1

SUPREME DECREE No.0181

EVO MORALES AYMA

PRESIDENT OF THE PLURINATIONAL STATE OF BOLIVIA

WHEREAS:

That Article 10th of Act No.1178, of July 20, 1990 of Government

Administration and Control enacts that the System of Goods & Services Administration

will establish the contracting method as well as goods and services management and

disposition.

That Article 20 of Act No.1178 establishes the basic powers of the ruling

bodies among it is to issue basic standards and regulations for each system.

That Supreme Decree No.29894 of February 7, 2009 on Organization of

the Executive Body establishes that it is the function of the Ministry of Economy and

Public Finance exercise the powers of fiscal authority and Ruling Body of the ruling of

public administration.

That it is a function of the Ruling Body update, comprehensively, the

systems of government management and the Basic Regulations of the System of Good

and Services Administration.

That the Government of the Plurinational State of Bolivia has as a policy

to generate mechanisms of support to the Bolivian production enabling more

opportunities for Bolivian economic sectors promoting the inclusion of Micro and

Small Enterprises, Peasant Economic Organizations and Small Business in processes of

procurement and hiring.

That aiming to achieve efficiency and quickness in the processes of

procurement and hiring undertaken by the State, it is necessary to count on Basic

Regulations of the System of Good and Services Administration allowing to achieve

such objectives with transparency incorporating social participation, values and goals

with constitute pillars which the Plurinational State of Bolivia is based on.

2

BASIC REGULATIONS OF THE SYSTEM OF GOODS AND SERVICES ADMINISTRATION

PRELIMINAR TITLE

GENERAL STATEMENTS

CHAPTER I

GENERAL ASPECTS

ARTICLE 1. (SYSTEM OF GOODS AND SERVICES ADMINISTRATION) I.

The System of Goods and Services Administration is the groups of regulations having

legal, technical and administrative nature which regulates the procurement and hiring

of goods and services, management and disposition of good of public entities in an

intertwined fashion with the established systems in Act No.1178 of July 20, 1990 of

Government Administration and Control.

It comprises the following subsystems:

a) Subsystem of Procurement & Hiring of Goods and Services, which comprises

all functions, activities and administrative proceedings to purchase goods, deal

works, hire general services and consultant services.

b) Subsystem of Management of Goods, that comprises functions, activities and

proceedings related to management of goods.

c) Subsystem of disposition of goods, that comprises the group of functions,

activities and proceedings related to the decision making over the final

destination of usage-goods, of property of the entity when these ones are not

or will not used by the public entity.

II. As regard of the current Basic Regulations of the System of Goods and Services

Administration, be it understood by “Goods and Services” to “goods, works,

general services and consultant services” unless they are particularly defined for a

specific purpose.

3

ARTICLE 2. (OBJECTIVE OF THE BASIC REGULATIONS OF THE SYSTEM OF

GOODS AND SERVICES ADMINISTRATION) The Basic Regulations of the System of

Goods and Services Administration have, as purposes:

a) Establish the principles, ruling and conditions that regulate processes of

administration of goods and services as well as the duties and rights

deriving from them, within the framework of the Constitution of the State

and Act No.1178

b) Establish the essential elements for organization, functioning and internal

control related to the administration of goods and services.

ARTICLE 3.- (PRINCIPLES) The application of the current Basic

Regulations is oriented under the following principles:

a) Solidarity. Public Resources must benefit all Bolivians, men and women

b) Participation. Bolivian men and women have the right to participate in the

processes of procurement and hiring of goods and services.

c) Social Control. Bolivian women and men have the right to control the

correct execution of public resources, results, impacts and the final quality

of such public goods and services.

d) Good faith. The correctly and ethically acting of public servants and

suppliers is presumed.

e) Economy. Processes of procurement of goods and services, managing and

disposition of goods will be done with swiftness and resource saving.

f) Efficacy. Processes procurement of goods and services, managing and

disposition of goods must allow to achieve all goals and results

programmed.

g) Efficiency. Processes procurement of goods and services, managing and

disposition of goods must be undertaken promptly, in optimal time and at

the lowest costs possible.

h) Equity. Suppliers may participate in equal conditions, without restrictions

and according to their capacity of producing goods and supply services.

i) Free Participation. State procurements must allow free participation and

the higher concurrence of bidders through publicity mechanisms aiming to

get the best conditions for price and quality.

j) Responsibility. Public Servants, related to contracting, management and

disposition of goods and services, must comply with all the current ruling

and bear the consequences of our actions and omissions in the exercising of

their duties.

k) Transparency. The events, documents and information related to processes

of procurement & hiring, management and disposition of goods, are open

to the public.

4

ARTICLE 4.- (ACRONYMS) For the purposes of these Basic

Regulations, the following acronyms (In Spanish) will be in use:

a) ANPE. National Support for Production and Employment

b) CUCE. Unique Code for State Procurement & Hiring

c) DBC. Contracting Base Document

d) DBC-ANPE. Contracting Base Document for the National Support for

Production and Employment

e) EPNE. Strategic National Public Enterprise

f) LP. Public Tender

g) MAE. Highest Executive Authority

h) NB-SABS. Basic Regulations of the System of Goods and Services

Administration

i) PAC. Annual Procurement & Hiring Program

j) POA. Annual Operations Plan

k) RE-SABS. Specific Ruling of the System of Goods and Services

Administration.

l) RE-SABS-EPNE. Specific Ruling of the System of Goods and Services

Administration within Strategic National Public Enterprises

m) RPA. Responsible for Contracting Processes and National Support for

Production and Employment.

n) RPC. Responsible for Contracting Process of Public Tender

o) SABS. System of Goods and Services Administration

p) SICOES. System of State Procurement and Hiring

ARTICLE 5.- (DEFINITIONS). For purposes of these NB-SABS and

its specific ruling, may the following definitions be well understood:

a) Fresh and Perishable Food: Are those ones that due to their natural

characteristics, keep their qualities suitable for trading and consumption during

a term equal or inferior to thirty (30) calendar days or that require conditions

of regulated temperature for its commercialization and transport.

b) Goods: Goods are all material and non-material stuff which are subject for law,

be them movable or immovable, including enunciatively and not limitedly to

consumption goods, expendable and non-expendable, corporeal and

incorporeal, exchange goods, raw materials, finished products or semi-finished

ones. Machinery, tools, equipment or others in solid state, liquid or gas as well

as accessory services when providing them unless value of services surpasses

the value of the good itself.

5

c) Act of Providence: internal obstacle due to human reason, unforeseen or

unavoidable, related to the conditions where a duty had to be accomplished

(social convulsion, strikes, blockades, revolutions, etc)

d) Unique Code for State Procurement and Hiring – CUCE: It is the code

automatically assigned by the SICOES system for each process of procurement

or hiring, to identify it specifically, from the publication of the call up to the end

of the process.

e) Administration Concession: It is a method of procurement and hiring between

a public entity and an individual or firm for the use of a public-domain good or

the supply of a public service for a limited time in exchange of a monetary

compensation, excluding goods and services which are not subjects of

concession as for disposition of the Constitution of the State.

f) Minimum Content for the Specific Ruling of the System of Goods and Services

Administration for Strategic National Public Enterprises: Document elaborated

and passed by the Ruling Body of mandatory use that establishes the minimum

content for the elaboration of the RE-SABS-EPNE.

g) Agreement of Better Conditions: Stage after the awarding notification, in

processes of contracting under the mode of Public Tender, where, in a justified

manner, the MAE, the RPC, the Evaluation Commission and the awarded bidder

will agree on the best contracting conditions when such contract’s scope and

complexity require it.

h) Contracting with funding of the bidder: It is the kind of contracting for which

the contracting entity clearly established in the DBC that the bidder supplies

the goods or execution of works with a partial or total financing proposal, to

pay the investment off, by himself or by commitment of third party.

i) Turnkey Contracting: It is the kind of contracting by which a bidder offers a

certain work comprising design, execution of the work and undergoing ,

referred to installing, equipment, training, intellectual and technology transfer.

j) Contract : Legal instrument of administrative nature that regulates a

relationship between the Contracting Entity and the supplier or contractor,

establishing rights, duties and conditions for the supply of goods, construction

of works, provision of general or consultant services.

k) Contracting Base Document – DBC : Document elaborated by the contracting

entity for every different process, based on the patter of DBC issued by the

Ruling Body containing technical specifications or reference conditions,

evaluation methodology, proceedings for the process of procurement or

hiring.

l) Excusable Mistake: It is the one that influences over non substantial, whether

they are accidental, accessory or form, without affection the legality or

solvency of the bid.

6

m) Technical Specifications: They are part of the DBCs, elaborated by the

Contracting entity where technical characteristics of goods, works and services

to be hired are established.

n) State Procurement and Hiring Fair: Means of diffusion of announcements

where public entities make public their needs of procurements for goods and

services.

o) Contract Fractionation: It is leaving the mode of contracting initially

programmed in the PAC and developing the contracting in a reduced amount.

Fractionation is not contracting and procurement by items, lots, stretch or

packs.

p) Force Majeure: External obstacle, unforeseen or unavoidable generated by

unknown reason to man impeding the meeting of the duty (fires, floods and

other natural disasters).

q) Previous Inspection: Previous activity to the presentation of proposals

consisting of the verification of the place and environment related to the object

of contracting.

r) Leasing: A Leasing Contract is the one by which the leaser transfers the right to

use a good in exchange of leasing rents during a specific period of time after

which the tenant have the option to purchase the leased place or good paying

a established price, giving it back or renewing the contract.

s) Highest Executive Authority – MAE : Governor or official of the highest levels

of hierarchy of each entity of the Public Sector, whether it is the top official or

a board directorate according to what is stated in the legal disposition or ruling

of establishment of the entity.

t) Notice Board: It is a special place like a panel located at the entrance of each

public entity with a visible sane “Notice Board” (Mesa de Partes in Spanish)

where the PAC, current job announcement and impugnable resolutions.

u) Quality Selection Mode: Evaluation Method that allows selecting the best

technical tender without surpassing the reference price established by the

Contracting Entity.

v) Quality Selection Mode, Technical tender and Cost: Evaluation Method that

allows selecting the best tender that got the best score of evaluation combined

in terms of quality, technical offer and cost.

w) Lower Cost Selection Mode: Evaluation Method that allows selecting the lower

cost tender among those ones which got the minimum acceptable technical

score.

x) Fixed Budget Selection Mode: Evaluation method that allows that allow

selecting the tender which has the best technical qualification according to a

fixed budget established by the Contracting entity.

7

y) Contract Model: Standard document, elaborated and passed by the Ruling

Body that contains clauses of contract relationship between public entities and

suppliers or contractors, this document is included in the DBC model.

z) Model of Specific Ruling of the System of Goods and Services Administration

– RE-SABS: Standard document elaborated and passed the Ruling Body, of

mandatory usage for the elaboration of the RE-SABS of each public entity.

aa) Model of Contracting Base Document: Standard document elaborated and

passed by the Ruling Body that is part of the aforementioned NB-SABS and

implies mandatory usage by public entities.

bb) Works: It is all sort of pieces of production related to construction,

reconstruction, demolition, repairs, installing, expansion, remodeling,

adequacy, restoration, conservation, maintenance, modification or renewal of

buildings, structures, roads, bridges or plants; gas and oil pipe lines lying,

electric plants, installment in general, drilling of water wells as well as

cleanness and preparation of lands, excavation, its edification and others.

cc) Purchase Order: It is a written request to a supplier for the delivery of goods

within a price and term agreed along with an invoice. The Purchase Order will

have validity only in cases of procurement of goods of immediate delivery.

dd) Ruling Body: The Ministry of Economy and Public Finance is the Ruling Body of

the SABS with the powers granted by Law No.1178 and the established in the

actual NB-SABS.

ee) Referential Price: It is the estimated price by the Contracting Entity for a

process of procurement and hiring.

ff) Lowest Evaluated Price: Is the tender that complies with technical,

administrative and legal aspects, that once evaluated, present the lowest cost.

gg) Annual Procurement and Hiring Program – PAC : Planning instrument where

the public entity programs the procurements and hires of a year in terms of its

POA and budget.

hh) Bidder: Individual or firm that participated in the process of contracting

through the presentation of a tender or proposed price.

ii) Supplier or contractor: Individual or firm with who the public entity subscribed

a contract or had issued a purchase order, according to modes and type of

established contracts.

jj) Specific Ruling of the System of Goods and Services Administration – RE-SABS:

Document elaborated by the public entity that has as purpose to establish

specific aspects not included in the current NB-SABS. This document must be

harmonized by the Ruling Body and expressly passed by the entity.

kk) Specific Ruling of the System of Goods and Services Administration of

National Strategic Public Enterprises – RE-SABS-EPNE: Document elaborated

by the EPNEs based on the minimum content established by the Ruling Body

that has as purpose establish the necessary proceedings for the contracting of

8

goods and services. This document must be harmonized by the Ruling Body and

expressly passed by the EPNE.

ll) Responsible of Contracting Process by Public Tender – RPC: Public Center that

entrusted by the MAE, is in charge of contracting processes and its results

under the mode of Public Tender.

mm) Responsible of Contracting Process by National Support to Production and

Employment – RPA: Public Servant entrusted by the MAE is in charge of

Contracting processes and its results under the mode of Minor Contracting and

ANPE.

nn) Clarifying Meeting: Activity prior the presentation of offers where potential

bidders may ask questions on the contracting process.

oo) General Recurrent Services: They are services that an entity requires

continuously for its work.

pp) Consultant Services: They are intellectual featured services such as project

designing, advice, auditing, system development, researching, technical

supervision and other professional services that may be provided by individual

or firm consultants.

qq) In-site Individual Consulting: These are services provided by an individual

consultant or by a consultant firm by an established period which result is a

product according to the reference terms agreed in the contract.

rr) By-Product Consulting Services: It’s a service provided an individual or by a

firm consultant for an established period of time which result is the production

of a certain product complying the terms of reference and conditions

established in the contract.

ss) General Services: Those are services that any entity requires to develop

activities related to the working or administration of it. These ones are, thus,

classified as: Continuous Supply Services such as: insurances, cleaning, security

and others; Non-Continuous Services like courier, photocopy, publicity, air-

tickets. Transport, publishing and others related.

tt) State Contracting System SICOES: It is the official system of publishing and

diffusion of information on process of contracting of public entities of the

Plurinational State of Bolivia, established by the Ruling Body.

uu) Terms of Reference: These are part of the DBC elaborated by the Contracting

entity establishing technical characteristics of the consulting services to be

hired.

vv) Administrative Unit: It is the organizational body belonging to the contracting

entity in charge of the execution of administrative activities of the subsystems

of contracting, management and disposition of goods and services.

ww) Legal Unit: It is the organizational entity belonging to the Contracting unit in

charge of providing legal advice and deal with legal affairs of the subsystem of

contracting, management and disposition of goods and services.

9

xx) Requesting part : It is the organizational unit or entity where the demand of a

good or a service is originated.

yy) Current Value – VA: A current value describes the processes of cash flows

which given a deductions and certain periods stand for current values.

ARTICLE 6.- (SCOPE)

The NB-SABS and the instruments elaborated by the Ruling Body have mandatory

usage and application by all public entities established in articles 3 and4 of Act No.

1178 and every public entity with public domain legal status under supervision of

the MAE and of public servants in charge of contracting processes, management

and disposition of goods and services.

ARTICLE 7.- (NON-FULFILLMENT OF THE BASIC REGULATIONS OF

THE SYSTEM OF GOODS AND SERVICES ADMINISTRATION).- The noncompliance

of these NB-SABS will cause responsibilities according to what is established in

Chapter V (Responsibility within Public Duties) established in Act No.1178 and

ruling supreme decrees.

CHAPTER II

LEVELS AND POWERS

ARTICLE 8.- (LEVES OF SYSTEM ORGANIZATION). The SABS has

two levels of organization:

a) Normative Level, by the Ruling Body

b) Executive and Operative Level: in charge of public entities.

ARTICLE 9.- (POWERS OF THE RULING BODY) The Ministry of

Economy and Public Finance, as Ruling Body has the following powers:

a) Review, update ad issue the NB-SABS and its specific regulations.

b) Disseminate the NB-SABS and its specific regulations to public and private

entities.

c) Provide technical assistance to public and private entities over the application

of the NB-SABS

d) Harmonize the RE-SABS and RE-SABS-EPNE elaborated by public entities and

EPNEs within the framework of current NB-SABS.

e) Monitor the proper application of the NB-SABS and integrate the information

generated

f) Manage the SICOES

ARTICLE 10.- (ROLES AND RESPONSIBILITIES OF PUBLIC

ENTITIES) Public Entities have the following roles and responsibilities.

10

a) Comply and make others comply with the current NB-SABS and its specific

regulations.

b) Implement the SABS

c) Generate and provide information of the application of the SABS to monitoring

and evaluation of public administration.

d) Compulsorily register in the SICOES the information established in the current

NB-SABS using programs or forms defined by the Ruling Body for such purpose.

e) Elaborate the related specific regulations.

ARTICLE 11.- (ELBORATION OF SPECIFIC REGULATIONS) I. Public

Entities under the application of the current NB-SABS, according to article 27 of Act

No. 1178 shall elaborate their own RE-SABS taking as a pattern the model of the Ruling

Body.

The RE-SABS shall be issued by the Ruling Body enclosing the Organizational Chart

updated and approved up to the last decentralized level for its harmonization, once

determined as compatible, it will be approved the public entity through express

Resolution.

II. The EPNEs shall elaborate their RE-SABS-EPNE taking as pattern the minimum

content by the Ruling Body.

The RE-SABS-EPNE shall be submitted to the Ruling Body enclosing the Organization

Chart updated and approved up to the last decentralized level for its harmonization,

once declared compatible, it will be approved by the Board through express

Resolution.

TITLE I

SUBSYSTEM OF GOODS AND SERVICES PROCUREMENT AND HIRING

CHAPTER I

GENERAL ASPECTS

SECTION I

GENERALITIES

ARTICLE 12.- (CONCEPT) The Subsystem of Goods and Services

Procurement & Hiring is the interrelated group of principles, legal, technical and

administrative elements that regulate the process of contracting of goods, works,

general services and consulting services.

11

ARTICLE 13.- (CONTRACTING MODES AND AMOUNTS) May the

following modes and amounts be established:

Mode Amount Minor Contracting From Bs1 (One Boliviano) to Bs20.000

(Twenty Thousand Bolivianos)

National Support to Production and Employment

From Bs20.001 (Twenty thousand one Bolivianos) to Bs 1.000.000 (One Million Bolivianos)

Public Tender From Bs.1.000.001 (One Million and one Bolivianos) ahead

Contracting by Exception No limit amount

Emergency contracting No limit amount

Direct Goods and Services Contracting

No limit amount

ARTICLE 14.- (MODES AND AMOUNTS FOR MUNICIPALITIES

ACCORDING TO POVERTY INDICES) Hereby, modes and amounts for municipalities

with high records of poverty:

Mode Amount Minor Contracting From Bs1 (One Boliviano) to Bs20.000

(Twenty Thousand Bolivianos)

National Support to Production and Employment

From Bs20.001 (Twenty thousand one Bolivianos) ahead

Public Tender No limit amount

Contracting by Exception No limit amount

Emergency contracting No limit amount

Direct Goods and Services Contracting

No limit amount

ARTICLE 15.- (DEADLINES, TERMS AND SCHEDULING) I. All

deadlines establishes in the current NB-SABS are considered as administrative working

days, except those ones expressly known as calendar days.

II. Administrative working days are the ones between Monday and Friday. Saturdays,

Sundays and public holidays are not included.

III. All administrative acts which appear ending in a non-administrative working day

shall be moved to the immediate following administrative working day.

IV. Administrative working hours are the ones ruling in the Contracting entity as

working hours.

ARTICLE 16 (REFERENTIAL PRICE) I. The Requesting Entity will

estimate the Referential Price including all tax duties, transport, installing costs,

12

inspections and any other kind of charge having a bearing on the total cost of goods

and services. This Reference Price shall have corresponding supporting information.

II. For all contracting modes, the Referential Price will have public nature and must be

established in the DBC

III. For discontinuous services, the Referential Price will be the unit price of the service;

such unit price will be estimated by the public entity.

IV. To call for a works contracting, the Referential Price shall not have more than four

(4) months old.

ARTICLE 17.- (AGREEMENTS OF EXTERNAL FUNDING) When

Public Procurements and Hires are undertaken under agreements of external funding

entrusted by law, those will be regulated by rules and proceedings established in the

current NB-SABS unless what is expressly enacted in such agreements.

When the external funding agreement had been signed by the Legislative Body,

exceptionally and through an express Resolution, the MAE will be able to use the

beginning of the contracting process with a condition precedent until having the

Report of Recommendation and Evaluation, with no commitment and emphasizing in

the DBC the subjection of the process to the signing of the Act approving the funding.

ARTICLE 18.- (PROCUREMENT AND HIRING OF RECURRENT

GOODS AND SERVICES) Exceptionally and under exclusive responsibility of the MAE,

the entity will be able to contracting process of recurrent goods and general services

for the next year , in the last quarter of the year reaching to awarding, with no

commitment and establishing in the DBC the subjection of the process to the passing

of the Budget for next year by the Legislative Body.

ARTICLE 19.- (DOWN PAYMENT) In order to pay off the initial

expenses , corresponding uniquely to the contract purposes, the public entity is able to

deliver a down payment (in advance) that shall not exceed the 20% of the total

amount of the contract.

This payment in advance will be delivered prior request of the contractor or supplier

and Contracting entity acceptation.

