2021 LS&HC Horizons - Flipbook - Page 73
Life Sciences and Health Care Horizons 2021
73
Latin America
Public procurement of health inputs
Procurement reform has been a top priority
from the outset of the current Mexican
administration. This has become a more
pressing issue in the context of the
COVID-19 pandemic.
After a fast-track procedure, an amendment to
the Federal Law of Acquisitions, Leasing and
Public Sector Services (Procurement Law) was
published on 12 August 2020. This amendment
is aimed to except from the application
of said statute the procurement of health
inputs (e.g., medicines) and services carried
out by public entities through international
intergovernmental bodies under collaboration
schemes that have been agreed upon.
The result is a significant game changer for
the suppliers of the pharmaceutical industry.
The traditional legal framework for public
procurement is no longer applicable, but
instead, the rules of the specific international
bodies apply. Although international entities
have more sophisticated rules and less red
tape in their internal procedures, such rules
are likely to impact the way complaints can be
filed. In addition, international entities may not
have independent supervising bodies to solve
bidders’ claims.
Aimed at compliance with the requirement
of having a collaboration scheme before
conducting a procurement through an
international entity, the Institute of Health for
Welfare (Instituto de Salud para el Bienestar)
(INSABI) entered into an agreement with the
United Nations Office for Project Services
(UNOPS). As a result, the procurement
of medicines is now carried out through
the UNOPS under a consolidated scheme.
Consolidation activities started several years
ago, and they involve grouping together the
needs of several public health entities.
The new procurement system has posed
significant challenges to the industry, from
approaching the authorities to the formalities
and requirements that are now applicable to
participate in a tender or for obtaining a direct
award. These processes have resulted in the
need for advice that is both novel and speedy.
Ernesto Algaba Reyes
Partner, Mexico City
ernesto.algaba@hoganlovells.com
Ana Rumualdo
Associate, Mexico City
ana.rumualdo@hoganlovells.com
