Law 47-25: Public procurement
In the Dominican Republic, public procurement and contracting are regulated by a regulatory framework whose central purpose is to ensure transparency, efficiency, and equity in the management of state resources. This legal framework was recently updated with the enactment of Law No. 47-25 on Public Procurement, which replaces the previous Law 340-06 and its amendments. It is important to note that, although Law 47-25 was enacted on July 21, 2025, it will enter into force 180 days after that date.
Law 47-25 clearly establishes the fundamental principles, detailed procedures, and specific responsibilities that will govern the procurement of goods, contracting of services, execution of public works, and concession of public services by the State. This legal framework will soon be supplemented by specific implementing regulations, the purpose of which is to provide precise guidelines to ensure effective implementation. The General Directorate of Public Procurement (DGCP) continues to play an essential role as the governing and supervisory body of the national public procurement system, ensuring strict compliance with the new regulatory regime and incorporating modern oversight, supervision, and control tools that will strengthen the integrity and transparency of the processes.
This article aims to explain the different types of contracts contemplated in Law 47-25, highlighting in particular the changes introduced by this new regulation regarding the classification, naming, and definitions of ordinary and exceptional selection procedures.
Ordinary selection procedures in Law 47-25 on Public Procurement
Ordinary selection procedures are the main mechanisms established by Law No. 47-25 for public institutions to contract goods, services, or works under normal and foreseeable conditions. These procedures guarantee transparency, equality, and free competition, allowing the participation of multiple suppliers under clear and open conditions. According to Article 55 of Law 47-25, ordinary selection procedures comprise seven modalities: public bidding, abbreviated public bidding, reverse auction, drawing of works, simplified contracting, minor contracting, and direct contracting subject to a threshold. This enumeration presents some important changes with respect to the previous regime: for example, the restricted bidding (provided for in Law 340-06) disappears, and new models such as abbreviated public bidding and direct contracting under a threshold are incorporated . Likewise, the former minor purchases are redefined under the category of minor contracting , maintaining their essence but with new threshold rules. Below, each of these procedures is detailed, briefly explaining their nature, their recommended use according to current regulations, and highlighting the new features introduced by Law 47-25 in each case.
Public bidding in Law 47-25: concept and use
Concept: Public bidding remains the standard procedure par excellence for Dominican public procurement. It consists of a public and open call for an undetermined number of bidders to submit proposals for the provision of goods, services, or execution of works. It is the legally mandated modality applicable to larger economic contracts: according to Law 47-25, public bidding must be used when the estimated value of the contract reaches or exceeds a certain minimum threshold established by the law itself (linked to free trade commitments) and calculated annually by the DGCP. In other words, purchases whose amount exceeds a determined threshold (frequently referred to the DR-CAFTA threshold in force) necessarily require this open procedure. Public bidding may be conducted nationally or internationally, depending on the circumstances of the case: the law stipulates that they will be international in cases such as trade agreement coverage, lack of local capacity to supply the contracted item, or when previous national processes have failed. This ensures that, where appropriate, participation is open to foreign suppliers to obtain the best deals.
Use and characteristics: In a public tender, there are no restrictions on who can participate: any supplier that meets the established requirements may submit a bid. It is the most demanding and comprehensive procedure, reserved for most large-scale government purchases, unless another specific method applies. The call for bids is widely published through the Electronic Public Procurement System (SECP) and other official means, allowing sufficient time for interested parties to prepare their proposals in accordance with the specifications. Competition is completely open and unrestricted, which guarantees equal opportunities and favors obtaining the most convenient offer for the government. By its nature, this procedure usually involves longer deadlines and formalities, as it seeks maximum participation and a rigorous evaluation to select the best value for money. The contract is typically awarded to the most advantageous offer based on pre-established criteria (either the lowest price or a combination of scoring factors). In short, public bidding, under Law 47-25, remains the standard mechanism par excellence, aimed at obtaining the best conditions for the State through broad competition and publicity, now with thresholds aligned with international standards for its application.
