OECD Public Governance Reviews

2219-0414 (online)
2219-0406 (print)
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This series includes international studies and country-specific reviews of government efforts to make the public sector more efficient, effective, innovative and responsive to citizens’ needs and expectations. Publications in this series look at topics such as open government, preventing corruption and promoting integrity in the public service, risk management, illicit trade, audit institutions, and civil service reform. Country-specific reviews assess a public administration’s ability to achieve government objectives and preparedness to address current and future challenges. In analysing how a country's public administration works, reviews focus on cross-departmental co-operation, the relationships between levels of government and with citizens and businesses, innovation and quality of public services, and the impact of information technology on the work of government and its interaction with businesses and citizens.


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Public Procurement in Peru

Public Procurement in Peru

Reinforcing Capacity and Co-ordination You do not have access to this content

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20 Sep 2017
9789264278905 (PDF) ;9789264278899(print)

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Public procurement is becoming a strategic tool in Peru for achieving key policy objectives. The legislative reforms enacted in 2016 indicate a strong commitment from the government to modernise the public procurement system. In fact, the system is currently going through a transitional period, moving from excessive formalities and complex tendering processes to prioritizing results and value for money. This report examines ongoing public procurement reforms in Peru, focusing on issues such as procurement processes, participation in tenders, and the culture of integrity in the public procurement process. It provides guidance to help Peru implement reforms that enhance the efficiency, transparency and accountability of the system.

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  • Foreword and acknowledgements

    Recent growth performance has made Peru one of the fastest-growing economies in Latin America, reducing poverty and inequality and improving the quality of life for citizens. There are still many challenges to be addressed, however, such as how to improve productivity and maintain this growth trajectory. Public procurement is the most relevant direct economic activity carried out by a government, and has a significant impact on the economy and society. It can play a pivotal role in the success of reforms. The Peruvian economy is currently feeling the effects of a major corruption scandal related to the public procurement of large infrastructure projects. Investment could be hampered as a result of delays in some public infrastructure plans as the government seeks to root out corruption. A sound governance system ensuring integrity and transparency in public procurement, while achieving adequate outcomes for the money spent, is essential for public trust in any country. Providing relevant information to all stakeholders, opening and levelling the playing field for potential providers, and guaranteeing adequate remedy and redress processes are all cornerstones of an effective public procurement system.

  • Acronyms and abbreviations
  • Executive Summary

    In Peru, public procurement accounts for the majority of government expenditure an impressive 50.7% and 11.6% of GDP, which is in line with the OECD average. This show how crucial public procurement is for the country's economy and society as a whole. It is a critical channel for delivering services to citizens, and an area where the public and private spheres intersect. Recognising the strategic role of public procurement, public authorities in Peru have been undertaking major reforms of the system since 2016. In doing so, they are gradually nudging the culture towards result-based management and introducing a new vision for public procurement officials. The legislative and institutional reforms enacted in January 2016 and the legislative adjustments made in 2017 are steps toward a better-functioning public procurement system.

  • Strengthening the structure and co-ordination of the Peruvian public procurement system

    This chapter analyses the organisational structure of public procurement in Peru and the reforms undertaken in 2016. It will discuss how these reforms are set to move the procurement agenda towards greater efficiency and value for money. It further assesses the mechanisms used by the Government Procurement Supervising Agency (Organismo Supervisor de las Contrataciones del Estado, or OSCE) and Perú Compras (PC) to coordinate the high number of procurement entities and ensure communication with and among these entities at the national and sub-national level. Finally, the chapter looks at the pros and cons of the core change in the Peruvian procurement structure, and presents an argument for further reorganisation of key platforms within the system.

  • Implementing strong organisational procurement strategies in Peru

    This chapter provides an overview of the legal and regulatory framework that applies to public procurement activities in Peru. It presents the objective of the new public procurement law as well as the main changes that have been introduced. The chapter analyses to which extent relevant directives and strategies have been developed and adapted to the new public procurement law and how the implementation of the new law can be enforced using the framework of the 2015 OECD Recommendation of the Council on Public Procurement. The chapter asks whether the new public procurement law has been disseminated and explained adequately, and finally highlights the importance of strengthening regulatory policy and governance related to public procurement, by developing a standard process when formulating changes to the system as well as an efficient evaluation and monitoring system.

