Peru: New General Law on Public Contracting (Law No. 32069)

The following is a summary of the most relevant changes regarding preparatory actions and supplier selection:

1. There is new terminology for selection procedures, i.e., i) competitive selection procedure (public bids and public tenders); and ii) abbreviated modalities (electronic reverse auctions, price comparisons and public purchases of innovation). "Minor contracts" are those that are less than or equal to 8 UIT. (arts. 34 and 54).
2. The modality of "Public Procurement of Innovation" (PPI) is included when the entity requires innovative solutions involving research and development that are not available in the market, or when adaptations, adjustments or improvements with innovative elements are necessary (Art. 38.1).
3. It establishes the obligation of the entities to prepare a "contracting strategy," which consists of a comprehensive analysis of the variables that influence the contracting, and includes the determination of the type of selection procedure, contracting mechanism, payment method, verification of the standardization of the requirement and a correct allocation of risks (arts. 49.1 and 49.2).
4. In the case of works and consultancy, the "contracting strategy" must also contain: the comparative analysis for the choice of the delivery system for the work; the evaluation of the use of an international standard engineering and construction contract; assessment of the use of BIM; and whether incentives will be established for benefits to the entity and the work, such as cost reduction, deadlines, etc. (Art. 49.3).
5. Public bids or public competitions may be in charge of "juries," which are experts that could be third parties, other than the entity's personnel (Art. 52).
6. A situation qualifies as "emergency" if it represents a structural risk or ruin of a public infrastructure that affects or puts at imminent risk the life or integrity of persons, the environment, or the cultural heritage of the nation. In cases of emergency, the entities may contract directly ("Non-Competitive Selection Procedure") (Art. 40.1).
7. There are new cases in which the entities may contract directly, i.e., the Non-Competitive Selection Procedure (Article 55), as follows:

• Legal or technical advice in the defense of the contracting entities at any stage of arbitration or judicial proceedings, which may include advice prior to the commencement of such proceedings.
• The continuation of services for the preparation of technical files or supervision of work balances, when contracts have been terminated or declared null and void (having been signed with an impeded supplier, or when it is verified that false, adulterated or inaccurate documentation was submitted during the selection procedure) and have been derived from a competitive selection procedure.

We trust that this information is of relevance to you and your company. Please do not hesitate to contact us if you require any advice in this regard.

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