Abbreviated public tender in Law 47-25
Concept: Abbreviated public bidding is a modality introduced by Law 47-25, conceived as a more streamlined variant of public bidding. According to the definition in Article 62, it is a public bidding procedure in which the call for bids is issued within a shortened period. Essentially, it maintains the public and competitive nature of the bidding process, but shortens the process time. The law limits its application to specific cases: abbreviated bidding may only be used when the subject matter of the contract is common and standardized goods or services, the value of which meets the threshold for public bidding. That is, when faced with a large procurement need (due to the value involved) but whose nature is routine or homogeneous, it is permitted to call for bids in less time than an ordinary bidding process, without sacrificing the number of bidders.
Use and conditions: This method seeks to streamline and make more efficient the procurement processes for certain goods and services, reducing the bureaucratic burden when a long period of time to prepare bids is not justified (given that the object is standard and well-known in the market). Abbreviated public bidding maintains the mandatory publicity and transparency: even with shorter deadlines, the call for bids must be published in the SECP (Secretariat of Public Procurement) and other official channels, ensuring that any eligible supplier is informed and can participate. Unlike the repealed restricted bidding (which invited only preselected suppliers), abbreviated bidding is not limited to a closed group of invitees: participation remains open, but the timeframe is adjusted. It is often used in cases where the institution relatively urgently requires a common, high-value good or service, thus enabling it to obtain competitive bids in a short period of time. The procedural flow is similar to that of a regular public bidding (call, presentation, evaluation, award), with the only difference being the shorter timeframe. In short, the abbreviated public bidding process is a new approach that combines the competitive breadth of a tender with the speed of a simplified process, allowing significant but standardized needs of the State to be met in a timely manner.
Reverse auction: when it is appropriate according to Law 47-25
Concept: A reverse auction is a competitive procedure in which the award is decided through a downward bidding mechanism based on the prices offered by suppliers. Law 47-25 considers it a standard method applicable to the procurement of common and standardized goods and services. Unlike a traditional bidding process, where each bidder submits a single, sealed economic proposal, in a reverse auction, participants compete in real time, successively reducing their bid prices in order to offer the lowest bid. This process is usually carried out through an electronic platform managed by the SECP (Secretariat of Public Procurement), although the law provides for the possibility of an in-person auction when appropriate. In any of its methods, the essence is the same: the supplier that meets the required technical specifications and offers the lowest price at the close of the auction wins.
Use and characteristics: Reverse auctions are used when the subject matter of the contract is clearly defined and standardized, so that price becomes the primary decision-making factor. This procedure promotes cost reduction for the State by leveraging direct and transparent competition among suppliers. It is important to note that reverse auctions require robust technological tools and clear rules that ensure bidding transparency. Law 47-25 delegates the precise definition of the auction mechanism to the regulations, ensuring that the procedure is conducted in a public, reliable, and equitable manner. In short, reverse auctions are an efficient mechanism when there are several suppliers capable of supplying a standard item, ensuring that the State contracts at the lowest possible price under competitive and objective conditions.
Raffle of works in Law 47-25
Concept: The public works lottery is maintained in Law 47-25 as a particular ordinary selection procedure used for the awarding of public works of lesser complexity or moderate value. It consists of a special mechanism where the contract award is determined by random selection among participating contractors who have met certain technical pre-qualification requirements. In other words, the contracting entity first verifies that the interested parties possess the certifications, classifications, and minimum technical experience required for the project. Those applicants who are technically qualified then enter a random drawing—conducted publicly and before a notary—from which the winner of the project is selected in a transparent manner. The law expressly states that this procedure only applies to non-complex works or minor repairs and requires that the project have a final design and budget prior to the drawing, thus ensuring that all participants clearly understand the purpose to be executed.
Use and characteristics: The public works lottery is typically used for relatively low- or medium-value construction projects. The philosophy behind this method is to distribute opportunities for construction contracts equitably when there is a broad universe of qualified contractors. The contracting institution issues a public call for bids, announcing the project specifications (bidding documents, plans, reference budget). During the lottery, which is held in the presence of bidders and authorities, the name of the winning contractor is randomly drawn (and usually some alternates in order of priority), ensuring an impartial process. It is important to note that, despite the random nature of the final selection, all participants have previously met the same technical and legal requirements, so that whoever is selected is capable of executing the work in accordance with the requirements. Law 47-25 ratifies this method, underscoring the need to regulate its mechanisms to guarantee full transparency and equality in the lottery. Ultimately, the lottery for construction projects allows for the awarding of small construction contracts, avoiding favoritism and promoting the rotation of opportunities among multiple qualified contractors, always under the premise of strict compliance with technical requirements by the successful bidder.
