MAPS
Countries
Ecuador

Ecuador

Building on a well-established electronic procurement system, Ecuador undertook a MAPS MAIN assessment to identify opportunities for the next phase of public procurement reform. The assessment recognised the central role of SERCOP and the SOCE e-procurement platform in promoting transparency and efficiency, while recommending actions to strengthen procurement governance, improve planning and contract management, expand sustainable public procurement practices, enhance market participation, increase the strategic use of procurement data, and reinforce accountability and oversight across the procurement cycle.

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Quick facts

Year of assessment	2022
Date of publication	April 2024
Country procurement volume	7.7 billion USD (2021)
Principal organisation	Servicio Nacional de Contratación Pública (SERCOP)
Main partners	Inter-American Development Bank (IDB)

Background

Why was a MAPS assessment initiated?
The assessment aimed to provide a systemic and objective evaluation of Ecuador’s National Public Procurement System (SNCP), identify gaps for improvement, establish a baseline for reforms, promote dialogue among stakeholders, and enhance cooperation with international organizations.

Who initiated the assessment?
The assessment was led by the Inter-American Development Bank (IDB) in collaboration with Ecuador's National Public Procurement Service (SERCOP), the Ministry of Finance, and various stakeholders, including civil society and academia.

Brief description of the country procurement system
Ecuador’s procurement system is governed by the National Public Procurement System Law (LOSNCP). It is a centralized system managed by SERCOP, which regulates and oversees procurement processes. The system mandates the use of the SOCE electronic platform for transparency. Public procurement is divided into Common and Special Regimes, with various procedures in place for different procurement categories.

Is there anything else about the country that merits mention?
A key recent reform was the reduction in the use of Special Regime procurement within Executive Function institutions, leading to an overall decrease of 48% in such procedures. However, other public sector entities increased their use of the Special Regime by 262% in response.

Were there any disruptions?
The assessment faced no major reported disruptions, but there were challenges related to data collection, quality of procurement documents, and the effectiveness of risk monitoring by SERCOP.

Main results and impact

(in Spanish)

Issue: Special regime procedures limit competition by favoring direct awards.
- Recommendations: Modify regulations to prevent excessive use of direct awards.
Issue: The Ecuadorian Added Value (VAE) calculation lacks verification mechanisms and its impact on procurement conditions and the economy is unproven.
- Recommendations: Replace the VAE with a value-for-money calculation that includes local development criteria.
Issue: Direct contracting between public sector entities restricts competition.
- Recommendations: Restrict inter-administrative direct contracting to cases where procurement from private suppliers is not feasible.
Issue: No appeal body exists, and the current system focuses only on pre-contractual control.
- Recommendations: Implement a legal reform to establish an independent appeals body.

Issue: Procurement planning lacks coordination and methodological support.
- Recommendations: Develop and implement a procurement planning methodology involving budget and execution units.
Issue: The Public Procurement Annual Plan (PAC) needs flexibility but lacks a monitoring mechanism.
- Recommendations: Maintain PAC adaptability while implementing an effective monitoring system.

Issue: Public procurement operations lack clear methodologies for functional specifications and product suitability.
- Recommendations: Develop regulations and methodologies for functional specifications and create a project for implementation.
Issue: Procurement processes favor the lowest-cost bidder due to the lack of adequate selection methodologies.
- Recommendations: Develop methodologies for value-for-money calculations, including life-cycle cost considerations.
Issue: The current procurement system lacks structured prequalification processes for complex contracts.
- Recommendations: Introduce prequalification procedures for complex procurements like infrastructure projects.
Issue: Weak enforcement of anti-corruption measures in procurement processes.
- Recommendations: Strengthen legal frameworks to sanction companies involved in corrupt practices.

Issue: There is no structured appeal system for procurement disputes.
- Recommendations: Establish an independent appeals body with technical and financial resources.
Issue: The publication of appeal results is not mandatory.
- Recommendations: Introduce a legal requirement for publishing appeal results and tracking their implementation.
Issue: Weak internal control mechanisms in procurement.
- Recommendations: Strengthen internal control procedures, improve coordination with oversight agencies, and develop standardized internal control mechanisms.

Ecuador

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Ecuador

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Quick facts

Background

Main results and impact

Legal, Regulatory, and Policy Framework

Institutional Framework and Management Capacity

Public Procurement Operations and Market Practices

Accountability, Integrity and Transparency

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Methodology

Assessments

e-Learning and Certification