The Public Procurement Law requires the mandatory execution of the Open Bid or International Open Bid when the amount of the agreements exceed certain amounts (ie, as established in Tax Units). In this case, the contracting entities do not have the discretion to choose another type of tender modality.

If the tender does not exceed the amounts set forth for the Open Bid, the contracting entity may proceed with Closed Bids. Closed Bids can also be used regardless of the value of the agreement when the maximum authority of the contracting entity justifies it through a reasoned administrative order in the following cases:

1. Acquisition of highly specialized goods destined to experimentation, investigation and education
2. For state security, qualified as such according to the rules that govern the subject
3. When based on the information verified by the National Contracts Registry, it is determined that the goods to acquire, the services to render and the works to execute, are to be produced and commercialized, rendered or executed by five or fewer bidders.

Additionally, the Public Procurement Law establishes the causes in which the contracting entity may proceed through the modalities of Price Consultation or Direct Awarding.

The contracting bodies and entities must establish in the call or invitation and in the specifications, the possibility of participating by electronic means, according to their availability and technological preparation.

The contracting entities must publish on their official website the call to participate in open competitions (call for tender), until one day before the receipt of envelopes; it must also send to the NCS the call to participate in the open bids, to be published on the website of that body during the same period.

Likewise, contracting entities in exceptional cases, and with the approval of the Maximum Authority of the Central Planning Commission, may publish calls for open competitions in national or regional media, especially in the locality where the good is to be supplied, the service is to be rendered or the work is to be executed. In addition, they may release the call through other means of dissemination.

In case of closed bids, at least five participants must be selected by invitation, and these must be accompanied by the specifications, indicating the place, day and time of public acts of reception and opening of the envelopes containing the bids.

Companies suspended from the NCR for breach of the provisions of the Public Procurement Regime are disqualified from participating in public bids. This disqualification extends to individuals who participate as partners, members or managers in the structure and organization of the disqualified company. Also, the prospective bidders could be disqualified if:

• The participant has not adequately supplied the requested information, so it cannot be evaluated or appreciated.
• During the qualification process, the offeror declares or is declared in dissolution, liquidation, delay or bankruptcy.
• During the qualification process, any of the companies in a consortium or alliance withdrew from the process.
• The offeror does not comply with any of the qualification criteria established in the specifications.
• The contracting party determines that the offeror has submitted false information in its qualification documents.