Public sector, tenders, and technology: key players in public procurement
Undoubtedly, technology is an integral part of everyone’s life and society at large. It’s unthinkable to imagine any space or activity where technology isn’t present, and the government is no exception. While it’s impossible to disregard its benefits, considering the legal process in public procurement is crucial. What are the most relevant points? What should one know about this topic?
A new regulation to govern and oversee the State’s contractual activity
With the implementation of the new law since December 2022, public procurement (including participation in telecommunications and insurance markets) in Costa Rica has been exclusively driven towards managing contracts through the SICOP technological platform. This move aims to modernize and strengthen technology to streamline the public procurement process and optimize time.
Three key points to understand the new context:
Unified digital system: valid and mandatory for all public entities in procurement and contract execution processes. Its goal is to comply with constitutional principles of transparency, legality, and publicity across all stages. This translates into real and genuine citizen oversight of public fund usage. The current system, known as SICOP (Integrated System of Public Purchases), embodies this objective. Registration of national and international companies and subcontractors as State suppliers: In Costa Rica, being a foreign company is not a hindrance to participating in public tenders. Moreover, this new system facilitates access to bidding processes from anywhere in the world, ensuring competition on an equal footing and establishing a legal framework to penalize any act of corruption. Promotion of innovation, economic and social development, environmental protection, and social well-being. This signifies that when contracting, social, economic, and environmental criteria are relevant. It also includes the concept of public-private partnership for the development of technological research and innovation projects.
Benefits of the new Law
This new regulation allows public enterprises competing in the telecommunications, infocommunications, and insurance sectors to benefit from a much more agile procedure.
For telecommunications and infocommunications companies, it enables the contracting of essential works, goods, and services required for marketing products and services. Similarly, insurance companies can use it to contract insurance brokerage services and other related services.
The mega-complex ‘Ciudad Gobierno’ and 5G
In line with this regulation, modernization extends to the infrastructure complex called ‘Ciudad Gobierno,’ aimed at centralizing the administrative area of 18 institutions and ministries in one location, in the south of San José. Additionally, government authorities announced the initiation of processes to grant a highway concession, expand a port, and construct hospitals. On the telecommunications front, frequencies will be allocated to offer 5G technology-based telecommunications.
In a global context with ever-evolving dynamics, Costa Rica continues to grow and stands out as a business opportunity for both national and international companies in the public sector, ensuring a framework that provides legal certainty and transparency in competition.
For those interested in taking the first step to participate in public procurement or seeking proper guidance to access future tenders in the sector, having a specialized team with years of experience is crucial.
