Chapter III, Section Four

LAW No. 19
(of June 11, 1997)

Chapter III - Patrimony, Finances, and Oversight,

Section Four - Contracting for Work, Acquisition of Goods, and Rendering of Services

Article 52. The Authority may contract for and acquire work, supply of goods and services, and purchases in general, with or without an intermediary, directly, locally or abroad, to ensure the best quality, the most favorable prices, efficiency and competitiveness. It is the exclusive right of the Authority to establish the regulations under which the general rules in this section will be applied.

Article 53. Regulations concerning the matters referenced in the preceding article shall establish a system that guarantees appropriate or highest quality, the most favorable prices, and the most timely delivery or performance of projects or supply of goods and services. This system shall be established on the following general bases:

  1. Efficient and expeditious procurement of goods and services.
  2. Decentralized delegation of the contracting authority.
  3. Fostering the broadest competition for acquisitions and contracts.
  4. Reasonable flexibility in the designs and specifications to promote contractor participation without diminishing the quality of the work.
  5. Impartiality in the decisions.
  6. Fairness in the relationship with contractors.
  7. Post-auditing of expenses.
  8. Sufficient flexibility to allow decision-making in emergency situations.

Article 54. The Regulations the Authority may adopt shall contain provisions that establish objective mechanisms to promote the broadest competition in the selection of suppliers and contractors, shall establish the limiting amounts for each type of contracting, and must be updated in accordance with the provisions of the Board of Directors.

Article 55. In contracting matters, the Authority shall not be responsible for those actions of its officials that are carried out in criminal misuse of their office or abusive substitution of competition that result in damage to third parties.

Article 56. Contracts entered into by the Authority shall be subject to the regulations issued by the Authority concerning contracting, as well as to the terms and conditions of each particular contract. The Regulations will contain provisions establishing mechanisms for the fair and expeditious resolution of objections by bidders, as well as for claims by contractors.

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