In the case of procurement of goods and services, there is no requirement of prior registration in the suppliers record. Decree Number 825/88 (which amends Section 61 of the Accounting Law and Decree Number 5,720/72) establishes that the National Accounting Office shall maintain a list of suppliers that includes every company that offers or contracts with the government, and which registration may be requested by the entity organizing the bidding within five days after the opening of the offers.

Section 61, subsection 2.(c) of Decree Number 5,720/72, (amended by Decree 825/88) sets forth that, in order to enter into a contract with the government, the party must be established in the country, but waives this requirement in the case of foreign companies without subsidiaries or local representatives, when they submit offers in international bids (Section 61, subsection. 3 (g).

In the case of public works, registration in the National Public Works Constructor Registry (Section 13 of Act Number 13,064) is an indispensable prerequisite to the effects of qualification and training of the companies. The registry is regulated by Decree Number 756/81, which establishes the capabilities of a Council formed by national administration entities. These are aimed at the classification and qualification of the companies pursuant to their technical, executive (economic and productive) and procurement (Section 22) capacity, as a requirement to authorize them in the Registry. The duration of the qualification is 1 year and a half.

The regime allows some exceptions to the prior registration requirement, for example, when contracting capacity inferior to the one periodically specified by the Council is required. Likewise, the Council may authorize the one time only presentation of non registered local companies in the bidding process whenever there are exceptional factor in relation to the works execution, if they possess domestic or foreign verifiable background, that converts them in creditors to be considered with sufficient technical and financial capacity.

Also, the Council may authorize the participation in international bids of foreign companies not registered in the Registry, when in their opinion they have adequate financial and technical capacity (Section 30 of Decree 756/81).

When dealing with local and foreign consortia, the contracting capacity granted to them by the Registry will be that exclusively corresponding to local companies.

The requirements for bidders are generally set forth by international loan agencies that require that the bidders belong to the member countries. In the case of public works, there are requirements for registration.

There are residence and inscription requirements for the local suppliers. The foreign suppliers will be invited when the good or service may not be purchased in the local market or when international funds are used. The method currently used is that of prequalification.

As part of the administrative conditions of all public sector contracting, it is mandatory that potential suppliers be registered in the national public registry. The areas requiring a certificate of registration are: (a) construction of works, (b) consulting, auditing and other services, and (c) insurance. Please refer to answer in question 7.2

Registration: When a supplier decides to participate in bids of the different fields of the public sector, he should register in each one of them. As of November 1996, a more transparent national system has been implemented helping the gathering of information through Internet, and facilitating the access to other suppliers. When a supplier registers in a credited entity, present throughout the country, it is automatically registered in any other entity. In addition, since March 1997, federal entities with agencies in Brasilia have disclosed all bidding procedures through the Ministry of Administration and State Reform via the Internet.

Extension of this system it?s been made, as to cover the whole country and prices will be incorporated as stated by the government.

Residency: There is no requirement.

Requirements for foreign suppliers: There is no distinction made; on the contrary, Article 42 of Law 8,666 requires that the public notices be published meeting international requirements, for example, when international financial agencies are involved.

Article 42: In international concorrência, the bidding documents should be adjusted according to monetary policy and foreign trade and respond to the requirements of the regulating bodies.

First paragraph: When a foreign bidder is permitted to place a bid in foreign currency, a Brazilian bidder may do the same.

Second paragraph: Payment made to the Brazilian bidder contracted under a call for bidding allowing bids in foreign currency will be made in Brazilian currency at the exchange rate in effect on the day prior to payment.

Third paragraph: Security deposits for Brazilian and foreign bidders will be the same.

Fourth paragraph: In the evaluation of the bidding, proposals presented by foreign bidders will be taxed at the same rate as paid exclusively by Brazilian bidders with respect to the final business deal.

Fifth paragraph: For the construction of works, services rendered and the procurement of goods with resources from donations or financing from international development agencies or multilateral institutions of which Brazil is a member, the call for bidding may take into account provisions from international agreements, protocols, conventions or treaties approved by Congress, such as the procedures and regulations of said entities with respect to proposal selection criteria. This criteria may contemplate, besides the price, other evaluation factors which are required for obtaining of the loan or grant, as long as there is no conflict with the objective selection principle which they are subject to by the contracting entity and ratified by its superior authority.

Sixth paragraph: Bid quotations will be delivered at the same place.

Lists of registered suppliers, contractors or consultants may be used to solicit competitive proposals for requirements below C$10,000 (US$7,203) for printing, below C$25,000 (US$18,006) for most goods and services, and below C$60,000 (US$43,215) for real estate services, construction, architectural and engineering consulting, leasing and maintenance services. Qualifications vary and are generally relevant to the type of business, and could include licensing requirements or meeting international product standards, as well as, financial and technical capability.

There are no residence requirements. In the case of public works, there is a specific Registry for General Contractors of major works, of central managing and minor works at regional level, where construction companies are registered in their specialties according to their experience, and in categories according to their economic capability, in accordance to the stipulations set forth in the Regulation for Public Works Contracts (R.C.O.P.).

The categories in the Major Works Registry go from 3 to 1 for each specialty, which establishes to which works they can aspire, pursuant to the amount and kind of project, whether it be paving, land movement, reinforced concrete, etc.

All persons, natural or legal, who anticipate entering into a work, consulting, supply and purchasing/sale of real estate contract with public entities must register with the Chamber of Commerce of their jurisdiction. The registry of bidders is done in a form specifically prepared by the government.

It is also set out that, when a natural foreign person with no domicile in the country, or a foreign legal person with no subsidiary in Colombia that intends to present a proposal or to enter into contracts with public entities, should be registered as bidders, unless they can prove the existence of their registration in the corresponding record in the country where they have their principal domicile. Additionally, such companies will have to show evidence of a proxy domiciled in Colombia duly empowered to present the proposal and to enter into the contract, as well as to represent them in court and out of court.

