Mexico Amends Key Government Procurement Law

Based on article in Latin American Law & Business Report
published by WorldTrade Executive, Inc,

Original Article Written by
By Alejandro López-Velarde (López Velarde, Wilson, Abogados, S.C.) and Regina Kuchle (AstraZeneca)

The following is an editor's summary:

The Mexican government amended a key government procurement law in July known as the Public Acquisitions and Service Law. The most important State monopolies and health institutions such as Pemex, the Federal Electricity Commission, the Social Security Institute are governed by the law, and it governs approximately 42% of the federal budget.

The law allows the federal executive to issue guidelines and regulations to change the current structure of acquisitions, leases and services. Public entitites will be able to request from otential suppliers a "Reverse Auction, in order to obtain a lower price. The executive needs to publish a Reverse Auction Methodology in the Official Gazette.

There is some worry that these procedures may not be Constitutional.