The legal framework governing how the Mexican government and state-owned enterprises acquire goods, services, contract public works or otherwise partner with the private sector has its foundations in the Mexican Constitution, which clearly defines the fundamental principles of government procurement: legality, loyalty, efficiency, equal treatment, fairness, transparency and honesty. Amendments and additions to the public procurement legal framework in the past decade took place in light of such principles, to make procurement practices and processes more efficient, combat corruption and bid rigging, and to introduce new mechanisms facilitating the implementation of projects in conjunction with the private sector. Notwithstanding such important improvements to our legal regime, its application and enforcement is yet to be seen, as corruption scandals in procurement processes often arise and, in many cases, the structuring of procurement processes is not as time-efficient as the law suggests.
Mexico is a federation and is therefore subject to three levels of interaction and regulation: federal, state and municipal. Procurement laws are issued at all three governmental levels. Certain public services and utilities are mandated by the Mexican Constitution to be satisfied solely by municipal governments, such as waste collection, public lighting and the supply of potable water; however, municipalities can render such services and utilities through decentralised entities in association with state and federal governments or the private sector. Further, depending upon the source of a project’s financing, although it may be a state or municipal project, if federal funds are used, federal procurement laws (in addition to other applicable local laws) will apply to the project.
This chapter shall focus on federal procurement laws since most of the volume and large procurement processes are based upon federal law. Moreover, the main principles of the federal procurement laws can be seen throughout local legislation as federal laws generally act as a model for local statutes.
There are three main bodies of law that regulate procurement at a federal level:
a the Public Procurement Law, which regulates procurement of leases and acquisition of goods and services;
b the Public Works Law, regulating specific lump sum and unit price construction contracts; and
c the Public–Private Partnership Law (the PPP Law), regulating long-term service contracts and partnerships.
All of these laws are complemented by regulations based upon the principles set out in such laws and guidelines for more specific matters (i.e., guidelines on cost-benefit analyses and those applicable to certain force majeure events, methods for the evaluation of bids, among others).
Certain state-owned entities (such as the Federal Electricity Commission (CFE) or Petróleos Mexicanos (Pemex)) have developed their own specific procurement regime, different from the one set forth in the laws mentioned above; however, such regime must also abide by the fundamental principles of public procurement set out in the Mexican Constitution. In addition, the recently enacted laws comprising the National Anticorruption System contain specific provisions applying to public procurement (regardless of the specific statute regulating the process) to impose fines and administrative and criminal sanctions for corruption offences. As certain projects may require governmental concessions or permits to exploit public assets or render a public service, other laws will be applicable in such cases, and in specific cases a special procurement process may also apply (e.g., hydrocarbons industry, energy, roads and airports).
The main governmental bodies that interpret and regulate procurement laws are the Ministry of Finance and the Ministry of the Comptroller; both entities publish guidelines on matters related to procurement. All such guidelines, as well as any amendments to any procurement laws or regulations, must be published in the Federal Official Gazette for transparency and publicity purposes. Certain industries such as gas, oil, energy, roads and airports have their own governmental bodies that regulate their specific industry. Further, most governmental bodies also have internal guidelines issued by their internal comptroller body and procurement committees that issue guidelines on how to procure for their specific needs. The Ministry of the Comptroller has tried to standardise these internal guidelines across different federal governmental bodies.
The procurement legal framework mandates that public procurement procedures guarantee the best available terms and conditions for the public body; however, the current framework focuses more on transparency and anti-corruption issues and less on assuring an actual competitive and efficient results. In addition, Mexico is a party to various multilateral and bilateral treaties granting benefits in connection with public procurement, such as treating entities or individuals of such treaty countries as from a ‘most favoured’ or ‘preferred’ nation, including the North America Free Trade Agreement (NAFTA). Mexico is not a party to the Government Procurement Agreement of the World Trade Organization.
II YEAR IN REVIEW
The laws implementing the National Anticorruption System, which was created in 2015, came into force in 2017. These laws have a direct impact on public procurement, setting forth procedures applicable to public officials in procurement as well as administrative and criminal sanctions on public officials, private individuals or entities for administrative offences, such as bribery and collusion in public procurement. However, there has not yet been any significant progress in the implementation of the system. Congress has not appointed the specialised independent prosecutor to combat corruption, the judges in charge of imposing administrative sanctions have not been appointed and an important number of local governments have not taken the necessary measures to adopt the anti-corruption system at a state level. There are still no precedents concerning enforcement actions or guidance for the authorities to comply with anti-corruption laws.
