Good Practices and Innovations in Public Governance 2003-2011

2007 Category 1: Chile
Terms and Conditions of Administrative Agreements for Supply and Service Rendering, most
commonly known as the Public Procurement Law, Nº 19.886, enacted on August
29, 2003.
To increase efficiency and transparency in the public procurement market, the government
introduced different regulatory and management tools, including: an electronic
commerce platform www.chilecompra.cl, management of competences, training and
technical assistance, as well as policies and corporate procurement management.
ChileCompra has produced a number of positive results. First, it has enhanced transparency
and efficiency in the public procurement market with free universal access to
information, therefore strengthening Chile’s democratic system and the image of the
country. Second, it has ensured equal opportunities in access to information regarding
State procurement and contracting processes, with a positive economic impact on
micro, small, medium and large businesses of the country. Third, it has increased
savings for the State while increasing efficiency, productivity and swiftness in processes
involved in procurements by the public agencies.
Finally, the digitalization of the procurement processes has resulted in an increase of
electronic commerce, economic growth and competitiveness improvement. Each ten
seconds there is a new business opportunity for enterprises. The public procurement
market makes up for 3% of the GDP. In 2006, US$3.5 million were traded in www.
chilecompra.cl. During this period, monthly average of purchase orders issuance exceeded
US$100,000. More than 230,000 suppliers and almost 900 Public Agencies
are registered in the ChileCompra System. Approximately 88% of bids awarded to
suppliers in ChileCompra are micro and small enterprises.
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