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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Snapshot of the use of framework agreements in Chile

Since their establishment in 2003, the use of framework agreements in Chile has increased dramatically. More contracting authorities rely on this collaborative procurement instrument, and awarded suppliers have doubled in the last two years. Under the responsibility of Chile’s Central Purchasing Body, ChileCompra, the sustainability and efficiency of the system are now at stake, which poses new challenges on how to support and manage the increasing use of this instrument. This chapter provides an overview of the major trends of the existing public procurement system in Chile and highlights the underlying objectives of framework agreements. It also includes the results from a benchmarking exercise across several OECD and non-OECD countries, which uses the responses received from the 2015 OECD Survey on Centralised Framework Agreements.

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