This process must include a detailed justification, and the selection of the contractor must be completed within a maximum of one month from the declaration of urgency. In exceptional cases, contracting may begin before registration in the digital system, with authorization from the corresponding authority. No appeals or endorsements will apply to emergency contracting.

Purchase and Lease of Real Estate (Article 67 of the LGCP)

The Administration may purchase and lease real estate without using ordinary procedures, requiring the following in all cases:

1. A study demonstrating that the chosen option is the most cost-effective and viable. Instruments from the National Public Investment System (SNIP) can be used.
2. An appraisal prepared by the specialized administration body or, if not available, by the General Directorate of Taxation or another competent public entity that defines the property's value or rental price.
3. A market study determining the suitability of the property to be acquired or leased.
4. A motivated act adopted by the highest authority or their delegate.
   
   Such an act must be based on all the points mentioned above. If any of the requirements are not met, the procedure corresponding to the amount must be followed.
   
   The Administration may also agree to acquire or lease properties under construction or to be constructed, when it benefits its institutional or commercial interests, complying with the requirements above.
   
   For the lease of real estate, the General Law on Urban and Suburban Leases applies as appropriate, and adjustments to the rent or price will follow the provisions of Article 67 of that law.

Special Procedure for INS, ICE, and Their Competing Companies, JASEC, and ESPH (Article 68 of the LGCP)

1. The Costa Rican Electricity Institute and its competing companies, as well as the Administrative Board of the Electric Service of Cartago and the Public Services Company of Heredia, may use this special procedure only for acquiring goods, works, and services for generating, installing, and operating networks, providing, acquiring, and marketing telecommunications and infocommunications products and services, and other information products and converged services when the goods, works, and services, due to their high complexity or specialized nature, can only be obtained from a limited number of suppliers or contractors, or for reasons of economy and efficiency duly accredited to meet the public interest, making the application of ordinary procedures unsuitable.
2. For the INS and its competing joint-stock companies, when contracting insurance brokerage services and ancillary services as provided in Article 18 of Law 8653, the Insurance Market Regulation Law, dated July 22, 2008.

Open Contracting of Services for Institutions and Competing Companies (Article 69 of the LGCP)

Institutions and competing companies may contract services openly with individuals or legal entities meeting the requirements previously established by the Administration, when this is more convenient for the public interest due to the specific nature of the contract and when the commission payment is pre-assessed by the contracting Administration.

To apply this procedure, general requirements must be established, which will be available in the unified digital system. Those who meet the requirements can provide the services in question, respecting the parameters to be defined by regulation.

Technology Contracting for Institutions and Competing Companies (Article 70 of the LGCP)

Institutions and competing companies may use the special procedure regulated in Article 68 of the LGCP when contracting the acquisition, maintenance, and updating or leasing of technological equipment for IT, hardware, software, and IT system developments, subject to the following terms:

1. Open technologies must be contracted to ensure interoperability of equipment and systems. Any limitation on acquiring technology with open standards must be supported by a motivated act signed by the respective technical head and the authority.
2. When the object of the contract is the acquisition of technology parts intended to be added to an existing system in the organization whose useful life has expired, a motivated act signed by the respective technical head and the authority is required.