The Dominican Republic has been steadily implementing institutional reforms to improve transparency and accountability in government contracting, modeling its procurement policies after international standards.

Law 340-06 of August 18, 2006, as amended by Law No. 449-06 of December 6, 2006, and Executive Order 490-07 of August 30, 2007, set forth the policies and regulations of the country’s government procurement practices, with the stated goal of establishing transparency and sound practices as the guiding criteria.

Article 2 of the Law vests the responsibility for administering the law with the Department of Government Procurement (Dirección General de Contratación Pública) under the authority of the Ministry of Treasury. This department formulates the general policies and regulations that govern the process of securing government contracts. However, each individual government body or state-owned company is responsible for establishing, within the confines of the Law, procurement practices and standards according to its specific needs, and for supervising the performance of granted contracts.

SCOPE OF THE LAW

Procurement law applies to all branches of government and government bodies, centralized and autonomous, whenever they are involved in contracting for goods, services, public works, or concessions with public funds. This includes both purchase contracts and leases, except those expressly excluded by law such as (i) contracts involving loans and donations from foreign states or international lending organizations (World Bank, Inter-American Development Bank, etc.); (ii) government borrowing contracts; (iii) public servant employment contracts, and (iv) inter-government agency contracts.

PUBLIC BIDDING

The guiding principles of public procurement law in the Dominican Republic are (i) equal and free competition, (ii) transparent and publicized transactions, (iii) responsible, reasonable, and good-faith dealings, and (iv) broad participation.

Public bidding is compulsory for any good, public work, or service exceeding a certain budget limit or a concession sought for a specific government project, with some exceptions noted below.

The public bidding process can be national or international, and restricted or open. Restricted bids are specified by law according to the value of the contract. Reverse or inverted bidding may also be used permitting all bidders to know the price of other bidders with the expectation of driving the price down. Other selection processes include the drawing of lots from a pool of qualified bids, or a price comparison method where there is not much variation in the standards to be met and price will guide the selection process. The particular process employed is dictated by the type of good or service sought and is stated in the Terms of Reference (Términos de Referencias) prepared by the procuring agency.

International bids must be considered if no national bids are received, or no national bidders can meet the qualifications and conditions in the Terms of Reference. International bids must also be considered if mandated by an existing treaty, such as DR-CAFTA..

Public bidding is not mandatory in all cases and a procuring agency may select and directly contract with a contractor if:

  1. the purchase is for national security reasons, an emergency;
  2. the purchase is for scientific or technical equipment, art work, or historic restoration that can be performed only by a specific enterprise or person;
  3. the purchase is available only through a specific enterprise or person;
  4. the purchase is for a previously declared emergency;
  5. the purchase is for a foreign service office to build, furnish, acquire, or lease an office;
  6. the purchase is to contract with a new party to complete a project for a price not to exceed 40% of the total project that was not performed by a previously selected contractor;
  7. the purchase is to promote micro, small, or medium-sized enterprises, and
  8. the purchase is for government announcements or advertising.

CONTRACTOR REQUIREMENTS

A contractor wishing to perform work for the government must register with the Registry of Government Suppliers (Registro de Proveedores del Estado). A contractor is eligible to submit a bid for a government project as soon as an application has been filed with the Registry. Documents required for registration vary depending on whether the applicant is an individual or company. A foreign contractor may reach an agreement with a registered Dominican contractor and then submit the bid under both names acting jointly.

The contractor must show it (i) has sufficient financial and human resources to perform the work, (ii) is current with its tax and social security obligations, and (iii) is not involved in any insolvency or reorganization proceeding or litigation.

SUBMITTING A BID

The government body seeking to purchase a good or service must publish a “call for bids” in a newspaper with national circulation indicating the nature of the good or service sought and where the Terms of Reference may be obtained. The Terms of Reference stipulate the qualifications needed, documents required, and conditions that a bidder must meet to be considered for a contract.

Terms of Reference vary according to the nature of the good or service sought and the particular needs of the procuring agency. Consequently, Terms of Reference must be reviewed carefully and every condition met to qualify for the contract. Failure to provide all essential information could immediately disqualify the bidder.

