7. Exemptions to Competitive Bidding
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7. Exemptions to Competitive Bidding Start Comparison
a. Are there any exemptions to competitive bidding, i.e. under what conditions is a direct award/single sourcing permissible?

The LCE regulates direct contracting. Entities may contract directly with a specific supplier in the following cases:
- When one public entity contracts with another public entity, provided that it results more efficient and technically feasible to meet the need and does not contradict the provisions stated in Section 60 of the Political Constitution of Peru..

  • In the event of an emergency situation arising from catastrophic events, situations affecting the national defense or security, situations involving serious danger of any of the abovementioned assumptions, or a health emergency declared by the body governing the national health system.
  • In a shortage situation duly verified, affecting or preventing the entity from performing its activities or operations.
  • When the Armed Forces, the Peruvian Police Force and bodies that make up the National Intelligence System require to carry out procurements of confidential or secret nature, or for internal reasons, according to the law, and with the prior favorable opinion of the Comptroller General's Office of the Republic of Peru.
  • When goods and services are available only from a particular supplier/provider or a
    particular supplier/provider has exclusive rights over them.
  • For personal services rendered and duly supported by individuals.
  • For advertising services provided to the State by the television, radio, press or any other media.
  • For consulting services, other than work consultancies, which are the continuation and/or update of a previous work performed by an individual consultant and approved by the Entity, provided that it has been selected in accordance with the individual selection process for consultants.
  • For goods and services for purposes of research, testing or development of a scientific or technological nature, the result of which belongs exclusively to the Entity for its use in the performance of its functions.
  • For the renting of real estate and purchasing of existing real estate.
  • For specialized services for example, legal, accounting or economic advice, or for the defense of officers or ex-officers, employees or ex-employees and members or ex-members of the Armed Force and Police, and for functional actions of the applicable law.
  • When the Entity has the urgent need to continue the execution of the non-performed services derived from a terminated contract or a contract declared null and void, provided that the other bidders who took part in the selection process have been invited and no acceptance to such invitation has been obtained.
  • For procurement of training services of institutional interest with authorized entities or international specialized bodies.

Corporate purchases may be made by direct procurement. The direct procurements are approved by Resolution of the Entity's Head, Agreement of the Board of Directors, Regional Council or Municipal Council, as applicable.

b. What are the consequences for violation of the competitive bidding requirement?

The consequence is a declaration of nullity. The Head of the Entity declares, the nullity of the acts of the selection process, however, this declaration does not prevent the party from appealing this decision. After signing the contracts, the Entity may declare the nullity by operation of law just in specific situations regulated by the LCE.