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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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Strategies for implementing collaborative procurement instruments in Chile

Deciding to implement collaborative procurement instruments, such as framework agreements, requires detailed analyses of both the demand and the supply side to ensure that these instruments meet their underlying objectives. This chapter analyses concepts such as demand heterogeneity and supply uncertainty, which are central to the costbenefit analysis of the implementation of procurement tools. It also highlights common practices across countries in the definition of procurement strategies.

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