New Decree That Modifies The Public Procurement Regulation

Last August 12th entered into force Decree No. 1410, which made a series of modifications to the regulation enacted under the Law of Administrative Procurement and Services Contracts ("Public Procurement Law"), contained in Decree N. 250 of 2004.

The main purpose of Decree No. 1410 is to help facilitate access of smaller companies to the Public Procurement System and to strengthen the honesty and transparency of the contracts made by the Government. The main modifications introduced are the following:

1. ADMINISTRATIVE LIABILITY

There is a new rule that expressly states there is administrative responsibility if a Government agency makes an improper direct purchase.

Even though this rule does not create a new offence or sanction, it does strengthen the duty of the Government in order that direct purchases must be properly substantiated.