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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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Strategic practices for the effective use of framework agreements in Chile

Once implemented by central purchasing bodies (CPBs), framework agreements are meant to be used autonomously by contracting authorities. However, without guidance or structured ordering processes, the potential efficiencies in the tendering process and the selection of suppliers could be put at risk. This chapter assesses country practices in supporting contracting authorities to make the most of existing framework agreements. It provides recommendations for ChileCompra on increasing the efficiency of the system and allowing contracting authorities to take informed purchasing decisions.

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