Contractor selection is dependent upon the number of points allocated to a bidder in a two-step process involving an evaluation of the bidder’s technical expertise and economic capability. The criteria for both evaluations are contained in the particular Terms of Reference. If the bidder meets the technical requirements, the bid is submitted to the next stage for an economic evaluation. A bidder who does not meet the technical requirements is immediately eliminated. Furthermore, price will not always determine which bidder is awarded the contract. If technical ability is of greater importance to the project, a bidder coming out of the evaluation process with a higher number of points in the technical area might be awarded the contract over a competitive bidder who has a better price, but received fewer points for its technical expertise.

DISPUTE RESOLUTION

A controversy arising from a bidding procedure for a government contract has to be filed before the administrative agency that granted the contract through its dispute resolution process. An administrative decision can then be appealed to the Department of Government Procurement, and further appealed to the Superior Administrative Court.

GUZMÁN ARIZA ON PUBLIC PROCUREMENT

Guzmán Ariza is the pioneer in public procurement law. When we saw the opportunities for our international clients presented in the DR-CAFTA international trade agreement, we worked to establish the field of public procurement law in the Dominican Republic to meet the objectives of that agreement. Today, we are experts in the field. We will counsel you on how to register as a bidder, meet demanding and specific terms and conditions, and comply with the procurement laws to successfully bid on any government project.The Dominican Republic has been steadily implementing institutional reforms to improve transparency and accountability in government contracting, modeling its procurement policies after international standards.

Law 340-06 of August 18, 2006, as amended by Law No. 449-06 of December 6, 2006, and Executive Order 490-07 of August 30, 2007, set forth the policies and regulations of the country’s government procurement practices, with the stated goal of establishing transparency and sound practices as the guiding criteria.

Article 2 of the Law vests the responsibility for administering the law with the Department of Government Procurement (Dirección General de Contratación Pública) under the authority of the Ministry of Treasury. This department formulates the general policies and regulations that govern the process of securing government contracts. However, each individual government body or state-owned company is responsible for establishing, within the confines of the Law, procurement practices and standards according to its specific needs, and for supervising the performance of granted contracts.

SCOPE OF THE LAW

Procurement law applies to all branches of government and government bodies, centralized and autonomous, whenever they are involved in contracting for goods, services, public works, or concessions with public funds. This includes both purchase contracts and leases, except those expressly excluded by law such as (i) contracts involving loans and donations from foreign states or international lending organizations (World Bank, Inter-American Development Bank, etc.); (ii) government borrowing contracts; (iii) public servant employment contracts, and (iv) inter-government agency contracts.

PUBLIC BIDDING

The guiding principles of public procurement law in the Dominican Republic are (i) equal and free competition, (ii) transparent and publicized transactions, (iii) responsible, reasonable, and good-faith dealings, and (iv) broad participation.

Public bidding is compulsory for any good, public work, or service exceeding a certain budget limit or a concession sought for a specific government project, with some exceptions noted below.

The public bidding process can be national or international, and restricted or open. Restricted bids are specified by law according to the value of the contract. Reverse or inverted bidding may also be used permitting all bidders to know the price of other bidders with the expectation of driving the price down. Other selection processes include the drawing of lots from a pool of qualified bids, or a price comparison method where there is not much variation in the standards to be met and price will guide the selection process. The particular process employed is dictated by the type of good or service sought and is stated in the Terms of Reference (Términos de Referencias) prepared by the procuring agency.

International bids must be considered if no national bids are received, or no national bidders can meet the qualifications and conditions in the Terms of Reference. International bids must also be considered if mandated by an existing treaty, such as DR-CAFTA..

Public bidding is not mandatory in all cases and a procuring agency may select and directly contract with a contractor if:

  1. the purchase is for national security reasons, an emergency;
  2. the purchase is for scientific or technical equipment, art work, or historic restoration that can be performed only by a specific enterprise or person;
  3. the purchase is available only through a specific enterprise or person;
  4. the purchase is for a previously declared emergency;
  5. the purchase is for a foreign service office to build, furnish, acquire, or lease an office;
  6. the purchase is to contract with a new party to complete a project for a price not to exceed 40% of the total project that was not performed by a previously selected contractor;
  7. the purchase is to promote micro, small, or medium-sized enterprises, and
  8. the purchase is for government announcements or advertising.

CONTRACTOR REQUIREMENTS

A contractor wishing to perform work for the government must register with the Registry of Government Suppliers (Registro de Proveedores del Estado). A contractor is eligible to submit a bid for a government project as soon as an application has been filed with the Registry. Documents required for registration vary depending on whether the applicant is an individual or company. A foreign contractor may reach an agreement with a registered Dominican contractor and then submit the bid under both names acting jointly.