Pursuant to the Administrative Procurement Law and its regulation, there is a need for a suppliers registry for registered and restricted bidding procedures. Any party contracting with the Administration can be entered into the registry as long as it satisfies the solvency, background and expertise requirements established by each committee or entity, through duly published internal regulations in the Daily Newspaper. In the case of the central government, the entities that operate in a decentralized way have to check the registry administered by the National Procurement Office. In order to keep them up to date, the Administration will invite the parties to be incorporated, through publication in the Daily newspaper and two newspapers of countrywide circulation, at least once a year.

The agencies and administrative entities may agree to exchange the information contained in their records, in order to update and expand them. In the case of entities that by the volume of their operations do not have an appropriate record, the use of suppliers record belonging to others is authorized. In that case, they are authorized to keep them in an electronic medium.

It is important to mention that when dealing with foreign providers, we must insist that discrimination is avoided. However, we must mention that the principle of reciprocity is contained in the Section 5 of the Administrative Procurement Law which establishes that the participation of foreign bidders is governed by the same. According to this principle, foreigners should be treated in the same way they would be treated in the foreigners country of origin. The power of this principle was conditioned to the regulation established by the Administration. In this regard, Section 5 of the regulation to that law establishes that foreigners are prevented from obtaining participation advantage, if the nationals do not have the same advantages in their country of origin. In order to prove the reciprocity, the Administration can request, as a condition to participate in the bidding, evidence of the aspects it considers relevant.

Among other interesting regulations, within the administrative contracting provisions, are those which establish that the bidder may participate through a foreign-company representative, which must be indicated in the original proposal. In order for that person to act on their behalf, the existence of a representation contract must be proved in a reliable way. Furthermore, they can participate under any other form authorized by the common law.

In the case of public works concessions, there are specifications for the case of foreign bidder corporations, which must present, before signing the contract, an affidavit signed before notary public where they irrevocably undertake to comply with the requirements set out in subsection 4, Section 8 of Act Number 7,404. As indicated before, foreign companies are required to either move their corporate headquarters to national territory, before signing the contract, or to create an autonomous domestic corporation, which corporate capital they will own entirely, and which will be the concessionaire. Furthermore, it is required that shares be registered shares of stock. In addition, it is important to note that in equal conditions, in accordance with the provisions of Section 14 of the law, domestic companies will be prioritized (this section indicates that, in the selection process of the concessionaire, each time a potential concessionaire does not build the public work will, but subcontracts its construction to another company, offers that indicate that such subcontract will be performed by domestic companies will be given preference over the other offers).

The affidavit, just like the contract, must be subscribed by a person with legal capacity to contract and sign on behalf of the corporation for commitments, which must be evidenced in a official document, issued in accordance with the legislation of their country and legalized by the corresponding Consul of Costa Rica and by the Ministry of Foreign Relations. The certification which evidences that the corporation is validly incorporated in its main domicile must go through the same two instances.

Another requirement establishes that, among the purposes of the corporation, whether Costa Rican or foreign, an indication that it can execute public works concessions, for which purpose it is required that the corporate bylaws define the corporate powers and grant the necessary powers to enter into contracts, execute and fulfill the contracting in all its economic and legal aspects and responsibilities before the Administration and before third parties. Such corporate social term must be at least ten years greater than that of the concession.

In public bidding, the only registration requirement is that of payment of the amount set forth in the invitation to bid, which is the same for nationals and foreigners.

According to the Public Procurement Law, suppliers must demonstrate their legal existence in Ecuador, in the case of legal persons created in Ecuador, and of the Consul of Ecuador based on the decision of the jurisdiction authority in the country where the foreign company has their principal domicile, in the case of foreign legal persons. In all cases, the legal person should present the appointment of the legal representative or a proxy in Ecuador, duly legalized and registered.

The Law of Consulting Services establishes that the subscription of contracts, the consultant companies should be registered in the Consultants Registry, after setting up domicile in Ecuador, pursuant to the law.

Our legislation has considered composing a register of purchasers or suppliers for the institution, which would be updated periodically (every year), to be arranged by lines, branches or categories, containing:

1. Facts and information about the suppliers
2. Location
3. Type of activity, commercial or productive
4. The goods offered
5. Material qualifications of technical capacity and fulfillment of contracts

There is no difference in the requirements for foreign suppliers.

Suppliers must be registered in the Mercantile Registry, as a natural or legal person. A tax identification number is required. Same requisites apply to foreign suppliers, and they should be registered in the Mercantile Registry and have a tax compliance certification number.

There are registration requirements for potential suppliers, both local and foreign. The present system used for registering both local and foreign suppliers is that of a prequalification or postqualification exercise for contracts exceeding JA$356,100 (US$10,000).

Exchange rate as of May 1, 1997, was US$1 = JA$35.61.

The Mexican procurement system does not consider the inscription in supplier records as an obligatory requirement to participate in a particular bidding. The only requirement consists in acquiring the bidding terms and conditions, without any preference or difference for the sale with respect to nationality, residence of the suppliers or type of purchases. In all cases, the information, and documentation requirements must be complied with, satisfactorily by all bidding parties interested in participating in the tender.

The Article 33 of the Law provides that all the required conditions must be stipulated in the public notice and in the bidding documents, this guarantees that all the suppliers know with sufficient anticipation the requirements to participate.

There are some and they are no different for foreign and domestic suppliers.

The Law does not require that foreign companies bid through an agent or representative established in Panama. Nevertheless, due to the fact that the bidding processes include previous meeting periods to answer questions and make observations, the physical presence of the bidders or their representative during the process; interested management by the party, in addition to the requirements to obtain bidder certificate, the presentation of offer is facilitated through representative or agents established in Panama.