There is also the challenging task of finalising the Digital National Platform: an information technology system that will connect all bodies of government for the sharing of data, including data regarding procurement process, financial disclosure of government officials, information about sanctions, offences and corruption, and a key component of the National Anticorruption System.
During 2017, the Senate issued an initiative to amend the Public Works Law with the objective of further promoting transparency, including by means of improvements to CompraNet, the Mexican electronic procurement system, involving competition authorities in major works projects and adapting the law to the anti-corruption system in procurement procedures. Congress is currently discussing the initiative. In addition, the regulations to the PPP Law were amended to include budgeting and publication requirements in relation to the approval of public–private partnership (PPP) projects and rules for contracting agents that may carry out competitive procurement procedures on behalf of public entities.
Another relevant statutory development affecting public procurement is the Financial Discipline Law enacted in 2016 and amended in 2018. The law has forced states and municipalities to comply with certain requirements when incurring debt. Now, any financing obtained by local governments must comply with certain budgetary and legal requirements (e.g., approval of local legislatures and registration of the indebtedness incurred at a sole public registry for the Ministry of Finance to keep track of sub-national debt). A key component of the Financial Discipline Law is that states and municipalities have to carry out competitive procedures by requesting bids to at least five different financial institutions before procuring any financing or by a public tender in case such financing equals or exceeds 240 million pesos regarding states, or exceeds 60 million pesos regarding municipalities.
Public procurement was active in 2017, mainly regarding social infrastructure projects (toll roads and hospitals), the New International Airport of Mexico City (NAICM) and water projects, such as the development of desalination plants in Sonora and Baja California (the latter being the largest in Latin America).
The NAICM project, launched by Mexico’s President Enrique Peña Nieto in the year 2014, continued to develop in 2017. This project is in response to a 20-year-old need to expand the capacity of Mexico City’s current international airport. Currently one of the three largest airport infrastructure projects worldwide2 and the largest infrastructure project in the country, its construction costs are estimated at US$13 billion.
The Airport Group of Mexico City, a majority state-owned company, received a mandate from the Mexican government to design, build and open the NAICM.
Given the magnitude of the project, instead of one or a few PPPs or concessions, GACM decided to tender the NAICM construction works into a series of procurement packages under the Public Works Law, organised by critical path in order to meet an ambitious timeline, with a mix of design-bid-build and bid-design-build models.
As of 2017, the development of the NAICM has resulted in more than 321 procurement procedures, amounting to 136.134 billion pesos,3 including contracts for core works of the airport, such as the construction of the terminal building, the runways and the control tower.
With regard to the energy sector, interest in development and acquisition of power projects increased during 2017 and there have been successful auctions for long-term contracts in the clean energy sector. Various projects awarded in the first and second long-term auctions are now being financed or developed, while a third long-term auction, which took place in 2017, will enable the development of 15 new electricity plants (mainly solar), which will represent an estimated investment of US$2.396 billion.4
In addition, auctions for exploration and exploitation of oil continued to develop. The National Hydrocarbons Commission auctioned 29 contracts for deep-water oil exploration and production, and announced an additional auction for more than 30 contracts for oil exploration and production in shallow waters.5 In the midstream sector, pipelines continued to develop as well. Another important development was the opening of new gasoline stations by private companies (instead of being PEMEX franchises) and new storage facilities, which are still at initial stages.
The Federal Electricity Commission (CFE) issued its procurement rules and procedures in 2017 to adapt to its relatively new regulatory reality, in which the activities of the generation and sale of energy are liberalised. The CFE adopted specific provisions related to procurement procedures such as criteria for applying exceptions to open auctions, certification of officers responsible for procurement and evaluation of bids.
Petróleos Mexicanos (PEMEX) continued to adapt to the energy reform by centralising its procurement function and implementing an electronic system for procurement (SISCEP), which is a platform for more comprehensive e-procurement that improves simplification and transparency.
Both PEMEX and the CFE have also procured projects by means of generic model contracts (such as power purchase agreements or oil exploration and exploitation) used to standardise the commercial and contractual relationships with their counterparts.