Simplified contracting and minor contracting in Law 47-25
Concept: Simplified procurement is an abbreviated, competitive procedure that can be used for the procurement of goods and services—both common, standardized and non-standardized—as well as for non-complex public works or minor repairs, provided that the estimated value of the contract does not exceed a certain monetary threshold established by law. In practical terms, it covers medium-value contracts that do not reach the level of a public tender. The choice of this modality is determined primarily by the amount: according to the law, simplified procurement is applied if the estimated budget is lower than the threshold established for public tenders but higher than the threshold for minor contracts. It is, in essence, a more agile mechanism than bidding, designed to obtain quotes and award contracts in less time, while maintaining an adequate level of competition.
Use and characteristics: Simplified procurement is used for smaller or faster purchases, where it is efficient to reduce formalities without eliminating core competition. Given the simpler procedure, the specifications tend to be shorter and the documentary requirements for bidders are minimal. Generally, several bidders participate to ensure competitiveness, with the evaluation focusing primarily on the offered price (assuming all meet the essential technical specifications). The timeframes in this procedure are usually shorter than in a public tender, precisely to expedite the contracting process. In short, simplified procurement allows government needs to be met in shorter timeframes and with simple procedures, obtaining several quotes to ensure a good offer. It represents the nominal evolution of price comparison, adapting it to the new legal framework.
Simplified contracting and minor contracting in Law 47-25
Concept: Minor contracting is the new name given by Law 47-25 to the simplified procedure for very low-value acquisitions, equivalent to the former “minor purchases.” It is defined as the selection procedure used for the procurement of common and standardized goods and services, or even small works and repairs of low value, when the estimated value does not exceed the minimum threshold established for this category. In these cases of minimal amounts, the law allows for a streamlined and less formal process, while still ensuring a minimum of transparency. Given the small nature of the contract, it is more efficient to issue direct invitations to bidders who can meet the need, rather than deploying an extensive process; therefore, the law classifies this procedure as an expedited invitation to suppliers, always respecting the basic principles of public procurement. Minor contracting is part of the ordinary selection procedures, but its execution falls to lower administrative levels, typically the administrative unit, with authorization from the highest authority, rather than a full purchasing committee. This reflects its simplified nature within the institutional structure.
Use and characteristics: Under the current system established by Law 340-06, this type of contracting is characterized by its agility and operational simplicity. Contracting entities can quickly obtain informal quotes through various means. Despite this simplicity, current regulations require the adoption of certain minimum measures to preserve transparency, such as the subsequent publication in the Electronic Public Procurement System (SECP) of a notice of the contract executed, leaving public record of the expenditures incurred. These contracts are normally managed internally by the institutions’ own administrative units, allowing for an efficient response to immediate needs. It is worth noting that the new Law 47-25 will explicitly reinforce the prohibition of artificially dividing larger contracts into smaller contracts, establishing that such conduct constitutes a serious offense. In short, minor contracting is a simplified procedure suitable for small amounts, combining speed with the minimum controls necessary to ensure transparency in the use of public resources.
Direct contracting subject to threshold (Law 47-25)
Concept: Direct contracting subject to a threshold is a new modality incorporated by Law 47-25, designed for contracts for very small amounts, even below the threshold for minor contracts. According to Article 67 of the law, this procedure allows for the contracting of common and standardized goods and services when the estimated value is below the minimum established for a minor contract. In practice, these are micro-purchases or acquisitions of trivial amounts, for which any formal competitive process is disproportionate. The regulations recognize this and authorize the entity to contract directly with the supplier, provided that the defined conditions are met (common good or service, and amount below the lower limit). This concept did not have a specific name in the previous legislation—such direct purchases were often handled as part of minor purchases or petty cash—so its explicitness represents a novelty intended to formalize and provide rules for the State’s petty procurements.
