Administrative Contracting: Principles, Methods, and Contract Types

Administrative Contracting: Principles and Requirements

Government contracts must conform to the principles of openness, competition, equality, and non-discrimination.

Key Requirements for Administrative Contracts:

• Responsibility of the contracting authority
• Contractor's ability and qualifications
• Clear determination of the contract scope
• Transparent pricing mechanisms
• Existence of credit application processing
• Effective enforcement provisions
• Approval of expenditure
• Proper execution of the contract

Modes of Procurement Management

Different methods are employed for awarding administrative contracts:

Auction

The administration imposes specific conditions, and contractors are invited to offer the best financial bid. The contract is awarded based on the most favorable financial offer.

Competition (Tender)

This is the most widely used method. The administration sets conditions, which bidders can improve upon through their proposals.

Auction-Competition

This method involves two distinct phases:

• Phase of Competition: Pre-selected contractors are evaluated based on specific conditions to identify the most creditworthy.
• Phase of Auction: Among those who passed the first phase, the contract is awarded to the bidder offering the best financial proposal.

Direct Award

Used in situations of urgent necessity or for small-value contracts, often bypassing standard formalities and competitive procedures.

Types of Public Contracts

Public Works Contracts

Aimed at the construction, reform, and repair of real property.

Supply Contracts

Involve the purchase of movable property by the administration. These contracts typically exhibit some of the following characteristics:

• The contractor is obliged to deliver a variety of goods.
• The goods refer to consumables.
• The item to be delivered by the contractor must be prepared in accordance with requirements laid down by the administration.

The award of these contracts may be by auction, tender, or negotiated procedure.

Service Contracts

Also known as public service management contracts, where the administration entrusts a public service to a natural or legal person. This is a technique of indirect management of public services, which includes figures such as:

• Concession management
• Interested party management
• Concert
• Mixed economic society

Contractor Obligations

Key obligations for contractors include:

• Providing diligent service
• Responsibility for damages to third parties
• Respecting contractual agreements