III SCOPE OF PROCUREMENT REGULATION
i Regulated authorities
The procurement rules described in this chapter apply to practically all Mexican federal governmental agencies, bodies and entities with a majority of equity held by one of these entities. Pemex and CFE would be exceptions to this rule. Also, certain types of projects may be subject to special laws, as would be the case for concessions in the transportation industry.
ii Regulated contracts
All contracts entered into by government agencies, except as noted above, are regulated by the provisions of the Public Works Law, the Public Procurement Law, the PPP Law and the regulations thereunder. As a general rule, procurement contracts must be tendered in an open bid. Conducting a restricted invitation or directly awarding a contract is an option only afforded to the government under special circumstances, where a public tender would not be possible or recommended because of, inter alia:
a the existence of licences, intellectual property and patents;
b national security matters, or where a public tender may affect or compromise public health, the economy, public safety, the environment or may otherwise create social unrest;
c in cases of urgency because of force majeure or otherwise;
d where the goods or services to be contracted cannot be obtained through an open tender process or when the corresponding tender process was unsuccessful;
e where the goods or services are offered to the government as payment in kind, or the relevant contract derives from or is ancillary to a master agreement that has already been awarded; or
f if the amount of the contract is less than the threshold amount included for such purposes in the annual federal spending budget.
Under laws applicable to oil and gas-related activities, there are also certain exceptions to a public bid such as in the case of retaining advisers, oil spills and engineering services.
Regardless of the form tendered, the terms of any procurement agreement will need to abide by applicable procurement laws and, when applicable, the special rules governing the requesting entity.
IV SPECIAL CONTRACTUAL FORMS
i Framework agreements and central purchasing
Mexico does not have standardised forms of agreements across the board (and sometimes not even within the same governmental body). It is easy to find, within the same agency, contracts of a very similar nature signed only a day apart but with substantially different provisions or structures. Some of the previously mentioned guidelines and specific efforts of government agencies have resulted in framework agreements for commodity-type services or supplies of goods.
Central purchasing is not compulsory in Mexico, but it is a practice that is starting to be observed given the efficiencies that can be obtained; such is the case for the Mexican Social Security Institute. Some states have also started to centralise purchases, but again there are no regulations on the matter and certainly no obligation to procure in this way.
ii Joint ventures
Public companies and independent governmental bodies
The Mexican legal system provides for the existence of independent governmental bodies, public companies with major government interests, as well as the formation of public trusts. Such entities are considered to form part of the Mexican public administration and (unless expressly exempted) are therefore subject to all applicable procurement rules. All activities are regulated principally in the same fashion as any governmental agency. Joint ventures in which the government has a minority stake would not necessarily be subject to or regulated under general public procurement rules. Both Pemex and CFE, as state productive companies, have been expressly excluded from the Federal Law of Parastatal Entities and will have their own set of procurement rules as mentioned above.
For many years, to encourage private capital participation in public infrastructure and utilities, the main forms of contracting have been through long-term services agreements with a construction component, financed public works contracts and concessions. Over the years these forms of contracting, having evolved and improved, led to the enactment of the PPP Law in 2012 and to the enactment of PPP laws in the majority of the states in Mexico. These laws were especially created to provide the necessary flexibility in procurement to develop long-term joint ventures between governmental agencies and private parties.
V THE BIDDING PROCESS
The Mexican Constitution prescribes that all government acquisitions and leases of any kinds of goods, retained services or construction of public works be carried out and awarded – as a general rule – through a public bidding process, to guarantee the best available conditions for the government in terms of price, quality, financing and opportunity. Accordingly, all procurement laws dictate that all government procurement – as a general rule – should be conducted through an open tender procedure.
The use of an electronic procurement system called CompraNet, managed by the Ministry of the Comptroller, is a mandatory mechanism to make public and freely available information on government procurement.
All federal government public invitations to tender must be made public through CompraNet and in the Federal Official Gazette, and may also be divulged by other means of publicity, such as the official website of the contracting agency or governmental body, or newspapers with national distribution, as determined in each case. As a general rule, amendments, changes or clarifications to the bid documents (including those stemming from clarification meetings), award notices or any other relevant information for the tender process are made public through CompraNet to guarantee that all participants have access to the same information, and the transparency of the process.
In addition, any bidder in a tender process to be conducted under the Public Procurement Law may now participate through CompraNet without the need to physically attend the different events of the process, unless otherwise specifically requested in the tender documents.6
As previously indicated, the government procurement process in Mexico is usually conducted through a public tender; however, procurement contracts, under certain circumstances described above, may also be awarded through a restricted invitation to tender, delivered to at least three participants or even directly awarded to a supplier or service provider.
