Law 47-25 on Public Procurement

Law 47-25 on Public Procurement establishes the legal framework that regulates how the Dominican State acquires goods, contracts services, and executes works with public resources. Its main objective is to guarantee transparency, efficiency, and legality in the use of state funds, ensuring that public procurement processes respond to the general interest and sustainable development .

Objectives of the law

• Promote transparency in the management of public funds.
• Ensure equal opportunities for suppliers and contractors.
• Promote the participation of MSMEs and vulnerable sectors.
• Promote fair competition and avoid corrupt or monopolistic practices.
• Promote the use of technology and sustainability in purchasing processes.

Scope of application

The law applies to:

• Ministries, decentralized institutions and autonomous bodies.
• Local governments (municipal councils and municipal districts).
• Non-financial public companies with more than 50% state capital.
• Any institution that manages public funds.

Some special contracts are excluded, such as public credit operations, emergency vaccine purchases, contracts between states, or INESPRE acquisitions.

Fundamental principles

Public procurement processes must be governed by a series of guiding principles that ensure fairness and transparency, including:

• Efficiency and economy: selecting the most technically and economically convenient offer.
• Equal treatment: all bidders compete on equal terms.
• Free competition: avoid monopolies and encourage participation.
• Transparency: ensuring access to information and social control.
• Inclusion: participation of women, people with disabilities, and MSMEs.
• Sustainability: promote environmental and social criteria.

Contracting procedures

State contracts are awarded through administrative procedures that include:

• Public call: open call for suppliers to submit offers.
• Specifications: document that specifies technical, economic and legal requirements.
• Bid evaluation: technical and financial analysis of the proposals received.
• Award: selection of the supplier that submits the most convenient offer.
• Signing and executing the contract: legal formalization and fulfillment of obligations.

There are ordinary and exceptional procedures, depending on the amount, urgency or nature of the contract.

Key institutions in the system

• General Directorate of Public Procurement (DGCP): governing body that regulates, supervises and sanctions.
• Public procurement committees: internal bodies within each institution to approve processes.
• Procurement operational units: technical teams responsible for executing purchasing processes.
• Registered suppliers: must register in the State Supplier Registry (RPE).

Opportunities for MSMEs and vulnerable sectors

One of the most important advances of this law is the inclusion of micro, small, and medium-sized enterprises (MSMEs), as well as traditionally marginalized sectors, such as:

• Entrepreneurial women.
• People with disabilities.
• Local communities.

The State has the obligation to reserve part of its public procurement for these groups, contributing to their economic development.

Economic and social impact

Law 47-25 not only organizes state purchases, but also has a strong impact on the economy:

• Stimulates the competitiveness of suppliers.
• Promotes business formalization.
• It favors the decentralization of development by prioritizing local governments.
• Strengthens citizen trust by promoting accountability.

Frequently Asked Questions (FAQ)

1. What is Public Procurement Law 47-25?
It governs how the Dominican State contracts goods, services, and works with public resources.

2. Who oversees compliance with this law?
The General Directorate of Public Procurement (DGCP), under the Ministry of Finance.

3. What benefits does it offer to MSMEs?
It gives them priority in certain purchasing processes, encouraging their growth and formalization.

4. Must all public institutions apply this law?
Yes, except in cases of special contracts or differentiated regimes.

5. What happens if an institution violates the principles of the law?
Administrative, civil, or criminal sanctions may apply, in addition to the nullity of the contract.

6. How is transparency guaranteed?
Through electronic systems, publications on official portals, and the possibility of citizen oversight.

Conclusion

Public Procurement Law 47-25 represents a fundamental pillar of transparency and efficiency in public spending in the Dominican Republic. By promoting the inclusion of MSMEs, women, and vulnerable sectors, in addition to fostering competition and sustainable development, this legislation not only regulates state procurement but also strengthens citizen trust and the country’s economic growth.