The Commission for the Defense of Free Competition (CLC) of Indecopi revealed that various local and regional governments introduced certain conditions, requirements or restrictions that were capable of limiting competition in public processes for the purchase of cementessential input in the development and repair of public works such as sidewalks, roads, bridges and schools.
This conclusion was given in the “Report on the market for the acquisition of cement through public procurement processes”, which analyzed a set of public purchases of cement made between 2018 and 2020, reported by the Supervisory Agency for State Procurement (OSCE) ; to determine if there were factors, patterns or conditions that would have negatively impacted the competition of said processes.
As a result of the evaluation, 15 processes called by eight entities were identified, which required cement of ‘national origin’ and the recommendation to acquire a specific brand of national cement; four processes, convened by four entities, which required documentation not included in the current regulatory framework; and two instances required that the product have, at most, between 30 and 60 days from its manufacture to its delivery.
In this regard, Indecopi recommended that the OSCE investigate the causes of the requirements of ‘national origin’ and ‘manufacturing time’ of the required cement; and analyze the economic or technical reasons to include said requirements in their bases, as well as the corresponding technical and regulatory support.
Likewise, it has suggested to said body to verify if said preferences have been maintained or replicated in a period subsequent to the one analyzed (2018-2020), by these or other entities in the same or other geographical areas of the country; as well as issuing guidelines, directives or instructions to urge contracting entities to exclude from their bases any unjustified preference for a certain brand of cement or origin of the product.
The report has been sent to the regional and local governments that introduced these demands and questioned requirements, informing them of the conclusions and recommendations that have been brought to the attention of the OSCE.