New Procurement And Public Contracts Code Published To Strengthen Transparency And Efficiency In Public Management
On January 8th, 2025, Decree-Law No. 1/2025 was published, approving the new Procurement and Public Contracts Code. This law, which is part of the public finance management reform process led by the IX Constitutional Government, aims to modernize public procurement procedures and promote greater efficiency, transparency and sustainable economic development.
The new Code responds to the need for simplification and adaptation to international best practices, ensuring more efficient and responsible use of public resources, while supporting the national business sector.
Among the main amendment is the introduction of a preferential regime for national suppliers, which aims to encourage economic growth and strengthen local companies. The law also reintroduces restricted tendering and creates the framework agreement regime, designed to guarantee the continuous supply of essential goods and services, adapting processes to the specific needs of the Public Administration.
The Code also establishes clear criteria for opening procurement procedures. In the case of the Direct State Administration, the decision varies according to the contract value:
● Up to 50 thousand US dollars, the Director General or equivalent is responsible.
● Between 50 thousand and 5 million dollars, it falls to the member of the Government, with the possibility of partial delegation up to 500 thousand dollars.
● For amounts over 5 million dollars, the decision rests with the Council of Ministers.
In the Indirect Administration, the responsibility for contracts up to 1 million dollars lies with the entity's highest management body, and for larger amounts, the same model applies as for the Direct Administration.
In the case of contracts financed by the Infrastructure Fund, competence is shared between the Fund's Board of Directors, for amounts up to 10 million dollars, and the Council of Ministers, for larger amounts. Procurement procedures for the Presidency of the Republic, National Parliament, courts, municipalities and the independent administration are authorized by their respective top management bodies.
This organizational model seeks to ensure greater clarity and agility, preventing conflicts of competence and promoting more effective management of public resources.
The new Code also strengthens transparency and administrative control by introducing rigorous rules against abusive practices, such as the splitting of contracts. The figure of the contract manager was introduced to supervise the execution of more complex or high-value contracts, ensuring greater accountability and efficiency.
In addition, the law includes protection mechanisms for whistleblowers, contributing to a more ethical environment in the public sector. It also allows for advance provisioning in specific situations, guaranteeing greater speed in responding to administrative needs.
The new Code comes into force on June 1st, 2025, repealing Decree-Law No. 22/2022 of May 11th, but maintaining some transitional provisions until the publication of complementary regulations.
The Ministry of Finance will be promoting clarification actions aimed at employees of the State's Direct and Indirect Administration, with the aim of ensuring that the new Procurement and Public Contracts Code is understood and applied effectively.
This law represents an important step towards the modernization and efficiency of public management, reflecting the IX Constitutional Government's commitment to promoting good governance, transparency and sustainable development. End
