Contracts governed by the PPL can be awarded by framework agreements, public tender, private tender or via direct contracting (PPL, art. 7).

For Framework Agreements, see answer 2.f., above. Public tender is an administrative procedure by which the Administration makes a public call for the submission of bids, with subjection to the tender terms set by the contracting-administrative-agency. This public tender is the default and mandatory proceeding for awarding contracts with a price higher than 1,000 UTM (USD 67,000 approx.). Through private tender, the Administration invites certain persons to submit bids, subject to the tender terms. Direct contracting is an exceptional procedure, by which the Administration directly enters into a contract with a natural or legal person.

Private tender and direct contracting are exceptional and only applicable in the following circumstances (PPL, Art. 8):

1. When there are no bidders for a public tender. In this case, the Administration shall first call for a private tender; only if there are no bidders for the private tender it may directly contract with certain private bidders.
2. When the contract refers to the execution or termination of the pending or unfulfilled object of a contract that is early terminated, and the remaining amount of it does not exceed 1,000 UTM (USD 67,000 approx.).
3. In emergencies, unexpected or urgent cases, duly qualified by the chief or superior of the contracting agency.
4. When there is only one supplier for the goods or services required.
5. When the Administration contracts with foreign companies if the services are going to be executed outside Chile.
6. When it comes to confidential services, and such confidentiality is enacted by Supreme Decree of the President of the Republic.
7. When the amount of the contract is lower than the limit set by the PPL Regulation (10 UTM, equivalent to USD 670 approx.).
8. Additionally, when direct contracting is imperative due to the matter or nature of the contract, according to the criteria set in the PPL Regulation (PPL, Art. 10, No. 7).

It is mandatory for all public bodies governed by the PPL to only use the electronic systems established by the National Directorate of Public Procurement, when quoting, bidding, contracting, awarding, requesting clearance and developing all its procurement procedures. Said public bodies cannot award contracts for which tenders have not been received via electronic systems other than the established by the National Directorate of Public Procurement and Contracting. However, a complementary regulation to the PPL can determine the cases in which it is possible to develop contract procedures without using such systems (PPL, Article 18).

Public bodies not governed by the PPL (with the sole exception of State companies established by law) shall be subject to the rules of electronic means set forth in the PPL in order to provide basic information on procurement (PPL, Article 21).

Mercado Público is the official website for public procurement procedures. In this site, calls for tenders are published and bids can be submitted. This site is available at www.mercadopublico.cl.

A prospective bidder may be excluded from the competition if it does not fulfil the requirements set forth in the PPL and mentioned above (see answer 4.A.). Also, if it does not comply with tender requirement, it might be declared "out of the tender" ("fuera de bases").