Also, an important development under the PPP Law is the government’s ability7 to retain consulting or advisory services through a restricted invitation to tender process, or to directly award contracts to service providers to perform all necessary works and services to develop and implement a specific project to be tendered by the government, provided that the total costs of such services do not exceed a specified threshold.
The Public Procurement Law also provides that, in connection with the purchase or supply of certain goods, certain environmental or sustainability requirements be met, and in some circumstances a certification by the Ministry of the Environment and Natural Resources may be required.
Procurement contracts to be awarded under the Public Procurement Law or the Public Works Law can be tendered as:
a a national public tender, where only Mexican entities or individuals may participate in the bidding process and the goods to be provided or the materials to be used for the works or project being contracted should have a national content of at least 50 per cent;
b an international public tender, under the coverage of international treaties, where it would be mandatory under the relevant international treaty to limit the participation to Mexican and foreign bidders only from those countries with which Mexico has signed a free trade agreement with a chapter on government procurement; or
c an open international public tender, only when an unsuccessful national tender process has been held; or if required for the procurement to be financed with a foreign loan granted to, or guaranteed by, the federal government.
The PPP Law does not classify tender processes for PPP projects as national and international, but rather specifically sets forth that any entity may participate in PPP projects provided that the industry-specific regulations allow for the participation of the private sector in the services to be provided (for such purposes a licence, permit or concession may be required).
iii Amending bids
As long as any changes or amendments would not have the purpose of restricting the participation of other bidders, the contracting governmental body or agency may change the bidding documents throughout the tender process, including as a result of a clarification meeting, provided that any such amendments would have to be made with sufficient anticipation for all participants to revise their proposals accordingly before the submission date.8 As previously indicated, any such amendments should be disclosed through CompraNet – among other means – to guarantee that all participants would have access to such information. Such amendments should not entail the substitution of the goods or services originally tendered, or add others significantly different in quality or nature to those originally tendered.
The tender documents, including the form of contracts and exhibits thereto, as may be amended in clarification meetings and the bid proposal, are binding among the parties. The actual contract to be executed should not modify or amend the terms and conditions contained therein.
Mexican public procurement laws do not promote or facilitate discussions on the tender documents on an individual basis but are rather limited to responses and information provided in the clarification meetings. The only exceptions to this rule are:
a those cases where a contract is directly awarded, as was the case with each PPP contract that was awarded in 2011 under the PPP Federal Prison Programme (in such awards the federal government had several individual meetings with each participant to negotiate and modify the relevant form of PPP contract);
b in connection with unsolicited proposals under the PPP Law; or
c clarifications requested during a tender under the PPP Law.
After a procurement contract has been awarded, the contracting governmental body or agency may amend the contract as long as the amount, quantity or volume of the goods or services originally contracted has not increased by more than 20 per cent and the prices of the relevant goods, leases or services are not changed. If, however, after a contract has been awarded, new general economic circumstances arise that result in new conditions outside the control of the parties, which imply an increase or reduction in the prices of services or goods, such an increase or reduction should be considered and adjusted in the contract in accordance with the guidelines that the Ministry of the Comptroller may issue for such purposes. A similar limitation applies under the Public Works Law, as contracts may be amended provided that the price is not increased or the term of the agreement is not extended by more than 25 per cent.
In contrast, the PPP Law expressly recognises the need to review and amend long-term contracts to implement modifications to:
a improve the conditions or quality of the services or infrastructure being provided;
b protect the environment and natural resources;
c adjust the scope of the contract because of new circumstances; or
d enhance the financial feasibility of the project when new and unforeseen circumstances arise.
Other than those specific cases where the private sector or foreign participation is limited or proscribed, as previously explained, the eligibility criteria for government procurement is relatively standardised throughout Mexican government procurement legislation.
i Qualification to bid
In addition to those specific cases where proposals should not be admitted because of a conflict of interest or otherwise, as described in Section VI.ii, proposals may be dismissed or disqualified if a participant has used inside or privileged information; if participants have colluded to raise prices or to obtain any other advantage; or if a participant does not meet the requirements under the bid documents provided that any such breach would affect the financial or technical feasibility of the relevant tender.9
As a particular feature of PPP projects, the PPP Law affords the tendering government agency the ability to pre-qualify proposals in accordance with the specific terms and conditions of the bid basis. Such pre-qualification should be limited to ascertaining which proposals comply with the minimum requirement to be considered as economically and technically feasible.
ii Conflicts of interest
All government procurement regulations prohibit governmental bodies or agencies from receiving proposals or awarding contracts to participants that:
a have a family, business or labour relationship, or where a government officer who participates in the bidding process could otherwise benefit from the relevant contract;
b have a conflict of interest with the contracting governmental agency or other participants in the same tender process;
c have been convicted by a final and non-appealable judgment in the previous three years in connection with government procurement contracts;
d have had a governmental agency rescind a contract for breach or wrongful misdoing;
e are insolvent or subject to an insolvency proceeding; or
f have been vetoed by the Ministry of the Comptroller.
