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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Enhancing competition to maximise the benefits of framework agreements

As value for money is the primary objective of public procurement, countries have to develop an environment that is conducive to competition by reducing the asymmetry of information between contracting authorities and economic operators, but also by raising awareness of procurement opportunities. This chapter analyses how ChileCompra could improve competition, and thus the efficiency of framework agreements when they are designed, by encouraging early engagement with suppliers, developing the capacity of the public procurement workforce, standardising goods and services, and reducing the number of awarded economic operators.

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