13

SECTION II

SECURITIES

ARTICLE 20.- (KINDS OF SECURITIES) I. May the following kinds

of guarantee be established for the corresponding purposes, they are to be removable,

irrevocable and of immediate execution:

a) Performance Bond. Issued by any entity of financial bank or non-financial

intermediation under regulations and authorization of the correspondent

authority.

b) Performance bond to first request. Issued by an institution of financial

intermediation be it bank or not bank related but regulated and authorized by a

competent entity.

c) Warranty Insurance Policy to first request: Issued by an insurer institution,

regulated an authorized by a competent authority,

II. Up to Bs. 1.000.000 (One million Bolivianos), the bidder will decide the kind of

security to present. For major amounts, the contracting entity will define in the DBC

the kind of security to be presented.

III. Foreign bidders participating in processes of procurement and hiring and provide,

as a guarantee, a warrant insurance policy to first request, are to acquire such security

from any bank or non-bank entity which legal address is in Bolivia and having

operation authorization by competent authority. Foreign bidders who participate in

processes of procurement and hiring presenting the performance bond to first request

not being entrusted by financial institutions legally established in Bolivia, will have to

present guarantee issued by an entity with a legal correspondent bank in Bolivia. Just

in exception cases and properly justified the contracting entity will allow the financial

acting like advising bank of a security issued by a foreign bank institution.

ARTICLE 21.- (SECURITIES ACCORDING TO THE OBJECT) I.

Securities according to object are:

a) Bid proposal deposit: It has the purpose of guarantee that bidders participate

in good faith and with the intention of completing the process.

It will be 1% of the bid value, for consultant services, it will be 0.5%.

The validity of this guarantee will exceed thirty (30) calendar days to the valid

date of the proposal established in the DBC.

14

The bid proposal deposit will be refunded to the bidder in exchange of

performance contract warrant and to the not awarded bidders prior to validity

deadline whenever it was not object of execution of the contracting entity.

In the case of ANPE mode, when the entity requires it, it might request the

presentation of a bid proposal guarantee only for contracts with referential

price higher than Bs200.000 (Two Hundred Thousand Bolivianos)

In the case of discontinuous general services, the presentation of a bid proposal

guarantee is not necessary.

For the direct contracting of goods and services provided by Public Enterprises,

EPNEs, enterprises with a majority state-participation and the contracting by

exception of public entities established in paragraphs g) and h) of Article 65 of

the current NB-SABS, the presentation of a bid proposal guarantee is not

necessary.

b) Contract Compliance Guarantee. It aims to assure the completion and

handover of the contract object.

It will be equivalent to 7% of the contract amount.

In ANPE mode, when partial payments are programmed, instead of the

Performance Bond Guarantee, 7% of the total amount each partial payment

will be withheld.

In contracts up to Bs1000.000 (One Million Bolivianos), micro and small-sized

enterprises; Rural or Urban Small producers Associations; and Economic

Peasant Organizations shall present a Contract Compliance Guarantee of three

and a half percent (3.5%) of the contract amount or such rate will be withheld

corresponding to each partial payment if there is any.

For the Direct Contracting of goods and services provided by Public Enterprises,

EPNEs, enterprises with a majority state-participation and the contracting by

exception of public entities established in paragraphs g) and h) of Article 65 of

the current NB-SABS, the presentation of a Contract Compliance Guarantee

shall be replaced by a withhold of 7% of each partial payment.

In discontinuous direct contracting the Contract Compliance Guarantee is not

required.

15

The validity of the guarantee shall run since the signing of the contract up to

the final handover of the good, work, general service or consultant service.

This guarantee or withhold will be refunded to the contractor once the entity

declares conformity of the final handover.

c) Additional Guarantee to the Contract Compliance Guarantee for public-

works. The bidder awarded which offer comes to be less than eighty five

percent (85%) of the Referential price, it will be necessary to present an

Additional Guarantee to the Contract Compliance Guarantee equivalent to the

difference between the eighty five percent (85%) of the Referential Price and

the value of the bid.

d) Guarantee of machinery and equipment operation. It aims to guarantee the

good operation and/or maintenance of machinery and/or equipment object of

contract. This will be requested when the contracting entity whenever

necessary according to the conditions established in the DBC.

The amount of this guarantee will be at most one point and a half (1.5%) of the

total amount of the contract.

At the request of the supplier or contractor, instead of the guarantee, the

entity one will be able to withhold and amount equivalent to the requested

guarantee.

This guarantee of withhold will be refunded to the provider once the term of

the contract is concluded and once all duties and commitments of the contract

are accomplished.

e) Guarantee of Proper investment of advance. It has as purpose to guarantee

the refund of the fund given to the bidder as initial advance.

It will be an amount equivalent to one hundred percent (100%) of the advance

given and will have to have a minimum validity of ninety (90) calendar days,

counted since the advance delivery and will have to be renewed whereas it is

not deducted from the total amount.

As the contractor refunds the given advance payment, guarantee will be

readjusted in the same proportion.

II. The entity shall request, whenever it corresponds, the renewal of

guarantees.

16

SECTION III

ASPECTS OF THE CONTRACTING PROCESS

ARTICLE 22.- (AVAILABILITY OF THE EVALUATION AND

RECOMMENDATION REPORT) I. Once the awarding or declared-void of contracting is

confirmed, the Evaluation & Recommendation Report will publicly available.

II. Not awarded bids will not be publicly available being its further utilization on other

purposes prohibited, unless written statement from bidder.

III. In the mode of Public Tender, devolution of proposals to non-awarded bidders will

proceed at their request therefore keeping a copy of the non-awarded offers.

IV. In the ANPE mode, non-awarded offers or bids shall not be given back.

ARTICLE 23.- (SELECTION AND AWARDING METHODS) The

following methods of selection and awarding for procurement of goods and services

will be considered: Quality, Technical Proposal & Cost, Fixed Budget, Lower Cost and

Lower evaluated price; all complying to what it is established in the DBC.

ARTICLE 24.- (AWARDING BY ITEMS, LOTS, STRETCH OR PARCEL)

I. In cases of technical of economic advantage, the procurement of goods and services

might be awarded by items, lots, stretch or parcels; through a sole call.

II. The Referential price of each item, lot, stretch or parcel shall be clearly stated in the

DBC.

III. This kind of contracting shall comprise items, lots, stretches or parcels to be

evaluated and awarded separately to one or various bidders; the DBC will finalize the

number or characteristic of the items, lots, stretches or parcels, the conditions to

presents the offers and methods of evaluation and awarding.

IV. If one or more items, lots, stretches or parcels were not awarded, the entity will

declared the process of procuring such good void and shall proceed to arrange another

process of procurement according the mode that corresponds.

V. When a bidder presents an offer for more than one item, lot, stretch or parcel, will

have to present the legal and administrative documentation just one time but one

technical-economical offer per each item, lot, stretch or parcel.

17

VI. In case of needing to get two or more individual with the same referential terms,

the entity is able to make just one process of contracting selecting the best evaluated

offers.

ARTICLE 25.- (REJECTION AND DISQUALIFICATION OF BIDS). The

Qualification Committee or the responsible for Evaluation will proceed to the rejection

or disqualification of proposals when they do not comply with conditions established

in the current NB-SABS and in the DBC.

ARTICLE 26.- (REPARABLE AND NON-REPARABLE ERRORS) I. All

error considered reparable by the Qualification Committee or the responsible for

Evaluation will not bear on disqualification of the bid and will be mentioned in the

Qualification and Recommendation Report along with the respective justification.

II. Non reparable errors will be established in the DBC pattern elaborated by the Ruling

Body and those ones are causal of disqualification of the offer.

ARTICLE 27.- (VOID OR NULLE DECLARATION) I. Any contracting

process will be declared void whenever:

a) No offer was received

b) All economic offers surpass the Referential Price

c) No offer complies with what it specified in the DBC

d) The awarded bidder fails on presenting all relevant documents or quits

formalizing the contract and no other qualified bids are available.

II. Prior to the publication of the next announcement, the Requesting and

Administrative Units will think over the causes for having declared the contracting

process void aiming to adjusts the technical specification or terms of reference,

deadline for contracting completion, Referential Price or other aspects allowing to

achieve the procurement or hiring.

III. The declaration of void shall be published on SICOES.

ARTICLE 28.- (cancelation, suspension, or nullification of the

contracting process) I. The Contracting Process might be cancelled, nullified or

suspended up to before the subscription of the contract or issuance of the

purchase order, through express, technical or legally motivated Resolution. The

contracting entity bears no responsibility and disclaims for any bidder affected by

this decision.

II. Cancellation proceeds whenever:

18

a) When a force majeure event or act of providence that is irreversible not

allowing the continuity of the process.

b) The procurement or hire comes to be definitely unnecessary.

c) The execution and results no longer be opportune and substantial changes in

the structure and entity goals arise.

When cancelling one or various items, lots, stretches or parcels are necessary to be

cancelled, a partial cancellation will be carried out and the contracting of the

remaining items, lots, stretches and parcels; shall continue.

When the cancellation occurs before the established date for offers presentation, the

entity will proceed to the devolution of the proposals received.

When cancellation occurs after opening of proposals, the contracting entity will give

them back at request of the bidder but shall keep a copy for purposes of process filing,

except processes of ANPE mode.

III. The suspension will proceed when despite the necessity of the procurement or

acquisition if a force majeure or act of providence happens not allowing continuing

with the process of contracting. This process is able to continue only in that actual

fiscal year.

Deadlines and administrative acts will be resumed through express Resolution since

the moment of solving the obstacle, reprogramming the timetable and announcing

through SICOES and Notice Board the resuming of the process.

If the suspension happened before the deadline of presentation of proposals, new

bidders will be allowed once the process is reopened.

IV. Nullification, up to the originating defect, in case of failure of legality and process

validity, will proceed whether:

a) Non-compliance or non-observance of actual contracting ruling is established.

b) Mistakes in issued DBC

One or various items, lots, stretches or parcels may be nullified in the process being

able to continue other processes for other items, lots, stretches or parcels. When

partial nullification occurs before the announcement publication, the item(s),

stretch(es), lot(s) or parcel(s) nullified will have to be announced through a new

process of procurement according to corresponding mode.

19

When nullification comes from DBC mistake, the contracting entity shall again publish

the announcement by the SICOES.

SECTION IV

PROCUREMENT OF GOODS PRODUCED IN BOLIVIA AND MARGINS OF PREFERENCE

ARTICLE 29.- (PROCUREMENT OF GOODS PRODUCED IN

BOLIVIA) I. Procurement of goods shall be focused on acquiring national products.

II. For goods not produced in the country, the entity will be able to purchase imported

products.

III. Public entities are must not to incorporate in their DBCs technical requisites dealing

with just the appearance of a good; instead, it shall first guarantee its functionality and

usefulness.

ARTICLE 30.- (MARGIN OF PREFERENCE AND ADJUSTMENT

FACTOR) I. For goods, the following margins of preference and Adjustment Factors will

be applied:

a) In ANPE mode one of the following margins of preference will be applied

i. Ten percent (10%) to the offered price to those goods produced in the country,

regardless the origin of inputs.

ii. Twenty percent (20%) to the offered price when the percentage of inputs

produced in the country (raw material or labor) of the gross cost of production

is as much or higher to the fifty percent (50%). The numeric factor of

adjustment will be eighty hundredths (0.80)

b) In Public Tender mode, one of the following margins of preference will be applied:

i. Ten percent (10%) to the offered price to those goods produced in the country,

regardless the origin of inputs. The numeric factor of adjustment will be ninety

hundredths (0.90)

ii. Twenty percent (20%) to the offered price when the percentage of inputs

produced in the country (raw material or labor) of the gross cost of production

is between thirty (30%) and fifty percent (50%). The numeric factor of

adjustment will be eighty hundredths (0.80)

II. For public works under the ANPE mode and Public Tender a five percent (5%)

margin of preference will be applied in the following cases:

20

a) To offers of construction companies where Bolivian holders having a share

participation as much or higher to fifty-one percent (51%)

b) To offers of temporary partnerships of construction companies where Bolivian

holders have a share participation as much or higher to fifty-one (51%)

The adjustment factor for this case will be ninety-five hundredths (0.95)

III. In the Public Tender mode when a non-mandatory referential deadline for goods

handover is established an offer-price adjustment factor will be applied when the

handover deadline surpassed the referential one. The numeric factor for adjustment

will be five thousandths (0.005) per additional day.

To prices of offer with deadlines the same or before the referential one, no adjustment

factor will be applied.

ARTICLE 31.- (MARGIN OF PREFERENCE FOR MICRO AND SMALL

SIZED ENTERPRISES, URBAN & RURAL ASSOCIATIONS OF SMALL BUSINESS; AND

PEASANT ECONOMIC ASSOCIATIONS). On the contracting of goods and services under

modes of Public Tender or ANPE, a margin of preference of twenty percent (20%) to

the offered price, for micro & small sized businesses , Rural & Urban Associations of

Small Producers and Peasant Economic Associations. The numeric adjustment factor

will be eighty hundredths (0.80)

Additionally, they will be able use the Margins of Preference established in Paragraphs

I and II of article 30 of the current NB-SABS.

CHAPTER II

PARTICIPANTS IN A CONTRACTING PROCESS

ARTICLE 32.- (HIGHEST EXECUTIVE AUTHORITY) The MAE (by its

acronym in Spanish) of each public entity is the responsible for all processes of

contracting, from its beginning to its end, his or her main duties are:

a) Make sure that all process of goods and services procurement and hiring be

within the framework of principles and dispositions established in the current

NB-SABS.

b) See that the PAC be published and that it be elaborated based on the POA and

the budget of the entity.

c) Designate or delegate through express Resolution, for one or various processes

of contracting the RPC and the RPA in the corresponding modes. In entities that

21

due to their organizational structure no delegation of RPC or RPA is possible,

the MAE will have to take the responsibilities of those officials.

d) Designate Responsible of Receipt for the ANPE mode or the Public Tender

Receipt Responsible for one or various processes being possible to delegate

such duty to the RPC, the RPA of the Official Responsible of the Requesting

Unit.

e) Approve the start of contracting processes by exception and/or emergency.

f) Subscribe contracts with the possibility of delegating this duty through express

Resolution in the framework of Article 7 of Act No. 2341 of April 23 of 2002 on

Administrative Proceedings.

g) Resolve Administrative Recourse challenged, through express Resolution unless

he or she takes the role of the RPC or RPA.

h) Cancel, suspend or nullify the contracting process based on legal and technical

justification.

ARTICLE 33.- (RESPONSIBLE OF PUBLIC TENDER CONTRACTING

PROCESS) I. The Responsible of Public Tender Contracting process, RPC, is the public

servant designated through express Resolution by the MAE as Responsible of Public

Tender Contract Process; his or her main duties are:

a) Verify that the contracting request had been registered in the POA and the PAC

and verify the corresponding budget certification.

b) Authorize the beginning of the contracting process and approved the DBC for

its publication.

c) Approve the DBC through express Resolution, after the Clarifying meeting with

the entities, if there are any.

d) Designate the members of the Qualification Commission and accept or reject

the excuses presented.

e) Approve the Report of the Qualification Commission and its recommendations

or request its complementation or supportive argumentation.

f) Cancel, suspend or nullify the process of contracting based on technical and

legal justification.

g) Award or declare void the procurement of goods and services through express

Resolution.

h) Authorize, when corresponding, deadline extension for presentation of offers

or deadline extension of documents presentation prior the subscription of

contract.

i) Request the extension of deadline of validity of offers and extension of validity

of guarantees, when corresponding.

II. The RPC will be also responsible of the contracting processes under the Direct

Contracting of Goods & Services mode, when the Referential Price is higher than

Bs1000.000 (One million Bolivianos)

22

III. If the RPC, once received the complementation or support of the Report of

Evaluation and Recommendation, would decide under its exclusive responsibility,

move away from the recommendation; shall elaborate a well founded report

addressed to the MAE and the Comptrollership of the State.

ARTICLE 34.- (RESPONSIBLE OF THE CONTRACTING PROCESS

UNDER ANPE MODE) I. The Responsible of Contracting process under the program

National Support to Production and Employment – RPA, is the public servant

designated through express Resolution by the MAE, as Responsible for Contracting

Process under ANPE mode, his or her main duties are:

a) Verify that the contracting request is effectively registered in the POA and the

PAC and verify the corresponding budget certification.

b) Approve the DBC and authorize the beginning of the contracting process.

c) Designate the members of the Qualification Commission and accept or reject

the excuses presented.

d) Approve the Report of the Qualification Commission and its recommendations

or request its complementation or supportive argumentation.

e) Cancel, suspend or nullify the process of contracting based on technical and

legal justification.

f) Award or declare void the procurement of goods and services through express

Resolution when the contract value surpasses Bs200.000 (Two Hundred

Thousand Bolivianos). For lower amounts, the awarding document or void

declaration will be defined by the entity.

g) Request the extension of deadline of validity of offers.

II. The RPA will be also responsible of the contracting processes under the following

modes:

a) Minor Contracting

b) Direct Contracting of goods and services when the Referential Price is lower

than Bs1000.000 (One million Bolivianos)

III. If the RPA, once received the complementation or supporting argumentation of

the Evaluation and Recommendation Report , would decide, under his or her exclusive

responsibility, move away from the recommendation, shall elaborate a well founded

report addressed to the MAE and the Comptrollership of the State.

ARTICLE 35.- (REQUESTING UNIT) The requesting unit in each

process of contracting has as main duties:

23

a) Elaborate the technical specifications and define the Selection and Awarding

modes to be used for the procurement of goods and public-works and general

services, watch over the effectiveness of the contracting.

b) Elaborate the terms of reference and define the Selection and Awarding

Method to be used for the contracting of consulting services, watching over the

effectiveness of the contracting.

c) Request the advice of other units or hiring specialists when the requesting unit

lacks of qualified personnel for the elaboration of technical specifications or

terms of reference.

d) Estimate the Referential Price for each contracting. The estimation of the

Referential Price mistakenly will bear on administrative responsibility.

e) Request the procurement of goods and services in a programmed date and

established in the PAC

f) Verify if there is budget balance and record this information in the contracting

request document.

g) Prepare, when corresponding, clarifying notes to the technical specification or

terms of reference.

h) Prepare, in case of the mode of Public Tender, when corresponding,

amendments to the technical specifications or terms of reference.

i) Integrate the Qualification and Receipt Commission or become responsible of

Evaluation or Responsible of Receipt of goods and services.

j) Elaborate a report of technical justification for the cancelation, suspension or

nullity of a contracting process as well as other required related reports.

k) Monitor the progress and compliance of contracts within aspects of his/her

competence.

ARTICLE 26.- (ADMINISTRATIVE UNIT) The Administrative Unit

has as its main duties:

a) Elaborate the RE-SABS and submit it to the Ruling Body for its harmonization.

b) Elaborate the PAC in coordination with the Requesting Units and monitoring on

the execution of the contracts programmed in this document and submitting a

quarterly report to the MAE.

c) Mandatorily carry out all the administrative acts of the contracting processes

and watch over the compliance of conditions and established deadlines in the

contracting processes.

d) Issue the budgetary certification.

e) Elaborate the DBC incorporating the technical specifications or terms of

reference elaborated by the Requesting Unit.

24

f) Organize and carry out the workshop of elaboration of the PAC, and, when it

corresponds, the Clarification Meeting and Prior Inspection in coordination

with the Requesting Unit.

g) Meet written consultations.

h) Incorporate in the DBC, when corresponding, the amendments to the technical

specifications or terms of reference in the mode of Public Tender as long as

amendments don’t modify the structure and the content of the DBC pattern

elaborated by the Ruling Body.

i) Designate the people in charge of the receipt of offers.

j) Manage a registry book or minute book of the received offers.

k) Administer and guard the securities.

l) Execute the guaranties, prior legal report that shall be promptly requested.

m) Prepare and file the record of every one of the processes of contracting.

n) Submit to the SICOES all the information of the contracting processes according

to what it is established in Article 49 of the current NB-SABS.

ARTICLE 37.- (LEGAL UNIT). The Legal Unit in each contracting

process has the following duties:

a) Deal with and advice the reviewing of documents and legal affairs rendered to

its consideration during the process of contracting.

b) Elaborate all the legal reports required in the process of contracting.

c) Elaborate the contracts for the processes of procurement.

d) Sign or countersign the contract prior its subscription, as responsible of its

elaboration.

e) Review the legality of the documentation presented by the awarded bidder

before the subscription of the contract.

f) Deal with and advice in proceedings, deadlines and resolution of Challenged

Administrative Recourses.

g) Elaborate and countersign all Resolutions established in the current NB-SABS.

h) Elaborate the legal report for the cancelation, suspension or nullity of a process

of contracting.

ARTICLE 38.- (RESPONSIBLE FOR EVALUATION AND

QUALIFICATION COMMISSION) I. The Responsible of Evaluation and the members of

the Qualification Commission shall be technically suitable public servants.

Exceptionally when the entity lacks public servants and instead counts on in-site

consultants, these ones will be able to be designated Responsible of Evaluation or

members of the Qualification Commission.

25

The number of members of the Qualification Commission will be related to the object

and scope of the contracting and the organization structure of the public entity.

The Qualifying Commission will be comprised by representatives of the Administrative

Unit and the Requesting Unit.

The MAE, the RPC , the RPA or the Representative of the Legal Affairs Unit that deals

with the process of contracting, shall not be able to be Responsible of Evaluation or

belonging to the Qualification Commission.

II. All the members of the Commission of Qualification are responsible of the

evaluation process. The recommendations of the Qualification Commission will be

adopted by consensus of its members.

