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Public Procurement in Chile

Policy Options for Efficient and Inclusive Framework Agreements

image of Public Procurement in Chile

Public procurement is a critical element of sound governance and countries implement diverse tools and strategies to increase its efficiency and cost effectiveness. Framework agreements, in particular, aggregating public demand and streamlining procurement processes are increasingly used by central purchasing bodies in OECD countries. This report examines the use of framework agreements and their developments in Chile, benchmarked against the practices in other OECD countries. Implementation of framework agreements in Chile have provided business opportunities to a growing number of suppliers and a wide variety of goods and services to public entities. Yet, the steady increase of the number of suppliers and contract management activities now question the sustainability and the effeciency of the system. This report analyses different policy options that ChileCompra could consider and suggests ways to streamline processes, improve the effectiveness of the system and increase efficiencies while promoting inclusiveness.

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An action plan to develop the way forward

This chapter makes recommendations for ChileCompra to revisit the design and management of its framework agreements. By comparing the benefits obtained in various OECD countries, it suggests policy options that ChileCompra could consider to further strengthen the strategic approach to its centralised procurement function. Policy options are structured against the procurement cycle following a phased approach, this allows for immediate additional efficiencies and for more long-term transformational changes.

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