| Year of assessment | 2023-2024 |
| Date of publication | September 2024 |
| Country procurement volume | 7 billion USD (2017) |
| Principal organisation | Dirección General de Contrataciones Públicas (DGCP) |
| Main partners | Inter-American Development Bank (IDB). |
Panama
Recognizing the central role that public procurement plays in public service delivery, financial management, and sustainable development, this MAPS MAIN assessment for Panama resulted in recommendations targeting the strengthening of the legal and regulatory framework, improving procurement planning and coordination, increasing transparency through better public access to procurement data, enhancing contract management practices, and reinforcing institutional capacity, particularly for oversight and control mechanisms.
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Quick facts
Background
Why was a MAPS assessment initiated?
The assessment was conducted to evaluate Panama’s public procurement system, strengthen governance, improve transparency, and align procurement practices with international best practices.
Who initiated the assessment?
The Government of Panama, through the Dirección General de Contrataciones Públicas (DGCP), with support from the Inter-American Development Bank (IDB).
Brief description of the country procurement system
Panama has a centralized regulatory framework under the DGCP, which oversees procurement activities across government institutions. The system is highly regulated and integrates digital procurement through PanamaCompra, the country’s e-procurement platform.
Other relevant factors:
Panama recently introduced new transparency regulations requiring public disclosure of infrastructure project data on the "PanamaEnObras" platform.
Main results and impact
Gaps in Procurement Regulations and Appeal Mechanisms
- Issue: The legal framework lacks clarity in appeal and sanction mechanisms, bid security requirements, and contract amendments.
- Recommendations:
- Clarify legal provisions for procurement appeals and dispute resolution.
- Simplify bid security requirements to enhance participation.
- Strengthen regulations on contract amendments to prevent abuse.
Limited Sustainable Public Procurement (SPP) Strategy
- Issue: There is no national strategy to integrate sustainability considerations into procurement processes.
- Recommendations:
- Develop and implement an SPP strategy in line with international best practices.
- Ensure environmental, social, and economic sustainability criteria are incorporated in procurement evaluations.
Weak Institutional Capacity and Oversight
- Issue: The DGCP lacks sufficient resources and enforcement power to ensure compliance with procurement regulations.
- Recommendations:
- Increase DGCP’s financial and human resources to strengthen its regulatory and oversight functions.
- Improve inter-agency coordination to enhance procurement oversight.
Limited Integration of Procurement with Public Financial Management (PFM) Systems
- Issue: Procurement planning is not fully aligned with budget execution, causing inefficiencies.
- Recommendations:
- Enhance coordination between procurement and financial planning.
- Expand the use of electronic systems to link procurement with financial management.
Procurement Not Recognized as a Specialized Profession
- Issue: There is no formal career path or certification system for procurement professionals.
- Recommendations:
- Establish structured certification programs and professional training.
- Develop clear career pathways for procurement officials.
Limited Market Engagement and Private Sector Participation
- Issue: Procurement procedures are not well-aligned with market conditions, discouraging supplier participation.
- Recommendations:
- Conduct regular market analysis to align procurement plans with supplier capacity.
- Strengthen dialogue with private sector stakeholders.
Weak Contract Management and Monitoring
- Issue: Contract execution and monitoring remain one of the weakest aspects of procurement, leading to inefficiencies.
- Recommendations:
- Develop standardized procedures for contract management.
- Implement a contract monitoring system and require regular reporting.
High Fragmentation in Public Procurement
- Issue: The procurement system is highly fragmented, increasing administrative costs and reducing efficiency.
- Recommendations:
- Encourage joint procurement and framework agreements for common goods and services.
- Streamline procurement processes to reduce inefficiencies.
Weak Appeal and Sanction Mechanisms
- Issue: There is no independent administrative appeals body, and the debarment process lacks transparency.
- Recommendations:
- Establish an independent procurement appeals body.
- Clarify and enforce transparent debarment procedures.
Limited Public Access to Procurement Information
- Issue: Procurement data is not systematically published, reducing transparency.
- Recommendations:
- Mandate public disclosure of procurement data through an open-access platform.
- Improve procurement data collection and reporting mechanisms.
Low Awareness and Engagement of Civil Society in Procurement Oversight
- Issue: Civil society organizations (CSOs) have limited involvement in procurement monitoring and oversight.
- Recommendations:
- Increase CSO engagement by providing greater access to procurement data.
- Conduct awareness campaigns to encourage citizen participation in procurement integrity initiatives.