Wednesday, January 11, 2023

Contract formation

CONTRACT PROCEDURES 

FORMATION OF CONTRACTS

Comparative System

FREE CHOICE SYSTEM. 

It grants the Administration the possibility of directly and discretionally choosing the individual or legal entity without the need to submit to prior procedures. 


RESTRICTION SYSTEM. 

Impose certain procedures for the choice of the co-contractor and for the formation of the contract. 


National Regime

In Uruguay, according to DelPiazzo, different forms of selection of the co-contractor are established, however, public bidding has been favored, without prejudice to exceptions. Art 33 of TOCAF of 2012. These three exceptions are categorized as: quantitative, qualitative and specific. 


EXCEPTIONS:

QUANTITATIVE [They are updated by CPI annually]. 

Article 33, paragraph 2 of the TOCAF. 

The Administration is authorized to proceed to abbreviated bidding when the amount of the operation does not exceed the amounts determined by Article 156 of the TOCAF.  

Likewise, the maximums of abbreviated bidding and direct contracting are especially applicable to the Autonomous Entities and Decentralized Services of the industrial and commercial domain. Art 44 TOCAF, provided that a- they comply with a management and effective internal control system, b- they are electronically communicated with the Single Registry of State Suppliers, c- they publish everything related to their contracts on the website of State Procurement and Contracting. 

On the other hand, in international loan contracts, following art 45 of the TOCAF, the administration may follow the parameters of credit loans. 



QUALITATIVES. 

Art 33 of TOCAF from lit C inc 2º. [35 causes of the exception, lit D].


These are the cases of: contracting with public or private entities of state property, contracting after frustrated competitive procedure, contracting of exclusive goods or services, contracting of works of art, scientific or historical works, contracting through international organizations, contracting of extraordinary repairs, contracting that must necessarily be carried out abroad, secret contracting, contracting by proven measures of urgency, contracting of scarce goods or services, contracting at auction, contracting of selected livestock, contracting of products intended for promotion with users or consumers, contracting of teaching material, contracting of food, contracting of oil or derivatives, contracting of agreements involving exchange of products, contracting for scientific research, contracting to be carried out by the national emergency system, contracting of goods or services whose production or supply is in charge of social cooperatives, purchase and sale by UTE of energy generated by other agents, procurement of goods or services by Autonomous Entities and Decentralized Services, procurement of biodiesel and alcohol by ANCAP, procurement of services for the maintenance and improvement of infrastructure of educational facilities by ANEP, procurement of goods or services by the Ministry of Social Development, procurement of public or private energy services developed under the scheme of performance-based contracts, procurement of goods or services by government agencies, procurement of goods or contracting of services by the central operating unit of the socio-housing integration plan together, contracting of SODRE and Channel 5, procurement or repair of goods to cover needs arising from job training courses at ANEP, procurement of goods or services by ASSE, agreements for complementary teaching by UTEC with other universities and educational institutions, procurement of goods or contracting of services whose production or supply is in charge of a sheltered production workshop. 


SPECIFIC. [art 45 - when the state has international loans, the source of financing is what changes].

They are regulated in articles 44 and 45 of the TOCAF, without prejudice to the special procedures provided for in article 37. This specialty is based on two elements: a) according to the organization that carries out the contracting, and b) according to the origin of the funds. 


ACCORDING TO THE ORGANISM. 

Article 44 of the TOCAF provides that in the case of Autonomous Entities and Decentralized Services of the industrial and commercial domain, the amount of the contracting is established well above the normal amount for the rest. This may be suspended by the Executive Branch on the advice of the State Procurement and Contracting Agency, prior opinion of the Court of Auditors. 


Article 277 of Law 18.172 of 2007 and Article 443 of 18362 of 2008 authorize ANEP and INAU to carry out direct contracting for building maintenance and refurbishment works, by direct purchase. 



DEPENDING ON THE ORIGIN OF THE FUNDS. 

Article 45 of the TOCAF provides that they shall be subject to the contracting rules established in contracts for works, acquisition of goods or provision of services.


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