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Public Procurement in Costa Rica

Public Procurement in Costa Rica is a central pillar of public financial management and a key mechanism through which the government delivers infrastructure, public services, and social programs. The procurement system is legally structured, digitally enabled, and applied across central government institutions and public entities.

Government procurement represents a significant share of public expenditure and serves as a major interface between the public sector and the private market. For domestic suppliers, government tenders in Costa Rica provide broad access to contracts across goods, works, and services. For international firms, the procurement framework offers transparent and competitive entry points, particularly for large-scale and specialized contracts.

This page provides a comprehensive, data-accurate overview of the public procurement system in Costa Rica, based entirely on officially supplied reference information.

Country & Economic Overview

Costa Rica is a member of major international organizations, including the Inter-American Development Bank Group (IDB/IADB), International Fund for Agricultural Development (IFAD), International Monetary Fund (IMF), United Nations Conference on Trade and Development (UNCTAD), and the World Trade Organization (WTO). The country maintains active engagement with the World Bank.

Public Procurement Governance Framework

The Ministry of Finance is responsible for public procurement policy, regulation, and oversight, while contracting authorities conduct procurement procedures in accordance with national legislation.

Legal & Regulatory Framework

Public procurement law in Costa Rica is governed by the General Law on Public Procurement and its implementing regulations.

• Primary legal framework: Ley General de Contratación Pública
• Total Cost of Ownership (TCO): Articles 31 LCA; Articles 7, 18 LCA; Article 12 RLCA
• Life Cycle Costing: Articles 18, 32 LCA; Articles 25, 31, 197 RLCA
• Value for Money: Article 4 LCA
• Most Economically Advantageous Tender (MEAT): Article 2 LCA; Article 131 RLCA
• Sustainability clauses: Articles 10 bis, 38 LCA; Articles 29, 55 bis, 98 RLCA
• SME participation: Articles 10 bis, 38 LCA
• Bid securities: Articles 4, 38, 39, 42, 45 LCA; Articles 17, 26, 30 RLCA
• Domestic preference: Articles 5 LCA; Article 29 RLCA

Procurement Procedures & Thresholds

• Open competitive tendering is the standard procurement method
• Direct contracting thresholds defined under Article 27 LCA and updates issued by the Comptroller General
• Standstill periods regulated separately for goods, works, and services
• Bid validity periods defined under Article 32 LCA and implementing regulations
• Complaint resolution governed by Articles 81, 84, 89, and 91 LCA

E-Procurement System Overview

Procurement Market Characteristics

• Goods awards: 34,901 (USD 704,269,535)
• Works awards: 1,409 (USD 201,179,540)
• Services awards: 18,070 (USD 533,501,176)
• Domestic awards: 53,885 (USD 1,398,807,614)
• International awards: 495 (USD 40,142,639)

Transparency, Complaints & Oversight

• Accepted or justified complaints: 2,926
• Rejected complaints: 5,617
• Cancelled procurement procedures: 2,092
• Public procurement reports published by Ministry of Finance and Comptroller General
• Procurement statistics published via the national observatory

Sustainability & Green Public Procurement

• National Sustainable Public Procurement Policy in force
• Green procurement strategy and roadmap adopted
• Green certifications required for certain suppliers
• Monitoring tools and disposal requirements defined under environmental directives

Social & Ethical Procurement Considerations

• Legal framework allows measures supporting SMEs and social economy enterprises
• International labor standards governed through ratified treaties
• Local sourcing measures supported under executive decrees

Key Challenges & Practical Insights for Bidders

1. High transaction volumes require strong compliance and bid preparation capacity
2. SICOP proficiency is essential for participation
3. Sustainability and SME provisions can enhance competitiveness
4. Careful review of updated procurement law effective from December 2022 is critical

Public Procurement in Costa Rica is one of the most mature and digitized systems in the region, offering transparency, scale, and consistent opportunities for qualified suppliers that align with legal and procedural requirements.