The contractor must show it (i) has sufficient financial and human resources to perform the work, (ii) is current with its tax and social security obligations, and (iii) is not involved in any insolvency or reorganization proceeding or litigation.

SUBMITTING A BID

The government body seeking to purchase a good or service must publish a “call for bids” in a newspaper with national circulation indicating the nature of the good or service sought and where the Terms of Reference may be obtained. The Terms of Reference stipulate the qualifications needed, documents required, and conditions that a bidder must meet to be considered for a contract.

Terms of Reference vary according to the nature of the good or service sought and the particular needs of the procuring agency. Consequently, Terms of Reference must be reviewed carefully and every condition met to qualify for the contract. Failure to provide all essential information could immediately disqualify the bidder.

Contractor selection is dependent upon the number of points allocated to a bidder in a two-step process involving an evaluation of the bidder’s technical expertise and economic capability. The criteria for both evaluations are contained in the particular Terms of Reference. If the bidder meets the technical requirements, the bid is submitted to the next stage for an economic evaluation. A bidder who does not meet the technical requirements is immediately eliminated. Furthermore, price will not always determine which bidder is awarded the contract. If technical ability is of greater importance to the project, a bidder coming out of the evaluation process with a higher number of points in the technical area might be awarded the contract over a competitive bidder who has a better price, but received fewer points for its technical expertise.

DISPUTE RESOLUTION

A controversy arising from a bidding procedure for a government contract has to be filed before the administrative agency that granted the contract through its dispute resolution process. An administrative decision can then be appealed to the Department of Government Procurement, and further appealed to the Superior Administrative Court.

GUZMÁN ARIZA ON PUBLIC PROCUREMENT

Guzmán Ariza is the pioneer in public procurement law. When we saw the opportunities for our international clients presented in the DR-CAFTA international trade agreement, we worked to establish the field of public procurement law in the Dominican Republic to meet the objectives of that agreement. Today, we are experts in the field. We will counsel you on how to register as a bidder, meet demanding and specific terms and conditions, and comply with the procurement laws to successfully bid on any government project.The Dominican Republic has been steadily implementing institutional reforms to improve transparency and accountability in government contracting, modeling its procurement policies after international standards.

Law 340-06 of August 18, 2006, as amended by Law No. 449-06 of December 6, 2006, and Executive Order 490-07 of August 30, 2007, set forth the policies and regulations of the country’s government procurement practices, with the stated goal of establishing transparency and sound practices as the guiding criteria.

Article 2 of the Law vests the responsibility for administering the law with the Department of Government Procurement (Dirección General de Contratación Pública) under the authority of the Ministry of Treasury. This department formulates the general policies and regulations that govern the process of securing government contracts. However, each individual government body or state-owned company is responsible for establishing, within the confines of the Law, procurement practices and standards according to its specific needs, and for supervising the performance of granted contracts.

SCOPE OF THE LAW

Procurement law applies to all branches of government and government bodies, centralized and autonomous, whenever they are involved in contracting for goods, services, public works, or concessions with public funds. This includes both purchase contracts and leases, except those expressly excluded by law such as (i) contracts involving loans and donations from foreign states or international lending organizations (World Bank, Inter-American Development Bank, etc.); (ii) government borrowing contracts; (iii) public servant employment contracts, and (iv) inter-government agency contracts.

PUBLIC BIDDING

The guiding principles of public procurement law in the Dominican Republic are (i) equal and free competition, (ii) transparent and publicized transactions, (iii) responsible, reasonable, and good-faith dealings, and (iv) broad participation.

Public bidding is compulsory for any good, public work, or service exceeding a certain budget limit or a concession sought for a specific government project, with some exceptions noted below.

The public bidding process can be national or international, and restricted or open. Restricted bids are specified by law according to the value of the contract. Reverse or inverted bidding may also be used permitting all bidders to know the price of other bidders with the expectation of driving the price down. Other selection processes include the drawing of lots from a pool of qualified bids, or a price comparison method where there is not much variation in the standards to be met and price will guide the selection process. The particular process employed is dictated by the type of good or service sought and is stated in the Terms of Reference (Términos de Referencias) prepared by the procuring agency.

