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Public Procurement – Public Ecuadorian Law

Ecuador is in the ongoing process of given concesion of public services in such areas as communications, water services, roads, as well as oil and electric power.

Romero Arteta Ponce has represented many national and international companies in the concesion process in all of the aforementioned sectors.

In this process we help our clients obtain the requisite permits and authorizations, provide negotiation advice, as well as all necessary services to assure the legal security of the contract.

ORGANIC LAW OF THE NATIONAL SYSTEM OF PUBLIC PROCUREMENT  (LOSNCP in Spanish) – SINGLE RECORD OF SUPPLIERS – (RUP in Spanish)

In Ecuador, in 2008, the Organic Law of the National System of Public Procurement-LOSNCP- was issued. This Law created the National Institute of Public Procurement (INCOP), currently called SERCOP –National Service of Public Procurement-.

SERCOP is part of the National System of Public Procurement, which is the system by which all institutions that manage public resources can plan, administrate and execute the procurement of goods, services and public works.

The SERCOP intends that the Public Procurement management to be transparent and effective, in order to optimize the State´s resources and to strengthen the development of the productive area of the Country.

Some functions of the SERCOP are:

• To Manage the Single Record of Suppliers (RUP in Spanish).

• To issue mandatory pre-contractual and contractual models, applicable to different modalities and procedures of Public Procurement.

• Collect and distribute plans, procedures and results of Public Procurement.

The Single Record of Suppliers (RUP) is a public record in which any person or corporation, domestic or foreign, who wishes to participate in contracting procedures made by the Ecuadorian State Entities, must be enabled.

Suppliers who wish to register for the RUP must do so through the online system, held by SERCOP; once registered, they must comply with the established requirements in order to be enabled on the National System of Public Procurement.

Suppliers that are enabled in the RUP can access the Public Procurement Portal and participate in the different contracting procedures for which they are enabled.

Furthermore, contracting entities shall register in the Public Procurement Portal, in order to make use of the tools of the National System of Public Procurement, for which they must be registered according to the established procedures.

SERCOP gives contracting entities an accessibility permit to operate through the Public Procurement Portal; there is joint liability for the use of the tools and passwords, between the highest authority and persons authorized by the highest authority.

Our Law Firm advises all companies, in order to comply with all the requirements to be able to celebrate contracts with the State. Our Legal services include the advise in :

• Provide information to clients of different bids.
• Review  bid terms and give legal advice for the correct preparation of the bid in accordance to Ecuadorian law
• Contract negotiation.
• Public procurement consultant services

Acknowledgements