Understanding the Tender Process in Mexico

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Public Tendering in Mexico

Carlo Orsenigo – Mexico Country Manager

About CH2M HILL


Founded in 1946, with our main headquarters in Denver, Colorado, U.S.A. CH2M HILL is a leading firm for the supply of program management services, project and engineering management.

We have 30,000 employees, 247 permanent offices around the world and are present in every continent.

In 2012 our income was US$7 MM an employee owned company Some of our most challenging projects include:

2012 London Olympic Games Development management of all complexes and infrastructure.

Abu Dhabi National Oil Company (ADNOC) Shah FieldDevelopment of sour gas reserves

Masdar CityThe first entirely sustainable city, with zero waste and neutral carbon emissions

Emirates Nuclear Energy Corporation (ENEC)Management of the civil nuclear energy program of the United Arab Emirates for 10 years

Management of the Panama Canal’s Extension Program Increasing the capacity of the canal to support post-panamax vessels.

About CH2M HILL


With 20 years of operation in Mexico, CH2M HILL Mexico currently employs more than 450 professionals.

Services: Engineering, Design, Consulting, Procurement, Construction Management, Project Management and Program Management.

Markets: Energy, Industry, Water, Environment, Infrastructure and Transportation.

About CH2M HILL Mexico

General Public Tendering


Tendering is defined as the act of inviting suppliers to bid with the purpose of supplying products or services to the Government in order for the latter to obtain the best deal on quality and price from the contractors or suppliers.

For explanatory purposes the Municipal or State Tenders will not be part of this presentation.

Regulatory Framework

• Law of Public Works and Related Services (Ley de Obras Públicas y Servicios Relacionados con las Mismas)

• Law of Acquisition, Leasing and Public Sector Services (Ley de Adquisiciones, Arrendamientos y Servicios del Sector Público)

• PEMEX Law

• Law of Acquisitions, Alienations and leases of Real Estate (Ley de Adquisiciones, Enajenaciones y Arrendamientos de Bienes Inmuebles)



In assigning economic resources for contracts for purchases, leases, services and public works, the government calls for any of the following:

I. Public bid �

II. Invitation for tenders addressed to at least three persons

III. Direct award


Public Bids


I. National: Mexican bidders: the goods or services to be purchased or leased must have been produced in the country and consist of at least fifty percent national content.

II. International: Mexican and foreign bidders from countries with whom Mexico has subscribed FTAs pursuant to the rules on origin established by the treaties.

III. International & Open: both Mexican and foreign bidders may bid, regardless of the origin of the goods to be purchased, leased or the services to be hired.

Article 28 of LAASSP and 30 of LOPSRM. Public bids may be:

Types of Public Bids


Prior to publication of a public competitive bid, the offices and entities may disclose the relevant project through compranet, for at least ten business days. During that time they are open to receiving pertinent comments at the electronic address provided for that purpose. Comments and opinions on the public competitive bid project will be analyzed by the offices and entities so that, if appropriate, they can be taken into account to improve the project.

Public tendering begins with the publication of the competitive bid and, in the case of invitation, to at least three persons, delivery of the first invitation; both procedures conclude with the issuance of the decision or, if applicable, cancellation of the corresponding procedure.

Public Bid Procedure


Term for submittal and opening I. The term for international bids may not be less than twenty calendar days from

the date of publication of the bid in compranet.

II. The term for national bids shall be at least fifteen calendar days from the publication of the bid.

III. The term for international public bids may not be less than forty calendar days.

The competitive bid

THE BID WILL BE PUBLISHED THROUGH COMPRANET AND ITS DISTRIBUTION SHALL BE FREE OF CHARGE. A summarized version will be simultaneously sent for publication in the official federal gazette.



The summary of the bid should include:

I) Object of bid

II) Volume of acquisition

III) Bid number

IV) Dates established for contract procedure to take place

V) Date of publication in Compranet, and a copy of the contents of the bid shall be made available to bidders.



I. To have more than one year’s experience, except for duly justified cases.

II. To have previously entered into agreements with the requesting party or with any particular office or entity.

III. Equity. Unless the requesting party deems it necessary for the bidder to evidence economic capacity, it shall be established as a requirement that the bidder’s income equate to up to twenty percent of the total amount of its offer.

The establishment of requirements favoring any given bidder or bidders in the public competitive bid shall be cause for administrative liability. Therefore the bid may not contain requirements restricting the free participation of interested parties, such as:



IV. To have branches or regional or state representatives, unless it becomes necessary in order to supply the goods or provide the services under the required terms;

V. To be registered in the unique supplier register or in product or service quality registers that have been established to facilitate the assessment of offers.

VI. That the goods to be purchased or leased be of a particular brand, except for the cases duly justified in accordance with LAASP and its regulations.



The clarification requests may be sent through Compranet or be delivered in person, depending on the type of tender, no later than twenty-four hours prior to the date and time indicated for the clarification meeting to take place.

The minutes of each clarification meeting shall be recorded, including the questions asked by the interested parties and the answers of the requesting party.

Persons intending to request clarification regarding the contents of the bid, should file a writ expressing their interest to take part in the bid, pro se or through a representative, and in any case including all the information of the interested party and of its representative, if applicable.

Clarification Meetings

Proposals

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The submittal of proposals is a stage in which the interested parties who meet the terms of the bid are allowed to submit their offers, which shall include three requisites:

SUBJECTIVE. Attest legal capacity and the absence of disqualifications to lawfully submit proposals.

OBJECTIVE. Contents of the proposals grouped in two categories: PURPOSE and PRICE.

FORMAL. To submit the proposal in writing or through the electronic medium authorized by S.F.P.; in Spanish and distinctively and precisely signed and/or electronically signed; in a closed envelope (sobre cerrado) or through Compranet.

Proposals


For the assessment of proposals, the offices and entities shall use the criteria described in the public bid.

In all cases bidders must verify that the proposals meet the requirements established in the competitive bid:

The use of a binary assessment criteria, by virtue of which the bid is awarded only to the one meeting all the requisites set forth by the requesting party and offering the lowest price.

Whenever the offices and entities require goods, leasings or services that imply a high degree of technical expertise or technology innovation, the assessment criteria of points and percentages or cost-benefit must be used.

Proposals Assessment

Final Recommendations


Select the niche market in which you wish to participate.

The official language is Spanish. Documents in foreign language require official translation.

Taking in consideration the “National Integration Degree”.

Evaluate the possibility and form of partnering (joint Venture, Specific Purpose Company, etc).

Know the regulatory frame and the Compranet system.

Make sure that you purchase or obtain the RFP (Bidding documents), and/or enroll in the process, as applicable. Read carefully and in detail the RFP.

Provide all legal documentation requested in time and form, even if it seems useless or irrelevant. (apostilled).




Give special attention to the references requested: comply with the form.

Bids cannot be qualified or conditioned.

Do not submit alternatives, unless expressly requested.

Submit all required questions or clarifications in the Clarification Meetings: these are the only official possibilities to clarify doubts, point out inconsistencies, etc.

Read carefully, and take into account, the causes of disqualification.

Verify and abide by the Bidding Schedule.

Contracts can be commented in Q&A sessions, but eventually cannot be negotiated.

Discussion