III. The Responsible of Evaluation and the Qualification Commission have the following

main duties:

a) Carry out the bid-opening and price reading in public-available act.

b) Undertake the analysis and evaluation of technical and administrative

documents.

c) Evaluate and qualify the economic and technical bids.

d) Summon all bidders for clarification about the content of one or more bids,

when considered pertinent without modifying the technical or economic offer.

e) Elaborate the report of Evaluation and Recommendation of awarding or Void-

Declaration fir its submission to the RPC or RPA.

f) Perform the technical verification of the documents presented by the awarded

bidder.

g) Elaborate, when corresponding, the technical report for the cancelation,

suspension or nullity of a process of contracting.

IV. The Responsible of Evaluation and the members of the Qualification

Commission shall comply with and all duties and responsibilities determined in the

current article, with exclusive dedication, duties cannot be delegated or avoidable

to participate in unless cases of interest conflict, physical handicap or by reasons of

excuse established in the current NB-SABS.

ARTICLE 39.- (RESPONSIBLE OF RECEIPT AND RECEIPT

COMMISSION) I. The Responsible of Receipt and the members of the Receipt

Commission shall be technically suitable public servants. Exceptionally, when the

entity lacks of public servants and instead counts on in-site consultants, these ones

26

may be designated as Responsible of Receipt or as members of the Receipt

Commission.

The Receipts Commission will be formed by representatives of the Administrative

Unit and the Requesting Unit.

The MAE, RPC, the RPA or the Representative of the Legal Affairs Unit that deals with

the process of contracting, shall not be able to be Responsible of Evaluation or

belonging to the Receipt Commission.

II. The Responsible of Receipt and the Commission of Receipt have as their main

duties, the following:

a) Perform the receipt of goods and services and render acceptance verifying the

accomplishment of technical specifications and/or terms of reference.

b) Elaborate and sign the Acceptance Report and issue the Declaration of

Conformity if corresponding, however this aspect does not exempt from

responsibilities of the supplier nor the supervisor regarding the delivery of the

product.

c) Elaborate the Non-Conformity Report, if corresponds.

III. The receipt of goods might be subject of verification, according its characteristics;

the receipt of public-works will be carried out in two stages: provisional and definitive,

with the issuance of the respective minute; for the receipt of services, the Declaration

of Conformity, final and partial ones.

ARTICLE 40.- (PROHIBITIONS TO THE PARTICIPANTS OF THE

PROCESS) In the framework of the Public Service Responsibility established in Act

No.1178 and its specific regulations, public servants intervening in contracting

processes are prohibited to carry out the following acts:

a) Demand more requisites in addition to what is established in the DBC.

b) Contract agencies or entities for them to carry out the processes of contracting

on behalf of the public entity.

c) Begin the processes of contracting without the sufficient or necessary budget

unless the procurement of recurrent goods and general services.

d) Begin processes of contracting of public-works, with planes or designs not

updated.

e) Fractionate contracts.

f) Develop contracting processes in investment projects higher to one (1) year

which do not count on funding for the total cost.

27

g) Provide information affecting the legality and transparency of the processes of

contracting.

h) Establish non-written contact with any bidder who participate in a contracting

process, unless in public-available events and except the prior-to-the-

presentation-bids meetings with the Responsible of dealing with consultations

on the DBC. When non-fulfillment before the RPC or RPA is evidenced, the

public servant will be put out of the contracting process.

i) Accept of demand benefits or gifts from the bidder, its legal representatives or

third parties related to it.

j) Refuse to accept a bid within the deadline established in the DBC for the

presentation of offers.

k) Carry out the opening of offer in places or schedules not established in the

DBC.

l) Sell the DBC or collect and retribution for enabling a bidder to participate in a

process of contracting.

m) Manipulate the content of the DBC taking as evaluation criteria, a specific

brand and/or special characteristics of a vendor. When it is absolutely

necessary mention them the words “or its equivalent” must be added on the

reference in order to clarify a specification that otherwise would appear as

incomplete.

n) Carry out any act or activity contrary to the dispositions established in the

current NB-SABS.

ARTICLE 41.- (GROUNDS OF DISABLEMENT) I. The RPC or RPA,

the Responsible of Evaluation, the members of the Qualification Commission, the

Responsible of Receipt, the members of the Commission of Receipt and official of the

Legal Affairs and Administrative Unit which intervene in the process of contracting, will

excuse from participating in a process of contracting, according to the following

grounds:

a) Have a personal-interest or economic relationship of any kind with a/the

bidder(s).

b) Have matrimonial relation or consanguinity relation to a 3rd grade relative, 2nd

grade of affinity or derived from adoption, according to what is established in

the Family Code as well as the legal representatives, shareholders or

supervision partners of bidders.

c) Have an actual trial with a bidder or its legal representatives, shareholders or

supervision-partners.

d) Have a service relation with a bidder or having provided the bidder a

professional service of any kind during the last year prior the process of

contracting.

28

II. After the bid opening and after knowing the number of participants, the RPC or RPA

which are included in the grounds mentioned in paragraph I of the current article, will

have to expressly get apart from the process to allow its completion submitting the

antecedents to the MAE justifying the decision. In the term of one (1) day, the MAE

will ratify the RPC, RPA or will designate other public servant instead.

In case of the MAE acts as the RPC and/or RPA, this one shall present apologizes to the

MAE of the supervision entity and, in the case of municipalities, to the Municipal

Council.

III. The Responsible of Evaluation or the members of Commission of Qualification

which are affected by one or more of the grounds mentioned supra, in paragraph I of

the current article will have to present apologize to the RPC or RPA, once known the

role of participants. The Designation of the substitute public servant(s) will be done

immediately unless the RPC or RPA decides his/her ratification.

IV. The Responsible of Receipt or the members of the Commission of Receipt which are

affected by one or more grounds mentioned above, will have to present apologizes to

the MAE or the authority that designated them for then choose substitute(s) or,

otherwise, ratify them.

V. Public Servants of the Legal Affairs and Administrative Unit which intervene in the

contracting process and which are affected by one or more grounds in paragraph I of

the current article; will have to present apologizes to the RPC or RPA after known the

role of participants, for their substitution or ratification.

VI. The omission of apologize shall not bear on challenge, however, it will be

considered as reason of Responsibility of Public Service.

ARTICLE 42.- (BIDDERS) The following are subjects of being

bidders in processes of contracting:

a) Individuals in mode ANPE, in Public Tender only when it is about procurement

or renting of real estate.

b) Legal entities

c) Micro and small-sized enterprises

d) Urban/Rural Associations of Small producers

e) Peasant Economic Organizations – OECAS

f) Cooperatives

g) Non-Profit Civil Partnerships; legally constituted.

29

h) Public enterprises, National Strategic Public Enterprises and Majority State

Share Participation Enterprises, according to paragraph II of article 72 of the

current NB-SABS

i) Public entities capable of providing services and execute public-works

according to what established in Article 65 of the current NB-SABS. Public

Universities will be able to participate in processes of consulting only in

technology-scientific, education, research and training fields.

ARTICLE 43.- (PREVENTED FROM PARTICIPATING IN

CONTRACTING PROCESSES) The following individuals or legal entities are prevented

from participating direct or indirectly in contracting processes, regarding:

a) Have no pending matters with the Justice, established through notes or

minutes of executed list of charges and not settled.

b) Having final sentence from a judge being, therefore, to be disabled to perform

trading acts.

c) Being in the middle of a sentence established from a executed sentence by

crimes comprised on Act No.1743 of January 15, 1997 that approves and

ratifies the Inter American Convention against corruption or equivalents

mentioned in the Penal Code.

d) Being associated to consultants that have assisted in the elaboration of the

DBC’s content.

e) Firms that already had declared closure or bankruptcy.

f) Which legal representatives, shareholders or controlling partners have

marriage link or relationship with the MAE, up to third grade of consanguinity

and second of affinity according to established in the Family Code.

g) Former public servants that worked in the requesting entity up to 1 year to the

publication of the announcement as well as the companies managed by them.

h) Public servants currently working in the requesting entity as well as companies

managed by them.

i) Awarded bidders who had desisted from a previous contract, shall not

subscribe another after one year unless force majeure situations appropriately

justified by the entity, which will be submitted to the SICOES.

j) Vendors , contractors and consultants which who a previous contract was

terminated due to damages to State, shall not be able to participated until 3

years after such termination according information of the entity registered in

the SICOES.

ARTICLE 44.- (CONFLICT OF INTEREST). I. Individuals or legal

entities, associated or not, which renders advice to a public entity in a contracting

30

process, shall not be able to participate in the same process under any reason or

circumstance.

II. Individuals or legal entities as well as its subsidiaries contracted by the entity to

provide goods, execute public works or provide general services, shall not be able to

provide consulting services or vice versa.

CHAPTER III

DOCUMENTS, PUBLICATIONS AND NOTIFICATIONS

SECTION I

DOCUMENTS

ARTICLE 45.- (ANNUAL PROCUREMENT AND HIRING PROGRAM)

I. The PAC (As for its acronym in Spanish) is elaborated by the beginning of each year in

a workshop organized the Administrative Unit of the public entity where, mandatorily,

requesting units will also participate.

The development of this workshop shall not mean additional expenses for the entity.

II. The PAC comprises contracting deals higher than Bs.20.000 (Twenty Thousand

Bolivianos), regardless the source of funding including its publication through the

SICOES and in the Notice Board as indispensable requisite for the beginning of the

process.

III. The Pac will be able to be adjusted whenever:

a) The POA is reformulated.

b) The Budget is reformulated.

c) The entity, exceptionally and justifiably request to program its contracting by its

own.

The PAC adjusted will have to be published in the SICOES and in the Notice Board.

ARTICLE 46.- (CONTRACTING BSE DOCUMENT) I. The DBC must

elaborated by all public entities, using mandatorily the pattern elaborated and

approved the Ruling Entity.

31

When there is not a DBC pattern, the entity will expressly elaborate and approve the

document under its exclusive responsibility, its approval must be published in the

SICOES.

Minor contracting processes do not require a DBC.

II. When due to the characteristics of a contracting process, the public entity

requires to include aspects that modify the DBC pattern approved by the Ruling

Body, previously to the publication of the announcement shall request by letter to

the Ruling Body the authorization of such modifications enclosing technical-legal

report that justifies each one of the requested modifications. The Ruling body, after

analyzing, will expressly authorize or refuse the request.

In case the modification was authorized, the entity shall publish the Ruling Body’s

authorization along with the modified DBC.

III. DBC patterns for the ANPE mode will establish mandatory and referential

aspects. Referential aspects may be modified by the entity without need of

authorization of the Ruling Body.

In this mode, when proposals are required, the entity shall elaborate the DBC using,

mandatorily, the DBC Pattern issued by the Ruling Body. In case of quotation

requirement, the DBC patter shall not be necessary; instead, the entity shall create a

DBC according to the nature and characteristics of the quotation of good prices.

ARTICLE 47.- (TIMETABLE OF DEADLINES) The following

information shall be mandatorily published in the Notice Board.

a) Annual Procurement and Hiring Program

b) Actual contracting announcements higher to Bs20.000 (Twenty Thousand

Bolivianos)

c) Chargeable Resolutions in the maximum term of days since the date of their

issuance.

The Notice Board shall be updated permanently.

ARTICLE 49.- (PUBLICATION IN THE SYSTEM OF STATE

CONTRACTING). I. For contracting processes higher to Bs20.000 (Twenty Thousand

Bolivianos) regardless the source of funding, public entities will have to mandatorily

register the following information in the SICOES:

32

a) The PAC, the DBCs and its amendments, deadline extension, awarding or void

declaration, the contract and its modifications.

b) Contracting by emergency, Direct Contracting of goods and services,

Contracting on Specific Object, Direct Contracting for National Strategic Public

Enterprises –EPNEs and Contracting by Exception except the ones comprised in

sections i) and l) of Article 65 of the current NB-SABS.

c) Bidders that desisted of subscribing contracts.

d) Terminated contracts specifying the reason of the termination.

e) Periodical reports of performance of contracts of goods, public works and

consulting services for cases of research to final design and technical

supervision.

f) All further information required by the Ruling Body.

The content of the registered information in the SICOES is the sole responsibility of the

public entity.

II. Conditions and deadlines for the publication of information will be established in

the SICOES’s Operational Manual.

III. Every publication done through the SICOES becomes official documentation of the

contracting process.

The DBC published in the SICOES is the official document that rules the process of

contracting.

IV. Any bidder aiming to participate in a contracting process may acquire the DBC

directly from the SICOES website (www.sicoes.gov.bo) without obligation of collecting

it from the public entity.

V. Optionally, for better transparency, besides the publication in the SICOES, the entity

is able to publish the announcement in other alternative informative public forum such

as State Contracting Fairs, by radio, by TV, press and others.

ARTICLE 50.- (DEADLINE VALIDITY) For contracts higher to

Bs20.000 (Twenty thousand Bolivianos) deadlines will have validity since the date of

publication in the SICOES.

ARTICLE 51.- (NOTIFICATIONS) I. For purposes of the current NB-

SABS, notifications will be made via e-mail and/or fax and through SICOES within a

maximum term of two (2) days since the issuance of the Chargeable Resolution.

II. The bidder or recurrent will have to unmistakably indicate its e-mail and/or fax to be

notified.

33

The voucher of submission included in the file of the contracting process will validate

the notification and will be granted as carried out in its submission date.

III. In case of the notification via e-mail and/or fax would not have been carried out,

the notification will be granted as done in the date of publication of the Resolution in

the SICOES.

CHAPTER IV

CONTRACTING REGIME

SECTION I

MINOR CONTRACTING MODE

ARTICLE 52.- (DEFINITION MINOR CONTRACTING MODE) It’s a

mode for contracting of goods and services that will be applied when the contract

value is less or equivalent to Bs20.000 (Twenty Thousand Bolivianos)

ARTICLE 53.- (RESPONSIBLE OF EXECUTING THE MINOR

CONTRACTING) According to section a) of paragraph II of article 34, the responsible of

executing minor contracting processes is the RPA.

ARTICLE 54.- (CONDITION FOR MINOR CONTRACTING) The

conditions for minor contracting shall be ruled by each public entity within its RE-SABS

and shall consider the following aspects:

a) Does not require pricing quotation neither offers

b) It is not subject to deadlines

c) Goods and services contracted must comply with conditions of quality to meet

effectively the purposes for which they are required.

d) Must be undertaken considering criteria of economy for the purchasing within

the best prices of the market.

e) Must be carried out though immediate, dynamic and prompt actions.

SECTION II

MODE OF NATIONAL SUPPORT TO PRODUCTION AND EMPLOYMENT (ANPE)

ARTICLE 55.- (DEFINTION OF MODE NATIONAL SUPPORT TO

PRODUCTION AND EMPLOYMENT) Mode for contracting goods and services that

allows the free participation of undefined number of bidder or vendors, supporting

34

production and job generation nation-wide. It will be applied to contract-value

processes higher to Bs20.000 (Twenty Thousand Bolivianos) up to Bs1000.000 (One

million Bolivianos)

ARTICLE 56.- (CONDITIONS FOR CONTRACTING IN THE MODE

NATIONAL SUPPORT TO PRODUCTION AND EMPLOYMENT). Contracting within mode

ANPE will be carried out through pricing quotation of offers publishing the DBC in the

SICOES and in the Notice Board. Evaluation will be done even though just one

quotation or offer was received.

ARTICLE 57.- (DEADLINES FOR MODE NATIONAL SUPPORT TO

PRODUCTION AND EMPLOYMENT) I. For the presentation of pricing quotation and

offers, the following mandatory deadlines:

a) For contracting higher to Bs20.000 (Twenty thousand Bolivianos) up to

Bs200.000 (Two Hundred Thousand Bolivianos), four (4) days minimum.

b) For contracting higher than Bs200.000 (Two Hundred Thousand Bolivianos) up

to Bs1000.000 Bolivianos (One Million Bolivianos), eight days minimum.

II. Deadlines of other activities of the contracting process will have to be established by

the contracting entity, within the deadline timetable that will be included in the DBC.

ARTICLE 58.- (CONTRACT PROCESS BY PRICE QUOTATION OR

OFFERS) Considering the following activities:

a) Activities prior to publication: Elaboration of technical specifications or terms of

reference, contract request document, elaboration of the DBC, authorization of

process beginning, among others.

b) Process beginning with the publication of the announcement.

c) Optional administrative activities prior to presentation of offers: Written

Consultations, Prior Inspection, Clarifying meeting, among others.

d) Public opening and reading of offered prices.

e) Evaluation of quotations, offers and elaboration of reports of Evaluation and

Recommendation; Awarding or Void declaration.

f) Summoning to all bidders who presented offers when clarification of

information is required.

g) Elaboration of Resolution of Awarding or Void Declaration, when

corresponding.

h) Notification

i) Contract Subscription or issuance of Purchase Order.

j) Receipt

35

Social Control will be carried out through the representatives of civil society that

participate in public acts related to this mode of contracting. For such purpose,

publications in the Notice Board and the SICOES will constitute in the means of

information for the exact dates of public acts.

SECTION III

MODE PUBLIC TENDER

ARTICLE 59.- (DEFINITION OF PUBLIC TENDER MODE) It is a

mode for contracting goods and services that will be undertaken when the contrac-

value amount surpasses Bs1000.000 (One Million Bolivianos) allowing the participation

of a undefined number of vendors.

ARTICLE 60.- (KINDS OF ANNOUNCEMENT). The following kinds

of announcement (calls) are able to be carried out:

a) National Public Call: For contracting processes higher to Bs1000.000 (One

million) up to Bs40.000.000 (Forty million Bolivianos)

b) International Public Call : For purchases or contracts higher to Bs40.000.000

(Forty Million Bolivianos)

If due to the object of contracting it is necessary to give international scope to the call

in contracting processes less-valued to Bs40.000.000 (Forty Million Bolivianos) it is

possible to carry out international public calls, adjusting proceedings to such kind of

call or announcement process.

ARTICLE 61.- (DEADLINES FOR THE PUBLIC TENDER MODE) I. For

the presentation of offers, the following mandatory deadlines run:

a) National Public Call, fifteen (15) days minimum.

b) International Public Call, twenty (20) days minimum.

II. Deadlines of other activities of the contracting process will have to be established by

the contracting entity in the deadline timetable issued in the DBC.

III. The deadline for presentation of offers will be able to be exceptionally extended by

only once though express Resolution, for a maximum of 10 additional days, due to

force majeure, act of providence or by amendments to the DBC, deadline timetable

adjustments should be done before re-publishing in the SICOES.

ARTICLE 62.- (CONTRACTING PROCESS FOR PUBLIC TENDER

MODE) The following activities shall be considered:

36

a) Prior activities to the publication: elaboration of technical specifications or

terms of reference; contracting request, elaboration of the DBC, authorization

of the contracting process, among others.

b) Beginning of the process through the publication of the call.

c) Administrative activities prior to the presentation of offers:

i. Written consultations

ii. Clarifying meeting

iii. Prior Inspection, when corresponding

d) Approval of the DBC and amendments if there is any.

e) Notification

f) Public opening and reading of prices offered

g) Evaluation of offers and elaboration of a report of evaluation and

recommendation, Awarding of Declaration of Void.

h) Summon to all vendors and bidders that presented and offer if the clarification

of information is required.

i) Elaboration of Resolution of Awarding or Declaration of Void which content will

minimally enclose the following:

i. List of participants and prices offered.

ii. Results of evaluation

iii. Reasons for rejecting and/or disqualification, if there is any.

j) Notification

k) Conciliation for better technical conditions, when corresponding.

l) Contract Subscription

m) Receipt.

The Social Control will be carried out by representatives of the civil society that

participate in the public events related to this contracting mode. For such purpose, the

publication in the Notice Board and the SICOES, those will be the informative forums

for the dates of the mentioned public events.

SECTION IV

MODE OF CONTRACTING BY EXCEPTION

ARTICLE 63. - (DEFINITION OF THE MODE OF CONTRACTING BY

EXCEPTION) It is a mode that allows to procure goods and services solely and

exclusively due to reasons of exception established in Article 65 of the current NB-

SABS.

This mode shall not be applicable when the procurement is due to lack of prevision of

the entity or inopportune call for the good or service.

37

ARTICLE 64.- (RESPONSIBLE OF CONTRACTING- BY- EXCEPTION

PROCESSES) The MAE of the entity is the responsible for processes of contracting by

exception.

The authorization for processes of contracting by exception shall be through express

Resolution, motivated technically and legally and will order to undertake the

contracting under such Resolution.