The new General Law of Administrative Liabilities has a much more ample definition of ‘conflict of interest’, identifying as such ‘the possible influence of an impartial and objective performance from public officials due to personal, family or business interests’. Although this definition has not been transferred to procurement laws, verification and confirmation of the absence of conflict of interests in procurement processes should be further scrutinised. To that effect, the General Law of Administrative Liabilities now obliges public officials to submit declarations of assets, conflicts of interests and evidence of good standing with the Mexican tax authorities.
iii Foreign suppliers
Unless otherwise specifically prohibited with regard to a particular industry, foreign suppliers may participate in government procurement tenders. However, as previously explained, certain tenders may be limited to national participants. Even in such cases, foreign suppliers may also participate through associations or joint ventures, provided that the Mexican company remains the majority and controlling holder, or as a subcontractor or supplier, only if the 50 per cent national content threshold is observed.
Foreign participants may or may not10 be required under the tender documents to incorporate a Mexican subsidiary in the event that they are awarded a procurement contract, but in all cases they would be required to submit to Mexican law and Mexican courts. In those cases where the supplier or services provider is required to hold a certain permit, licence or concession, the specific regulations governing such permits, licences or concessions generally require that any such governmental authorisation be granted solely to a Mexican entity.
i Evaluating tenders
Bidders are commonly asked to submit their proposals in two separate packages (or envelopes): one containing the technical proposal and a separate one containing the pricing. Both packages could be opened at the same time or in successive events with the technical proposals being opened first then, in a subsequent evaluation, the pricing under each of the proposals that qualify for the second stage would be revealed.
Government procurement laws provide flexibility to the tendering authorities to establish in the tendering documents the specific rules to be considered for the evaluation of the proposal; these rules should be outlined in the tendering documents for the information and benefit of all participants. Depending on the type of procurement contract, the winning bid could be determined on the basis of price or on the overall qualification of each proposal.
Among the most common mechanisms for evaluating proposals, the pricing component is weighted as follows:
a lowest price wins (commonly used for supply of goods or services) provided that the goods or services offered are consistent with the tender documents;11
b the technical proposals are evaluated separately and, among those that reach a certain minimum score, the contract is awarded to the proposal with the lowest price; or
c in a score-based tender, where many aspects of the proposals are individually evaluated (including pricing as one of the many criteria to be considered) and the bid with the highest score is awarded the project.
The award should spell out:
a the reasons for disqualifying certain bids;
b which bids were considered technically feasible;
c the reasons for not considering as valid the pricing under certain proposals;
d the reasons for awarding the contract to a specific bidder; and
e information in connection with the execution of the relevant procurement agreement.
ii National interest and public policy considerations
Generally procurement laws promote the participation of Mexican companies and the acquisition of Mexican goods in government procurement processes. As a practical matter, national companies and goods can be favoured in a procurement process as follows:
a with regard to industries where foreign participation is proscribed or limited;
b in a national tender process where only Mexican suppliers may participate or goods and services should comply with a certain Mexican component;
c with regard to certain goods that require certifications issued by Mexican authorities;
d in open international public tenders, the tendering authority should favour, in equal circumstances, those proposals that would generate employment in Mexico or that would use more products produced in Mexico (that comply with the national component threshold required in a national tender process). Such proposals should receive up to a 15 per cent advantage in their price with respect to other proposals with imported goods or services; and
e in those cases where the evaluation rules consider a score-based tender, additional scores could be granted to those proposals from small or medium-sized companies that use innovation technologies as evidenced by certification from the Mexican Institute of Industrial Property.
VIII INFORMATION FLOW
All relevant information regarding federal government procurement is made freely and publicly available by the federal government through CompraNet, and includes:
a the annual spending programme12 of, and projects to be conducted by, the relevant governmental contracting agency or body;
b authorised suppliers’ lists;
c calls for public bids and closed invitations, as well as amendments thereto;
d calls for clarification meetings and the outcome thereof; and
e contract award notices, including those directly awarded outside a bidding process.