International bids must be considered if no national bids are received, or no national bidders can meet the qualifications and conditions in the Terms of Reference. International bids must also be considered if mandated by an existing treaty, such as DR-CAFTA..

Public bidding is not mandatory in all cases and a procuring agency may select and directly contract with a contractor if:

  1. the purchase is for national security reasons, an emergency;
  2. the purchase is for scientific or technical equipment, art work, or historic restoration that can be performed only by a specific enterprise or person;
  3. the purchase is available only through a specific enterprise or person;
  4. the purchase is for a previously declared emergency;
  5. the purchase is for a foreign service office to build, furnish, acquire, or lease an office;
  6. the purchase is to contract with a new party to complete a project for a price not to exceed 40% of the total project that was not performed by a previously selected contractor;
  7. the purchase is to promote micro, small, or medium-sized enterprises, and
  8. the purchase is for government announcements or advertising.

CONTRACTOR REQUIREMENTS

A contractor wishing to perform work for the government must register with the Registry of Government Suppliers (Registro de Proveedores del Estado). A contractor is eligible to submit a bid for a government project as soon as an application has been filed with the Registry. Documents required for registration vary depending on whether the applicant is an individual or company. A foreign contractor may reach an agreement with a registered Dominican contractor and then submit the bid under both names acting jointly.

The contractor must show it (i) has sufficient financial and human resources to perform the work, (ii) is current with its tax and social security obligations, and (iii) is not involved in any insolvency or reorganization proceeding or litigation.

SUBMITTING A BID

The government body seeking to purchase a good or service must publish a “call for bids” in a newspaper with national circulation indicating the nature of the good or service sought and where the Terms of Reference may be obtained. The Terms of Reference stipulate the qualifications needed, documents required, and conditions that a bidder must meet to be considered for a contract.

Terms of Reference vary according to the nature of the good or service sought and the particular needs of the procuring agency. Consequently, Terms of Reference must be reviewed carefully and every condition met to qualify for the contract. Failure to provide all essential information could immediately disqualify the bidder.

Contractor selection is dependent upon the number of points allocated to a bidder in a two-step process involving an evaluation of the bidder’s technical expertise and economic capability. The criteria for both evaluations are contained in the particular Terms of Reference. If the bidder meets the technical requirements, the bid is submitted to the next stage for an economic evaluation. A bidder who does not meet the technical requirements is immediately eliminated. Furthermore, price will not always determine which bidder is awarded the contract. If technical ability is of greater importance to the project, a bidder coming out of the evaluation process with a higher number of points in the technical area might be awarded the contract over a competitive bidder who has a better price, but received fewer points for its technical expertise.

DISPUTE RESOLUTION

A controversy arising from a bidding procedure for a government contract has to be filed before the administrative agency that granted the contract through its dispute resolution process. An administrative decision can then be appealed to the Department of Government Procurement, and further appealed to the Superior Administrative Court.

GUZMÁN ARIZA ON PUBLIC PROCUREMENT

Guzmán Ariza is the pioneer in public procurement law. When we saw the opportunities for our international clients presented in the DR-CAFTA international trade agreement, we worked to establish the field of public procurement law in the Dominican Republic to meet the objectives of that agreement. Today, we are experts in the field. We will counsel you on how to register as a bidder, meet demanding and specific terms and conditions, and comply with the procurement laws to successfully bid on any government project.The Dominican Republic has been steadily implementing institutional reforms to improve transparency and accountability in government contracting, modeling its procurement policies after international standards.

Law 340-06 of August 18, 2006, as amended by Law No. 449-06 of December 6, 2006, and Executive Order 490-07 of August 30, 2007, set forth the policies and regulations of the country’s government procurement practices, with the stated goal of establishing transparency and sound practices as the guiding criteria.

Article 2 of the Law vests the responsibility for administering the law with the Department of Government Procurement (Dirección General de Contratación Pública) under the authority of the Ministry of Treasury. This department formulates the general policies and regulations that govern the process of securing government contracts. However, each individual government body or state-owned company is responsible for establishing, within the confines of the Law, procurement practices and standards according to its specific needs, and for supervising the performance of granted contracts.

SCOPE OF THE LAW

Procurement law applies to all branches of government and government bodies, centralized and autonomous, whenever they are involved in contracting for goods, services, public works, or concessions with public funds. This includes both purchase contracts and leases, except those expressly excluded by law such as (i) contracts involving loans and donations from foreign states or international lending organizations (World Bank, Inter-American Development Bank, etc.); (ii) government borrowing contracts; (iii) public servant employment contracts, and (iv) inter-government agency contracts.

