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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
| Country | Costa Rica |
| Region | Latin America and the Caribbean |
| Population | 5.35 million (2024) |
| Income Level | Upper middle-income economy |
| Base Currency | Costa Rican Colón |
| Conversion Rate (Local Currency to USD) | 515.7 Costa Rican Colone's (CRC) |
| Gross Domestic Product (GDP) | USD 83.5 billion (2024) |
| Gross National Income (GNI) | USD 83.5 billion (2024) |
| GNI per Capita | USD 14,600 (2024) |
| Public Procurement Expenditure | 0.02% of GDP |
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
| Public Procurement Agency (PPA) | Ministerio de Hacienda; Dirección de Contratación Pública |
| PPA Website |
https://www.hacienda.go.cr/LeyGeneralContratacionPublica.html https://www.hacienda.go.cr/contenido/14014-compras-y-contrataciones |
| Central Purchasing Body | Ministerio de Hacienda |
| CPB Website | https://www.hacienda.go.cr/docs/Normativa.pdf |
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
| eProcurement System Name | Sistema Integrado de Compras Públicas (SICOP) |
| System Website | https://www.sicop.go.cr/index.jsp |
| Launch Year | 2010 |
| Business Model | Government owned and operated (Proprietary build) |
| Supported Functionalities | Planning, Publishing, Tendering, Evaluation & Award, Reverse Auctions, Contract Management, Catalogues, P2P Purchasing, Vendor Management, eComplaints |
| Supported Language | Spanish |
| Supported Currency | Costa Rican Colón |
| Estimated Annual Savings via eProcurement | USD 11,113,204.33 |
| Percentage Savings over Cost Estimates | 0.18% |
Procurement Market Characteristics
| Annual Tenders | 42,708 |
| Value of Annual Tenders | USD 1,798,834,022 |
| Annual Contracts | 54,380 |
| Value of Annual Contracts | USD 1,438,950,252.60 |
| Contracts Awarded to SMEs | 34,776 (USD 1,591,320,242) |
- 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
- High transaction volumes require strong compliance and bid preparation capacity
- SICOP proficiency is essential for participation
- Sustainability and SME provisions can enhance competitiveness
- 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.
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