The requirement for bidder registration or not in local registries or in other form remains to the criteria of each one of the institutions. However, we must clarify that since the month of January 1997, registration in the Central Registry of Suppliers and Contractors of the State is an obligation of the bidders with intentions of contracting with the government. In nearly every invitation to bid, foreign companies are required to have official representation in the country by means of a proxy letter or a general proxy negotiate on behalf of the foreign company.

Any natural or legal person may be a supplier registered as such and acting in accordance to the law, either operating in the country or abroad, entrusted with the marketing of goods that may be needed. Registration of suppliers is not necessary in order to participate in the government procurements.

The legal or natural persons residing in the Peru may participate in bids and contract the execution of public works, after previously registered in the National Public Works Contractors Registry maintained by the Superior Council of Bids and Public Works Contracts (CONSULCOP). It is worth indicating that public bids are opened to all sorts of bidders, whether they be domestic, foreign.

Trinidad and Tobago requires the registration of contractors and suppliers for selective procedures. This requisite also exists for consultants in their respective category. All suppliers, contractors and consultants should be registered in order to participate in private bids, although this is not required for public bids. With reference to international competitive bidding with loan funds the requirement is that bidders belong to member countries.

Generally, the United States does not have registration, residence or other requirements for potential suppliers. However, on a particular procurement, the government might require the contractor to be within a limited distance of the site of contract performance. This requirement would be in the solicitation and applicable to all bidders and would only relate to a legitimate need of the contracting entity to have the contractor in close proximity. Additionally, for sensitive procurements, a contractor may have to have appropriate security clearances, which may be obtainable by foreign suppliers.

Section 43 of the TOCAF, establishes that the natural or legal, domestic or foreign persons, capable of contracting with the State, are those that having the legal capacity described in common law, are not within the provisions that expressly impedes them or in the following cases:

1. Be a public official working for an agency of the contracting administration, not allowed to receive offers on their own account or on account of companies or entities with which the official is linked because of management or dependency reasons. Nevertheless, in this last case, and being an official that does not have intervention in the state agency in which the procurement process takes place, the offers presented where this event is noted will be valid.
2. Having been declared bankrupt or liquidated, or in bankruptcy procedures, as long as the corresponding rehabilitation has not been obtained.
3. For prior breach of contract, that may have generated tort and contractual liability, or any other circumstance that may have motivated their exclusion from the suppliers registry, whether special or general of the State.
4. For lack of practice in the trade or industry that corresponds the contract, except in the case of new companies that proves solvency and responsibility.

For the above-mentioned reasons, the definition and the exceptions are clear. Since the obligation of having commercial representation in our country or of constituting domicile is not specifically set forth, if this is requested from the foreign bidder, this would have to be especially included in the bidding terms.

In order to participate in a tender procedure or direct awarding promoted by agencies or entities that are subject to the Law of Tendering Procedures, suppliers must be registered in the National Registration of Suppliers System. This requirement is has to be met by foreign suppliers as well. Conditions vary as they do not need to register as suppliers to participate in a direct award when the amount is lower than Bs.700, 000, and in the selective tender or direct awarding procedures.

In the case of procurement of goods and services contracting, the parties must have binding capacity, in-country business or factory, patent to trade, provide required reports or references and satisfy all requirements common to those in the trade, including the requirement of due record keeping of accounting operations (journal, inventories, balance sheets, etc.) described in Section 33 and 44 of the Trade Code. In addition to these requirements which are waived for foreign companies when participating in international bidding, there are other offerers that for various reasons do not need to comply with these requirements, or are not allowed to contract (subsection 4, Section 61 of Decree 5270).

In relation to the bidding process in itself, in the case of procurement of goods and services, the bidders must establish an offer guarantee equal to 5% of the total value of the offer to ensure compliance with their obligations, or of 10% of such value in the case of permits or concessions (Section 61, subsection 33 of Decree 5,720/72). The bidder is not required to establish a guarantee as of the moment of presentation of the offer, but the bidder is obliged to set it up at the request of the bidding authority (Section 61, subsection 37).

In matter of public works, the bidder must deposit in cash or securities, a guarantee equal to 1% of the value of the official budget of the work in question in addition to the previous qualification requirements (see clause 7.a), and before presenting their proposal. In the case of procurement that exceed of $69,000, there is no requirement to establish a prior guarantee deposit, but the bidder is obliged to set it up at the request of the bidding authority (Section 14 of Act 13,064).

Regarding the concessions regime, every initiative of individuals for the integral project bidding must attach a maintenance guarantee that may not be less than 2% of the amount of the work. This guarantee will be enforceable if the bidder does not present an offer, but it may be converted into an offer guarantee in the event that the bidding is called. Nevertheless, if the offer is effected at a later time and is less than 2% ? with a tolerance of the 30% ?, the bidder will not be considered author of the initiative.

In addition, the initiative presented by the individuals in addition to the identification and nature of the work and the technical and economic feasibility conditions, the full bidder background, in the case of Argentine companies, their registered contracting capacity.

Financial guarantees, commercial standing and technical qualifications/conditions apply. They (conditions) vary inversely with value of procurement.

All responsible offers will be taken into account. An assessment of the technical and managerial capacity of the bidders is made. Also, the background of the company is reviewed

The following generic documents are to be submitted:

1. A legal copy of the Registro de Comercio y Sociedades por Acciones (RECSA) [Trade Registry and Share Agencies] and power of the legal representative, when deemed appropriate.
2. A legal copy of the Registro Único de Contribuyentes (RUC) [Sole Registry for Contributors]
3. In the case of random association or consortia, the corresponding contract must be submitted with a reference to the percentage share of the associates, including the name of the legal representative.
4. Guarantee of seriousness in the proposal
5. Statement on the part of the proposing parties certifying contract execution carried out during the last five years with entities of the public and private sector, and certification of not being suitable of incompatibility or inability.
6. Information on the financial and economical capacity of the proposing parties in reference to the scope of the proposal.
7. Payment receipt for the bidding documentation.
8. Technical and economic proposals, according to what is established in the bidding documentation.