ARTICLE 65.- (REASON FOR CONTRACTING BY EXCEPTION) Any

process of contracting will be carried out solely and exclusively due to the following

situations:

a) When there is only one provider or vendor for the contracting of goods, public

works, general services and only if those cannot be substituted by similar goods

and services or by generic brands. A trademark is not per se a reason for

exclusivity.

b) When certain consulting services require the experience of expertise from only

a unique consultant, individual or legal entity.

c) Due to termination of a contract for reasons established in it, the presentation

of a challenge or prosecution process would not impede the contracting.

d) Purchase of selected livestock when it comes to pieces to be more beneficial

regarding others and with justification documented.

e) Purchase of fresh and perishable food

f) Procurement of pieces of art.

g) When there are not legally registered companies that are able to offer

specialized consulting services, it will be possible to contract public entities

which are fully enabled to provide the required services.

h) Contracting of the Engineering Command of the Army, of the Geographical

Military Institute, the Mining Geological and Technical Service

(SERGEOTECMIN) and the Tributary Administration Municipal Unique Registry

(RUAT), according its institutional mission.

i) Procurement of armament, military equipment, anti-riot supplies, systems of

command, control and communications by the Ministry of Defense, for the

Armed Forces, by purposes of security and defense of the State.

j) The Ministry of Defense, on behalf of the Armed Forces and the Engineering

Command of the Army will be able to purchase machinery and reconditioned

equipment as long as such products have factory guarantee or guarantee from

the legal representative assuring the optimal functioning by the minimum

period established in the DBC

k) Procurement of flour, noodle, sugar, cooking oil for troops of the Armed Forces,

when the first call of these products has been declared void, in any mode of

38

contracting. For the contracting of this exception, the Ministry of Defense shall

publicly invite national companies working in the country, granting first

opportunity to small businesses as long as such products are manufactured in

the country.

l) Procurement of weapons, military equipment, anti-riot supplies, systems of

control and communication by the Police and the Ministry of the Interior due to

reason of security of the State.

m) Purchase of flour, noodle, sugar, cooking oil for police troops, by the Bolivian

Police, when the first call for purchasing such goods has been declared void, in

any mode of contracting. For the application of this exception, the Bolivian

Police will publicly call national enterprises to participate in the contracting

process as long as such items are produced in the country.

n) Public enterprises and Municipalities-with-high-levels-of- poverty are able to

purchase reconditioned equipment as long as such products have factory

guarantee or guarantee from the legal representative assuring the optimal

functioning by the minimum period established in the DBC.

o) Hire of lawyers in terms of criteria that benefit interests of the State prior

justification that the process cannot be met by the Directorate General of Legal

affairs of the entity.

p) When an international contracting process has been declared void by second

time.

q) When a national contracting process has been declared void b third time.

r) Contracting artists.

s) Procurement of primary food items by the Ministry of Defense or the Bolivian

Police, for supplying the Armed Forces or the Police which will have to be

supplied by small producers or associations legally registered in the Ministry of

Lands and Rural Development.

ARTICLE 66.- (CONDITIONS FOR CONTRACTING BY EXCEPTION)

I. Each entity will have to elaborate proceedings to carry out these processes of

contracting through immediate, dynamic and prompt actions.

II. Once the contract is subscribed, the contracting entity shall:

a) Present the information of the contracting to the Comptrollership of the State.

b) Register the Contracting by Exception in the SICOES when the contract-value

surpasses Bs20.000 (Twenty Thousand Bolivianos)

39

SECTION V

CONTRACTING MODE DUE TO DISASTERS AND EMERGENCY

ARTICLE 67.- (DEFINITION OF CONTRACTING MODE DUE TO

DISASTERS OR EMERGENCY) It is contracting mode that allows public entities the

procurement of goods and services solely and exclusively to face disasters and/or

national, departmental or municipal emergencies established through Act No.2140

of October 25, 2000 for Risk Reduction and Disaster attention.

ARTICLE 68.- (RESPONSIBLE OF CONTRACTING FOR DISASTERS

AND EMERGENCY) The MAE of the entity is the responsible for contracting due to

disasters and emergency.

ARTICLE 69.- (CONDITIONS FOR CONTRACTING DUE TO

DISASTERS AND EMERGENCY) The processes and conditions of the contracting due

to disasters and emergency shall be regulated by the MAE of each entity.

SECTION VI

MODE OF DIRECT CONTRACTING OF GOODS AND SERVICES

ARTICLE 70.- (DEFINTION OF MODE OF DIRECT CONTRACTING

OF GOODS AND SERVICES) It is a mode that allows the direct procurement or

hiring of services without quantity limit, solely and exclusively by reasons enacted

in Article 72 of the current NB-SABS.

ARTICLE 71.- (RESPONSIBLES) The RPA or the RPC, according to

the contract-value, will be the responsible of the direct-contracting of goods and

services. Its functions will be established in the RE-SABS of each entity.

ARTICLE 72.- (REASONS FOR A DIRECT CONTRACTING OF

GOODS AND SERVICES) I. The Direct Contracting of Goods and Services will be

carried out for the following situations:

a) Goods with fixed rates and regulated by the State: gasoline, diesel, liquefied gas

and others.

b) Public Services: electric energy, potable water and similar.

c) Media: television, radio, press and others. It is not applicable to contract

publicity.

d) Renting of real estate for functioning of schools or health-care centers: when

due to reason of force majeure, the work of such schools or health-care centers

40

is affected, the entity will be able to rent properties that will allow the

continuity of work of these institutions.

e) Renting of real estate for the functioning of offices of public entities when this

one lacks of own facilities and in extreme cases prior certification of non-

existence issued by SENAPE.

f) Purchase of air travel tickets for national routes: as long as the cost of such

tickets is subject to fixed rates and regulated by the competent entity. It is not

applicable to contracting of travel agencies.

g) Subscription to press or digital media: newspapers, magazines and specialized

publications.

h) Procurement of spare parts from provider or vendor, when necessary to keep

the guarantee and further quality of the equipment or machinery.

i) Transport of Police and Armed Forces troops when requiring meeting

emergencies of public security of the State.

j) Local goods and services for municipalities with high indexes of poverty: as long

as such goods and services are provided by enterprises or producers with legal

residence in the municipality and comply with the conditions established by the

local government.

II. Public entities are able to carry out the direct contracting of goods and services

provided by Public Enterprises, National Strategic Public Enterprises and Majority

share State participation enterprises, as long as:

a) Its institutional mission determines its capacity of offering goods and services.

b) Have enough capacity to comply with all conditions established by the

contracting entity.

c) The prices of its economic offer are as much as or inferior the ones in the

market.

d) The goods and services offered count on the required quality.

ARTICLE 73.- (CONDITIONS FOR THE DIRECT CONTRACTING OF

GOODS AND SERVICES) I. The conditions for the Direct Contracting of Goods and

Services shall be regulated by the public entity through its RE-SABS.

II. Once subscribed the contract, the contracting entity shall:

a) Present the information of the contracting process to the Comptrollership of

the State.

b) Register the Direct Contracting of Good and Services in the SICOES when the

contract value surpasses Bs20.000 (Twenty Thousand Bolivianos)

41

CHAPTER V

CONTRACTING ON SPECIFIC OBJECTS

ARTICLE 74.- (CONTRACTING AUDIT SERVICES FOR

GOVERNMENT CONTROL) Within the framework of the powers granted to the

Comptrollership of the State in Article 42, section a) of Law No.1178 and section i) of

Article 3 of Supreme Decree No.23215 of July 22, 1992, the contracting of firms or

professional services of audit, shall be subject to the regulations of the

Comptrollership of the State.

ARTICLE 75.- (CONTRACTING PROCESSES WITH FUNDING FROM

VENDOR OR BIDDER) I. Contracting processes with funding from the bidder or vendor

shall comply with regulations or policies of the Ruling Bodies of the National Systems

of Public Investment, National System of Budget, Treasury and National System of

Public Credit, in addition, it is the MAE’s responsibility comply with regulations of

public credit for acquiring funding.

II. Contracting processes with vendor or bidder funding shall be carried out according

to modes established in the current NB-SABS.

III. During the process of contracting with vendor or bidder funding, on the purpose of

comparing to other offers where all financial conditions are considered related to the

offered funding, the method of Actual Value of the projected flow of payments and

debt services will be used to a specific date of break.

IV. In contracting processes with vendor or bidder funding, the entity shall specify in

the contract the moment from which the obligation of reimbursement of the funding

received, is created establishing the document that supports that arrangement. The

contract shall indicate accurately the funded amount and the date from which

interests will be settled and the financial conditions of the awarded offer will be

applied.

V. The advance payment or payments settled by the public entity to the vendor or

contractor shall not be considered part of the vendor’s funding.

ARTICLE 76.- (TURNKEY CONTRACTING PROCESSES) I. Turnkey

contract processes can be carried out in projects where the public entity understands

that is more beneficial to grand only one company the design, construction and

operation of the facilities, equipment, training, intellectual and technological transfer.

42

II. This mode of contracting does not avoid the compliance with established

regulations in the National System of Public System SNIP and corresponding rules for

execution of projects on public investment.

III. Turnkey contracting processes with vendor or contractor funding are subject as

established in Article 75 of the current NB-SABS.

ARTICLE 77.- (CONTRACING PROCESSES CARRIED OUT IN

FOREIGN COUNTRIES) I. Contracting of specialized goods and services that public

entities develop in foreign countries shall subject to Supreme Decree No.26688 of July

5, 2002 and to the principles established in the current NB-SABS.

II. Contracting processes undertaken by Representative Entities of the Plurinational

State of Bolivia in foreign countries shall be established in their own Specific

Regulations based in principles enacted in the present NB-SABS and according to

appropriate practices in the foreign country.

III. The Ministry of Defense, on behalf the Armed Forces, the National Service of

Aerophotogrammetry, the Geodesic Map Service, the Bolivian Air Transport Enterprise

(TAB), Ministry of Presidency and the Directorate General of Civil Aeronautics, are able

to contract services of maintenance of airships of their property to foreign companies

where such crafts come from, including the purchase of spare parts related to such

maintenance. These procurements are able to be attached to the contracts elaborated

by providers and contractors whenever corresponding.

IV. The Administration of Assistance Services to Air Navigation AASANA, is able to

develop contracting processes to purchase equipment and systems of Air navigation

directly from foreign factories, considering generic brands aiming to provide services

of security to air and land navigation.

ARTICLE 78.- (ADMINISTRATIVE CONCESSION) The

Administrative concession of goods and services, according to the value should be

carried out according modes established in the current NB-SABS.

ARTICLE 79.- (PROCUREMENT OF INSURANCES) I. For the

procurement of insurances, public entities will comply with what is established in the

present NB-SABS, Act of Insurances and Code of Commerce.

II. The procurement of insurance shall be carried out from insurance companies legally

authorized to work in the country as it is established in Article 3 of Act No.1883 of June

25, 1998, on Insurances.

43

III. The procurement of insurance will be done regarding the insurance premium to

acquire the insurance as a total value of the contract and not of the amount to be

committed. The policy constitutes the base for contracting and is an indivisible part of

the contract.

IV. The procurement of insurances shall be carried out according the following

amounts:

a) ANPE for procurements higher to Bs20.000 (Twenty Thousand) up to Bs60.000

(Sixty Thousand) with a minimum period for presentation of bids or offers of

eight (8) days.

b) Public Trend for procurements higher to Bs60.000 (Sixty Thousand) with a

minimum period for presentation of offers of fifteen (15) days.

V. The following precautions will have to be considered for the procurement of

insurances:

a) For the procurement of advisers in the contracting processes of insurances, the

contracting entity will have to strictly attach to the following articles of Act

No.1883:

i. Article 22, insurance brokers may also be advisers but cannot play both roles

in the same process.

ii. Article 25, insurance advisers are not able to be insurance brokers.

b) Insurance advisers will have to be authorized and registered in the

corresponding entity.

c) Insurance advisers will have to be hired according to NB-SABS and cannot be

designated “ad honorem”.

d) Insurance advisers shall not bear any relation nor contact with insurance

company regarding the contracting process neither the companies with the

advisers.

e) Insurance companies are not allowed to participate in contracting processes

through: intermediaries, brokers, and others related to state processes of

contracting.

f) Insurance advisers providing services in public entities shall not bear any labor,

society-engaged or other kind of dependence with insurance firms.

ARTICLE 80.- (PROCUREMENT OF FOOD FOR SCHOOL-

BREAKFAST AND NUTRITION PROGRAMS) I. For the procurement of food items for

“School Breakfast” program and nutrition programs, regardless the contract value,

shall watch that all those food items are elaborated with inputs produced in the

44

country: It is prohibited to purchase products made of genetically-modified inputs

(transgenic).

II. As it is established in Act No.2687 of May 13, 2004 that upgrades to law the

Supreme Decree No.25963 of October 21, 2000; cereals produced in the country such

as: soybean, corn, amaranth, cañahua, quinua, tarwi and others, shall be included in

the School Breakfast program.

III. Within the framework of Food Sovereignty, the MAE shall promote a wide

participation of local producers incentivizing the production of food items of

characteristic of each region through procurement by parcels or items.

ARTICLE 81.- (PROCUREMENT OF PHARMACEUTICA PRODUCTS,

MEDICINES, MEDICAL DEVICES AND LABORATORY REAGENTS) I. Contracting

processes for the procurement of pharmaceutical products & medicaments will

consider provision enacted in Act No.1737 of December 17, 1996 (Act of

Medicaments) that establishes that the State will apply a priority policy for the

procurement and supply of national-production medicaments whether they are

generic and essential with guaranteed quality and at low prices on the basis of

principles of equity. Likewise, as legal framework for purchasing and accessibility of

medicaments, medical supplies, devices and reagents, be it considered Supreme

Decree No.25235 of November 30, 1998 ruling the Act of the Medicament and

Supreme Decree No26873 of December 21, 2002 of the National Unique System of

Supplies – SNUS

II. The contracting of pharmaceutical products, medicaments, medical devices and

laboratory reagents will consider the following criteria:

a) All contracting processes shall be developed solely by items.

b) The procurement and supply of medicaments will be from national production.

When for each item there are not even two offers of products from national

origin complying with international quality standards and do not exceed the

reference price, offers of imported products will be taken into consideration.

c) Public entities are able to develop partial procurements of the same item when

offers presented do not fulfill the total required, as long as it is established so in

the DBC.

d) Public entities are able to develop annual procurements from a provider, by

item, based on estimated projections according to standards established in the

System of Logistic Information Administration SIAL of the National Unique

System of Supplies SNUS aiming to achieve more administrative and budget

efficiency.

45

e) For the National Industrial Pharmaceutical Laboratories which comply with the

certification of good manufacturing practices – BPM an adjustment factor of

10% over the offer prices is established. The numerical factor of adjustment is

ninety hundredths (0.90)

f) For Medicament Import Enterprises, complying with good storage practices –

BPA, an adjustment factor of 7% over the offer price is established. The

numeric factor of adjustment is ninety three hundredths (0.93).

g) The evaluation of offers shall not be done under personal and discretional

criteria. In case of a not detailed situation in the technical specifications, the

report of therapeutic failure report or failure of medical device, both verified,

shall be issued and certified by the Unit of Medicaments and Health

Technology, to then proceed to the disqualification.

h) The Health Supply Headquarters CEASS and Non-Governmental Organizations

NGOs are able to participate in contracting processes only when there is not a

legal representation of or a certified provider of a required item in the country,

or when the procurement of such item was declared void, in such case, the

CEASS and NGOs are able to participate in the upcoming call complying with all

requisites of the DBC.

i) Contract processes under mode ANPE will be focused only to enterprises

counting on the Sanitary Registration for the item.

j) To the technical specifications, the Code of Sanitary Registration and List of

essential medicaments Code shall be included, for each item, taking into

consideration the established requisites by sanitary regulations.

ARTICLE 82.- (PROCUREMENT OF PUBLIC-WORKS

CONSTRUCTION MATERIALS) I. The contracting entity is able to purchase

construction materials for public works, to be then provided to the contractor when it

the provision of such materials is established for contracting of construction services.

II. When the procurement of construction materials for public-works takes place under

the mode of Public Tender, whether they are national or international, the minimum

period for presentation of offer will be fifteen (15) days.

ARTICLE 83.- (NATIONAL STRATEGIC PUBLIC ENTERPRISES) I.

The EPNE according to its legal nature, based in its production function and surplus

generation, will be able to:

a) Carry out all the contracting processes of goods and services, directly.

b) Import good for its own storage and commercialization in the domestic market

when its supply is not sufficient or is not produced in the country.

46

c) According to its productive processes and resource availability, the direct

procurement of machinery and reconditioned equipment as long as those have

guarantee issued by the manufacturer or legal representative guaranteeing an

optimal functioning by an appropriate time according the Guarantee

Document.

d) Undertake the direct execution of works of productive infrastructure.

The proceedings, guarantees, percentages of payment in advance and other conditions

for these contracting processes shall be regulated by each EPNE through its RE-SABS-

EPNE and harmonized by the Ruling Body.

II. The EPNE nature is determined due to the surplus generation and is established

through Supreme Decree according to the National Plan of Development.

III. The EPNEs shall register all contracting processes higher to Bs20.000 (Twenty

Thousand) in the SICOES in compliance with the Operative Manual of the SICOES

ARTICLE 84.- (LEASING) Public entities, according to the

characteristic of their activities and for the achievement of their specific goals, are able

to contract, through a financial or operative leasing, the renting or purchase of goods.

The contracting of leasing shall be subject to internal regulations approved by the

MAE. The decision shall be supported by technical and legal reports backing the

convenience of the operation.

CHAPTER VI

CONTRACTS

ARTICLE 85.- (CHARACTERISTIC). The contracts that public

entities subscribe for the procurement of goods and services have an administrative

character.

ARTICLE 86.- (ATTACHED DOCUMENTS) The following

documents are part of the Contract:

a) The DBC

b) Awarded offer

c) Resolution of awarding, when corresponding

d) Representation legal power, when corresponding

e) Guarantees, when corresponding

f) When contracting insurances, the corresponding Insurance Policy.

47

g) Contract of Temporary Partnership, when corresponding.

h) Other specific documents according kind of contracting

All documents mentioned, except the contract itself, do not require to be notarized.

ARTICLE 87.- (CONTENT) The contract will include, at least, the

following :

a) Antecedents

b) Parties contracting

c) Applicable legislation

d) Documents attached

e) Object and reason

f) Guarantees, when corresponding

g) Contract value, currency and means of payment

h) Validity

i) Obligations of the parties

j) Sanctions and penalties due to non-fulfillment from parties.

k) Handover conditions and receipt of goods and services, as corresponding.

l) Termination

m) Dispute resolution

n) Parties acquiescence

ARTICLE 88.- (SUBSCRIPTION AND NOTARIZATION) I. The

subscription of the contract shall be carried out by the MAE or by this authority had

been chosen, according to the constitution and functioning regulations of each public

entity.

II. The contract which, due to its characteristic or express mandate from law requires

to be granted in public script and that one which value is as much or higher to

Bs1000.000 (One Million Bolivianos) will have to be notarized by the contracting entity

before the Government Public Notary, the cost of this procedure shall be paid off by

the contractor or vendor. For such purpose, all documentation shall be submitted to

the Government Public Notary in a maximum deadline of ten (10) days after the

contract subscription. Contracts with value inferior to the mentioned do not required

to be notarized unless the entity considers it necessary and such procedure is able to

be carried out in Civil Notary’s Office or Government Public Notary.

Contracts related to the purchase of goods destined to the security and defense of the

State do not require to be notarized.

48

Lack of notarization of the contract or its delay to complete this procedure does not

affect the validity of contract-obligations or the settlement of agreed payments.

Contracts subscribed with public entities, Public Enterprises and Majority State Share

Participation Enterprises, do not require to be notarized.

ARTICLE 89.- (AMENDMENTS TO CONTRACT) I. Any amendment

to contracts shall be destined to the fulfillment of the object of contracting and must

be supported through technical and legal reports establishing the technical and

funding viability. In the case of investment projects, the report shall comply with all

related regulations of the National System of Public Investment SNIP.

II. Modifications to contracts can be done through:

a) Amend Contract. It is applicable when the amendment to be included affects

the scope, value or period of the contract without establishing increment to

unit prices.

The Amend Contract will be subscribed by the MAE or by the authority that

subscribed the main contract.

One or various amend contracts can be done, that, all together, shall not

exceed the ten (10) percent of main contract.

If for the purpose of the compliance of the contract, it is necessary to create

new items (volumes or quantities not foreseen) unit prices of such items shall

be agreed upon.

b) Amend contract for In-Site Consultants. It is applicable when the Requesting

Unit requires extending the period of service of the in-site consultancy, for this

purpose, prior to the conclusion of the main initial contract, a fulfillment ort

performance evaluation shall be made regarding the compliance of the terms

of reference. Based in such evaluation, the MAE or the authority who

subscribed the main contract is able to decide whether amending the

Consultant’s contract or not.

This amendment can only be done up to two (2) times. The deadline of each

modification cannot exceed the time established in the main contract.

c) Amend Contract for General Recurrent Services. It is applicable when the

entity required extending the period of validity of the general recurrent service,

for this purpose, the corresponding entity, prior to the conclusion of the main

49

contract, shall evaluate and asses the fulfillment or compliance of the contract.

Based on that assessment the MAE shall decide whether to amend the Service

contract or not.

This amendment can be done just one time and cannot exceed the deadline

established in the main contract.

d) Orders for Change. It will be used only for contracting of public-works. It is

applicable when the amendment to be introduced implies a modification of the

contract value or, its period of operation without incrementing of unit prices

nor creation of new items.

The Order of Change shall be approved by the entity responsible of monitoring

progress of the public work and cannot exceed 5% of the amount of the main

contract.

In the Public Tender mode, when, besides carrying our Orders of Change,

amend contracts are also developed, all together shall not exceed the fifteen

percent (15%) of the main contract value.

In the ANPE mode, when besides carrying out Orders of Change, Amend

Contracts are also developed, all together shall not exceed en percent (10%) of

the main contract value.

III. Due to force majeure, act of providence or public urgency, cession or

subrogation of contracts will be allowed prior approval of the MAE of the

contracting entity.

CHAPTER VII

REGIME OF THE ADMINISTRATIVE CHALLENGE-RECOURSE

ARTICLE 90.- (ORIGIN OF THE ADMINISTRATIVE CHALLENGE-

RECOURSE) I. The Administrative Challenge-Recourse will proceed against

resolutions issued and notified on contracting processes for:

a) Public Tender, against the following Resolutions:

i. Resolution that passes the DBC

ii. Resolution of Awarding

iii. Resolution of Declaration of Void

50

b) ANPE, for amounts higher to Bs200.000 (Two Hundred Thousand Bolivianos),

against the following Resolutions:

i. Resolution of Awarding

ii. Resolution of Declaration of Void

II. Bidders or vendors are able to challenge issued Resolutions as long as they affect,

damage of cause harm to its legitimate interests.

