On April 16, 2025, the new Law on Public Procurement, Leases, and Services in the Public Sector (the “Law”) was published in the Official Gazette of the Federation, entering into force on April 17, 2025, and thereby repealing the previous legislation in effect since 2000.
The publication of this new Law is part of a comprehensive reform of the public procurement regime, aligned with the objectives of the so-called “Plan México” and aimed at modernizing administrative procedures, strengthening transparency, and promoting greater participation of priority sectors in the national economy.
Below please find some of the most relevant aspects of the new Law:
1. Digital Platform for Public Procurement. The CompraNet system is eliminated and replaced with a new electronic platform that will integrate the full procurement cycle (from planning through contract execution). Its implementation will be gradual, according to the notices issued by the Secretariat of Anti-Corruption and Good Governance, and must be fully operational within thirty (30) months.
2. Federal Government Digital Store. A mechanism for centralized procurement through framework agreements is created for goods and services of common use. This system seeks to streamline contracting procedures and improve conditions in terms of price, quality, and timing.
3. Redefinition of economic criteria. The Law introduces the concepts of: “Unacceptable price”, a price that exceeds the authorized budget or is above the market average, and “Inconvenient price”, a price substantially below the market average. These new definitions aim to improve budgetary rationality and avoid distortions in competition.
4. New procurement procedures. The Law incorporates mechanisms such as reverse auctions, competitive dialogue, and a direct award with negotiation strategy, aimed at securing better terms in justified cases. The following procurement procedures are specifically established:
- Public tender. The default procedure, open to all interested parties, to be conducted through the Digital Platform.
- Invitation to at least three (3) participants. A restricted procedure involving three (3) or more suppliers invited by the contracting authority, also conducted via the Platform.
- Direct award. An exceptional procedure requiring prior justification and a market study to support the reasonableness of the proposed price.
- Competitive dialogue. A new procedure reserved for cases requiring high specialization or innovation. It may only be carried out through the Secretariat of Finance and Public Credit.
- Direct award with negotiation strategy. This procedure allows for negotiation of better contract terms and may also only be conducted through the Secretariat of Finance and Public Credit.
- Specific award under a framework agreement. Contracts are assigned to previously selected suppliers using the Federal Government Digital Store.
- Order assignment from catalog. Enables immediate direct contracting of common goods and services available through the Digital Store or institutional electronic catalogs.
5. Support for MSMEs, cooperatives, and the social sector. The Law mandates that a certain percentage of procurement procedures be reserved for these participants. It also introduces affirmative measures and differentiated evaluation criteria to promote their inclusion.
6. National content. A minimum national content threshold of sixty-five percent (65%) is established for goods and services acquired by the government, subject to justified exceptions. This seeks to strengthen domestic supply chains.
7. Social witnesses. The role of social witnesses is regulated, allowing them to participate in procedures, issue recommendations, and report irregularities where applicable. Their involvement will be mandatory in procedures exceeding certain budgetary thresholds.
8. Arbitration clauses and alternative dispute resolution. The Law retains the possibility of including arbitration clauses to resolve contractual disputes, though it limits such clauses to interpretation and execution issues, expressly excluding matters involving early termination or administrative rescission.
9. Regulatory review and transition. The Executive Branch must issue the regulations of the Law within ninety (90) business days following its entry into force. Until then, the prior regulations will remain applicable insofar as they do not conflict with the new Law.
10. Transitional application. Procurement procedures initiated prior to the Law’s effective date (April 17, 2025) will continue under the former legislation.
The entry into force of this Law represents a significant shift in the public procurement model in Mexico. Its successful implementation will depend largely on the effectiveness of the new digital systems and the ability of government agencies and suppliers to adapt to the new regulatory framework.
Broadly speaking, the Law aims to strike a balance between oversight, efficiency, and inclusive participation, while also reinforcing accountability and limiting discretionary practices in public procurement. However, its implementation poses several operational challenges, particularly concerning the development and interoperability of the Digital Platform, the technical definition of market prices, and the training of public officials in charge of executing the new procedures.
It will be important to monitor the issuance of the corresponding implementing regulations, as well as the general rules to be issued by the Secretariat of Anti-Corruption and Good Governance. Likewise, it is recommended that public sector suppliers review and update their internal procedures to align with the new procurement modalities, evaluation criteria, and national content requirements in order to remain competitive in this new environment.