In order to rate the proposals, several criteria are applied: the experience of the supplier, the technical people, its economical and financial capacity, the price, etc. These criteria vary lightly according to the area for which there will be a contract. Please refer to the answer in question 3.1 (iii, iv and v).

In addition, the following documentation is required for each area:

1. For construction of works:

1. Balance of the last two contracts, with outside audit if it applies, and a receipt of having submitted to the Dirección de Impuestos Internos [Internal Taxation Agency]. New companies will be able to submit the opening balance and a statement of account that verifies its balance for the time the company has existed as such.
2. Relation of the proposing party?s experience in works and similar activities with the list of professionals and technicians who intervened, and the contracting price and modifications, if any.
3. Name and curriculum vitae of the professionals and technicians who will participate and commitment to work in terms of time.
4. Relation and essential characteristics of the machinery and equipment, including the time of usage, tools and articles utilized, specifying its origin if necessary.
5. If machinery or equipment needs to be leased, the certification of property will be requested and a legal copy of the commitment subscribed with the owner that will guarantee the availability of such equipment in a timely fashion and according with the timetable established.
6. The registration cerfiticate at the national registry of building companies of the National Secretary of Transport, Communication and Civil Aeronautic.

1. For consulting, auditing and other services:

1. The technical proposal will include the work?s scope and objectives, the program of activities, personal assignments with established deadlines, documents of technical expertise for the assessment and qualification of the professional, specialized, and principal staff assigned to do the work.
2. The registration certificate of the consulting firm controlled by the governing agency, who will demand for its registration only documents proving the professional competence of the personnel responsible for the firm, a summary of their line of work, lists of works and personnel who performed, a legal copy of the registration at the RUC, a legal copy of registration at the RECSA. The registry will be updated annually.

1. Insurance

1. Single certificate issued by the Superintendencia Nacional de Seguros y Reaseguros [National Superintendency of Insurance and Reinsurance], samples of the policy and annexes granted in case of awarding, and terms and conditions not including amounts.
2. Automatic reinsurance contracts made legal by the Superintendencia Nacional de Seguros y Reaseguros.
3. Distribution of risk, stating amounts and percentages self retained and those grated to automatic contracts
4. Name, address, origin and information of the provider of the reinsurance.
5. Name, address, origin and information of insurance agency.
6. Balance of the last two contracts, with outside audit if it applies, and a receipt of having submitted to the Dirección de Impuestos Internos [Internal Taxation Agency] and made legal by the National Superintendency of Insurance and Reinsurance.
7. In the case of proposals of coinsurance, the contract of random association between insurance companies, with the detail of percentage participation and identification of the leading company.

1. For companies specialized in contracts

Certification of registration with the National Secretary of Investment.

Depending upon the type and value of the procurement, there may be additional requirements to the basic and general requirements already described, if the contracting entity deems it necessary. The requirements as to the security deposit are limited to what is established in Article 56 of Law 8,666:

Article 56 - On a case by case basis, according to the presiding authority and in accordance with the requirements of the call for bidding, a security deposit may be required in contracts for the construction of works, services and goods.

First paragraph. The contractor may opt for one of the following types of security deposit:

1. Public bonds or cash bond
2. Guarantee insurance
3. Bank collateral

Second paragraph. The security deposit referred to in this article may not exceed 5% of the value of the contract and its value will be adjusted under the same conditions as the contract itself, except for those cases as applied by Paragraph 3.

Third paragraph. For works, services or a high procurement volume involving a high degree of technical complexity and considerable financial risk, as demonstrated by the presiding authority, the limit on the security deposit as specified in the previous paragraph will be raised to up to 10% of the value of the contract.

Fourth paragraph. The security deposit presented by the contractor will be returned after the contract is executed and when involving currency will be adjusted monetarily.

Fifth paragraph. Contracts involving the delivery of goods to the Administration, of which the contractor will serve as the depository, the amount in the guarantee will have to be raised to the value of the goods.

Contracting authorities have a duty to protect the financial interests of the government. When the bid solicitation requires the submission of bid security, the amount should be determined by the contracting authority in advance. When a bidder has submitted less than the financial security stipulated, the bid will generally be considered as nonresponsive. Usually, other additional standards have to be met by Canadian firms, such as health and safety or employment equity considerations.

The requisites for the participation of suppliers are preestablished in the bidding documents and include financial guarantees, commercial standing and technical qualification. Some entities require the registration of suppliers in their respective lists.

In addition to requiring the registration of suppliers, it is mandatory for the bidders to submit a "guarantee of seriousness" or a deposit (its value will be determined in the bidding documents), which is usually equivalent to 10% of the estimated official budget (Law 80 of 1993 Article 30.12)

The Law of Administrative Procurement and its regulation set forth that there are two sorts of guarantees. The first one, participation guarantee, may be of 1 to 5% of the value of the proposal, which must be defined in the bidding terms. This is the method by means of which the offer is authenticated, and then the mistakes that can be remedied are corrected. The exact determination of the amount is set forth by the Administration depending on the complexity of the object, and on the need to support the damages that may be caused by the lack of fulfillment of the bidder. In the event that the specification in not included in the bidding terms, the indicated minimum amount is applied. The Administration is also authorized to establish a fixed guarantee amount (in cases as not-assessable value or when it does not represent expenditure thereof). For greater detail, refer to Section 33 of the mentioned regulation.

This guarantee may be requested in public and registered bids, and it is optional in the other procedures.

It is worth mentioning that the setting up of the floating guarantee is authorized, which supports the same bidder in various bids (Section 34 of the cited regulation).

The second guarantee is a compliance guarantee, that is between 5 and 10% of the amount of the procurement, and which must also be defined in the bidding terms. This guarantee is executed if there are damages caused by the contractor. If there is criminal clause in case of delay, the guarantee can only be executed if the contractor refuses to pay the corresponding amount.

