Mexico: New regulations to the Public Sector Procurement, Leasing and Services Law promote more digital, traceable, and heavily supervised contracting processes

On April 16, 2025, the new Public Sector Procurement, Leasing and Services Law was published, replacing the 2000’s law, modernizing the regulatory framework governing public procurement. Relevant changes include the creation of the Digital Public Procurement Platform (replacing CompraNet) and the Federal Government Digital Store for consolidated purchases executed under framework agreements with the Ministry of Finance and Public Credit (SHCP); the formal incorporation of social witnesses as a transparency mechanism; the redefinition of economic evaluation criteria (unacceptable price and undesirable price); the expansion of the catalogue of procurement procedures; and the centralization of policy and guideline issuing powers within the Secretaría Anticorrupción y de Buen Gobierno (Anti-Corruption and Good Governance Ministry).

The reform’s Fourth Transitory Article required the Federal Executive to amend the necessary regulations within 90 business days of the law’s entry into force. Consequently, on December 18, 2025, the DOF published the Regulations to the Public Sector Procurement, Leasing and Services Law.

Digital Public Procurement Platform

Pursuant to the newly enacted law, all procurement procedures shall now be carried out through the digital platform. The regulations contemplate, inter alia:

• Record: a mandatory module within the platform where all contracts and operations governed by the law must be recorded and monitored. Use of the record is compulsory for all agreements.
• Single Registry of Participants: individuals and legal entities wishing to participate in procurement procedures or framework agreements must register and keep their information permanently updated. The registry aims to streamline procedures and generate a participation and compliance history.

Digital Store

The Digital Store is established as the operational space for the implementation of framework agreements executed with previously selected suppliers to furnish goods or services under standardized conditions. The new regulations set forth the rules governing the allocation, performance, and sanctioning of framework agreements.

Social witnesses

The regulations define the provisions applicable to the registration, fee scheduled contracting, and issuance of preliminary and final reports by social witnesses. They must undergo annual evaluations, and grounds for cancellation of their registration are established. Honorary (unpaid) participation is also regulated for low value procedures.

Subsequent discount offers (OSD), bidding rounds, and unacceptable/ undesirable prices

The statute introduced the concepts of “unacceptable price” and “undesirable price” to prevent awards outside reasonable ranges. The regulations clarify that these rules do not apply to subsequent discount offers (OSD), under which participants may electronically improve their prices after the opening of proposals – regardless of such limits –  provided that their technical proposals remain compliant.

The regulations also govern bidding rounds conducted through the digital platform, defining periods, traceability, and transparency in bid sequencing, and establishing that awards shall be made to the lowest compliant price.

Additional regulatory development on OSD and bidding rounds:

• Bidding rounds may be descending (from the lowest quote acting as the maximum award price) or ascending (from the best economic concept likewise treated as the maximum award price).
• OSD must be conducted exclusively through the platform and may also be used in points and percentages procedures.
• Neither reference maximum price nor non advantageous price applies in OSD.
• In international procedures, after applying the comparative preference of up to 15% for domestic integration, OSD shall be considered during economic evaluation.
• The statute requires awarding to the supplier offering the greatest benefit prior to the OSD; however, the regulations only describe what happens when no benefit is obtained and OSD is implemented, leaving parameters for pre OSD negotiation undefined (timelines, bid differentials, benefit thresholds, etc.).

Exceptional ratification in cases of non advantageous prices

When an offer is deemed non advantageous, the contracting authority may require the tenderer to ratify in writing, within 24 hours, that the price does not arise from anti-competitive or unfair practices and does not compromise quality. If ratified, the offer is considered compliant; if not, it is rejected.

Strategic dialogue

The contracting area is authorized to conduct strategic dialogues with private parties prior to market analysis. This requires five days’ notice on the platform, proof of experience and legal representation, sessions in person or online, and publication of minutes with recorded agreements.

Market research (methodology and traceability)

The regulations expand the methodology and sources for market research and authorize the internal control body to issue non binding comments within seven calendar days.

In the same way as under the previous regulations, market studies must use at least two of three sources: a) the digital platform; b) information from chambers, associations, and suppliers, and c) information obtained through the Internet or electronic means. Nevertheless, new regulations also add manufacturers, distributors, dealers, and—when applicable—public entities as valid sources.

The non-binding nature of quotations is reaffirmed, as suppliers must still confirm quotations in cases of direct awards.

Strategic procurement committee

The regulations detail the committee’s composition, quorum, powers, creation of subcommittees, meeting calendar, and rules for consolidated procurement.

Liquidated damages

The regulations establish that the Government’s payment obligations may be conditioned upon the supplier’s payment of liquidated damages for delays. Payment of such damages must adhere to applicable tax rules. Further, Government entities may not incur liquidated damages under any circumstance.

Dispute resolution

It is important to remember that the law stablishes a non-conformity remedy, which may be filed against acts carried out in public tenders, limited competition invitations, or direct awards.

However, contractual disputes shall be resolved definitively by: (i) federal courts, or arbitration if expressly agreed in the contract or in a subsequent written agreement; or (ii) arbitration mechanisms.

The law also authorizes suppliers and entities to initiate conciliation proceedings at any time for contracts governed by the Procurement law. The regulations specify timeframes, enforcement measures for failure to attend conciliation hearings, requirements for settlement agreements, and monitoring of compliance. Conciliation does not apply in rescinded or early terminated contracts except for settlement negotiations.

Transitional regime

The new regulations entered into force the day after publication in the DOF, repealing the 2010 regulations and the 2024 guidelines on conciliation, sanctions, and non-conformities.

Ongoing procedures and contracts remain governed by the rules in force when initiated. Pending nonconformities, sanctions, and conciliation proceedings continue under prior rules.

On the other hand, the regulations stablish a 90 business day period for:

• The Ministry of Finance to update existing framework agreements.
• The Anti-Corruption and Good Governance Secretariat to update the mandatory registration agreement for contracts and operations in the Electronic Procurement Logbook.
• Registered individuals to update information needed for inclusion in the Single Registry.