III. No Administrative Challenge-Recourse shall proceed against preparatory acts, mere

paper-work, reports, ruling reports, inspections neither other act nor Resolution which

are not expressly indicated in the current Article.

ARTICLE 91 (DEADLINES) The deadlines established in the

current Chapter are from now on understood as maximum deadlines and will begin to

be counted since the following working after the date of notification with of challenge

or provisions dictated, its validity will last up to the last administrative hour of the last

working day of the established deadline.

ARTICLE 92 (COMPETENT AUTHORITY TO RESOLVE

ADMNISTRATIVE CHALLENGE-RECOURSES) I. The competent authority to deal with

and resolve Administrative Challenge-Recourses is the MAE of the contracting entity.

When due to the structure of the entity, the MAE assumes the role of RPC or RPA; the

Administrative Challenge Recourses brought will be solved by the MAE of the

supervising entity; in the case of municipalities, the Administrative Challenge-

Recourses brought shall be solved by the Municipal Council.

II. The Administrative Challenge Recourses shall be presented before the RPC or RPA

that issued the Resolution subject of challenging who shall submit within a deadline of

two (2) days before the MAE, all the administrative challenge recourses brought plus

the antecedents of the contracting process.

ARTICLE 93.- (PROCEDURES FOR ITS PRESENTATION) The

Administrative Challenge Recourse shall be presented written, indicating, at least the

following:

a) Identification of the challenging party, otherwise, the Representation Power.

b) Attached documentation considered appropriate as a proof, specifying if it is

original, legalized photocopy or simple photocopy; or indicating the

documentation that is part of the contracting file, which is known to serve a

basis of the recourse.

51

c) Likewise, considerations, argumentations or remarks considered opportune can

be presented.

ARTICLE 94.- (RULING ON NOTIFICATIONS AND

COMMUNICATIONS) I. Notifications shall be made via e-mail and/or fax and through

the SICOES. A copy if this notification shall be place in the Notice Board as well.

II. Communications shall be made via e-mail and/or fax. A copy if this notification shall

be place in the Notice Board as well.

III. The bidder or challenger shall expressly indicate the e-mail and/or fax for its

notification and/or communication.

The submission voucher attached to the file of the contracting process will accredit the

notification and/or communication and shall be granted as carried out in the

submission date.

IV. In case that the notification could not be done, the notification will be granted as

done in the date of publication of the Resolution in the SICOES.

ARTICLE 95.- (REQUISITES FOR THE PRESENTATION OF THE

ADMINISTRATIVE CHALLENGE-RECOURSE) I. The Administrative Challenge-Recourse

shall be brought before the RPC or the RPA that issued the Resolution subject of

challenge, within the fixed, ultimate and inextensible deadline of three (3) days

counted since the date of publication of the Challengeable Resolution in the SICOES.

If the Administrative Challenge Recourse is brought past de deadline shall not be

considered for the procedure of Administrative Challenge Recourse and shall be given

back by the RPC or RPA to the bidder.

II. The challenger will attach a guarantee that shall indicate its renewable, irrevocable

and immediate execution character, according to the selection, shall be whether:

Performance Bond and Performance Bond to First Requirement issued on the care of

the contracting entity, in the currency established for the contracting and with 30 days

validity since the date of bringing the Administrative Challenge Recourse.

III. According to the kind of Resolution challenged, the amount of the guarantee shall

be:

a) Against the Resolution of Approval of the DBC: Equivalent to one percent (1%)

of the Referential Price estimated as follows:

52

i. When the awarding was granted for the total, the estimate will be done for

the total amount of the offer.

ii. When the awarding is for items, parcels, stretches or packs, the estimate will

be done adding the offered amounts for the items, parcels, stretches or

packs challenged.

ARTICLE 96.- (SUSPENSION OF THE CONTRACTING PROCESS

AND REMISSION OF INFORMATION) I. The bringing of the challenge will suspend the

contracting process. It will be reinitiated once the completion of all administrative

proceedings.

II. When the Administrative Challenge Recourse is presented in contracting processes

by items, parcels, stretches or packs, the process shall be suspended solely for the

items, parcels, stretches or pack challenged. The process shall continue normally for

the other items, parcels, stretches or packs.

III. Public entities shall register in the SICOES the required information about the

brought and resolved administrative challenge recourses.

IV. Bidders who bring Administrative challenge recourses are able to submit to the

SICOES, for its diffusion, a copy of the process with the receipt-mark of the entity.

ARTICLE 97.- (PAPER-WORK OF THE ADMINISTRATIVE

CHALLENGE RECOURSE) Paper -work Administrative challenge recourses shall proceed

as follows:

I. Once received the recourse and the antecedents of the process, the MAE will order

its communication in a deadline of two (2) day, as follows:

a) Against the Resolution that approves the DBC. Via fax or e-mail to the

interested people who has registered this information in the Clarifying

Meeting. The interested ones are able to present their arguments,

considerations and remarks properly justified and supported.

b) Against the Awarding or Declaration- of- Void Administrative Resolution. Via

e-mail or fax to the bidders who are able to present arguments, considerations

or remarks properly justified and supported.

II. The MAE shall expressly issue statement in a maximum deadline of five (5) day,

counted since the receipt of the Administrative challenge recourse.

III. The Resolution that resolves the Administrative challenge recourse issued by the

MAE does not admit further administrative recourse and the prosecution process

might be opened.

53

ARTICLE 98.- (CHARACTERISTICS OF THE RESOLUTION THAT

RESOLVES THE ADMINISTRATIVE CHALLENGE RECOURSE) The Resolution that resolves

the Administrative Challenge Recourse shall comply with the following:

a) Express: Will have to be referred only to the aspects mentioned in the

Administrative Challenge Recourse(s).

b) Motivated and supported: Indicating aspects of fact and Law upon which the

decision and the technical and legal reports are issued.

c) Unique: In the case of presentation of various administrative challenge

recourses against the same Resolution, The MAE will resolve them

simultaneously and unequally, through the issuance of the corresponding

Resolution.

ARTICLE 99.- (FORMS OF RESOLUTION AND ITS EFFECTS) The

MAE of the entity will resolve the administrative challenge recourse, in the following

forms and will bear to the following effects:

a) Confirming the challenged Resolution: The Resolution that confirms the

Resolution of Approval of the DBC, or the Resolution of Awarding will bear on

the continuance of the process of contracting. In case of confirmation of the

Resolution of Declaration of Void, it will cause the call to a next contracting

process.

b) Revoking the challenged Resolution: It will cancel the challenged Resolution,

resolving it according the following cases:

i. Reversal Recourse to the Resolution that approves the DBC: It should be

pronounced prior the analysis of the DBC by the responsible people of its

elaboration, cancellation of procedural acts up to the oldest flaw in the

process, will expressly indicate the flaws by which the cancellation proceeds

and will order the Authority that issued the Resolution to resume the

contracting process.

ii. Reversal Recourse to the Resolution of Awarding of Declaration Void: It

shall be pronounced prior analysis of the offers and the Report of Evaluation

and Recommendation, cancelling all procedural acts up to the oldest flaw

and will expressly indicate the flaw or flaws by which procedural acts are

being cancelled and will order the authority that issued the Resolution, to

resume the process of contracting.

When the administrative challenge recourse is brought against the

Resolution of Awarding or Declaration Void of a specific item, parcel, stretch

or pack, the Resolution will only reverse the awarding or Void Declaration of

54

the item, parcel, stretch or pack challenged. The process will normally

continue for the rest of the items, parcels, stretches or packs.

c) Rejection of the Recourse: It will expressly indicate the omitted requisites by

the bidder like not having met the procedures or guarantees established in the

current Chapter of the NB-SABS, enacting the continuance of the contracting

process.

ARTICLE 100.- (POSITIVE ADMINISTRATIVE SILENCE) I. The

absence of Resolution that resolves the Administrative Challenge Recourse in the

deadlines established for such purpose, it will imply the acceptance of the brought

challenge and, as a consequence, the renovation of the Resolution requested, in

compliance of the positive administrative Silence.

II. Once the deadline is over, the challenger will request, through written note, the

express pronouncement of the MAE about the resume of the process and the

determination of new deadlines.

III. The absence of a resolution in the established deadlines will bear on responsibility

of the MAE, according to Law No.1178 and ruling dispositions.

ARTICLE 101.- (NOTIFICATION OF THE RESOLUTION THAT

RESOLVES THE ADMINISTRATIVE CHALLENGE RECOURSE(S)) The notification to

challengers and communication to bidders through the Resolution resolving the

Administrative Challenge Recourse(s) shall be carried out in the period of two (2) days

since the date in which the Resolution was dictated in compliance to Article 94 of the

current NB-SABS.

ARTICLE 102.- (EXHAUSTION OF ADMINISTRATIVE REMEDIES).

Administrative Remedies shall be considered exhausted in the following cases:

a) Resolved the Administrative Challenge Recourse

b) Exceeded the deadline for the issuance of the corresponding Resolution,

without resolving the recourse brought.

ARTICLE 103.- (EXECUTION OF GUARANTEES) Once exhausted all

administrative remedies and in the supposed situation of confirmation of the

Resolutions issued by the RPC or RPA or having rejected the recourse presented, the

MAE will instruct, in each case and when corresponding, the execution of the

guarantees presented on the care of the contracting entity.

55

ARTICLE 104.- (REFUND OF GUARANTEES) The devolution of a

non-executed guarantee will proceed in the maximum period of ten (10) calendar

days taken since:

a) The date of issuance of the Resolution that resolves the Administrative

challenge recourse, when the MAE had reversed the challenged Resolution.

b) The deadline date for issuing the Resolution, when the MAE did not resolve the

Administrative Challenge Recourse in the established deadline.

CHAPTER VIII

SYSTEM OF STATE CONTRACTING

SECTION I

GENERAL ASPECTS

ARTICLE 105.- (INFORMATION REGISTERED IN THE SYSTEM OF

STATE PROCUREMENT AND HIRING) I. The information registered in the SICOES has

the characteristic of affidavit and constitutes official information that will rule the

contracting processes.

II. The content and veracity of the information and documentation registered in the

SICOES take full responsibility of the contracting entity that shall use all administrative

resources of internal control to verify that the information released corresponds to the

original documents approved by the RPC or RPA.

ARTICLE 106.- (UNALTERABILITY OF THE SUBMITTED

INFORMATION) I. Once the information is released in the SICOES, such content shall

not be modified.

II. In case of the entity notices mistakes or errors in the information released through

SICOES, the RPC or RPA or the highest executive of the Administrative Unit, as

corresponds will request the publication of clarifying or rectifying information

according to proceedings in the Manual of Operations of the SICOES.

ARTICLE 107.- (ASSIGNMENT OF THE UNIQUE CODE FOR STATE

CONTRACTING PROCESSES) I. The Unique Code for State Contracting processes CUCE

will be given for all processes higher to Bs.20.000 (Twenty Thousand Bolivianos)

according to the following:

56

a) At the beginning of the contracting process with the publication of the call: A

CUCE will be assigned for modes ANPE, Public Tender, Contracting by Exception

with public call, Specific Object Contracting processes, contracting processes

with specific rule of exception and other modes defined by the Funding Body

which require publication of call.

b) For the registration of processes developed without call: The CUCE will be

assigned for the registry of information on Contracting by Exception,

Contracting due to Disaster and/or emergency, Direct contracting of goods and

services, Contracting of Specific Object, contracting processes with specific rule

of exception and other modes defined by the Funding Body which require

publication of call. The Registration and assignation of the CUCE for these

processes will be carried out once the contract is subscribed or the Purchase

Order is issued.

II. The SICOES shall not assign a CUCE in the following situations:

a) If the requisites for publication were not submitted.

b) If the information was not submitted within established deadlines

c) If information errors or omissions were verified in the publication request.

d) If the entity does not count on its PAC published in the SICOES

e) If the entity request the publication of a call without having registered the Void

Declaration of the same call before.

f) If the entity fails registering the information in the SICOES.

SECTION II

MEANS OF INFORMATION REGISTRATION AND USERS ENABLING

ARTICLE 108.- (MEANS OF INFORMATION REGISTRATION). The

registry of information in the SICOES shall be carried out by the following means:

a) On Line: Public entity with internet access will register the information

mentioned in the present NB-SABS and in the Manual of Operation of the

SICOES, through the users enabled for this purpose and using appropriate

software available in the SICOES website (www.sicoes.gov.bo)

b) Documented: Entities lacking internet access will request authorization to the

Ruling Body to submission of information through printed forms.

ARTICLE 109.- (USERS ENABLING FOR ON-LINE REGISTRATION

AND AUTHORIZATION OF DOCUMENTED REGISTRATION) I. To register the

information on-line, the MAE or the highest official of the Administrative shall request

the enabling the account of and Administrator who, then, shall be able to request the

57

enabling of Registry Users. The Administrator User and the Registry User enabled are

responsible of the veracity and promptness of the information they record.

II. To make the documental registry of information, the MAE or the highest official of

the Administrative Unit shall request authorization to the Ruling Body justifying that

the entity does not count on internet service. This authorization shall be renewed

annually.

ARTICLE 110.- (REGISTERING OF EXECUTORY DECENTRALIZED

UNITS, PROGRAMS AND/OR PROJECTS). The MAE is able to request the registration of

executory decentralized unit, programs and/or projects that undertake their

contracting processes independently. This request shall go along with the pertinent

supporting documentation.

ARTICLE 111.- (MANUAL OF OPERATION OF THE SICOES) Public

entities shall mandatorily use the Manual of Operations of the SICOES applying

procedures, deadlines and conditions for the registry of information of contracting

processes.

The Manual of Operations of the SICOES is part of the ruling of the current NB-SABS.

TITLE II

SUBSYSTEM OF MANAGEMENT OF GOODS

CHAPTER I

GENERAL ASPECTS

ARTICLE 112.- (CONCEPT) The Subsystem of Management of

Goods is the interrelated set of principles, legal, technical and administrative

elements that regulate the management of goods property of the entity and which

are under its care or domain.

It aims to optimize the availability, the use and control of goods and minimization

of its operational costs.

ARTICLE 113.- (SCOPE) The current NB-SABS are applicable to the

management of assets and consumer goods property of the entity and the ones

under its care of domain.

58

The management of goods which are product of a consultancy service, software

and similar, shall be regulated in the RE-SABS of each entity.

ARTICLE 114.- (EXCEPTIONS) The following are out of the scope

of this subsystem:

a) Public Domain goods.

b) War supplies of the Armed Forces.

c) Goods declared historical & cultural asset heritance.

d) The goods of National Strategic Public Enterprises

The management of these goods is subject to special ruling that can take, as reference,

the current NB-SABS in its content referred to its operation and control.

ARTICLE 115.- (COMPONENTS) The constituent parts of the

Subsystem of Management of goods are the following:

a) Management of warehouses

b) Management of movable fixed assets

c) Management of fixed real estate

ARTICLE 116.- (RESPONSIBILITY FOR THE MANAGEMENT OF

GOODS) I. The highest executive of the Administrative Unit is, before the MAE, the

responsible for:

a) The management of good related to the organization, functioning and control

of operative units specialized by areas, for the compliance of the current

legislation , for the development and compliance of ruling, procedures, orders

and the application of damage penalties due to damage, loss or improper

usage.

b) For the adequate conservation, maintenance and care of the goods under the

supervision of the entity.

c) For the entity to count on legal documentation of the goods it owns or the

goods it is in charge of as well as the custody and registration of such

documentation in the corresponding entities. If necessary, it will request the

Unit of Legal Affairs of the entity, the disencumbrance of pertinent legal

documentation.

d) For the submission of information of the goods owned by the entity to the

National Service of State Assets – SENAPE.

59

II. Responsible people of warehouses, fixed assets, maintaining and care of goods must

comply with, before the Highest Executive of the Administrative Unit for the

compliance of regulations, ruling, proceedings and instruction established for the

development of their duties as well as the control, procurement of services of

maintenance and care of such goods.

III All Public officials are responsible for the proper use, custody, preservation and

request of services of maintaining of goods granted for their use, according to the

regime of Responsibility for Civil Service Performance established in Act No.1178 and

its regulations.

ARTICLE 117.- (INCLUSION IN THE ANNUAL OPERATIONAL

PLAN). The activities and tasks related to the management of good shall be included in

the POA to ensure that its development is carried out according to the objectives of

the entity.

ARTICLE 118.- (ADMINISTRATIVE CONTROLS) I. Control is the

process involving functions and activities to evaluate the management of goods since

its admittance to the entity until its discharge or devolution using the corresponding

registration as a source of information. To carry out this control, the Administrative

Unit shall:

a) Perform periodical, planned or surprise inventories and recounts

b) Verify the correspondence between registries and stocks.

c) Verify maintenance and safe disposition of goods

d) Verify the existence of legal documentation and registration of goods.

II. For the elaboration of information related to the management of goods,

registrations and reports will be used and these shall present the following

characteristics:

a) Registrations shall be permanently updated, documented and shall allow to:

i. Verify quick and easily the availability of goods.

ii. Evaluate the historical course and costs of goods.

iii. Learn its identification, classification, codification and location.

iv. Learn the conditions of conservation, damage, restoration, etc; as well as the

technology or obsolescence in which such good remain.

v. Verify the legal documentation on the property and registration of goods as

well as the ones that are assigned, rented or lent, etc; under control of the

entity.

vi. Establish responsibility over the usage of goods and administration of stocks.

60

b) The Reports shall allow describe and evaluate the situation of goods in a certain

moment.

ARTICLE 119.- (TAKING OF INVENTORY) I. Taking inventory is to

make an itemized count of consumption and institutional goods undertaken in each

entity to update information on the existence of goods by any of generally-accepted

methods.

II. Entities shall develop regulations, procedures and/or orders to the physical

inventory of consumption goods, fixed movable assets and fixed real estate assets;

these procedures shall regard periodical, planned and surprise inventories aiming to:

a) Accurately established the existence of goods in operation, in transit, rent,

deposit, maintenance, disuse, useless, stolen, damaged and in property of third

parties. Also, identifying malfunctions, shortages of leftovers.

b) Provide information on the condition or physical condition of goods.

c) Be main source to carry on correction and adjustments, establish

responsibilities due to improper usage, negligence, inattention or thefts.

d) Verify the incorporations or withdrawal of goods that due to technical or other

reasons were not reported.

e) Consider decisions that improve or modify promptly failures in usage,

maintenance or well keeping of goods.

f) Probe the efficiency level of usage of consumption goods.

g) Generate basic information for disposition of goods.

h) Program upcoming acquisitions.

ARTICLE 120.- (GOODS OBTAINED THROUGH FOREIGN

FUNDING) For managing goods obtained through external funding, the current NB-

SABS shall be used, unless funding agreement established the opposite.

ARTICLE 121.- (DONATED OR TRANSFERRED GOODS) I.

Consumption goods that an entity is given by donation or transfer shall be receipted by

the Receipt Commission comprised by officials of the entity technically qualified and

who shall be designated by the MAE or the public servant delegated by this authority.

This Commission shall issue a minute mentioning the kind of good, quantity and

technical specification of such goods.

II. The Warehouse Responsible of the Fixed Assets Responsible shall enclose a copy of

the Donation Agreement or legal supportive document, Receipt Minute and any

documentation regarding its incorporation to depots or Fixed Assets facilities, as

applicable; following the regulated procedures in the current NB-SABS.

61

CHAPTER II

WAREHOUSES ADMINISTRATION

ARTICLE 122.- (CONCEPT) Administration of warehouses is the

administration role that comprises activities and procedures related to the

incorporation, registration, storage, distribution, safeguard measures and control of

the consumptions goods in the public entity.

ARTICLE 123.- (OBJECTIVE) The administration of warehouses

aims to optimize the availability of consumption goods, the control of its operations

and minimization of storage costs.

ARTICLE 124.- (SCOPE) The Dispositions comprised in this

chapter will be applied to warehouses of consumption goods obtained through own

funds or foreign funds, donated or transferred by other institutions.

ARTICLE 125.- (ORGANIZATION) I. A Warehouse is an operative

area of the Administrative Unit that is to have just one responsible of its

administration.

II. Each entity will organize a necessary number of warehouses or depots according

to its technical characteristic and qualities of goods it manage.

III. The entity will create sub-depots when there is a process of decentralization,

physical separation of its units and high flow of goods which should recurrently stored

if necessary. Such facilities shall count on a responsible of its administration and

functioning that shall be supervised by the Warehouse Chief.

IV. Warehouses and sub-depots shall be specially designed and enabled to facilitate

the incorporation and receipt of goods, provide safety conditions, harmonize the

assignation of spaces according the characteristics of goods, simplify its operations,

facilitate handling and transport.

V. According to the volume, complexity and technical characteristics of the goods

under management, a warehouse must count on qualified and skilled personnel.

VI. In each entity, the Administrative Unit will develop procedures and/or orders for

the administration of warehouses.

ARTICLE 126.- (RECEIPT) I. The first phase of incorporation of a

good to the entity is the receipt. All receipt of goods shall be based on documents

62

authorizing its inflow issued by competent authority or supported by its acquisition

request.

II. The Receipt process comprises the following tasks:

a) Collating of relevant documentation with what was effectively requested by

the entity.

b) Verification of quantity and technical, functional, physical and volume-related

characteristics of the goods.