This must be demanded in public and registered bids, and optionally, in the rest of the procedures, which must be indicated in the bidding terms. Should these not be included, it is understood that a 5% is required. And, should the term for presenting it not be included in the bidding terms, it is understood that there must be at least 10 business days following the act. The Administration is also authorized to establish fixed amounts (see Section 34 and 35 of the mentioned regulation).

For greater detail, review Section 37 of the above-indicated regulation, where common elements to both guarantees are described.

In the case of concessions of public works, three types of guarantees are required. The first one is for participation in the public bidding, the second for fulfillment of the execution of the work, and the third one for fulfillment of the development of the work. Regarding the participation guarantee, it is understood that such guarantee backs the maintenance and seriousness of the offer until the corresponding official document has been granted and the following guarantee is provided. The value is between 1% and 5%, depending on the amount allocated in the offer to the cost of the new work, or to the cost of the repair, expansion, conservation or restoration of the existing public work. The greater possible participation must be ensured, as well as the seriousness of the bidders.

Regarding the guarantee for the execution of works, it must be set forth in the bidding terms, that is 5% of the cost assigned to the construction of the new work in the offer, or of the cost of the repair, expansion, conservation or restoration of the existing work. With the authorization of the General Controllership of the Republic, and as specifically indicated in Section 28 of the regulation to Act Number 7,404, a greater amount may be required. Should the bidding terms not specify the time frame to provide it, it is understood that it must be made within 30 business days of the notary certificate, which must be subscribed.

Concerning the third guarantee, the one for fulfillment of the development of the work, it must be provided within 10 business days following the date in which the Administration receives the work and is fully satisfied. The amount is fixed by the Administration through a percentage based on the annual average of expenses estimated necessary to take care, repair and maintain the goods object of the concession. It must also be set forth in the bidding documents.

As a rule, Ecuadorian legislation requires guarantees of seriousness of offers, fulfillment of contracts and advances for the submission of bids and execution of contracts.

Concerning background or technical qualifications, they vary according to the nature of the purchases to be carried out.

Conditions do exist:

• Name of the owner or legal representative;
• current address;
• registration number at the Ministry of Finance;
• trade solvency, bank guarantee;
• guarantee for good work and execution;
• working experience in the required service;
• NJT;
• personal identification card of the owner or legal representative;
• deed or document establishing the company and/or firm; and
• trade registration number

Yes, conditions do vary in accordance with the nature of the bidding process and/or the procurement value.

Studies of technical and financial capacity were made, as well as work experience and organization of staff. Same conditions are applied.

Required conditions for suppliers? participation include the following:

1. The supplier provides proof of financial, technical and managerial capability in order to determine whether the supplier can satisfactorily perform the terms of the contract.
2. The conditions of participation do not vary according to the nature of the tender process and/or the value of the procurement. Some of the criteria for inclusion on the approved list of suppliers of goods are:

1. the supplier be a registered company;
2. the supplier should provide proof of payment of income tax, general consumption tax and other statutory deductions;
3. the supplier should have in stock the commodities being offered;
4. the supplier should have an established place of business with a business address.

Site inspection is also carried out to verify whether the business can accommodate the orders that will be made.

In addition, Contractors must submit with its proposal a guarantee of maintenance of bid, equivalent to 2% of the offer, and guarantee of completion of works, equivalent to a 10% of the offer.

The legislation applicable for setting up financial guarantees is described in Article 38 of the Law, by virtue of which those who participate in the bids or enter into contracts must guarantee the seriousness of the proposals, the advance payments carried out and the fulfillment of the contract. The entity inviting to bid will keep the applicable guarantees until the date of the award decision, when the guarantees will be returned to the bidders except for the guarantee from the successful bidder, which will be retained until the contract has been fulfilled.

There are conditions to participate in the bidding. Maintenance and fulfillment of offer guarantees, as well as commercial background or technical qualifications. Conditions do not vary in accordance with the nature or the amount of the purchase.

To participate in an public procurement act, the bidders must provide a proposal guarantee for a value not greater than 10% of the total proposal and for a time period not longer than 120 days, as established in the bidding documents. In the case of rental of goods to the State, the guarantee shall be equal to 2 months of rental fees of the good in question. Regarding the technical qualifications and commercial background, they should be in accordance with the bidding terms, which will vary according to the nature and the value of the procurement in question.

Each institution prepares the bidding terms and conditions, which causes guarantees requested from bidders to differ for each bidding institution, but the generally requested guarantees which are generally requested are: guarantee of maintenance of offer, stipulated between 5 and 10% of the total amount of the offer, and which can be translated into an insurance policy. The bidder is also requested an affidavit stating that it has never had any kind of supply problems with the State in a certain period of time. Likewise, Act Number 125 on taxation sets forth that companies must present proof of tax contribution. In the case of public works, company are required to prequalify.

For suppliers to participate in government procurement, the following is required:

1. Presentations letters
2. Customer portfolio
3. Commercial background
4. Affidavits on supplier estoppels, which are:

• not having any pending lawsuit with the government,
• not having been declared bankrupt,
• not being public official or employee, nor spouse or kin up to the fourth degree of consanguinity and second of affinity

1. Security deposit in the form of a letter or a Manager?s check to be cashed immediately, with no conditions and to the order of the public entity for an amount equivalent to 5% of the total offer.

As previously indicated, the bidder or contractor must accredit registration in the mentioned Registry by means of a registration certificate, which has a one year validity and must be renewed periodically.

A public works contractor who participates in a public or selective price bidding may be disqualified, if the certificate that is presented in not valid as of that date. In addition, contractors must present the required documentation for the bidding of a given work.

The person who develops the corresponding project for the execution of the public work, may not participate as a bidder in invitation to tender.