Government procurement regulations prescribe that the tender process and all relevant information in connection therewith should be disclosed and made equally available to all participants. However, certain information may be reserved and not disclosed if it is deemed to be restricted or confidential in accordance with the Federal Law of Transparency and Access to Public Government Information or any other applicable laws and regulations (e.g., the procurement of goods or services related to national security; documents or information used in or considered to be part of an ongoing tender process;13 and information submitted by participants as confidential).
IX CHALLENGING AWARDS
All challenges in connection with a government procurement tender process should be submitted to the Ministry of the Comptroller. Such challenges should only be made in connection with:
a the invitation for the tender process and for the clarification meetings;
b restricted invitations to at least three participants (only such participants may contest the invitation);
c submission and opening of bid proposals;
d the award;
e the cancellation of the tender process; or
f acts and omissions from the tendering government agency that hinder the execution of the relevant procurement agreement.
An award may only be challenged by a participant that actually submitted a proposal and should be filed in writing with the Ministry of the Comptroller or through CompraNet within the next six business days following the date on which the meeting making the award public was held or when the participant was actually notified of the award in the event that such a meeting was not held.
ii Grounds for challenge
The challenging participant may request that the tender process be suspended and the execution of the procurement contract with the winning bidder be postponed. In the event that the Ministry of the Comptroller approves the requested suspension of the process, such a suspension would only be granted if the challenging participant actually guarantees the indemnification of any damages that the suspension may cause, as requested by the Ministry of the Comptroller. Such a guarantee would have to be of an amount greater than 10 per cent and less than 30 per cent of the amount of its bid; however, the winning bidder may offer a counter-guarantee of the same amount for the process not to be suspended.
The final resolution issued by the Ministry of the Comptroller may dismiss the challenge, declare the tender process null and void, or declare the nullity of the specific act being challenged (such as the award), in which case the challenged act would need to be restored. Such a resolution may be contested or appealed at the federal courts.
The shape of the Mexican economy in the year 2018 will be dictated by the presidential and congressional elections, as well as by the fate of NAFTA. At present, it seems that corruption, including in procurement procedures, will be a critical issue in the presidential election. Further, Chapter 10 of NAFTA concerning government procurement is expected to change with the renegotiation, although no details have yet emerged. It is also expected that an anti-corruption chapter will be included to adopt certain measures such as increasing transparency in laws, encouraging due process in legal cases and promoting integrity among public officials.
The Ministry of Finance has contemplated 22 PPP projects in the government’s expenditure plan for 2018 that will represent a total investment of up to 34.5 billion pesos. Such projects will consist in the development of nine hospitals and clinics, and the maintenance or construction of up to 11 toll roads.
In addition, the shared public telecommunications network that will bring 4G-LTE services to more than 90 per cent of the country continues to develop and is expected to reach its commercial operation this year. Further, several major constructions related to the new Mexico City airport are expected to conclude this year, such as the terminal building, the control tower and two airstrips.
Finally, more auctions are expected in the power and oil sectors. For example, an additional auction was announced at the beginning of this year for oil exploration or production contracts concerning 37 land areas.
1 Javier Arreola E and Vanessa Franyutti J are partners at Nader, Hayaux & Goebel, SC.
6 A tender process under the Public Procurement Law may require that the submitting of bids and other events of the tender process be conducted only in person, in person and through CompraNet, or only through CompraNet.
7 Notwithstanding that the government is afforded this flexibility under the PPP Law, the relevant advisory, consulting or service agreements will be awarded under the Public Procurement Law but specifically for the development and implementation of PPP projects to be tendered in accordance with the PPP Law.
8 The Public Procurement Law requires that in all tender processes at least one clarification meeting be held, although it is not mandatory for the participating bidders to attend.
9 All procurement laws and – as a general rule – all bid documents clearly specify that lack of compliance with specific requirements under the bid documents should not constitute a cause to disqualify or reject a proposal unless lack of compliance adversely affects the technical or economic financial viability of the proposal. The foregoing has been consistently confirmed in court precedents.
10 For short-term contracts or those limited to the supply of goods, foreign participants are not always required to incorporate a Mexican special purpose vehicle to enter into the relevant procurement agreement.
11 A contract may not be awarded to the bidder with the lowest price if in the opinion of the tendering authority (based on an independent analysis) the prices offered by such a bidder are not market prices.
12 Such programmes can be updated on a monthly basis, or as required.
13 Governmental authorities usually reserve the proposals submitted by bidders for several years after the relevant tender process has been concluded.