Mexico - The Federal Procurement System : Challenges and Opportunities

Abstract

The World Bank carried out the first country procurement assessment review (CPAR) jointly with the Government in 2001, focusing on the features and performance of the federal procurement system. Based on the action plan included in the 2001 CPAR, the government reformed federal procurement laws and regulations in 2005 and furthered the development of Government Procurement Electronic System (COMPRANET), the federal government's electronic procurement system. The dialogue between the government and the banks intensified in early 2007 immediately after President Felipe Calderon took office. The key objectives of the new administration, included in the 2007-12 National Development Plan are: (a) State Security and Rights, (b) economic competitiveness and employment generation, (c) equity of opportunity, (d) environmental sustainability, and (e) effective democracy and responsible foreign policy. The plan establishes ten objectives to be attained, several of which are closely linked to the efficiency and transparency of the procurement system, namely, fostering a competitive economy, reducing poverty, promoting civil society participation, promoting environmental sustainability, and promoting democracy through the legal and ethical exercise of power. The new administration gives high priority to improving public procurement to facilitate the implementation of its agenda and asked the banks to help in carrying out a new review of the system. The government's objectives with respect to public sector procurement are twofold. First, the government is interested in identifying ways in which the procurement system can be improved to better manage resources and create fiscal space through savings and increased efficiency of processes. Second, the government intends to assess whether the procurement system is aligned with the administration's strategic objectives and, if not, what changes are required.