Transclusion journal
Municipal procurement in Panama: Law 349 of 2022 compared with Law 22 of 2006.
What Law 349 of 2022 sets for municipal purchases by amount band, and how it differs from Law 22 of 2006, with article and Official Gazette citations.
Law 349 of December 14, 2022 (Official Gazette 29682-B) sets a separate purchasing regime for municipalities. It has applied since January 1, 2023 (art. 17). This text records what it says, band by band, and how it differs from the general regime of Law 22 of 2006 (Consolidated Text, Official Gazette 29107-A of September 7, 2020). The official texts are in Spanish; article numbers are given so they can be checked.
What Law 349 amends
- It amends Law 106 of 1973 (Municipal Regime): arts. 108, 109 and 110, and adds arts. 110-A to 110-H.
- The same regime applies to the community boards, juntas comunales (art. 19-A of Law 105 of 1973), and to the provincial and comarca councils (art. 24-A of Law 51 of 1984).
- It rewrites the last paragraph of art. 57 of Law 22 of 2006.
The four bands
| Purchase amount | What the law sets |
|---|---|
| Up to B/. 5,000 | Petty cash (art. 110, item 1) |
| B/. 5,000 to B/. 10,000 | Three price quotes (art. 110, item 2) |
| B/. 10,000 to B/. 50,000 | Nine-step procedure (art. 110-A) |
| Over B/. 50,000 and anything not covered | Law 22 of 2006 (art. 110-H) |
The art. 110-A procedure (B/. 10,000 to B/. 50,000)
- Notice by technological means, and quotes received under clock control.
- A quote table: the contract goes to the lowest bid that complies, decided in the table itself.
- The result is published within one business day.
- With a single bidder, a second call is issued.
- In a tie, bidders submit an improved price in a sealed envelope, followed by a public draw.
- Purchase order endorsed by the Comptroller's Office (Contraloría), then final publication on PanamaCompra.
- No bid bond or performance bond is required unless the municipality decides otherwise.
- Micro and small businesses (MYPEs) may bid without being in the Bidders Registry.
No internet access, multidimensional poverty or emergency
- Where there is no internet, or in cases of multidimensional poverty or emergency, the notice is posted on a board for 4 business days and published on PanamaCompra within the first 5 business days of the following month.
- Art. 110-E: in a force majeure event, quotes may be received by any means, including on paper.
- Art. 110-C: the lack of internet is certified by the AIG within the first 30 days of the year; failing that, by the municipality's legal representative. The certification lasts one year.
- Art. 110-D: a training plan coordinated by the National Decentralization Authority.
Local firms and penalty
- Art. 110-F: preference for the local firm (domiciled in its notice of operation) of up to 10% over the lowest non-local bid.
- Art. 110-G: non-compliance results in suspension of the municipal good-standing certificate (paz y salvo).
Differences from Law 22 of 2006
| Aspect | Law 349 of 2022 (municipalities) | Law 22 of 2006 (general regime) |
|---|---|---|
| Procedure thresholds | Bands at B/. 5,000, 10,000 and 50,000 | A single cut at B/. 10,000, with the procedure set by regulation (art. 57) |
| Call between B/. 10,000 and 50,000 | Notice by technological means | On PanamaCompra, minimum 3 business days (arts. 47 and 48) |
| Bidders Registry | MYPEs may bid without it | Mandatory (art. 174) |
| Preference | Local firm, up to 10% (art. 110-F) | Micro, small and medium firms, 5% (art. 57) |
| Tie | Sealed-envelope price improvement and draw (art. 110-A) | Per the tender specifications and regulation (art. 39, item 11) |
| Single bidder | Second call | May be awarded (art. 58) |
| Claim and challenge | The award table must state the right to file a challenge (art. 110-A, item 4); the claim, the body and the deadlines are governed by Law 22 (art. 110-H) | Claim before the DGCP (art. 153) and challenge before the TACP (art. 157) |
Both laws share the B/. 50,000 ceiling, no bid bond, a performance bond left to the entity's judgment, and the ban on splitting the purchase (art. 36 of Law 22).
Sources
- Law 349 of December 14, 2022, Official Gazette 29682-B.
- Consolidated Text of Law 22 of 2006, Official Gazette 29107-A of September 7, 2020.
The record of these laws, with their amendment history, is in the Transclusion platform.