Procurement Agency raises levels for obligatory tenders

Government departments and agencies are now allowed to carry out direct contracting with much higher thresholds authorized.

Resolution PNP 01-2021 establishes that entities must call for public bidding for all works that reach RD$394,299,738.00 thereafter, as well as for the acquisition of goods and services of more than RD$4,846,824.

In the case of restricted bidding, the new thresholds for works range from RD$164,291,557.00 to RD$394,299,737.99. Meanwhile, for works and services, they range from RD$4,792,884.00 to RD$4,846,823.99.

With respect to the procedure for comparing prices of works for this 2021, the ceiling goes from RD$26,286,649.00 to RD$98,574,933.00, while for goods and services the ceiling for this contracting modality goes from RD$985,749 to RD$4,792,883.99.

For minor purchases of goods and services the threshold established by the DGCP is between RD$131,433 and RD$985,748.99.

Regarding the drawings for works, the entity highlights that the reference value ranges from RD$98,574,934 to RD$164,291,566.99.

This adjustment is because Law No. 340-06 on Procurement and Contracting provides in its Article 17 that to determine the selection modality to be applied in the procurement and contracting processes, the institutions must use the threshold limits, which are calculated by multiplying the current income budget of the central government, approved by the Congress, by the factors included in the article.

In that sense, it is among the technical competences of the governing body to set and update every year through a resolution those thresholds for the selection procedures to which the different modalities of contracting will be subject (bidding, restricted bidding, drawing of works, price comparison and minor purchases).

This resolution was issued on 5 January 2021 and will be in effect until the issuance of another administrative act that replaces it.

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Procurement Agency

10 January 2021