COVID-19 in Public Procurement – Fortuitous Event or Force Majeure. Principal adjustments as of March 2020

COVID-19 has been categorised as a fortuitous event or force majeure by the Chilean Public Administration, specifying various impacts on the procedures and public contracts for the supply of goods and services.

During the month of March, the Office of the Comptroller General of Chile issued five Opinions that classify COVID-19 as a fortuitous event or force majeure.

By virtue of these Opinions, there is a flexibility and adaptability of the Administration regarding the application of the principles and norms of Public Law in this scenario.

In this context, the Directorate of Government Procurement and Contracting in Chile has issued a statement regarding public procurement processes, highlighting the following matters:

Authorisation to omit the procedure for large purchases of the framework agreement

The procuring entity is permitted to omit the large purchase procedure (i.e. purchases over USD 58,000).

You can review the format of this type of authorisation at the following link: https://www.chilecompra.cl/wp-content/uploads/2020/03/Omite-Gran-Compra_Coronavirus.docx

Authorization of direct contract negotiations

The foregoing, understanding that private bidding or direct negotiations or contracting is appropriate in cases of emergency, urgency or unforeseen circumstances, as established by a well-founded resolution of the highest official of the contracting entity.

You can review the format of this type of authorisation at the following link: https://www.chilecompra.cl/wp-content/uploads/2020/03/Trato_Directo_Coronavirus.doc

New closing date for tenders

The above is in the context of extraordinary measures that the administrative bodies may adopt in these circumstances.

You can review the format of this type of authorisation at the following link: https://www.chilecompra.cl/wp-content/uploads/2020/03/Resolucion-tipo-que-amplia-plazo-cierre-LP.docx

We recommend that our clients review the public procurement processes in which they participate, or those in which they considered participating, in order to be clear about the adjustments that have been made by the Administration.

If you have questions on the matter, please contact (-).