Argentina - Selling to the GovernmentArgentina - Selling to Government
Regulations apply to all federal public agencies (including autonomous or decentralized institutions) but exclude federal banks. Decree 690/2016 establishes the amounts determining the selection process. Government purchases of less than AR$ 1,300,000 undergo direct purchase. Purchases between AR$ 1,300,000 and AR$ 6,000,000 undergo private bidding, and purchases over that amount must also have an open public tender. Advertising and publishing procedure terms apply regarding important contracts in main publications and internet sites, including the website of the National Contracting Office (Oficina Nacional de Contrataciones – ONC). Terms of public tenders must also be published in the Official Bulletin and the publications of supplier associations.
Most provincial governments have their own websites with procurement information. A prominent NGO looking out for the interests of companies participating in national, provincial, and municipal procurements is the Unión Argentina de Proveedores del Estado (UAPE). UAPE has a database of government procurements.
Procurement from Local Companies (“Buy Local” Regime)
In September 2018, Presidential Decree 800/2018 and Secretary of Industry’s Resolution 91/2018 regulated Law 27437 implementing a new Buy Local Regime named “Buy Argentine”. This regime grants preference to domestic goods, provides for higher participation of local SMEs in infrastructure projects, and favors productive investment.
The new regime highlights are:
Goods: Preference is given to domestic goods. The origin of the goods is determined by the nature/composition of the goods themselves and not based on the nationality or ownership of the manufacturing company. Goods containing imported parts shall be considered domestically produced when the value of the imported parts is no more than 40 % of the sales value of the finished good, or when the imported product undergoes substantial in-country transformation or processing such that the MERCOSUR tariff classification code of the transformed item differs from that of the imported part.
Services: Preference will be given to bids submitted by a domestic company or consultant.
Public Works: Preference will be given to domestic materials and to domestic services. (i.e., project design, management, and construction services) as defined above.
Preferential Treatment
Preferential margins for domestic goods increased from 7% to 15% in the case of micro and small and medium-sized firms, and from 5% to 8% for large companies.
Foreign Goods
When a bidder offers to supply foreign goods not available in country, he or she must guarantee "nationalization" of the goods by depositing a bond on behalf of the contracting party. In addition, the Secretariat of Industry will issue a certificate verifying the value of the goods to be purchased abroad at the request of the contracting party within 96 hours of receiving said request. To obtain the Certificate of Verification (Certificado De Verificación-CDV), the contracting party must submit a sworn statement declaring (1) that it has complied with the “Compre Argentino” regime; (2) the end price or value of the foreign goods; and (3) that said price or value is lower than that of domestic goods offered or that no domestic goods were offered.
Disputes
The Undersecretariat of Buy Argentine and Supplier Development (part of the Ministry of Production and Labor) is the authority in charge of overseeing the regime and applying relevant sanctions. Argentina is not a signatory of the WTO Agreement on Government Procurement, but it is an observer of the WTO Committee on Government Procurement.
Advocacy
U.S. companies bidding on Government tenders may also qualify for U.S. Government advocacy. A unit of the U.S. Commerce Department’s International Trade Administration, the Advocacy Center coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters bidding on public sector contracts with international governments and government agencies. The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agencies expressing support for the U.S. bidders directly to the foreign government. Click here for more information.
Multilateral Development Banks and Financing Government Sales
Price, payment terms, and financing can be a significant factor in winning a government contract. Many governments finance public works projects through borrowing from the Multilateral Development Banks (MDB). Please refer to the Project Financing Section in Trade and Project Financing for more information. A helpful guide for working with the MDBs is the Guide to Doing Business with the Multilateral Development Banks.
The U.S. Department of Commerce’s (USDOC) International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five different Multilateral Development Banks (MDBs): the African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; the Inter-American Development Bank; and the World Bank.