In this regard, it must be added that according to Act Number 23,835, that the following parties cannot participate as bidders in the procurement of public works or supplies with public funds, as well as in the purchase or sale of goods, carried out by public bidding or in any other form legally set out for emergencies: Senior Directors and General Directors of the Ministries and those people who occupy similar positions in public or mixed economy companies; those legal persons in which they may be shareholders cannot participate, if their participation is greater than 10% of the corporate capital.

Likewise, any relatives of the mentioned officials within the fourth degree of consanguinity and second of affinity, are not allowed to participate in bids and other cases set out in this Law, as well as the legal persons in which these may have participation, if they are the ones who have to decide on the award. These limitation are also applicable to President of the Republic, members of Congress, Government Ministers and Supreme Court Justice Magistrates.

Security Deposit or Cashier?s or Certified Check issued to the public entity?s name, equivalent of 5% total bid value.

Yes. The conditions that apply are:

• Suppliers must have technical and commercial capacity. They must have adequate stock of spare parts and be able to maintain their products.
• Suppliers are required to submit Income Tax and Value Added Tax Clearance Certificates with their tenders.
• A specified tender deposit may be required. The receipt for the sum must accompany the tender.
• For public works - a bid bond, usually in the sum of 1% of the tender sum may be required. This bond must accompany the tender.

Offerers must be determined to be "responsible" by the contracting officer. This entails a review of the contractor?s financial, technical and managerial capabilities in order to predict the probability of whether the contractor will be able to perform the terms of the contract.

Section 55 of the TOCAF establishes that the bidders must guarantee the maintenance of their offer and the fulfillment of the contract through a cash or security deposit, guarantee or banking collateral, insurance policy, for an amount equal to 1% or 5% of the value of the offer or award respectively. The bidding entity may increase said percentages based on a reasonable basis, or establish a diverse criterion in the corresponding bidding document for the determination of the amount or to establish or accept other forms of similar guarantees.

No maintenance guarantees will be required for those less than the threshold of abbreviated proceedings set forth in subsection 1 of Section 33 nor contract fulfillment guarantees be required for amounts less than 40% of such threshold.

Officials authorized to do so will automatically return the guarantees that need not be retained.

Section 66 establishes that in every abbreviated or public bidding and direct procurement of public works, which limit exceeds the threshold of the abbreviated bidding, all government entities must require the bidders to present the registration certificate and, when applicable, the necessary economic and financial capability as well as technical capability with respect to the obligations that arise from the procurement under consideration, issued by the national registry of public works corporations by Ministry of Transportation and Public Works, who has the power for those purposes.

The Registry must deliver, when requested to do so, the certificates issued to independent entities, decentralized services and departmental governments.

The general condition to participate in tenders is being registered in the national registry of suppliers. This requires: certified updated copy of the incorporation charter and identification of partners or shareholders, financial statements, information on technical and administrative capacity, specialization, identification of equipment, its ownership or any other information.

Argentina requires registration for suppliers interested in participating in tenders for public works. The registration is valid for a period of 1 year and 6 months.

For the central government, procurement is generally on an open tendering basis. As such, there does not exist a list of approved suppliers. However, in the case of public works, an approved list does exist which is updated every three years.

For the government corporations, a list of approved suppliers does exist. The list is updated as often as requests for inclusion, queries or submissions are received from suppliers. There is no checking process for technical or financial capability of firms to be included on tender?s mailing list.

Yes, the government by circular informs the different ministries of approved suppliers. Suppliers are graded according to their area of specialization and to the level and scope of worked performed. The evaluation includes the technical and managerial capability of the suppliers, their financial stability, their experience and past performance. Lists are updated periodically.

There is no approved registry of suppliers for the public entities since for each contract direct invitation and public tender, the Basic Norms demand a public invitation in which all companies who may consider themselves suitable may participate. However, in general, it is required that as part of the administrative conditions, which may empower or not participation (but does not rate the supplier?s capacity), the firm be registered in the national registry. Please refer to question 7.1.

Brazil states that notwithstanding the existence of a registry, this inventory is not a list of approved suppliers given that it electronically catalogues suppliers that are willing to submit offers, but it is not a complete list of approval. The validity of those registries varies from entity to entity, but the most frequent practice is one year.

The Canadian federal government uses source lists infrequently except for low dollar value contracts that are not covered by the trade agreements.

Lists of registered suppliers, contractors or consultants may be used to solicit competitive proposals for requirements below C$10,000 (US$7,203) for printing, below C$25,000 (US$18,006) for most goods and services, and below C$60,000 (US$43,215) for real estate services, construction, architectural and engineering consulting, leasing and maintenance services. Qualifications vary and are generally relevant to the type of business, and could include licensing requirements or meeting international product standards, as well as, financial and technical capability. The lists are reviewed and updated at the discretion of the organization maintaining the list. Normally, suppliers may apply to be included in source lists at any time.

Chile requires registration for public works. Some public entities require registration in their own lists that are updated annually.

All bidders must be registered in the Registro Único de Proponentes in order to participate in any bidding procedure, such as procurement of goods and other related services. Arrangement of the different categories and qualification is made among the same group of contractors dealing with public entities, based on bona fide criteria. Submitted information must strictly comply with government regulations, regarding experience of the firm, financial and technical capacity.

Declarations presented by bidders are subject to verification by the contracting agencies or may be objected. Inaccuracy in documents? information could cause rejection of bids, cancellation of registration or other legal inconveniences. The subscription certificate is valid for one year.

Government-owned enterprises dealing with public works and dedicated to the exploration and expansion of resources are authorized to keep their own records of suppliers.

In Costa Rica, each institution has to register its suppliers and define, in compliance with regulations, the requirements to be met by each interested supplier in order to be on the list.

At least once a year, each institution has to publish an advertisement on the Official Newspaper, and as an option on a national newspaper, inviting other suppliers to register. However, suppliers can register at any time.