PUBLIC BIDDING

The guiding principles of public procurement law in the Dominican Republic are (i) equal and free competition, (ii) transparent and publicized transactions, (iii) responsible, reasonable, and good-faith dealings, and (iv) broad participation.

Public bidding is compulsory for any good, public work, or service exceeding a certain budget limit or a concession sought for a specific government project, with some exceptions noted below.

The public bidding process can be national or international, and restricted or open. Restricted bids are specified by law according to the value of the contract. Reverse or inverted bidding may also be used permitting all bidders to know the price of other bidders with the expectation of driving the price down. Other selection processes include the drawing of lots from a pool of qualified bids, or a price comparison method where there is not much variation in the standards to be met and price will guide the selection process. The particular process employed is dictated by the type of good or service sought and is stated in the Terms of Reference (Términos de Referencias) prepared by the procuring agency.

International bids must be considered if no national bids are received, or no national bidders can meet the qualifications and conditions in the Terms of Reference. International bids must also be considered if mandated by an existing treaty, such as DR-CAFTA..

Public bidding is not mandatory in all cases and a procuring agency may select and directly contract with a contractor if:

  1. the purchase is for national security reasons, an emergency;
  2. the purchase is for scientific or technical equipment, art work, or historic restoration that can be performed only by a specific enterprise or person;
  3. the purchase is available only through a specific enterprise or person;
  4. the purchase is for a previously declared emergency;
  5. the purchase is for a foreign service office to build, furnish, acquire, or lease an office;
  6. the purchase is to contract with a new party to complete a project for a price not to exceed 40% of the total project that was not performed by a previously selected contractor;
  7. the purchase is to promote micro, small, or medium-sized enterprises, and
  8. the purchase is for government announcements or advertising.

CONTRACTOR REQUIREMENTS

A contractor wishing to perform work for the government must register with the Registry of Government Suppliers (Registro de Proveedores del Estado). A contractor is eligible to submit a bid for a government project as soon as an application has been filed with the Registry. Documents required for registration vary depending on whether the applicant is an individual or company. A foreign contractor may reach an agreement with a registered Dominican contractor and then submit the bid under both names acting jointly.

The contractor must show it (i) has sufficient financial and human resources to perform the work, (ii) is current with its tax and social security obligations, and (iii) is not involved in any insolvency or reorganization proceeding or litigation.

SUBMITTING A BID

The government body seeking to purchase a good or service must publish a “call for bids” in a newspaper with national circulation indicating the nature of the good or service sought and where the Terms of Reference may be obtained. The Terms of Reference stipulate the qualifications needed, documents required, and conditions that a bidder must meet to be considered for a contract.

Terms of Reference vary according to the nature of the good or service sought and the particular needs of the procuring agency. Consequently, Terms of Reference must be reviewed carefully and every condition met to qualify for the contract. Failure to provide all essential information could immediately disqualify the bidder.

Contractor selection is dependent upon the number of points allocated to a bidder in a two-step process involving an evaluation of the bidder’s technical expertise and economic capability. The criteria for both evaluations are contained in the particular Terms of Reference. If the bidder meets the technical requirements, the bid is submitted to the next stage for an economic evaluation. A bidder who does not meet the technical requirements is immediately eliminated. Furthermore, price will not always determine which bidder is awarded the contract. If technical ability is of greater importance to the project, a bidder coming out of the evaluation process with a higher number of points in the technical area might be awarded the contract over a competitive bidder who has a better price, but received fewer points for its technical expertise.

DISPUTE RESOLUTION

A controversy arising from a bidding procedure for a government contract has to be filed before the administrative agency that granted the contract through its dispute resolution process. An administrative decision can then be appealed to the Department of Government Procurement, and further appealed to the Superior Administrative Court.

GUZMÁN ARIZA ON PUBLIC PROCUREMENT

Guzmán Ariza is the pioneer in public procurement law. When we saw the opportunities for our international clients presented in the DR-CAFTA international trade agreement, we worked to establish the field of public procurement law in the Dominican Republic to meet the objectives of that agreement. Today, we are experts in the field. We will counsel you on how to register as a bidder, meet demanding and specific terms and conditions, and comply with the procurement laws to successfully bid on any government project.