Executive Summary of Law 47-25 on Public Procurement and Contracting

In July 2025, the Dominican Republic took a decisive step toward transparency and efficiency in public spending with the enactment of Law 47-25 on Public Procurement and Contracting. This new regulation replaces the old Law 340-06, introducing a more modern, inclusive model aligned with international best practices in public procurement.

Law 47-25 redefines the Dominican public procurement system, strengthening legal certainty, encouraging the participation of MSMEs, and guaranteeing equal opportunities for all government suppliers.

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Why was a new Public Procurement Law necessary?

For almost two decades, the management of state procurement was governed by a framework that, while functional, proved insufficient in the face of today’s challenges of digitalization, transparency, and social oversight.

Law 47-25 arises in response to this need for updating and seeks to:

• Modernize procurement processes based on principles of efficiency and sustainability.
• Promote the inclusion and competitiveness of MSMEs, cooperatives, and local businesses.
• Strengthen oversight and accountability in the use of public funds.
• Simplify procedures through digital tools and single records.

Main contributions of Law 47-25

1. Focus on transparency and efficiency

The law establishes stricter rules for the planning, publication, awarding, and execution of public contracts, ensuring that every peso invested by the State is duly justified.

2. General Directorate of Public Procurement (DGCP)

The DGCP is consolidated as the governing body of the system, with regulatory, oversight, and sanctioning functions.
Its responsibilities include:

• Issue mandatory technical regulations and guidelines.
• Supervise the contracting processes in all entities.
• Impose sanctions for non-compliance and illegal acts.

3. Guiding principles

The new regime is based on principles such as legality, transparency, free competition, equality, sustainability, efficiency, and responsibility. These guide all stages of the procurement process.

4. Procedures and modalities

Law 47-25 expands and updates contracting modalities, incorporating digital tools and open participation mechanisms. Electronic portals, auctions, and catalogs of goods and services are strengthened.

5. Participation of MSMEs and local entrepreneurs

The law introduces incentives to increase the participation of MSMEs, especially those led by women or located in regions outside Greater Santo Domingo, promoting more balanced development.

6. Inspection and sanctioning regime

The obligation to carry out periodic audits, preventive controls, and administrative responsibilities is strengthened. Officials who violate the law’s principles may face sanctions, fines, and even disqualification from holding public office.

Impact and modernization of Law 47-25

With the entry into force of Law 47-25, the Dominican Republic consolidates a more agile, competitive, and transparent public management model.
The main expected impacts include:

• Reduction of discretion in the awarding of contracts.
• Greater private sector confidence in state processes.
• Increased participation of local suppliers and greater economic dynamism.
• Institutional strengthening and alignment with international governance standards.

Conclusion

Law 47-25 on Public Procurement and Contracting represents a structural transformation in the management of Dominican public spending. Its focus on transparency, digitalization, and business inclusion makes this law an essential pillar for strengthening the state and the country’s competitiveness.