In the case of the central government, there is an entity called Proveeduría Nacional [National Procurement] in charge of preparing the list of suppliers used by the different ministries. In addition, there is a process intended to create institutional procurement agencies and a pilot plan to decentralize activities (Decree N.255291 H of Monday, July 15, 1996).

In the case of purchases carried out under the Public Contracting Law, no lists of approved suppliers exist.

In order to be consultants in Ecuador, consultants, being these natural or legal persons, should be registered in the Consultancy Registry and the Association of Consulting Companies of Ecuador. These registries require documentation, which demonstrate the attribute of being a consulting company or of its professional credentials in the case of natural persons.

In the case of PETROECUADOR, registries for suppliers exist. The suppliers are qualified in accordance with their capacity and experience.

Listing of authorized suppliers is available. Suppliers from each institution are responsible of the following:

• labor experience;
• financial statement/declaration;
• price offer; and
• bid guarantee

Suppliers? lists are revised and updated each year.

Registers for prequalification of works, consultants and suppliers are available. Each register is responsible for the analysis and studies of technical, financial capacity, work experience and organization of its applicants. Subscription for registration is valid for one year and expires on December 31 of each calendar year. However, an applicant could obtain their subscription when considered necessary.

The Government Contracts Committee maintains a register of public sector suppliers. Suppliers are graded according to their specialization, levels and scope of work.

The procedures employed in checking the capabilities of firms include, but are not limited to, an evaluation of the following criteria:

1. experience based on past work performance;
2. technical qualification of directors and employees;
3. capacity of plant and equipment;
4. financial standing and record; and
5. track record of proven competence.

The approved list of suppliers is reviewed annually. However, it is updated as an on-going exercise.

Registration lists of approved suppliers do not exist.

Art. 41 of the Acquisition and Public Works Law establishes the persons from which proposals can not be received or to whom contracts can not be awarded. These are, among others the following:

• Those who are employed by, or hold a position or appointment in the public sector or are disqualified for that purpose.
• Suppliers or borrowers sanctioned by the Secretaria de Contraloría y Desarrollo Administrativo [Controller Secretariat and Administrative Development] for breach of contract imputable to them, for breaches of prior contracts which have caused harm or damages, as a consequence of having submitted false information or having acted fraudulently or in bad faith.
• Those who have been declared in bankruptcy or are subject to prebankruptcy procedures.
• Those having family or business links with a public servant who is involved in the procedures for the awarding of the contract.
• Those who in their own right or as part of a business group issue their own rules, expert work and appraisals, when it is necessary to settle disputes or those which will carry out prior works that affect the tendering of contracts thereof related.

A national registry exists and its lists are updated once a year.

Panama does not use a system with lists of suppliers. If the entity wishes to rate, it must call for an act of prequalification.

Almost every institution has a registry of suppliers that are revised annually, having the suppliers to register every year. Legal collections must be submitted to the institutions together with the registration, in which, as a general rule, copies of the tax documents are requested.

The legislative Decree Number 717, published on November 10, 1991, eliminated the registration in the Providers Sole Registry.

The public institutions revise or update their lists of providers on an annual basis.

Construction (contracting) of public works

Natural or legal persons requesting being registered in the National Registry of Public Works Contractors, which is formed by:

1. Registry of National Contractors;
2. Registry of Foreign Contractors, and
3. Registry of Associated Contractors, should verify

1. legal capacity to contract;
2. experience of at least one year in carrying out works in the country, and
3. technical competence, economic solvency and ample organization.

Engineers or architects are eligible to be registered as natural persons, with a maximum contracting capacity of 300 annual minimum wages, with no one-year requirement in public works in the country, but with the restriction of not being part on a permanent basis of the technical staff of any company registered as a contractor.

The Superior Council, provided the establish requirements have been fulfilled, will rate contractors, including their contracting rate on public works at an amount equivalent to 50 times its paid capital and reserves, expressed in millions of soles.

In case of capitals on foreign currency, its equivalent will be determined in soles.

The maximum contracting capacity corresponds to the total amount of public works the contractor is authorized to contract simultaneously. In order to establish the contractor?s independence to contract at a given moment, it is deducted the maximum authorized contracting capacity, the compromised capacity or rest of public works under contract, pending to be valued.

After the Superior Council has rated the contractor, the contractor will be registered and a certificate will be given which will state the maximum contracting capacity. Only those contractors registered as legal persons may associate in numbers of three to participate in bidding processes, provided that the amount of their contracting capacities is equal or greater that the amount of the proposal they may present.

The Superior Council will fill out a file, which will contain all the data pertinent to a contractor based on the documents the contractor presents periodically and those subject to present them monthly, bidding and contracting entities.

A national registry exists and its lists are updated once a year. Lists are implemental only when tenders are invited selectively.

The United States responds that generally federal entities do not use source lists for qualified suppliers. However, in exceptional cases an entity can establish a source list provided that the extenuating circumstances are duly justified in writing by the head of the entity. Potential foreign suppliers form designated countries under the terms of the WTO GPA may be included in source lists. Additionally, the law contemplates the possibility of qualified bidders lists (QBL?s), qualified manufacturers lists (QML?s) and qualified products lists (QPL?s) . Entities must specifically justify and document the need for establishing such lists and all interested suppliers must be provided an opportunity to be included in such lists.

Article 65 of the TOCAF establishes that the Executive will keep a general registry of government suppliers. This is done through the Ministry of Economy, in the General Accounting Office. Nevertheless, other autonomous entities may keep their own registries. All registers are public.

Within ninety (90) days after the request has been submitted, the Registry will either accept or reject the application. A rejection shall be justified and notified to the interested party, indicating the reason for such rejection, which will only be the case of a serious penalty, according to the terms of this law, having provided false information, or having gone bankrupt.