III. Some goods may be received in warehouses to be subject of verification, solely

when:

a) Its inspection requests a long period of time.

b) Its verification demands specialized technical criterion.

c) When contract conditions so demand it.

This procedure will allow you to verify that the entity acquitted what effectively

requested in terms of quantity and quality.

IV. The Administrative Unit shall establish the time required for verification and shall

notify this deadline to the vendor or supplier.

ARTICLE 127.- (RECEIPT RESPONSIBLE PEOPLE) I. The Receipt of

consumption goods shall be performed by:

a) The Responsible of Receipt or the Commission of Receipt formed according to

Article 39 of the current NB-SABS.

b) The Responsible of Warehouses when it is about Minor Contracting unless the

procurement needs technical verification.

II. When the Responsible of Warehouses, the Responsible of Receipt or the

Commission of Receipt declares conformity with the delivered goods by the provider,

the Document of Official Receipt shall be elaborated.

III. If the consumption goods must be received somewhere else than the warehouse,

those are able to be delivered in the place arranged by the Requesting Entity with the

participation of the Responsible of Warehouses, the Responsible of Receipt or the

Commission of Receipt and shall comply with all procedures of receipt, incorporation

and delivery of goods.

63

ARTICLE 128.- (INCORPORATION) I. Once goods are officially

received, the Responsible of Warehouses shall perform the Registration of incoming to

warehouses, attaching the following documentation:

a) Official Receipt Document of the good, issued by the entity.

b) Purchase Document that might be the Order of Purchase or Contract,

Document of agreement of donation or transfer.

c) Delivery Note

Likewise, a copy of the official receipt document shall be submitted to the Accounting

Office of the Entity.

II. Every income of goods to warehouses shall be properly registered.

ARTICLE 129.- (IDENTIFICATION) The identification consists of

the basic denomination assigned to each good and its description according its own

physical, chemical, dimension and functional characteristics and others allowing its

differentiation regarding other brands or similar ones.

ARTICLE 130.- (CODIFICATION) I. Codification of goods consist of

assigning a symbol to each item of goods or materials in order to:

a) Its classification

b) Its location and verification

c) Its handling

II. Codification of consumption goods stocked in warehouses will be based in current

national standards, but lacking them, according to international standards.

ARTICLE 131.- (CLASSIFICATION) I. In order to facilitate its

location and identification, goods shall be classified in alike-characteristics. These

characteristics might be: volume, weight, aspect, chemical composition, frequency of

in and outflow, level of danger exposure, etc.

II. This classification will serve to organize its storage as the share similar, equal or

complementary characteristics

ARTICLE 132.- (CATALOGUING) Cataloguing consist of the

elaboration of lists of coded goods and classified according a logical order. Public

entities shall maintain updated catalogues of their consumption goods which facilitate

he query and control of materials and stock.

64

ARTICLE 133.- (STORAGE) Storing aims to facilitate the

conservation, handling, safeguard and delivery of goods incoming to warehouses. This

operation shall be performed taking into consideration, the following:

a) Classification of goods

b) Assignation of places

c) Availability of facilities and auxiliary means

d) Usage of transportation means: motorized and not motorized equipment

e) Conservation

f) Security

ARTICLE 134.- (PLACES ASSIGNMENT). On the purpose of

facilitating the receipt and delivery of a good, a place or places shall be assigned

according the following criteria:

a) According to the kind of good

b) According the speed of warehouse-in & out flow

c) According its weight and volume

Whatever the criterion employed, the assignation of places must facilitate the receipt

and delivery of goods.

ARTICLE 135.- (OUTGOING FROM WAREHOUSES) I. It refers to

the effective delivery or handover of goods, this process implies:

a) Meet request for goods

b) Prove that quality, quantity and characteristics of goods to be delivered, match

the request

c) Use standard techniques to pack and label according its characteristics and

destination

d) Register the outgoing of goods from a warehouse.

II. The outgoing of a good shall be necessarily supported by a document of

authorization issued by competent authority or previously established by the

Administrative Unit as sufficient. This document shall establish the quantity and

conditions of the delivered good, identify its recipient, verify the conformity of delivery

and learn its destination.

ARTICLE 136.- (REGISTRATION IN WAREHOUSES) I. The

registration has as purpose to facilitate the control of stocks and the flow of goods in

65

the warehouse and this will enable to take decisions over acquisitions, disposition of

goods, discharge and others.

II. Warehouses shall count on registers of incoming, storing and outgoing of every

good existing in the place, using the necessary documents which then will lead to

inventories.

ARTICLE 137.- (MANAGEMENT OF STOCKS) Management of

stocks has a purpose to provide the supply of goods to the users of the entity and

avoid interruption of tasks for which each entity shall:

a) Undertake policies and techniques to define the economic quantity of stock

and spare.

b) Use the most appropriate technique of inventories according to the kind of

good or group of goods.

ARTICLE 138.- (HYGIENE AND INDUSTRIAL SAFETY MEASURES)

The Highest Executive of the Administrative Unit must regard standards and actual

regulations and develop specific procedures and/or instructions for hygiene and

Industrial Safety for prevention of supposed future accidents generated by the high

level of danger of some goods and the conditions of its storing. On such purpose, the

following aspects shall be considered:

a) Ease of movement of goods within the warehouse.

b) Signage for transit and transport

c) Environment conditions of ventilation, light, humidity and temperature.

d) Assignation of protected areas for dangerous substances.

e) Utilization of clothes and equipment of industrial safety

f) Adoption of training programs on Industrial Safety.

g) Determination of emergency measures in case of accidents.

h) Adoption of anti-fire or flood measures.

i) Adoption of First-Aid measures.

ARTICLE 139.- (SAFEGUARD MEASURES) I. Safeguard comprises

activities of conservation and protection to prevent damages, wastage, losses and

stock damaged and also aiming to easily, safely identify and quick handling of goods.

II. Safeguard measures have the following purposes:

a) Implement procedures for custody, stock protection and use of auxiliary

facilities and physical means.

66

b) Implement measures of physical security and strengthen control measures

aiming to avoid goods to be entered, internally moved or taken out without

relevant authorization.

c) Establish criteria for acquiring insurances that strengthen the physical and

industrial safety measures.

d) Define criteria to establish bails and fidelity policies for the Responsible of

Warehouses.

e) Establish and spread procedures and/or specific instructions of industrial safety

according to established standards.

II. In order to contribute to these purposes, the following procedures shall be

undertaken:

a) Request the acquisition of insurances against theft, fire, losses, accidents and

others.

b) Perform periodical inspections to facilities.

c) Perform periodical taking of physical inventories.

ARTICLE 140.- (PROHIBITIONS) The Responsible of Warehouses

must not to:

a) Hold goods into warehouses without having registered its incoming.

b) Deliver goods without document of authorization issued by competent

instance.

c) Deliver goods as on loan

d) Use goods for particular or private purposes.

CHAPTER III

MANAGEMENT OF MOVABLE FIXED ASSETS

ARTICLE 141.- (CONCEPT). Management of movable fixed assets

is the administrative work that comprises procedures related to incoming, assignation,

maintenance, safeguard, registration and control of goods in public entities.

ARTICLE 142.- (OBJECTIVE) It has as a purpose to get rationality

in distribution, usage and conservation of movable fixed assets of public institutions.

ARTICLE 143.- (SCOPE) Dispositions comprised in this Chapter

will be applied to all movable fixed assets property of the entity and to the ones under

its custody or responsibility.

67

ARTICLE 144.- (ORGANIZATION FOR MANAGEMENT OF

MOVABLE FIXED ASSETS) I. Entities shall create a specialized entity for the

management of fixed assets, if the quantity of such goods worth it. If there will not be

a specialized instance, the role shall be assigned to a specific official.

II. The organization of activities of fixed assets will be based on the characteristics of

the operations of distribution, safeguard, maintenance and control.

III. If necessary, storehouses and depots will be used under responsibility of the unit or

the official responsible of fixed assets.

IV. Warehouses and deposits shall have indispensable conditions that facilitate

movement of goods assuring its safety.

V. In each entity, the Administrative Unit will develop procedures and/or instructions

related to the administration of movable fixed assets.

ARTICLE 145.- (RECEIPT). I. The Receipt of these goods for its

incorporation as fixed asset of the entity will be performed by the Unit or Responsible

of Fixed Assets applying in the same manner the regulations on receipt of goods to

warehouses, ruled in Article 126 and 127 of the current NB-SABS.

II. The receipt of goods under responsibility of the Unit or under its custody shall be

supported by documentation of assignation, loan or use, renting or others.

ARTICLE 146.- (ASSIGNATION OF MOVABLE FIXED ASSETS) I. The

assignation of movable fixed assets is the administrative act by which a specific official

is given an asset or a group of them generating the relevant responsibility on its proper

use and custody.

II. The delivery of movable fixed assets to public servants will only be performed by the

Unit or Responsible of Fixed Assets, this procedure will proceed when there is a

documented order and authorized by competent instance, established in the RE-SABS.

ARTICLE 147.- (DOCUMENT OF DELIVERY) I. The proof of delivery

of a good shall be by written form where the recipient public servant expresses

conformity through his/her signature.

II. The Unit responsible of Fixed Assets shall maintain updated registers of the

documents of delivery and devolution of assets.

68

ARTICLE 148.- (LIABILITY RELEASE) I. To be granted of liability

release, the official in charge will have to give back, to the Unit of Responsible of Fixed

Assets, the good or goods under its responsibility and shall request the written

conformity document issued by this Unit or Responsible. While it is not done, he or she

will be subject to the regime of Public Service established in Act No.1178 and its

specific regulations.

II. The public servant, while he or she keeps working in the facilities, providing services,

shall be responsible for the proper use and custody of goods under its responsibility.

III. The Administrative Unit is responsible of performing the necessary actions to

provide the ideal mechanisms to assure the custody of goods assigned to public

servants.

ARTICLE 149.- (CODIFICATION) I. In order to control the

distribution of goods, the Unit or Responsible of Fixed Assets shall adopt systems of

internal identification through codes, keywords or symbols that:

a) Allow the identification, location and destiny of a good.

b) Difference one good from another, clearly.

c) Make the difference of a sole device and its comprising parts.

d) Make the system compatible with the current accounting system in the entity.

e) Facilitate the physical recounts.

II. The codification of movable fixed assets shall be based in national standards, but if

those are not available, in international standards.

ARTICLE 150.- (INCORPORATIONS TO THE REGISTRY OF

MOVABLE FIXED ASSETS) . The incorporation of movable goods to the fixed assets of

the entity comprises its physical or countable registration. It will be performed after

good or goods have been receipted by the Responsible of Fixed Assets, the

Responsible of Receipt or the Commission of Receipt.

ARTICLE 151.- (REGISTRY OF MOVABLE FIXED ASSETS). The Unit

or Responsible of Fixed Assets, shall create and maintain updated a registry of all and

every movable fixed asset property of the entity, under its responsibility or custody.

This registry shall minimally contain the following:

a) The physically-proven existence of the identified asset; coded and classified.

b) The documentation that support its property or possession.

69

c) The identification of the public servant and the Unit of the entity to which it is

assigned.

d) The value of the asset, depreciations and appreciation.

e) Repairs, maintenance, insurances and others.

f) Temporal disposition

g) Definitive disposition and discharge according to the Subsystem of Disposition

of Goods

ARTICLE 152.- (REGISTRY OF PROPERTY RIGHTS) I. Movable

Fixed Assets such as vehicles and other motorized means of motion must have its

property rights on behalf of the entity in the corresponding instances, this task is

responsibility of the Administrative Unit of each entity in coordination with the Unit of

Legal Affairs or the Legal Advisor.

II. The Unit or Responsible of Fixed Assets shall perform monitoring and control on the

legalization of documents of the vehicles of the entity informing this to the highest

executive of the Administrative Unit.

ARTICLE 153.- (MAINTENANCE OF MOVABLE FIXED ASSETS) I.

Maintenance is the specialized work of conservation done to the assets aiming them to

remain in conditions of use.

II. The Highest Executive of the Administrative Unit must establish policies and

procedures of maintenance to promote the effective performance of goods in service

avoiding its non-controlled damage, breakdowns or other non-desirable events risking

the conservation of the good.

ARTICLE 154.- (DEMAND OF MAINTENANCE SERVICES) Public

servants who were assigned a good shall be responsible of requesting, in well

advance, preventive maintenance services for them to be included in the POA of each

entity.

ARTICLE 155.- (SAFEGUARD OF MOVABLE FIXED ASSETS) I.

Safeguard is the protection of goods against losses, thefts and accidents.

II. The highest executive of the Administrative Unit will develop procedures or

instructions to safeguard the movable fixed assets property of the entity, delegating

the implementation of these safeguards to the Unit of Responsible of Fixed Assets.

III. The Unit or Responsible of Fixed Assets, according to the value and importance of

the goods of the entity, ought to:

70

a) Request the contracting of insurance to prevent risks of economic loss

b) Permanently strengthen controls of physical and industrial safety, for the use,

incoming or outgoing of goods, in or out of the entity caring that they are not

moved internally neither removed without the authorization and

corresponding control.

c) Formulate and apply regulations and instructions of physical and industrial

safety.

IV. Activities and tasks Safeguard must be incorporated by the Administrative Unit in

the POA of each entity.

ARTICLE 156.- (PROHIBITIONS ON MANAGING MOVABLE FIXED

ASSETS) The Unit or Responsible of Fixed Assets must not to:

a) Deliver or distribute goods without document of authorization issued by

competent authority.

b) Accept documents with modifications, without signature, incomplete or lacking

relevant data about the good.

c) Allow the use of goods to different purposes than established in the entity.

ARTICLE 157.- (PROHIBITIONS FOR PUBLIC SERVANTS ON THE

USE OF MOVABLE FIXED ASSETS). Public Servants must not to:

a) Use goods for personal or private benefit.

b) Allow its use for personal or private benefit.

c) Lend or transfer the good to other public servant.

d) Transfer the good by his/her own.

e) Damage or modify its physical or technical characteristics

f) Jeopardize the good

g) Enter particular goods without authorization of the Unit or Responsible of Fixed

Assets.

h) Withdraw goods from the entity without authorization of the Unit or

Responsible of Fixed Assets.

II. The non-compliance with these prohibitions will lead to responsibilities established

in Act No.1178 and its regulations.

71

CHAPTER IV

MANAGEMENT OF REAL ESTATE ASSETS

ARTICLE 158.- (CONCEPT) The management of real estate assets

is the administrative function that comprises activities and procedures inherent to the

use, conservation, safeguard, registry and control of buildings, facilities and plots of

land.

ARTICLE 159.- (OBJECTIVE) The management of real estate

assets aims to achieve rationality in the has as purpose achieve rationality in the use

and conservation of buildings, facilities and plots of land property of public entities,

preserving its integrity, security and property rights.

ARTICLE 160.- (SCOPE) Dispositions of this Chapter are applicable

to all real estate properties of public entities and the ones under its responsibility or

custody.

ARTICLE 161.- (ORGANIZATION FOR THE MANAGEMENT OF

REAL ESTATE ASSETS).- I. The Highest Executive of the Administrative Unit will

delegate the management of real estate to the Unit of Fixed Assets. In case of lacking

one, this function shall be assigned to a specific public servant.

II. The Unit or Responsible of Fixed Assets must comply and make comply with the

dispositions establish on this purpose.

III. The organization of activities about real estate assets will be based on the

characteristics of the operations of maintenance, safeguard and control of such goods.

IV. Public entities will develop procedures and/or instructions for the management of

real estate assets.

ARTICLE 162.- (RECEIPT OF REAL ESTATE) I. The receipt of

properties for its incorporation to the Fixed Assets for its incorporation to the Fixed

Assets will be performed by the Commission of Receipt that shall be comprised by

technically-trained public servants from the entity which shall be designated by MAE

or the public servant delegated by him/her.

II. Provisional receipt will be mandatorily carried out verifying and inventorying the

facilities and areas which are part of the property, besides all legal and technical

documentation shall be demanded.

72

III. Since the provisional receipt until the definitive receipt technical conditions of the

property shall be evaluated. The guarantees of eviction and defect shall be executed,

according to current law.

IV. The receipt of a real estate will be definitive when the Commission of Receipt issues

a minute expressing conformity and serves as Receipt Document to the party that

delivered the asset.

ARTICLE 163.- (INCORPORTATION TO THE REGISTRY OF REAL

ESTATE FIXED ASSETS) The incorporation of real estate infrastructures to the fixed

assets of the entity consist of the physical and countable registration along with the

legal and technical document of the relevant asset. This procedure will be carried out

after having receipted it definitely by the Receipt Commission.

ARTICLE 164.- (REGISTRY OF PROPERTY RIGHTS) I. All Properties

being part of the property stock of the entity shall be registered on behalf of it in the

Real Property Rights Bureau and in the Municipal Land Registry that corresponds; this

activity will be responsibility of the Administrative Unit of each entity in coordination

of the Legal Affairs Unit or the Legal Advisor.

II. Permanently, the Unit or the Responsible of Fixed Assets shall perform monitoring

and control over the process of title-clearing of the technical and legal documentation

of the real estate goods informing it to the Highest Executive of the Administrative

Unit.

ARTICLE 165.- (REGISTRY OF REAL ESTATE ASSETS) The Unit or

Responsible of Fixed Assets must create or maintain updated a registry of all and every

one of the properties it owns, is responsible for or has in custody.

The registry shall comprise, as it corresponds, the following:

a) Characteristics of the Property recording the area, buildings, facilities, the

record of modifications, enlargement or reductions it has had suffered.

b) Legal Documentation of Property Right

c) Technical Documents which certifies the actual situation of the land, design

plans of construction, sewage system plans, electrical plans and other relevant

considered important by the entity.

d) Value of the Property, depreciations and appreciations.

e) Repairs, maintenance, insurances and others.

f) Temporal Disposition

73

g) Definitive and Discharge Disposition according to the Subsystem of Dispositions

of Goods.

ARTICLE 166.- (ASSIGNATION OF FACILITIES AND WORK-AREAS)

I. It is function of the Administrative Unit the assignation of facilities and work-areas

or rooms to each unit of the entity for the sake of accomplishments of objectives of

each of those units.

II. The assignation will be according to the requirements and characteristics of work of

each unit and the availability of the entity avoiding underutilization of space,

overcrowding, risks of damage or risks of accidents.

III. The Head of Unit to whom the Room was assigned is the main responsible for the

proper use of the facilities and the preservations of its functionality.

ARTICLE 167.- (MAINTENANCE OF PROPERTIES) Maintenance is

the function of specialized technical conservation and preserve its value, for which:

a) The Administrative Unit of each entity will establish measures to avoid the

damage of properties and modification that might affect its functionality

performing periodical inspections about the condition and conservation of

properties.

b) The Highest Executive of the Administrative Unit, in coordination with heads of

units which were assigned buildings or facilities must include in its POA the

necessary activities and tasks to perform the maintenance destined to conserve

goods in functioning conditions.

ARTICLE 168.- (SAFEGUARD) I. Safeguard is the protection of real

estate goods against damages, deterioration and risks due to property rights loss, such

tasks must be undertaken by the Administrative Unit through the POA of the entity.

II. The Highest Executive of the Administrative Unit has the obligation of implement

safeguard measures and ought to:

a) Request the acquisition of insurances against fires, floods, natural disasters and

the ones considered pertinent by the entity.

b) Establish measures of security, personal and to the facilities.

c) Establish measures of industrial safety.

d) Keep the technical-legal documentation of the property of the facilities of the

entity title-cleared and well kept.

74

ARTICLE 169.- (INSPECTIONS AND PHYSICAL CONTROL OF

PROPERTIES) I. It is an obligation of the Unit of Fixed Assets to perform periodical

inspections over the state and conservation of facilities.

II. These inspections must allow control and precise the actual situation of properties

in a certain moment and anticipate decisions that must be taken in the short, middle

and long term.

ARTICLE 170.- (PROHIBITIONS ON THE MANAGEMENT OF THE

REAL ESTATE ASSETS). The Unit or Responsible of Fixed Assets must not to:

a) Deliver the property to other entity with a leasing document or other form of

dispositions established in the present NB-SABS.

b) Use the properties for particular or private purposes.

c) Allow the use of the property by third parties.

d) Maintain the property without using for 2 years or more.

TITLE III

SUBSYTEM OF DISPOSITION OF GOODS

CHAPTER I

GENERAL ASPECTS

ARTICLE 171.- (CONCEPT). The Subsystem of Dispositions of

Goods is the interrelated group of principles, legal, technical and administrative

elements dealing with the taking of decisions over the final use of goods of property of

the entity when such goods are not or will not be used by the public entity.

ARTICLE 172.- (OBJECTIVE) The Subsystem of Disposition of

Goods has the following purposes:

a) Total or Partial Investment Return

b) Avoid unnecessary storing, custody or safeguard expenses.

c) Avoid the accumulation of goods without use indefinitely.

d) Prevent environmental pollution.

ARTICLE 173.- (RESPONSIBILITY FOR DISPOSTION OF GOODS) I.

The MAE of the entity is responsible, within the framework of Law No.1178, its

regulations and the current NB-SABS, for the disposition of goods and its results.

75

II. The Highest Executive of then Administrative Unit and the involved or designated

public servants are responsible for the fulfillment of the regulations over disposition of

goods and its results; for the performance of obligations, duties and functions assigned

as well as for the reports to be elaborated and acts in which they would participate

according to Law No.1178 and its regulations.

III. The Unit of Legal Affairs of the Legal Advisor of the public entity or hired external

legal advisors that get involved in the process of disposition of goods will be

responsible for legal advice in the matter and its results in compliance with Law

No.1178 and its respective regulations.

