Bill 635.

Summary.

The bill amends Article 79 of the Consolidated Text of Law 22 of 2006, as organized by Law 153 of 2020, concerning exceptional procurement. It defines this procedure as selecting a contractor without competition among bidders and limits its use to situations where a real inability to conduct competitive selection is objectively documented. The contracting entity must analyze the market to substantiate the price and terms and seek at least three (3) valid proposals. If it cannot obtain them, it must justify that outcome. Mechanisms or documents that replace or simulate the required analysis are prohibited.

The amendment retains and limits grounds involving a sole bidder or lack of an adequate substitute, evident urgency, and exceptional situations or natural disasters declared by the Cabinet Council (Consejo de Gabinete). It governs extensions of contracts exceeding three hundred thousand balboas (B/. 300000.00), subject, among other conditions, to the price, budget allocation and preservation of essential contract terms. For real property leased by the State, rent is tied to the property's updated average value, using the last official appraisal as a reference up to two years after its date.

Social benefit or strategically important contracts would require a reasoned report, evidence of a lack of competition, prior publication and express verification of the applicable requirements. Other grounds cover appraised exchanges, specified artistic or technical work, purchases for corregimientos (districts) or communities experiencing multidimensional poverty, and procurement by the National Assembly (Asamblea Nacional). For the latter, the text sets a threshold of fifty thousand balboas (B/.50,000.00) and requires authorization by its Board for lower amounts. The research and innovation ground is limited to the National Secretariat for Science, Technology and Innovation (Secretaría Nacional de Ciencia, Tecnología e Innovación), under the stated conditions concerning bidders in the Republic of Panama (República de Panamá) or national urgency. The security and defense ground covers sophisticated systems, equipment and weapons but excludes consumable goods used by state security bodies.

Article 2 expands the substantiated technical report to include a comparison of alternatives, an explanation of the inability to use competition, the market analysis methodology, potential bidders and a declaration that participating officials have no conflict of interest. The report has the character of a sworn statement and creates direct responsibility for its signatories. Article 3 requires the intention to contract and relevant documents to be published in PanamaCompra for no fewer than five business days, subject to reasoned exceptions. If two or more technically and financially qualified interested parties appear, the entity must suspend the exceptional procedure and call the applicable selection process. Articles 4 through 6 require a reasoned approval, provide for annulment under administrative due process and classify improper use as a serious offense with applicable liabilities. Articles 7 and 8 identify the amendment and set commencement for the day after promulgation.

The provisions concern the Cabinet Council, the National Assembly and the National Secretariat for Science, Technology and Innovation. They could affect contracting entities, suppliers, landlords, research and technology sectors, artists and technical professionals, and communities served by public procurement.