How to Bid with the Panamanian State? A Practical Guide for National and International Companies

Contracting with the Panamanian government represents a strategic opportunity for companies seeking stability, growth, and prestige. Although the process may seem complex, with the right advice and precise knowledge, it is accessible to both local and foreign companies. At LAC LEGAL, we support our clients at every stage of this process.

What are the benefits of contracting with the State?

Participating in public procurement processes not only generates revenue, but also reputation and positioning:

• Stability and a steady flow of income: The State is a reliable and solvent client.
• Diversity of opportunities: Projects are being tendered in multiple sectors: construction, technology, health, logistics, among others.
• Commercial credibility: Having been awarded a contract by the State improves the image with private clients and banks.
• Access to state resources: Some contracts allow the use of public facilities, infrastructure, or technologies.
• Transparency and legality: Law 22 of 2006 regulates public acts, ensuring regulated and controlled processes.

What is a public contractor selection process?

It is the procedure by which state institutions contract goods, works, or services. It is regulated by Law 22 of 2006 and its amendments and supervised through the official PanamaCompra.gob.pa website .

What is needed to participate?

1. Registration as a supplier in PanamaCompra.
   1. Requirements:
      1. Proof of physical and tax address.
      2. Single Taxpayer Registry (RUC).
      3. Clearance from the Ministry of Economy and Finance (MEF).
      4. Certification of Non-Registration or Clearance from the Social Security Fund (CSS).
      5. Notice of Operations.
      6. Certificate of Registration with the Technical Board of Engineering and Architecture (JTIA), if applicable.
   2. Management: The firm must be granted power to manage the aforementioned documents.
2. Common requirements in practice.
   1. Proven experience in the tendered activity: Commercial reference letter.
   2. Bank references.
   3. Audited Financial Statements.
3. Declaration of Registered Shares.
   1. Requirements:
      1. Public Registry Certificate of the company.
      2. Identification of the direct or indirect beneficiaries of at least 10% of the company’s share capital.
      3. Memorial signed by the legal representative.
   2. Management: The firm must be authorized to manage the declaration. This applies to contractor selection processes exceeding US$500,000.00.

Are there specific requirements depending on the sector?

Yes. Some activities require specific certifications. Examples include:

• Construction: registration with the Technical Board of Engineering and Architecture .
• Technical consulting: specific professional titles or licenses.
• Pharmaceutical, food, or health: health permits and specialized registrations.

How does the bidding process work?

The standard procedure includes:

1. Publication of the act: the specifications are published in PanamaCompra.
2. Document review: The bidder analyzes the requirements and evaluation criteria. Sometimes, these requirements may seem restrictive or designed to restrict only one bidder to the bidder, raising concerns about the fairness of the process. Therefore, it is essential to have specialized attorneys who can assist in interpreting the specifications, identify irregularities, and, if necessary, formulate observations or challenges within the legal framework.
3. Proposal submission: submitted electronically using the standard template.
4. Evaluation: An audit committee reviews compliance and issues a recommendation. If the evaluation makes an error or fails to correctly apply the criteria established in public procurement regulations, the affected bidder may file a complaint with the General Directorate of Public Procurement. This action seeks to review and correct potential flaws or irregularities in the evaluation, thus guaranteeing the right to a fair and transparent process.
5. Award: The best offer is chosen according to technical and economic criteria.
6. Challenges: Participants may file legal claims, represented by specialized attorneys. These challenges are reviewed by the Public Procurement Tribunal , and a challenge bond is required to file them , amounting to between 10% and 15% of the project’s value. This bond will only be enforced if it is determined that the action was filed recklessly or with the intention of deliberately delaying or causing harm to the State or a third party. The tribunal has 30 business days to issue its decision, thus ensuring a smooth and efficient process.

How difficult is it to bid with the State?

It’s not difficult, but it requires precision and experience. Many errors stem from careless document preparation, a lack of understanding of the specifications, or ignorance of standard practices. The key is:

• Have legal advice from the beginning.
• Understand the award criteria well.
• Prepare solid, complete and competitive offers.

How do we support LAC LEGAL?

Our public procurement team offers:

• Registration and validation as a supplier.
• Review of specifications.
• Preparación de propuestas técnicas y económicas.
• Revisión de documentos y requisitos.
• Representación ante impugnaciones o reclamos.
• Advising foreign companies wishing to bid in Panama.

Do you want to participate in public tenders?

Whether you’re looking to apply for the first time or improve your chances of winning, we can help, Contact us, and our dedicated team will guide you step by step.

dlacayo@lacgrp.com

+507 6674-1161

www.lacgrp.com