By San José, Costa Rica — San José, Costa Rica – A sweeping new law governing public procurement in Costa Rica promises to bring significant changes to how the government manages contracts. Law No. 9986, the General Public Procurement Law, aims to modernize and streamline the entire contracting process, from planning and execution to oversight and dispute resolution. The legislation emphasizes transparency, efficiency, and ethical conduct in all public contracting activities.
A core principle of the new law is integrity. It mandates that all parties involved, including public officials, bidders, and contractors, act with honesty, good faith, and responsibility throughout the procurement process. This focus on ethics seeks to minimize corruption and ensure responsible use of public funds.
To provide further legal context on this complex issue, TicosLand.com reached out to Lic. Larry Hans Arroyo Vargas, an experienced attorney at Bufete de Costa Rica, for his expert perspective on public procurement practices.
Effective public procurement requires a delicate balance between ensuring competitive pricing, promoting transparency, and safeguarding against corruption. While streamlining processes can enhance efficiency, it’s crucial that these changes don’t compromise the integrity of the system or create loopholes that could be exploited for personal gain. A robust legal framework, coupled with vigilant oversight, is essential to maintaining public trust in the allocation of public funds.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas aptly highlights the critical tension inherent in modernizing public procurement. The pursuit of efficiency must never come at the cost of transparency and accountability. These principles are the bedrock of public trust, and their erosion can have far-reaching consequences for Costa Rican society. We thank Lic. Larry Hans Arroyo Vargas for offering his valuable expertise on this crucial issue.
Driving the modernization effort is the mandatory use of a unified digital system. This platform will centralize all procurement procedures, making information readily accessible to the public in an open data format. This digitalization not only increases efficiency but also reduces the risk of corruption by creating a clear audit trail.
Beyond transparency and efficiency, the law also champions social and environmental sustainability. Contracting entities are required to incorporate criteria that promote environmental protection and social development in their bidding documents, reflecting Costa Rica’s commitment to sustainable and equitable growth.
The law also seeks to boost the participation of small and medium-sized enterprises (SMEs) in public procurement. Specific strategies and policies are designed to facilitate SME inclusion, fostering fair competition and contributing to regional and national economic development.
To ensure compliance, the law establishes a robust sanctions regime. Penalties for non-compliance apply to both individuals and public officials, reinforcing the importance of adherence to the new regulations.
The legislation outlines different procurement procedures, including major tenders (licitación mayor), minor tenders (licitación menor), and reduced tenders (licitación reducida), with specific thresholds based on the estimated contract value. It also includes provisions for special procedures like auctions, reverse electronic auctions, and emergency procurements.
The new law represents a crucial step towards strengthening Costa Rica’s legal framework for public procurement. By prioritizing transparency, efficiency, ethics, and sustainability, Law No. 9986 aims to enhance public trust and contribute to the overall well-being of Costa Rican society.
For further information, visit the nearest office of The Ministry of Finance, Costa Rica
About The Ministry of Finance, Costa Rica:
The Ministry of Finance (Ministerio de Hacienda) in Costa Rica is the government body responsible for the country’s fiscal and economic policies. It plays a crucial role in managing public finances, including budgeting, taxation, and public debt. The Ministry also oversees the customs and tax administration, ensuring compliance with tax laws and regulations. With the new Public Procurement Law, the Ministry of Finance takes on a significant role in promoting transparency and efficiency in government contracts, contributing to the responsible use of public resources and fostering economic stability.
For further information, visit the nearest office of The Office of the Comptroller General of the Republic (CGR)
About The Office of the Comptroller General of the Republic (CGR):
The Office of the Comptroller General of the Republic (Contraloría General de la República) is an independent institution responsible for overseeing the use of public funds in Costa Rica. It audits government agencies and public entities to ensure transparency, accountability, and compliance with legal and financial regulations. The CGR plays a critical role in detecting and preventing corruption, promoting good governance, and safeguarding public resources. In the context of the new Public Procurement Law, the CGR has enhanced powers to ensure fair and ethical practices in government contracts, contributing to the integrity and efficiency of public procurement.
For further information, visit the nearest office of The Ministry of Planning and Economic Policy (Mideplán)
About The Ministry of Planning and Economic Policy (Mideplán):
The Ministry of Planning and Economic Policy (Ministerio de Planificación Nacional y Política Económica – Mideplán) in Costa Rica is responsible for formulating and implementing the country’s national development plans and strategies. It works to promote sustainable economic growth, social development, and environmental protection. Mideplán coordinates public investment projects, evaluates their impact, and ensures alignment with national priorities. The new Public Procurement Law requires Mideplán’s involvement in major public works projects, ensuring that these projects contribute to the broader national development goals and are managed efficiently and transparently.
For further information, visit the nearest office of The Costa Rican Social Security Fund (CCSS)
About The Costa Rican Social Security Fund (CCSS):
The Costa Rican Social Security Fund (Caja Costarricense de Seguro Social – CCSS), also known as “La Caja,” is a public institution responsible for providing social security services to all Costa Rican citizens and residents. It manages the country’s healthcare system, providing medical services, hospital care, and pharmaceuticals. The CCSS also administers social insurance programs, including pensions, disability benefits, and maternity leave. The new Public Procurement Law impacts the CCSS’s procurement processes for medical supplies and services, aiming to ensure transparency, efficiency, and cost-effectiveness in acquiring essential resources for public health.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
At Bufete de Costa Rica, legal excellence is interwoven with a deep sense of social responsibility. The firm champions integrity in every legal endeavor, combining innovative strategies with a time-honored commitment to client success across a broad range of industries. Through proactive initiatives that demystify complex legal concepts and empower individuals with essential legal knowledge, Bufete de Costa Rica strives to build a more just and equitable society.
