Discusses the legal requirements for selling to the host government, including whether the government has agreed to abide by the WTO Government Procurement Agreement or is a party to a government procurement chapter in a U.S. FTA. Specifies areas where there are opportunities.

Government expenditures account for a significant portion of Bolivia’s Gross Domestic Product.  The central, state, and local governments and other public entities are important buyers of machinery, equipment, materials, and other goods and services.
 Information about government procurement can be found in the Government's Procurement System (Sistema de Contrataciones Estatales SICOES), and also on the websites of all public companies (Electricity, Hydrocarbons, Mining).  Bolivia is not a signatory to the WTO Agreement on Government Procurement.

In an effort to encourage local production, the Bolivian government changed its procurement and service contracting rules in July 2007 (Supreme Decree 29190, July 11, 2007), in June 2009 (Supreme Decree 0181, June 28, 2009), and again in February 2013 (Supreme Decree 1497, February 20, 2013).  Under these new rules, government procurements under $145,000 must give priority to the small business or small enterprise sector, micro-producer associations, and peasant associations.  Vendors that fall under these categories are required to provide fewer guarantees and prerequisites than the rest of the business sector.  U.S. companies hoping to participate in these processes should have a Bolivian partner.

Bolivian companies and local providers (both of which can be representatives of foreign companies legally established in Bolivia) are given priority for government procurement bids from $145,000 to $10 million. Importers of foreign goods can participate in these procurements only when locally manufactured products and service providers are unavailable, or when the Bolivian government does not select a domestic supplier; in such cases, the government can call for international bids.  International public tenders are required for when purchases exceed $10 million.

Article 30 of Supreme Decree 0181 from June 28, 2009 (or the Basic Standards Management System of Goods and Services) determines the margin of preference for domestic products that contain domestic inputs.  Suppliers must comply with the prerequisites established in the bidding documents, which are exclusive to each purchase.  Bid specifications containing technical and commercial requirements are available through either the government tenders website or the relevant office controlling the tender.  Tenders are also available at times through local newspapers.  The head of the ministry or entity that issued the request for bids determines qualifying procedures and makes award decisions.  To encourage local industrial development, the government gives domestic bidders a ten percent to 25 percent preference, depending on the bid.  Officials consider both price and quality when awarding contracts.  The Ministry of Defense and the Ministry of Government are allowed to make purchases for unlimited amounts.  The government may issue tenders for national security purchases, for the armed forces, or for goods and services of national interest with no limit in value.

If the requirements for an international tender are not met in the process of reviewing the proposals, then a direct contract with the government is allowed to be signed without a tender.

Multilateral Development Banks (World Bank, Inter-American Development Bank) 
The Commercial Service maintains Commercial Liaison Offices in each of the main Multilateral Development Banks, including the World Bank and the Inter-American Development Bank.  These institutions lend billions of dollars in developing countries on projects aimed at accelerating economic growth and social development by reducing poverty and inequality, improving health and education, and advancing infrastructure development.  The Commercial Liaison Offices help American businesses learn how to get involved in bank-funded projects, and advocate on behalf of American bidders.  Learn more by contacting the Commercial Liaison Offices to the World Bank and to the Inter-American Development Bank.
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.