On August 11, the Official Gazette of the Federation published a decree that adds a fifth paragraph to article 1 of the Law of Acquisitions, Leases and Public Sector Services (”Law of Acquisitions”).

The addition provides that the Law of Acquisitions will not apply to the procurement of health products or services by Mexican agencies and entities with international intergovernmental bodies through collaborative mechanisms, provided that the relevant constitutional principles are observed.

The decision to carry out this addition obeys the health emergency arising from COVID-19 and the urgency of having sufficient health supplies. However, it is also questionable due to the following:

_No defined time or period is established to exclude this type of purchases from the framework of the Acquisition Law.
_Under the new mechanism, procurement will not be subject to the control schemes provided for in the Acquisition Law, nor will it be subject to audits by the Ministry of Public Administration and the Federation Superior Audit Office.

_Domestic industry could be affected by the simplification of purchasing health inputs from international entities through collaborative mechanisms.

The addition entered into force on the day following its publication, on August 12.

Government Contracts
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Alejandro Montes
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Javier Ogarrio
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Juan Carlos Partida
juan.partida@ecrubio.com
Mario Prado
mario.prado@ecrubio.com
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