  • Involving Peruvian suppliers more in the procurement process

    This chapter provides an overview of the main procurement methods that public entities have been applying in recent years, and examines how the government of Peru is encouraging public entities to drive efficiency throughout the public procurement cycle. This includes properly assessing the needs of public entities by conducting market analysis and applying the right tools to achieve value for money. It also describes how Peru can engage more fully in a transparent and regular dialogue with suppliers and business associations, given the importance of stakeholder participation.

  • Going beyond price as an award criteria in Peru and measures to support secondary policy objectives

    This chapter examines the use of evaluation criteria for awarding contracts to suppliers, including the role of selection committees and how they ensure strict compliance with the criteria in the solicitation documents. It further assesses whether the Peruvian authorities are strategically supporting secondary policy objectives through the awarding mechanism, and if they have taken specific measures to support SMEs, innovation or green procurement. Experiences from other countries provide examples of criteria for sustainable procurement as a secondary policy objective.

  • Enhancing procurement capabilities of the Peruvian workforce

    This chapter describes the public procurement workforce in Peru and assesses the capability of that workforce to perform its procurement duties. Against the 2015 OECD Recommendation on Public Procurement, it analyses how Peru has engaged in strategic workforce planning, or is developing procurement capacity strategies, and diagnoses knowledge gaps. The chapter also discusses whether attractive, competitive and meritbased career options are being proposed to public procurement officials. Finally, it highlights how enhancing public procurement training availability and quality through specific training curriculums, certified universities and trainers as well as accessible training opportunities and information desks can contribute to higher levels of aptitudes. The experience of various OECD countries is presented to illustrate what improvements Peru can achieve with a strategic human resource management.

  • Implementing effective internal control mechanisms and risk management framework to safeguard the Peruvian procurement system

    This chapter describes the Peruvian National Control System as well as the dedicated control mechanisms introduced for public procurement. Against the framework of the 2015 OECD Recommendation on Public Procurement, it analyses the way internal controls including financial control and management are co-ordinated, resourced and integrated in Peru. The chapter also discusses how the country has developed specific internal control and risk management frameworks, strategies and tools to identify and address threats to the proper functioning of the public procurement system. In addition it highlights the importance of ensuring the implementation of these mechanisms and systems, for instance by raising the awareness of public procurement entities and strengthening their capacities. Finally the chapter analyses the tools and mechanisms available to monitor implementation of the internal control system and risk management function, as well audit reports. The experience of various OECD countries is presented to illustrate how the mechanisms in place could be strengthened.

  • Building on recent digitisation efforts for more effective communication in Peru

    This chapter assesses to what extent Peru's e-procurement system meets the principles set in the 2015 OECD Recommendation on Public Procurement. The system SEACE is analysed in terms of its contribution to increasing transparency, efficiency and accountability. The chapter also analyses the mechanisms of other IT systems for public finance and budget management in Peru and their integration with SEACE so as to identify room for improvement. The experience of other OECD countries is presented to illustrate potential measures Peru could consider in order to enhance public procurement through electronic mechanisms.

  • Instilling integrity throughout the whole procurement cycle in Peru

    This chapter assesses the dimensions of the integrity system for public procurement in Peru, against the 2015 OECD Recommendation on Public Procurement and the 2017OECD Recommendation on Public Integrity. The existing framework is analysed to establish how it helps provide a consistent and coherent integrity system. The chapter underlines the importance of promoting a culture of integrity in public procurement, and recommends measures that could be added to the current framework so as to improve it. Finally, measures to increase transparency and encourage the participation of stakeholders in public procurement are discussed, with the emphasis on their role in enhancing integrity and promoting accountability. The experience of other OECD countries is presented to illustrate potential improvements to the integrity framework in Peru.

  • Effective dispute resolution systems in Peru

    This chapter examines the courses of action that suppliers in Peru can take to challenge procurement decisions during the procurement procedure and contract execution. Against the 2015 OECD Recommendation on Public Procurement, it attempts to determine whether the changes implemented in Peru in early 2016 are likely to build confidence in bidders by establishing effective means for disputing decisions so as to correct defects. The chapter also discusses the complications that can arise for OSCE as an administrator for the resolution of disputes and as a supervisor of the system as a whole. The chapter also highlights relevant experiences in other OECD countries that could prove useful to the Peruvian authorities.

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