IV Individual consultants or private companied hired to provide services of feasibility

analysis and/or valuations will be responsible as it is established in Law No.1178 and its

regulations.

ARTICLE 174.- (SCOPE) I. The current NB-SABS will be applied for

the disposition of assets of property of the public entity.

II. The disposition of assets of property of the public entity transferred then to the

General Treasury of the Nation and which are under responsibility of the SENAPE will

be ruled by the current NB-SABS as long as the legal disposition establishing the

transfer does not establish a specific destiny.

ARTICLE 175.- (EXCEPTIONS) The following elements are out the

scope of the current NB-SABS:

a) Goods in Public Domain.

b) Goods in Public Domain and Institutional Heritage regulated by Article 86 of

Municipalities Law No. 2028, of October 28, 1999.

c) Goods destined to provide a public service.

d) Military equipment of the Armed Forces.

e) Goods declared cultural historical heritage.

f) Goods purchased by the State to fulfill specific activities of financial and

strategic investment under the Financial System Development & Productive

Sector Support Fund (FONDESIF) which disposition will be subject to special

ruling passed by the Ruling Body according to institutional objectives.

ARTICLE 176.- (INCLUSION IN THE OPERATIONAL PROGRAM) I.

The disposition of assets of public entities as well as the activates and relevant tasks

related to its fulfillment, must be included in the POA and the budget of the entity.

76

II. Disposition of goods which is not included in the POA and is to be executed in the

year will require a specific scheduling.

ARTICLE 177.- (KINDS OF MODES OF DISPOSITIONS) The

disposition of goods is whether temporary or definitive, each within different modes:

The aforementioned kinds of dispositions are processes with their own characteristics,

according its own nature, they are the following:

a) Temporary Disposition. When the entity identifies goods which are not going

to be used immediately or directly; will be able to dispose the temporary use of

the good by a third party, whether private or public, without affecting its

property right. This arrangement is for limited time.

Within this kind of disposition, there are the following modes:

i. Leasing

ii. Usage Loan or Commodate

b) Definitive Disposition. When the entity establishes the existence of goods that

are not or will not be useful to its purposes, will dispose them affecting its right

of property.

Within this kind of disposition, there are the following modes:

i. Alienation

ii. Exchange

ARTICLE 178.- (DUTIES OF THE HIGHEST EXECUTIVE OF THE

ADMINISTRATIVE UNIT). The following are the duties of the Highest Executive of the

Administrative Unit:

a) Identify the goods to the disposed, verifying the information on them which is

in the registry of the entity.

b) Perform the feasibility, legal and administrative convenience taking into

consideration the actual legal and technical condition of the good or goods.

c) Determine the kind of mode of disposition to be used, for each of the goods.

d) Determine the base price of the goods to dispose according to Article 182 of

the current NB-SABS.

ARTICLE 179.- (IDENTIFICATION OF GOODS TO BE DISPOSED) I.

for the identification of goods to be disposed, the Highest Executive of the

77

Administrative Unit will annually perform an internal query to all heads of units aiming

to identify the goods which are not being in use or will not be in use.

The entities seeking its separation or reduction shall identify the goods to dispose.

For the disposition of goods product of donation from other entities or institutions, the

present NB-SABS shall be used unless the Agreement established the opposite.

The goods identified to dispose will be under responsibility of the Administrative Unit.

II. For the identification of goods to dispose, the following aspects will be considered:

a) Disused goods; allowing to identify those goods that work, but are not used by

the entity.

b) Goods which are not being used, because they are useless.

c) Spares and accessories corresponding to goods which were already discharged,

such goods will be evaluated if they will be useful for further purposes of the

entity.

III. Lots of goods will be arranged to avoid duplicity of efforts aiming to its further

disposition.

ARTICLE 180.- (ADMINISTRATIVE CONVENIENCE AND LEGAL

FEASIBILITY) I. The Convenience Analysis shall take into consideration:

a) The non utilization of a good

b) The actual condition of such good or goods.

c) The possibility of using the good in the short, mid or long term.

d) Life Span which identifies the goods that had completed its estimated service

life and its substitution is advisable.

II. The legal-feasibility analysis shall minimally content:

a) Identification and location of the good.

b) Actual condition

c) Antecedents of its acquisition

d) Documents certifying the property of the good or goods subject to registry.

e) Due Financial duties and fees

ARTICLE 181.- (DETERMINATION OF A DISPOSITION MODE).

Once made the analysis of administrative and legal feasibility, the Highest Executive of

78

the Administrative Unit will determine the disposition mode for goods, in accordance

of the modes established for that purpose.

ARTICLE 182.- (BASE PRICE OF THE GOODS TO DISPOSE) The

determination of the base price of goods to dispose depends on the characteristics of

the good, actual condition, location, current book value, current market price and

other; prior expert opinion, considering the following:

a) In the temporary disposition, for the leasing mode, the base price will be

defined updated to actual market prices.

b) In Definitive Disposition, the base price for alienation or exchange of goods will

be defined performing the updating valuation on market prices.

ARTICLE 183.- (REPORT OF RECOMMENDATION OF

DISPOSITION).- The Report of Recommendation of Disposition will be elaborated by

the Highest Executive of the Administrative Unit and shall minimally the following:

a) Relation and kind of goods.

b) Analysis of administrative convenience and legal feasibility.

c) Recommendation of the mode to be used.

d) Base price of the goods to be disposed.

e) Supporting documentation of the goods to be disposed.

ARTICLE 184.- (PARTICIPATION OF PUBLIC SERVANTS AND/OR

CONSULTANTS) I. For the analysis of administrative convenience, legal feasibility and

and/or determination of the base price of the goods to dispose, the Highest Executive

of the Administrative Unit will require the MAE to employ public servants or

consultants for this purpose.

II. If the entity does not count on trained personnel for the analysis of legal feasibility

and/or valuations, the entity is able to hire, according to the modes established in the

Subsystem of Contracting, the services of consultants or private enterprises.

ARTICLE 185.- (APPROVAL ON DISPOSITION OF GOODS) I. The

MAE, prior review and analysis of the Report of Recommendation for the Disposition

of Goods, will pass it also instructing its inclusion in the POA of the entity unless the

Disposition is to be in the Loan for Usage or Commodate that will be for exception.

II. In case of objection to the Report of Recommendation, the MAE is able to order the

contracting the services of a external consultant for the general review of the report

issuing a post-report with an opinion that lets him to confirm, modify or reject it.

79

The divergence may occur with one, many or the whole goods to be disposed.

III. If the MAE approves the disposition of goods under other modes to the

recommended by the Highest Executive of the Administrative Unit, he/she shall justify

his/her decision.

ARTICLE 186.- (RESOLUTION ON DISPOSITION OF GOODS) I.

Once the POA is approved, the MAE will issue the Resolution on the Disposition of

Goods, ordering continuance of the proceedings regulated by the current NB-SABS.

II. The Resolution on Disposition of goods shall content top details on the antecedents,

purposes and conditions related to the good or goods to be disposed. The report and

all related documentations shall be enclosed.

ARTICLE 187.- (REGISTRIES AND REPORTS) I. For goods disposed

in temporary mode, the Highest Executive of the Administrative Unit will order to the

attachment of the necessary documentation and information to the registry of Fixed

Assets allowing perform the control and monitoring on them.

In cases of Definitive Disposition, the registries of goods of the entity shall include the

information and documentation that supports the mode used.

II. In a term not higher to ten (10) working days after having concluded the process of

definitive disposition of goods, the entity must submit:

a) A copy of all the documentation to the accounting section of the entity, for the

corresponding discharge.

b) A note to the SENAPE, informing on the disposition of the properties, vehicles,

machinery or equipment.

c) Report to the Comptrollership of the State on the performed disposition of

goods.

ARTICLE 188.- (DISPOSITION OF GOODS OF ENTITIES IN

CLOSURE) When, through express Resolution, the closure of an entity is established, it

shall, prior to its closure, transfer its assets to the General Treasury of the Nation,

unless other deposition of the Closure Resolution. On that purpose, the entity shall

count on all the title-cleared legal documentation.

80

CHAPTER II

TEMPORAL DISPOSITION OF GOODS

SECTION I

LEASING

ARTICLE 189.- (CONCEPT) The leasing or renting is the mode by

which the public entity grants the use and enjoyment of goods to an individual or legal

entity in exchange of a economic retribution with the obligation of giving it back to the

public entity in the same condition.

ARTICLE 190.- (SCOPE) The leasing will be applicable only to

assets owned by the public entity. No properties shall be rented to use them as

housing.

ARTICLE 191.- (REASON). The assets will be rented when it is

foreseen that the good shall not be used by the entity in a certain period of time.

ARTICLE 192.- (CONDITIONS FOR LEASING) I. The leasing of a

good shall comply with the following:

a) The Tenant will assume the responsibility for the good use, safeguard,

maintenance, preservation and devolution of the good.

b) In case of evidenced damage to the rented good, the tenant shall repair it,

giving the asset back in the same condition it was given first.

c) The tenant is prohibited to grant the use of the good to a third party.

d) Prior to the publication of the of the call, the entity shall elaborate the

document of Leasing Conditions that shall minimally content:

i. Object

ii. Term

iii. Obligations of tenant

iv. Guarantees

v. Base price, established in compliance with Article 182 of the current NB-

SABS.

vi. Payment framework.

vii. Actual condition of the good

viii. Conditions of safeguard and conservation

e) In all cases, a contract of leasing shall be subscribed

81

II. Once the call is published, a copy of the leasing conditions shall be delivered to all

people or firms interested in the good or goods.

ARTICLE 193.- (CALL) I. The call shall minimally content the

following information:

a) The description of the good to be rented.

b) Address, date and time when goods can be visited.

c) Address, date and time where Condition of Leasing might be collected.

d) Amount and term of bid-proposal guarantee established by the entity.

e) Date, time and place of presentation of bids and opening of them.

II. For the leasing of whether movable goods or real estate assets, the entity will

publish a call in the SICOES and the Notice Board with anticipation of at least ten (10)

days before the deadline of presentation of bids.

Optionally, for major transparency, the entity is able to publish the call in a nation-

wide press, local newspaper or other kind of media allowing the diffusion of the call.

ARTICLE 194.- (PRESENTATION OF BIDS) The people or entities

interested in these processes shall submit their bids in sealed envelopes up to the date

and time established in the call, containing:

a) Individuals or legal entities

i. Identification of the bidder

ii. Photocopy of the ID card or the Valid Commerce Registry granted by

FUNDEMPRESA, as it corresponds.

iii. Bid-proposal Guarantee

iv. Identification of the good or goods desirable for renting.

v. Economic proposal

b) Public entities:

i. Identification of the entity

ii. Budget certification comprising budget category and existence of funds.

iii. Identification of the good or goods of interest

iv. Economic proposal

ARTICLE 195.- (OPENING AND AWARDING OF BIDS) I. The

highest Executive of the Administrative Unit and the Legal Advisor of the entity or the

one hired will perform the opening of bids in a public act in the date and time

established in the call, with the number of bids submitted.

82

II. Since it is and adhesion contract, the good will be delivered in leasing to the best

economic proposal as long as it is the same or higher to the base price established b

the entity.

If there will be coincidence between two or more bidders which offer is as much or

higher to the base price, it will lead to a Public Tender awarding then the highest

bidder. If one of these bidders is a public entity, its proposal will be accepted with

priority to other ones.

III. If the bids presented do not reach the base price, the process will be reviewed and

a new call will be released.

IV. In all cases a minute of session will be issued, this will be subscribed by the people

interested; a copy of this document will be given to them at the end of the event.

ARTICLE 196.- (SUBSCRIPTION OF THE CONTRACT AND

DELIVERY OF THE GOOD). I. The leasing will be completed with signature of the MAE

on the contract.

II. The leasing contract will follow all legal procedures, considering minimally the

following clauses:

a) Parties

b) Object and reason

c) Obligations of parties

d) Term

e) Guarantees

f) Base price established according Article 182 of the current NB-SABS

g) Payment conditions

h) Readjustment of rents

i) Actual state of the good

j) Conditions of maintenance, conservation and safeguard

k) Reasons for termination

l) Acquiescence of parties.

III. For the subscription of the contract, the awarded shall submit a legalized

photocopy of his/her ID card or the Commerce Registry granted by FUNDEMPRESA, as

it corresponds.

83

IV. The delivery of goods will be carried out through a minute certifying its physical

description, quantity, state and value; this document shall be signed by the Highest

Executive of the Administrative Unit of the entity and the tenant.

ARTICLE 197.- (OFFICIAL TAX NOTE OR RENT RECEIPT) Public

entities that rent assets ought to issue an official tax note or Rent Receipt according to

actual regulations on the matter.

SECTION II

LOAN FOR USE OR COMMODATE

ARTICLE 198.- (CONCEPT) The loan for use or commodate is the

mode by which a public entity grants the right of use of a good or a group of goods for

free, at the request of other public entity, with the obligation of giving it back in the

same conditions, once finished the term and deadlines established.

ARTICLE 199.- (SCOPE). The Loan for Use will be applicable only

to goods which are property of the entity.

ARTICLE 200.- (REASONS). The Loan for use will proceed

exceptionally when there is justified requirement from other public entity establishing

that the entity owner of the good:

Does not need to use the good for a certain time of period.

Avoid unnecessary storing and maintenance, custody and safeguard expenses.

ARTICLE 201.- (CONDITIONS). The Loan for use has the following

conditions:

a) It can be carried out only for limited time that cannot be more than three (3)

years.

b) The borrower public entity will assume the responsibility for the proper use,

safeguard, maintenance, preservation and devolution of the good.

c) In case of evidenced damage to the lent property, the beneficiary entity shall

repair it and shall give it back in the same conditions it was delivered.

d) The public entity that gets benefit from a good under the mode of Loan for Use

is prohibited to grant its use to third parties.

e) In all cases, Loan Contract shall be subscribed.

84

ARTICLE 202.- (CONTRACT) I. The entity shall elaborate a

contract under current legal procedures according to the characteristics of the good or

goods and shall basically include the following contract clauses:

a) Parties

b) Object and reason

c) Obligations of the parties

d) Expenses

e) Use, improvements, maintenance, damage and custody

f) Insurance or compensation for damages in case of theft, loss or other damages.

g) Deadline for devolution of the good

h) Reasons for termination of the contract

i) Acquiescence of parties.

II. The Loan for Use will be completed with signature of the contract by the Highest

Executive Authorities of both entities.

ARTICLE 203.- (DELIVERY OF THE GOOD) The Delivery will be

carried out through a minute that certifies the physical description of the good, the

quantity and its state. This document will be signed by the Highest Authorities of the

Administrative Units of both entities, the owner and the recipient.

CHAPTER III

DEFINITIVE DISPOSITION OF GOODS

SECTION I

ALIENATION

ARTICLE 204.- (CONCEPT). Alienation is the definitive transfer of

property rights of a good to an individual or legal entity.

ARTICLE 205.- (SCOPE) The goods of use of or assets property of

the entity are eligible to be alienated.

The alienation of real estate goods of public entities shall be subject to what is

established in the Constitution of the State.

ARTICLE 206.- (REASON) The alienation of a good will proceed

when this one is not necessary for the fulfillment of functions of the entity and its use

is not programmed for the future.

85

ARTICLE 207.- (KINDS OF ALIENTATION). It can be:

a) Granted by free gift, through:

i. Gratuitous transfer between public entities.

ii. Donation

b) For valuable consideration, through:

i. Transfer for valuable consideration between public entities.

ii. Auction

SECTION II

ALIENATION BY FREE GIFT

ARTICLE 208.- (CONCEPT). Alienation by free gift is the definitive

grand of property rights of a good, without receiving a payment in exchange of it.

The Alienation by free gift can be performed though gratuitous transfer between

public entities or donation.

ARTICLE 209.- (REASON). When such goods are not utilized by

the entity and its sale is not feasible. The impossibility of its sale will be established

through technical and legal report.

ARTICLE 210.- (GRATUITOUS TRANSFER BETWEEN PUBLIC

ENTITIES) The gratuitous transfer can be performed only between public entities. It

consists of the transfer of property rights of good, from an entity, to another. The

gratuitous transfer between public entities will be preferably done to municipalities

with high levels of poverty.

Costs of moving and transfer of such goods will be paid off by the benefited entity.

ARTICLE 211.- (DONATION). Donation is the grant, feeless of the

property rights of an asset that can be carried out by a public entity on the care of

institutions or non-profit private associations, legally working in the country as long as

they provide services of social welfare, health of education.

ARTICLE 212.- (CONTRACT) I. The gratuitous transfer between

entities or donation will be completed with the signature of the contract by the MAE

and the benefitted entity or institution. Prior the subscription of the contract, the

86

benefitted entity or institution shall perform the verification to the conditions and the

state of the good object of transfer or donation.

II. The Donation Contract will establish a clause by which the good shall be returned to

the donor if the benefitted entity or institution does not use it for the established

purposes, or when it is liquidated.

ARTICLE 213.- (DELIVERY OF THE GOOD) The Delivery will be

performed through a minute certifying the physical and quantity aspects of the goods.

This document shall be signed by the Highest Executive of the Administrative Unit of

the entity that transfers and the entity or institution benefitted.

SECTION III

ALIENATION FOR VALUABLE CONSIDERATION

ARTICLE 214.- (CONCEPT). The Alienation for Valuable

Consideration is the definitive transfer of the property rights of an asset of owned by

an entity receiving, in exchange, a payment. It can be done through Transfer for

Valuable Consideration between public entities or by Auction.

ARTICLE 215.- (REASON). When it is determined that the good is

not necessary in the entity and it is possible to fully or partially recover the investment

disbursed.

ARTICLE 216.- (TRANSFER FOR VALUABLE CONSIDERATION

BETWEEN PUBLIC ENTITIES). The transfer for valuable consideration will proceed when

the interested in the goods is another entity of the public sector.

ARTICLE 217.- (AUCTION) I. Auction is the sale of goods to thirds

parties in a public event, prior publication of the call, on the care of the highest bid.

II. The Auction is carried out in two ways:

a) Public Tender. Is the act where the people interested offers and bids

committing publicly to pay off a price for such good.

b) Competitive Proposals. It is the act by which the people interested present

sealed-envelope proposals to get the asset.

87

ARTICLE 218.- (CALL) I. Once the method of auction is decided,

the entity shall elaborate a call that shall content, minimally, the following

information:

a) Name of the entity

b) Method of auction

c) Description and base price of the goods to be sold

d) Address and time when goods can be seen or visited

e) Amount of the bid-proposal guarantee

f) Address an time for consultation

g) Deadline for presentation of proposals

II. The Public Entity will publish the call in the SICOES and the Notice Board with an

anticipation of at least ten (10) working days before the date of the auction day or for

the deadline of proposals presentation.

Optionally, for major transparency, the entity is able to publish the call in a nation-

wide media, local newspaper or other kind of media allowing best diffusion of the call.

ARTICLE 219.- (BASE PRICE OF THE GOOD TO AUCTION) I. The

base price of good to be auctioned is the one determined by the Highest Executive of

the Administrative Unit according to Article 182 of these NB-SABS and approved by the

MAE in the Resolution of Disposition of Goods.

II. When the first Auction of a good is declared void, the second call might include a

Ten Percent (10%) decreased base price

III. If there are not bidders for the second auction that, at least, bid for the decreased

base price, the MEA is able to:

a) Alienate the good or goods through gratuitous transfer to another public entity.

b) Proceed to the third auction with no base price and to the highest bidder as

long it is convenient for the entity keeping the following rank of preference

when there are bids in coincidence.

i. Entities and bodies of the public sector

ii. Non-profit associations that provide services of social, health and education

welfare.

iii. Associations or cooperatives of workers, legally constituted

iv. Individuals and private entities.

88

ARTICLE 220.- (DEPOSIT OF BID PROPOSAL GUARANTEE) I. The

people interested in participating in an auction will mandatorily make the deposit of

bid-proposal guarantee up to two (2) hours before the time and date established for

the Auction. This deposit will be fixed by the MAE and can fluctuate between five

percent (5%) and ten percent (10%) of the base price.

II. Public entities are exempted of paying this guarantee of bid proposal.

III. The Deposit of Bid-Proposal guarantee will be refunded to the non awarded bidders

within the next five (5) days after the awarding of the good.

IV For the awarded bidder, the Deposit of Bid-Proposal Guarantee will serve a pay in

advance.

ARTICLE 221.- (AWARDING OF A GOOD IN AUCTION) A bidder

will be awarded with the good when his/her proposal was the highest or the same as

the base price when there are no more people interested.

A public entity willing to pay the base price will have the preference in the auction.

ARTICLE 222.- (MINUTE OF AUCTION) I. Once the auction is

finished, the Notary Public will subscribe the relevant minute that can vouch for the

results, with the roll of participants and winner of auction, if possible.

II. In areas where there is not a Notary Public, the subprefect or Corregidor of the

municipality will play as one.

ARTICLE 223.- (CERTIFICATION OF AWARDING AND

SETTLEMENT) I. The entity will deliver the granted or winner a certificate of awarding

rights ordering the total settlement of good with the following three (3) months since

the date of delivery of such document.

II. If the granted fails on paying the remaining fund within the established period, he or

she shall lose the awarding rights with the transfer of the amount of bid-proposal

guarantee o the care of the entity.

III. The entity might invite the second highest bidder which at least has bid the base

price, to ratify his/her proposal to be awarded.

89

IV. If there is a negative from the second highest bidder, the auction shall be declared

void, and to then proceed on what it is established in Paragraph II and III of Article 219

of these NB-SABS.