Use and characteristics: In threshold direct contracting, the public entity can immediately award the purchase to a supplier of its choice, without an open call or simultaneous comparison of multiple offers, due to the small amount involved. However, this does not mean absolute discretion: the law and its future regulations will establish the procedure for conducting these contracts, ensuring that they are done in a public and transparent manner, respecting the guiding principles of public procurement where applicable. It is expected, for example, that even these direct purchases must be registered on the electronic portal or in internal systems for audit purposes. In short, threshold direct contracting allows for the rapid resolution of very specific and immediate needs, while the new legal framework seeks to ensure that these micro-purchases are recorded and monitored within the system. It is important to mention that, although it is a standard procedure, its use is limited to cases of minimal value; any attempt to split larger purchases to fit this modality would be prohibited and sanctioned by law. Ultimately, this modality closes the loop on ordinary procedures, covering the final level of amounts with a simplified and direct alternative, in line with best practices for efficient management of small public expenditures.
Exceptional hiring in Law 47-25
General Concept: In addition to ordinary procedures, Law 47-25 provides for exceptional contracting, applicable in special circumstances where it would not be feasible or advisable to follow regular competitive processes. Exceptional contracting is defined as contracting that is carried out excluding the rigor of ordinary procedures and can only be carried out under the grounds expressly provided for in the law and its regulations. That is, the law establishes a limited list of extraordinary situations that justify deviating from the usual procedures without constituting a violation of the system, provided that one of these permitted grounds is properly invoked and the established conditions are met. Exceptions to ordinary selection procedures may take the form of a reduction in the normally established time periods or a limitation of the competition rules as a result of the circumstances of the case or the special nature of the contract.
Generally speaking, the authorized exceptions cover cases of force majeure or very specific institutional needs, such as: national emergencies (natural disasters, health crises, etc.), national security or defense reasons (where confidentiality or state secrecy is required), proven emergencies that do not allow for delaying an ordinary process, contracting exclusive goods or services (available only through a specific supplier or a very limited group of suppliers), sole-source situations, among others provided for in the legal text. In Article 78, Law 47-25 lists these exceptional cases in detail and conditions their strict application on adequate justification in each case.
In emergency cases, with special attention to health crises and national security, the law allows for direct awarding of contracts to a specific supplier, without prior notice to others. However, in any of the exceptional modalities, the contracting entity must duly justify the decision and document the reasons cited, ensuring compliance with the limits imposed by the regulations.
Role of the DGCP and the SECP in Law 47-25 on Public Procurement
Exceptional procurement is not exempt from oversight: the DGCP and oversight bodies ensure that it is used only in permitted cases and that this provision is not abused. The new law even requires the publication of the resolution approving the use of an exception (except in matters of national security) on the institutional portal and the SECP, for greater transparency. Furthermore, whenever possible, it is recommended to promote competition even within an exception (by inviting more than one supplier) to obtain better conditions for the State. In short, the exceptional regime is a flexibility valve for the procurement system, intended for limited and restricted scenarios. Its application must be carefully justified and supervised, preventing it from becoming a source of opacity or arbitrariness in public procurement.
Conclusion
In conclusion, the recent Public Procurement Law 47-25 has significantly modernized the Dominican government procurement regime, reorganizing standard selection procedures to adapt them to international best practices and the current needs of the State. New procedures have been introduced (such as abbreviated bidding and direct minimum-value contracting) and existing concepts have been redefined, all aimed at achieving more agile, transparent, and inclusive processes. At the same time, oversight mechanisms have been strengthened, with a stricter set of consequences to prevent irregularities. Those involved in public procurement should familiarize themselves with this new procedural structure and its designations, ensuring they comply with the legal requirements in each case. In this way, both contracting institutions and suppliers can perform their roles in an informed manner, contributing to ensuring that every peso of the public budget is managed with integrity, efficiency, and for the benefit of the common good, as required by the spirit of Law 47-25.
Find out more on the official DGCP website or review other analyses in our article on the legal keys to tourism investment in the Dominican Republic .