For additional information please contact U.S. Commercial Service Buenos Aires at Office.Buenosaires@trade.gov
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Most provincial governments have their own websites with procurement information. A prominent NGO looking out for the interests of companies participating in national, provincial, and municipal procurements is the Unión Argentina de Proveedores del Estado (UAPE). UAPE has a database of government procurements.
Procurement from Local Companies (“Buy Local” Regime)
In September 2018, Presidential Decree 800/2018 and Secretary of Industry’s Resolution 91/2018 regulated Law 27437 implementing a new Buy Local Regime named “Buy Argentine”. This regime grants preference to domestic goods, provides for higher participation of local SMEs in infrastructure projects, and favors productive investment.
The new regime highlights are:
- Infrastructure projects should include local SMEs (small and medium sized firms) in up to 20% of the tender value or compensate with local investment, research and development, or transfer of technology.
- Priority for micro and small-sized enterprises (MiPyMEs)on small purchases of up to AR$1.3 million for goods or up to AR$100 million in public housing and building projects.
- First refusal mechanism for SMEs: In small public tender purchases of less than AR$20 million, this mechanism allows for SMEs to improve their offer if they have not exceeded the best quote in more than 20%.
- National Program to Develop Suppliers - (PRODEPRO): The program aims to develop local suppliers in strategic sectors and to connect them with a global value chain to improve their competitiveness and incorporate new technologies
Goods: Preference is given to domestic goods. The origin of the goods is determined by the nature/composition of the goods themselves and not based on the nationality or ownership of the manufacturing company. Goods containing imported parts shall be considered domestically produced when the value of the imported parts is no more than 40 % of the sales value of the finished good, or when the imported product undergoes substantial in-country transformation or processing such that the MERCOSUR tariff classification code of the transformed item differs from that of the imported part.
Services: Preference will be given to bids submitted by a domestic company or consultant.
Public Works: Preference will be given to domestic materials and to domestic services. (i.e., project design, management, and construction services) as defined above.
Preferential Treatment
Preferential margins for domestic goods increased from 7% to 15% in the case of micro and small and medium-sized firms, and from 5% to 8% for large companies.
Foreign Goods
When a bidder offers to supply foreign goods not available in country, he or she must guarantee "nationalization" of the goods by depositing a bond on behalf of the contracting party. In addition, the Secretariat of Industry will issue a certificate verifying the value of the goods to be purchased abroad at the request of the contracting party within 96 hours of receiving said request. To obtain the Certificate of Verification (Certificado De Verificación-CDV), the contracting party must submit a sworn statement declaring (1) that it has complied with the “Compre Argentino” regime; (2) the end price or value of the foreign goods; and (3) that said price or value is lower than that of domestic goods offered or that no domestic goods were offered.
Disputes
The Undersecretariat of Buy Argentine and Supplier Development (part of the Ministry of Production and Labor) is the authority in charge of overseeing the regime and applying relevant sanctions. Argentina is not a signatory of the WTO Agreement on Government Procurement, but it is an observer of the WTO Committee on Government Procurement.
Advocacy
U.S. companies bidding on Government tenders may also qualify for U.S. Government advocacy. A unit of the U.S. Commerce Department’s International Trade Administration, the Advocacy Center coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters bidding on public sector contracts with international governments and government agencies. The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agencies expressing support for the U.S. bidders directly to the foreign government. Click here for more information.
Multilateral Development Banks and Financing Government Sales
Price, payment terms, and financing can be a significant factor in winning a government contract. Many governments finance public works projects through borrowing from the Multilateral Development Banks (MDB). Please refer to the Project Financing Section in Trade and Project Financing for more information. A helpful guide for working with the MDBs is the Guide to Doing Business with the Multilateral Development Banks.
The U.S. Department of Commerce’s (USDOC) International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five different Multilateral Development Banks (MDBs): the African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; the Inter-American Development Bank; and the World Bank.
For additional information please contact U.S. Commercial Service Buenos Aires at Office.Buenosaires@trade.gov
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.