ARTICLE 224.- (CONTRACT OF TRANSFERENCE) I. Once the total

price of the good is settled, the contract of transference will be formalized with the

signature of the MAE and the granted.

II. The whole supporting documentation of the good shall be delivered to the granted

after the signature aforementioned.

III. The entity shall only provide eviction guarantees.

ARTICLE 225.- (DELIVERY OF THE GOOD). The Delivery of the

good will be carried out through a minute that certifies the physical description of the

goods, quantity and value. This document shall be signed by the Highest Executive of

the Administrative Unit of the entity and the new owner as well.

ARTICLE 226.- (DECLARATION OF AUCTION VOID). An auction

shall be declared void when:

a) There is not, at least, one person /entity interested in the process of auction.

b) Offers or proposals don’t reach at least, the base price, unless in the auction

without base price.

ARTICLE 227.- (NEW AUCTION) I. Once the first auction was

declared void, the MAE will establish new date and time for the second or third

auction, if it’s the case, in a deadline of fifteen (15) calendar days respectively.

II. The new calls shall be published in the SICOES, the Notice Board and optionally in a

nation-wide media with five (5) days before the date established for the auction.

SECTION IV

EXCHANGE

ARTICLE 228.- (CONCEPT). Exchange is a mode of disposition by

which two public entities transfer reciprocally the property rights of goods of mutual

interest.

90

ARTICLE 229.- (SCOPE). The exchange can only be performed

between assets owned by properties.

ARTICLE 230.- (CONDITIONS). In the Exchange, the

proportionality of value of the goods shall be sought. If this is not possible, the cash

settlement of the value-difference might be accepted.

ARTICLE 231.- (PROCEDURE) I. The entity will publish the call in

the SICOES and the Notice Board. Additionally, the entity is able to publicize the call

through a nation-wide press or publicly invite entities to present declaration of interest

describing the goods to be exchanged that supplies and request and indicating the

time for consultations.

II. Once received the declarations of interest, the MAE and the highest executive of the

Administrative Unit will assess the proposals selecting then, the most convenient.

ARTICLE 232.- (CONTRACT) I. Entities that exchange goods shall

subscribe a contract where the following shall be basically stipulated:

a) Parties

b) Object and reason

c) Obligations of the parties

d) Specifications of the goods to exchange

e) Method and conditions of delivery

f) Expenses

g) Acquiescence of parties

II. The contract shall be signed by the Highest Executive Authorities of the public

entities exchanging the goods.

ARTICLE 233.- (DELIVERY OF GOODS) The exchanged goods will

be delivered by means of a minute the certifies the physical description, state and

value which shall be signed by the Highest Executives of the Administrative Units of

each entity.

CHAPTER IV

DISPOSAL OF GOODS

ARTICLE 234.- (CONCEPT). Disposal of goods consist of the

physical exclusion and accounting removal of good from the registry of an entity, it is

not a mode of disposition.

91

ARTICLE 235.- (REASONS). Disposal/ removal of goods shall

proceed according to the following reasons:

a) Definitive disposition of goods

b) Theft, robbery or fortuitous loss

c) Wastage

d) Expiration, decomposition, alteration or damage

e) Non-utilization

f) Obsolescence

g) Total or partial dismantling of facilities, except the land that shall not be

disposed.

h) Accidents

ARTICLE 236.- (PROCEDURE). I. Entities shall develop procedures

and instructions for the disposal of goods.

II. The disposal for definitive disposition of goods will proceed once finished the

process of disposition according to sections a) of paragraph II of Article 187 of the

current NB-SABS.

III. Disposal of goods by reasons described in sections b), c), g) and h) of Article 235 of

the current NB-SABS will proceed based on the reports of responsible of the good and

relevant reports of verification elaborated mentioning the good, quantity, value and

other information considered important.

IV. Goods disposed or removed by reasons describes in sections e) and f) of Article 235

of these NB-SABS shall consider safe some spares or accessories which would remain

be useful to the entity or that means economic profit.

V When it comes to disposal of goods of special characteristics such as food,

medicaments and/or laboratory agents by reasons described in sections d) of Article

235 of these NB-SABS, the Highest Executive the Administrative Unit shall order and

very the its destruction and/or incineration.

ADDITIONAL PROVISIONS

FIRST ADDITIONAL PROVISION.- Specific ruling of these NB-SABS will be established by

the Ministry of Economy and Public Finance as Ruling Body and will have mandatory

nature.

92

SECOND ADDITIONAL PROVISION. The list of Municipalities with High Levels of

Poverty will be posted in the SICOES in a maximum term of thirty (30) days after the

publication of these NB-SABS.

THIRD ADDITIONAL PROVISION. The Ruling Body shall perform the harmonization of

Specific Regulations elaborate only within the framework of these NB-SABS.

FOURTH ADDITIONAL PROVISION. The Ruling Body, in coordination with the relevant

instance, will establish the use of unique templates and guarantee polices forms for

state contracting processes.

FIFTH ADDITIONAL PROVISION. Public Entities must not carry out contracting

processes for the acquisition of used real estate properties, excepting what enacted in

these NB-SABS.

SIXTH ADDITIONAL PROVISION. Prefectures of Department, within the framework of

modernization of the state the policy of austerity shall generate the necessary means

to simplify, adjust and standardize requisites, deadlines, procedures and fees for the

notarization of administrative contracts in the Government Public Notaries.

SEVENTH ADDITIONAL PROVISION. The Ministry of Productive Development and

Plural Economy, in the maximum term of one hundred twenty (120) calendar days

since the date of publication of these NB-SABS will implement the necessary

mechanisms of registry and certification of micro and small-sized enterprises,

Associations of Urban & Rural Small Producers, Economic Peasant Organization

(OECAS) and other alike, allowing their participation in contracting processes

established in these NB-SABS.

EIGHTH ADDITIONAL PROVISION. The Ministry of Productive Development and Plural

Economy in the maximum term of one hundred twenty (120) calendar days since the

date of publication of these NB-SABS will implement the necessary mechanisms for the

Certification of Gross Cost of Production and Certification of Goods Produced in the

Country, regardless the origin of inputs. This shall not mean additional funds from the

General Treasury of the State.

NINTH ADDITIONAL PROVISION. The imperatives for the ethical behaviour that is

involved in a process of contracting goods or services for the State, constitutes a

transversal Ethics Code for its application in all public entities according to the text

included as Annex I of these NB-SABS.

93

TENTH ADDITIONAL PROVISION. Entities which are related to the Integrated System of

Administrative Management and Modernization SIGMA shall register the voucher of

prevention, commitment and accrued in the mode of Budget Execution of Expenses

(EGA).

TRANSITORY PROVISIONS

FIRST TRANSITORY PROVISION. Public Contracting calls and administrative challenge

recourses that were began before the validity of these NB-SABS shall conclude

according to the rules valid at the time of its start.

All call published since the validity of these NB-SABS, including second or further calls

of process declared void and new calls for contracts processes canceled will be carried

out within the framework of these NB-SABS.

SECOND TRANSITORY PROVISION. Meanwhile is RE-SABS of each institution is

elaborated, harmonized and approved, public entities shall apply the current NB-SABS

as framework to undertake contracting processes.

THIRD TRANSITORY PROVISION. Meanwhile the Ruling body elaborates the DBC

templates for Turnkey Mode, Bidder Financing and Administrative Concessions, public

entities shall elaborate their own DBC within the framework of these NB-SABS, these

documents shall not require authorization of the Ruling Body.

FOURTH TRANSITORY PROVISION. The EPNE shall elaborate its specific ruling on the

subsystems of Management and Disposition of Goods which shall be harmonized by

the Ruling Body.

FINAL PROVISIONS

FIRST FINAL PROVISION. May the Ministry of Legal Defense of the State authorized to

the hiring of lawyers or national/international firms in accordance with criteria that

benefit the sovereignty and state interests in compliance with Supreme Decree

No.0075 of April 15, 2009.

SECOND FINAL DISPOSITION. May Yacimientos Petrolíferos Fiscales Bolivianos (YPFB)

be authorized to hire external lawyers, external advisors, law firms, National or

international experts, national or international arbiters and any other kind of

94

professional people within the framework of Supreme Decree No.0070 of April 8,

2009.

For those services developing activities in the hydrocarbon chain established in the

Articles 14 and 31 of Hydrocarbons Act No.3058 of May 17, 2005, contracting

processes will be carried out within the framework of Supreme Decree No.29506 of

April 9, 2008 and its regulations.

The contracting of goods and services for the development of its administrative

activities and recurrent services will be undertaken according to these NB-SABS.

THIRD FINAL PROVISION. These NB-SABS will be valid since July 15, 2009 along with

the regulations that will be regulated and approved by the Ruling Body, through

Ministerial Resolution except Yacimientos Petrolíferos Fiscales Bolivianos YPFB that will

apply these provisions since its publication.

REVOCATORY OR REPEAL PROVISIONS

REVOCATORY PROVISIONS. Since the validity of these NB-SABS, the following

provisions are, hence, revoked:

- Supreme Decree No.29190 of July 11, 2007

- Supreme Decree No.29576 of May 21, 2008

- Supreme Decree No.29603 of June 11,2008

- Supreme Decree No.29661 of July 30, 2008

- Supreme Decree No.29834 of December 3, 2008

- Supreme Decree No.0101 of April, 2009

And other provisions on opposite to the current Supreme Decree.

REPEALED PROVISIONS. All provisions opposite to the current Supreme Decree are,

this, repealed.

The Minister of State, in the Bureau of Economy and Public and Finance, is in charge of

implement and enforce the current Supreme Decree.

Signed at the Palace of Government, in La Paz.

95

ANNEX 1

IMPERATIVES FOR THE ETHICAL CONDUCT OF PUBLIC SERVANTS INVOLVED IN

PROCESSES OF STATE CONTRACTING OF GOODS AND SERVICES

CHAPTER I

GENERAL ASPECTS

ARTICLE 1.- (DEFINITION) The current set of imperatives

establish a group of definitions that constitute a commitment on the professional

conduct that public servants ought to develop in the course of their activities related

to processes of contracting goods and services for the State.

ARTICLE 2.- (OBJECTIVE) The Imperatives for the Ethical Conduct

of the Public Servant on the Contracting of Goods and Services for the State (just

Imperatives from now on in this text) has as purpose to promote and regulate the

ethical conduct of public servants.

ARTICLE 3.- (SCOPE AND PUBLIC SERVANTS CONSIDERED FOR

ITS IMPLEMENTATION) The current Imperatives are mandatorily for all public servants

that, directly or indirectly get involved in the processes of contracting of the public

entities comprised in Articles 3 and 4 of Act No.1178 of July 20, 1990 of Government

Administration and Control, and all public entity with public-right legal status.

ARTICLE 4.- (CONSIDERATION OF OTHER INSTANCES) Expressly,

may it be established that all misconducts related to these Imperatives will be treated

in the corresponding administrative and legal instances, therefore, the relevant

complaints will be derived by the instances in charge of receipt to the responsible of

interpretation and analysis in each public entity and who will establish the treatment

each case will have, as it corresponds.

ARTICLE 5.- (DEFINITIONS) For the purposes of the current

Imperatives, may the following definitions be established:

a) Ethical Value: Human quality accepted and appreciated as something objective,

positive, that is always to be respected, Ethic Values are permanent, their

validity do not depend on changing circumstances.

b) Ethical Principle: A way to be and act according to requirements of established

ethical values.

96

c) Ethical Standard: Rule of conduct regarding the behavior necessary or

convenient to assure the respect for certain values and principles.

d) Moral Sanctions: The disapproval by peers, superiors, inferiors or general

public regarding specific conducts, action that will affect negatively the

personal reputation.

e) Direct work: It comprises the duties of all those public servants who are direct

and permanently in charge of and have it as their job to meet processes of

contracting goods and services for the State.

f) Indirect Work: Duties of all those public servants that temporarily assume tasks

and/or responsibilities related to the contracting of goods and services for the

State, established in law, standards and procedures.

g) Reserve: Willing of a person to keep his/her name or any other signal that can

identify him/her, in secret.

h) Promotion of institutional ethics: The Directorate General of Public

Management Regulations of the Ministry of Economy and Public Finance

constitutes the responsible instance of inclusion of Imperatives,

implementation of instruments, watch its application and continuous updating.

CHAPTER II

DECLARATION OF VALUES

ARTICLE 6.- (FUNDAMENTAL DECLARATION). The Public

Servants responsible of contracting goods and services for the State must declare the

current Imperatives as a proposal of a way of living, exercise and conducts its career

and duties with a service spirit that implicitly goes along with his/her duties exercise,

guiding his/her conduct in accordance to the values and principles comprised in it.

ARTICLE 7.- (VALUES). The Fundamental values of the

Imperatives are the following:

a) Responsibility. It is the willing to act according to the regulations and duties

related to the job, to perform those even considered inadequate and respond

directly for the nature and consequences of his/her own acts and decisions.

b) Transparency. It is the willing to act clearly, without hiding what is should be

hidden.

c) Integrity. It is the constant willing not to break, by any reason, ethical values

and principles.

d) Justice. It is the constant willing to give each one what he or she is deserves to

have.

97

e) Truth. It is the conformity of what each one thinks or communicates, according

to the reality of facts.

f) Respect people. It is the attitude of acknowledgment of dignity of the other

and acceptance of their rights.

CHAPTER III

DECLARATION OF PRINCIPLES

ARTICLE 8.- (GENERAL DECLARATION). Each of the

aforementioned values is supported by principles. Principles are parameters upon

which public servants will guide their acts and decisions.

ARTICLE 9.- (PRINCIPLES OF THE VALUE RESPONSIBILITY). In

order to contribute the compliance of the value Responsibility, the principles

promoted are mentioned above:

All Public Servants:

a) Will care of the strict compliance of laws and rules in force within their entire

duties base in a proper criterion.

b) When they have to take decisions or actions which are not clearly regulated,

they shall conduct seeking to promote that it is correct for all parties and that

naturally and logically promoted the common welfare.

c) In situations of doubt related to the actions to take, they shall consult to whom

corresponds before taking any decision.

d) Report the superior and the society of the decisions they make, as they are

demanded for, according current regulations.

e) Will account for the results of the actions they carry out and that involve the

performance of their dependents before their superior and the society.

f) Will acknowledge its obligation to account for the actions their dependents as

long as such actions have been executed by their orders or having been aware

of.

g) Will report their superior, or when they are mandatorily requested to, on the

procedures applied in the contracting of goods and services.

h) Will account for the information produced and spread as result of their duties.

i) Will inform to any people interested who wants to have information of his/her

interest regarding the characteristics or consequences of their decisions and

actions.

j) Will always seek the maximum benefit on the care of the common welfare and

the destiny for the goods and services acquired by the State.

98

ARTICLE 10.- (PRINCIPLES OF THE VALUE TRANSPARENCY) To

more effectively contribute to comply with this value, Transparency, the promoted

principles are the following:

All Public Servants:

a) Shall use the available information only with a specific purpose for which it was

gotten or retrieved. Under no circumstance they are able to give the

documentation, reports, letters or other oral or written information a different

destiny than the established by the entity.

b) Are committed to watch for the proper use of the information according the

purposes and objectives lined for his/her duty and the dispositions and

regulations of contracting of goods and services.

c) Will assume the commitment to guarantee that all information related with

processes of contracting goods and services, be properly informed to

interested parties when corresponding.

d) Will accept the responsibility for all the information that that is to be publicly

known will be spread promptly for the corresponding channels. In no case they

shall hide that should be known by the parties; which have legitimate interest

on it, as their right.

e) Regarding the processes of decision taking that involve them as public servants,

such processes shall be carried out with the acknowledgment of all parties,

whether referring the process as well as its completion.

f) They shall transmit all the relevant information to all the instances involved

when corresponding regarding the decisions related exclusively to the entity

they work for.

g) When exercising their duties they are to express direct opinion affection two or

more parties, they will guarantee that, whether the process and the

consequences of it, be known of all parties and instances involved.

h) They will assure that all matters affecting the interest of third parties and in

which they have power of decision, as responsible of dealing with such matters,

that those ones are promptly communicated to the beneficiaries or affected.

ARTICLE 11.- (PRINCIPLES OF THE VALUE INTEGRITY). To

contribute the compliance of the value Integrity, the principles promoted are listed

below:

All public servants:

a) They shall assume the commitment to hold a conduct, whether in public and

private life that guarantees, all the time, their independence of criteria.

99

b) They shall acknowledge their obligation of avoid situations or relationships,

whether personal or social that may imply a risk of collaboration in immoral

acts or affect the independence they require for their work.

c) They shall request excuse in relevant decisions if there are situation of interest

conflict that may affect their judgment or bring to doubts regarding their

procedure.

d) They shall keep a faultless conduct in their decisions when contracting goods

and services for the State, with entire willing to work with efficiency within the

ruling in force.

e) They shall watch, all the time that their activities reflect a consequent conduct

avoiding bidder or vendors, contractors or other public servants see it as a way

of self-profiting.

f) They shall reject, gently by determinedly, any attempt to influence over their

decisions, regardless the sources of such interests representing those

intentions. They shall report this event to their superior.

g) They shall acknowledge their obligation to cooperate, through a denounce by

the respective channels, when learning situations opposite to this text, whether

between public servants or by citizens.

h) They shall accept, as public servants, the necessity to safeguard their social life

in order to reduce the risk of bribery and avoid rumors that may damage their

reputation.

i) As public servants, will promote, all the time, among their peers and citizens,

the application of the highest standards of ethical conduct in all processes they

participate and get involved.

j) They shall acknowledge the necessity of being consequent whether in the

professional and private life aiming to hold, all the time, an ethical conduct that

ennobles the considerations as public servants.

ARTICLE 12.- (PRINCIPLES OF THE VALUE JUSTICE). To contribute

to the compliance of the value justice, the following are the principles promoted.

All public servants:

a) Shall watch for the impartial application of regulations on contracting goods

and services, avoiding to directly or indirectly benefiting third parties though

their interpretation.

b) Shall watch for the legitimate interests of the State and all parties interested in

each contracting process.

c) Shall evaluate objectively all the relevant information, the circumstances and

situations of all parties.

d) Shall watch with equity for the interest of all parties involved.

100

e) Shall perform every act with impartiality avoiding to benefit one of the parties

and preserving the interest of the State.

f) Shall watch to give the same treatment to all participants in contracting

processes. In the same manner, will seek, all the time, to give an equitable

treatment to all the instances; that, in some way or another, suggest them to

take decisions.

ARTICLE 13.- (PRINCIPLES OF THE VALUE TRUTH) In order to

contribute the compliance of the value Truth, the principles promoted are:

All public servants:

a) Shall acknowledge that it is necessary to make all efforts possible to

communicate or transmit trustworthy information, in a prompt fashion, to all

people having the right to know it.

b) Shall avoid that the language or other forms of communication alter the

message to be transmitted. They shall be clear about the information the

message transmit.

c) They are responsible to verify that their interlocutor understand what they

want to say in their real meaning, avoiding to hide in the literal meaning of

words.

d) In the elaboration of the requests, regulations, calls, reports or other

documents, they shall established clear clauses, expressing what is really

intended to be expressed in a way that all interested people understand it.

e) They have the responsibility of protecting all confidential information and avoid

that their knowledge and data on their hands may benefit directly or indirectly

third parties.

f) They are responsible for the information acquired in the time of their duties,

watching for such information reach unauthorized people.

ARTICLE 14.- (PRINCIPLE OF THE VALUE RESPECT FOR PEOPLE).

To contribute to the value Respect for People, the promoted principles are listed

below:

All public servants:

a) Have the obligation to give an equitable treatment to all people they get

involved in the process of complying with their functions, without

discriminating because of race, sex, religion, social background or political

tendency.

101

b) Shall watch for the treatment given by them or their dependents to people to

be respectful and promotes equity of condition.

c) Shall consider all people with the same value avoiding that their relationships

or friendship affect in some way the treatment they ought to give to all citizens

or public servants.

d) Aware of the right that every person has to preserve its reputation, avoid

participating in rumors that may damage the images of people.

e) Shall respect the right to freedom of opinion that all people in public entities

have.

f) Shall accept, listen to and take into consideration all those opinions considered

opposite of what considered correct.

g) Shall commit to avoid whatever form of harassment in the exercise of their

functions.

h) Whenever they see a discriminatory treatment by any reason, shall intervene in

a direct form or through a denounce aiming to avoid damage or its

prolongation.

CHAPTER IV

RESPONSIBILITY OF COMPLIANCE OF IMPERATIVES

ARTICLE 15.- (IMPLEMENTATION, DIFFUSION AND TRAINING).

The Directorate General of Public Management Regulations DGNGP is responsible for

the introduction, promotion, diffusion and training on the Imperatives of Institutional

Ethics.

ARTICLE 16.- (PROMOTION OF INSTITUTIONAL ETHICS). For the

activities of introduction, diffusion, training and consolidation of responsibilities

related to the application and promotion of institutional ethics in a transversal way

and to give continuity to the process, the DGNGP of the Ministry of Economy and

Public Finance shall promote the Institutional Ethics and is the responsible for the

introduction, application and continuous update of the Imperatives.

ARTICLE 17.- (FUNCTIONS FOR THE PROMOTION OF

INSTITUTIONAL ETHICS). The following are established as the functions:

a) Coordination with training, diffusion and maintenance of continuous formation.

b) Coordination of communication and maintenance of processes.

c) Continuous update of contents, regulations and annexes.

d) Answer consultations from public servants.

e) Annual Awarding.

102

f) Promotion of moral conduct.

g) Receipt and derivation of denounces to corresponding instances.

h) Other functions required to assure the successful application of the current

Imperatives.