Besides, persons or legal entities registered in the National Registry of Suppliers shall update every year any modification to their by-laws or any other change that would somehow affect their technical, legal and financial qualification.

There are no prequalification requirements in the basic public contracting regulations.

Depending on complexity and value of materials, prequalification of suppliers may be necessary. This is one typically for the procurement of customs brokerage, vehicle purchases, special capital projects and large service contracts involving studies.

Yes, some purchases require prequalification.

The highest executive authority of the contracting entity will be able to establish the preselection when this is justified by the specialization of the works or service to be contracted. Preselection procedures are a possibility in the submission of a proposal, and the bidding terms and conditions should clearly establish their application.

In the case of insurance contracting through public bidding, preselection will be used. The procedures to preselect companies are established in Secretarial Resolutions Number 387, 388, and 389 of the Nations Secretariat of Finance, that approve the procedures to qualify proposals for the construction of works, consulting services and insurance.

Yes, through the purchase modality using the previously mentioned tomada de preços. Suppliers will have to comply with all requirements in order to be enrolled, in accordance with the terms and conditions of the tomada de preços, until the third day prior to the day the offers submitted. Article 3 of Law 8,666 provides a special clause (second) to explain such conditions:

Article 3.9, paragraph 3. The bidding will not be restricted, and the general public will have access to the events of the procedures followed, except for the content of the offers before they are opened.

Prequalification is not required for most procurements. However, it might be required under some circumstances, such as when safety and quality assurance are critical factors. Any prequalification requirements are clearly set out in the procurement notice.

In the case of public works projects, the Regulations for Public Works Contracts are provided for in sections 68 and 69 of the Supreme Decree 15 of 1992, which state that certain documents must be submitted prior to the opening of offers, which will have to be verified in order to participate in the bidding.

Enrollment in the registry of bidders grants a qualification to the interested party, reflecting its experience and technical, operative and financial capacity. Such qualification determines its maximum contracting capacity expressed in legal minimum wages. Such capacity is known as contracting "K" and is established from the qualification using a mathematical formula designed for such purpose. Each public entity wishing to open a public bidding must previously establish the minimum contracting "K" to be credited in order to participate in the bidding.

Prequalification bidding, which is a modality developed in Section 65 of the regulations, establishes that this can be a previous stage to public bidding or registry bidding, if the Administration considers it will be more appropriate for its interests. The idea is to select the possible participants ahead of time. The Administration is authorized to carry out this kind of procedure, even if there are different contracting procedures. Between the selection of this stage and the time limit for the reception of bidding offers, there cannot be more than a year. After this year, a similar process must be carried out.

Publication in the official newspaper of the call for bidding is mandatory, and at least 10 days later, should be submitted. The notice should state the factors to be considered and the value assigned. The prequalification agreement must be published in the Official Newspaper in the case of a public bidding, and a notification must be sent if it is a registry bidding. The awarding can be appealed before the General Controllership of the Republic, in the case the estimated amount of the contracting is within the thresholds established by Section 84 of the Law.

The Public Contracting Law does not establish prequalification as a precontractual procedure. However, the Law of Consultant Services considers prequalification "when necessary".

Those participating firms who fail to furnish all information are subject to be rejected on the day when the envelopes are opened. In the case of selective bidding, the supplier must be registered in the list of providers, which means that there should have been a prequalification process.

Prequalification registration is mandatory for all those participating suppliers. If not registered, they cannot participate in the bidding process. Approval of registration is made upon submission of all documents. An analysis and study of technical, financial, experience of the firm and organization is carried out as well.

Yes. However, prequalification is implied for potential bidders on the list of approved suppliers. Where interested entities have not been previously qualified, the procedure requires the completion and submission of prequalification documents, followed by an assessment of the information provided.

Potential suppliers are not required to be prequalified in order to participate in the bidding process. However, certain documents may be required prior to the bidding to verify the solvency of the bidder and its capacity in order to comply with the requirements established in the terms and conditions of the bidding (see answers 7.1, 7.2 and 7.3).

Variable.

Bidders can be previously qualified if the terms and conditions require so. Prequalification will be submitted based on the decision of a commission formed by capable professionals and public officials.

Prequalification is required for public works bidding. The following will be taken into account: certificate of enrollment in the Registry of Construction Professionals of the Public Works Commission, as a recurrent company, capital, technical and business capacity and organization, list of employees and technical equipment assigned to the project, number of years in the business and experience in the field, economic-financial situation, determined according to the latest balance sheets.

Depending on the product to be acquired, prequalification of bidders is applicable to verify their capacity before participating in an awarding.

As to public works, there are bids with prequalification in order to declare the bidders suitable to submit their offers and in compliance with the requirements established in the terms and conditions for such purpose.

The prequalification requirement can only be established in cases of highly specialized works or when foreign financing conditions require it, or when the amount of the basic budget is equal or higher than 4,000 times the minimum annual wage; at the moment in which such basic budget is in force in the Province of Lima.

The bidding entities will include in their terms and conditions the qualification system of the required documents, stating the criteria for each qualification, the score to be assigned to each document when deciding the prequalification, and the minimum score.

If two associated bidders participate in a prequalified bidding, the corresponding qualification will evaluate the companies forming such association as one single entity. Each company shall comply with the submission of all required documents.

Prequalification is implemented on procurement of major works. Both national and foreign applicants must be prequalified. So far, prequalification of suppliers has not been done.

Part 9 of the FAR provides for the possibility of qualified bidders lists (QBLs), qualified manufacturers lists (QMLs) and qualified products lists (QPLs). Entities must specifically justify and document the need for establishing such lists and all interested suppliers must be provided an opportunity to be included in such lists.

Not always, but it can happen in public works bidding and specially in those receiving financial resources by international organizations.

Yes, the general bidding procedures carry out a preselection of participants, which implies that the preselected contractor has fulfilled the requirements of the bidding terms and conditions.