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Public Procurement in panama 

Public Procurement in Panama is a core component of the country’s public financial management system and a primary channel through which public funds are transformed into infrastructure, services, and development outcomes. Government procurement supports the functioning of public administration and enables investments in transport, health, education, water, energy, social protection, and digital services.

Public procurement represents a significant share of government activity and constitutes a stable, regulated market for suppliers. For domestic businesses, it provides predictable demand within a formal contracting environment. For international suppliers, contractors, and consultants, government tenders in Panama offer access to a high-income, dollarized economy with an established legal framework and a mature national eProcurement system.

For bidders, understanding the procurement framework, applicable laws, procedures, and digital tools is essential to participate effectively and competitively in Panama’s public procurement market.

Country & Economic Overview

The use of the US Dollar as legal tender reduces currency risk for public contracts and simplifies pricing, payment, and financial guarantees for both domestic and international suppliers participating in government tenders in Panama.

Public Procurement Governance Framework

Public procurement governance in Panama is centrally regulated and coordinated at the national level, ensuring uniform application of procurement rules across public entities.

The DGCP oversees compliance with procurement law and provides institutional guidance to contracting authorities across all sectors of government.

Legal & Regulatory Framework

Public procurement law in Panama is governed primarily by Law 22 of June 27, 2006, as amended and consolidated by Law 153 of 2020, together with Executive Decree No. 439 of September 10, 2020.

Core Legal Principles

• Value for Money (Article 27, Law 22)
• Transparency and public disclosure
• Competition and equal treatment
• Efficiency and accountability

Key Regulatory Provisions

• Most Economically Advantageous Tender (MEAT): Article 58, Law 22
• Life Cycle Costing: Article 48, Executive Decree No. 439
• Sustainability: Article 40, Law 22; Article 52, Executive Decree No. 439
• SME Participation: Article 10, Law 22; Article 88, Executive Decree No. 439
• Bid Securities: Article 122, Law 22
• Domestic Preference: Articles 11-12, Law 22

Procurement Procedures & Thresholds

Procurement procedures are determined by contract value, procurement category, and legal conditions defined in the public procurement law.

• Advertisement to Award: 3-30 business days depending on contract value
• Bid Validity: Defined in tender documents
• Standstill Period: Articles 153 and 157, Law 22 (goods, works, services)
• Complaint Resolution Period: 7 days
• Average Bid Evaluation Time: 20 days
• Contract Award Disclosure: Article 71, Law 22; Article 132, Executive Decree No. 439

E-Procurement System Overview

The eProcurement system in Panama serves as the official digital platform for conducting and publishing public procurement processes.

Supported Functionalities

• ePublishing and notifications
• eTendering and eQuotation
• eEvaluation and contract awarding
• eCatalogues and framework agreements
• Vendor management
• eComplaints
• eReverse auctions

Procurement Market Characteristics

• Goods: 79,788 awards (USD 1,381,736,174)
• Works: 1,858 awards (USD 1,189,971,935)
• Services: 24,773 awards (USD 1,189,971,935)
• SME Awards: 26,166 contracts (USD 190,170,900)
• Domestic Awards: 185,343 contracts (USD 4,735,285,384)
• International Awards: 134 contracts (USD 57,639,864)

Evaluation methods include both lowest-priced compliant bids and MEAT-based assessments, depending on procurement category and complexity.

Transparency, Complaints & Oversight

• Accepted Complaints: 544
• Rejected Complaints: 53
• Cancelled Procedures: 3,162

Procurement statistics and annual reports are publicly disclosed through official government procurement transparency portals, supporting oversight and market analysis.

Sustainability & Green Public Procurement

Public procurement law in Panama incorporates sustainability considerations. Green public procurement practices are mandatory, and sustainability clauses are embedded in Law 22 and its implementing regulations.

Environmental considerations may be included in technical specifications and evaluation criteria, supporting environmentally responsible procurement outcomes.

Social & Ethical Procurement Considerations

Social and ethical considerations are addressed through legal provisions promoting SME participation, domestic preference, and compliance with national labor and legal standards.

• Legal support for SME participation
• Domestic preference rules for eligible suppliers
• Integrity and compliance requirements for contractors

Key Challenges & Practical Insights for Bidders

Key challenges include procedural complexity, detailed documentation requirements, and high competition across procurement categories.

Practical Bidding Tips

1. Complete supplier registration on Panama Compra well in advance
2. Carefully review legal clauses and tender documents
3. Monitor amendments and clarification notices regularly
4. Ensure full compliance with bid securities and submission deadlines
5. Leverage local partnerships where strategically appropriate

Public Procurement in Panama offers a transparent, rules-based, and data-rich procurement environment. Suppliers that combine regulatory compliance, digital readiness, and market awareness are well positioned to succeed in government tenders in Panama.