In detail 

According to the Federal Executive, the purpose of these reforms is to ensure the best contracting conditions for the Mexican State, combat corruption in public procurement, achieve effective competition among suppliers, strengthen the participation of national suppliers and optimize the procurement and contracting processes to reduce discretion and time for contracting.

The main changes contemplated in the Acquisitions Law and the Public Works Law are as follows:

New digital platform with impacts on transparency to be known

• Creation of the Digital Platform for Public Procurement, replacing Compranet. This free public consultation platform seeks to provide greater agility and transparency to contracting procedures. All procurement processed of the federal administration must be conducted through this platform.
• The platform will be integrated by information related to public procurement processes, annual procurement programs of public entities, registry of suppliers, contracts entered by public entities, the registry of sanctioned contractors, etc. 
• The platform will include a section called Digital Store of the Federal Government in which the acquisition of goods or services will be carried out in an agile and expeditious manner through supply orders, only for minor acquisitions. 
• The platform will keep the information of procurement processes only for a period of five years, so the traceability of projects carried out by previous administrations could be lost.

New procurement procedures under the Acquisitions Law

• The Acquisitions Law now establishes seven procurement procedures: (i) public bidding, (ii) invitation to at least three persons, (iii) direct award, (iv) competitive dialogue, (v) direct award with negotiation strategy, (vi) assignment of a contract derived from a framework agreement and (vii) assignment of supply orders derived from the Federal Government Digital Store. 
• The Secretary of the Treasury is empowered to carry out consolidated purchases and will be the only entity that may carry out direct award processes with negotiation strategy. 
• Micro, small and medium-sized companies will have facilities to participate in procurement processes, such as advance payments, prompt payment and framework agreements.
• In the contracting processes, the use of subsequent discount offers will be prioritized so that the Mexican State could obtain the best market conditions.
• The participants in the processes must submit a declaration of integrity in which they commit to avoid irregular conduct during the contracting processes.
• The contracting procedures established in the Public Works Law were not modified; therefore, as a general rule, the public bidding process will continue to apply, and as an exception, the invitation to at least three private parties or direct award will continue to apply.

Works of priority programs or strategic projects executed by the Armed Forces will not have to follow the provisions of the Public Works Law

• The Public Works Law will not be applicable to works or services related thereto that derive from priority programs or strategic projects executed by the armed forces, classified like that by the Federal Executive. 

Strategic dialogues 

• Prior to the start of the contracting procedure, public entities may carry out strategic dialogues with interested parties in the corresponding sector, in which they may disclose the description of the work or service related to public works so that any interested party may propose technical and economic aspects required for the preparation of the proposal.

Preferences for domestic products give a 15% price advantage, and domestic content will qualify for this advantage starting at 65%, previously it was 50%

• The percentage of domestic content required in government purchases increased from 50% to 65%. 
• This change aim to strengthen the domestic market, and, in international procedures, preference will be given to purchases of goods produced in Mexico (with 65% domestic content) and a 15% preference will be granted with respect to imported goods.

Social Witnesses 

• The Acquisitions Law provides that in procurements exceeding 565.7 million pesos (USD 28 million), competitive dialogue procedures and other high impact projects must have Social Witnesses. 
• Social Witnesses are representatives of civil society empowered to review public contracts, their performance and, where appropriate, report irregularities in real time.

Powers of the Anti-Corruption and Good Governance Secretariat and the Ministry of Finance 

• The Secretary of the Treasury (SHCP), together with the Secretary of Anticorruption and Good Governance (SABG), will prepare market research of the goods and services approved by the Strategic Procurement Committee as susceptible to be acquired, leased or contracted. 
• The SABG will have a Strategic Contracting Committee, which will be responsible for determining the goods or services susceptible to be acquired, leased or contracted on a consolidated basis.

Amendment to the Federal Republican Austerity Law 

• The contracting of private parties for consulting services, advisory services, studies, research, law projects, development plans, or any type of analysis and recommendations will be limited if the contracting public entity has the labour force and professional capacity of public servants to perform such activities.