BackOn August 11, 2020, the “Decree by which a fifth paragraph is added to Article 1 of the Law of Acquisitions, Leases and Services of the Public Sector (“LAASSP” for its acronym in Spanish) (the “Decree”) was published on the Official Gazette of the Federation.
Pursuant to this Decree, the federal government’s acquisition of goods or contracting of services related to health shall be exempted from the application of the LAASSP as long as it is done through international intergovernmental organizations, based on previously established collaboration agreements, and in compliance with the principles provided in the Federal Constitution (economy, effectiveness, efficiency, impartiality and honesty) to ensure the best conditions for the State.
“International intergovernmental organizations”, are States organizations, with permanent and autonomous quality, whose purpose is the care or promotion of public interest (i.e. United Nations Organization, PanAmerican Health Organization, and Organization of American States, among others).
These procurement procedures shall be practiced based on previously established collaborative mechanisms, such as the agreement signed on July 31, 2020, between the Government of Mexico, the United Nations Office for Project Services (UNOPS) and the Pan-American Health Organization (PAHO), by which UNOPS will procure essential drugs, which will be distributed by the Mexican authorities.
Despite of the fact that the new text of Article 1 of the LAASSP expressly states that the principles set forth in the Federal Constitution shall be preserved, we believe that the amendment derived from the Decree could be considered unconstitutional as it potentially contravenes the provisions of article 134 of the Federal Constitution, as well as various international treaties signed by Mexico.
The Decree entered into force on August 12, 2020.
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