1E9Ct5D

Before explaining each of these forms, it should be mentioned that it is important toverify that the governmental ministry or public institution with which a private partyseeks to contract has made a specific budgetary appropriation for the purpose of formingsaid contract, as well as that the specific amount of the appropriation is sufficientregarding the costs of the contract. If there is not a specific appropriation or an insufficientappropriation, there is no legal mechanism that can obligate the State to pay anyamounts owed. In order to verify this budgeting, public institutions are required to publishtheir contracting projections twice on their internet web pages; once on November 1,which projections are a mere estimate for the following year and are not definitive; andthe definitive budget no later than March 31 of the corresponding year.2. The Contracting Procedure276C H A P T E R X V I2.1. Public BiddingPublic bidding is the general rule for contracting. It involves a competition through whichthe state selects from among the participants the contractor who offers the best economicand technical terms for the proposed contract.The procedure can be national or international, depending on the nationality of the personsparticipating in the competitive bidding and the national or foreign origin of thegoods to be acquired. 2The first step in a public bidding is the publication of an invitation to bid that states,along with other information, the type of contract that is to be executed and the goodsor services to be acquired, thereby informing the general public of the government’sintention to execute the contract.The second step is the publication of the terms and conditions of the bidding processwhich, in addition to the information contained in the invitation to bid, informs the bidderof the terms and conditions under which the contract will be executed, the specificationsof the goods or services to be acquired, and the suitability and solvency required ofthe bidder so that, on the basis of this information, the bidding party can decide whetheror not to participate in the bidding process. During this stage, we recommend that the__________2The public bid must be international in the following cases:a) When mandatory under applicable treaties;b) When, after the contracting government institution carries out the corresponding market research, thereis no offer from national providers of the good or service in the quantity or quality required, or the priceis right;c) When a national bid has been carried out, but no national proposal is put forth, or none that meets legalrequirements;d) When it is so specified for contracts financed by external loans or granted to the federal government orwith its backing.