Act 1150 2007

Original Language Title: LEY 1150 de 2007

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Law 1150 of 2007
(July 16)
Official Gazette No. 46,691 of July 16, 2007 CONGRESS OF THE REPUBLIC

Through measures for the efficiency and transparency are introduced in Law 80 of 1993 and other general provisions on contracting with public resources dictate. Summary

Term Notes
The Congress
ARTICLE 1o. OBJECT. This law aims to introduce amendments to Law 80 of 1993 and enact other general provisions applicable to all contracts with public resources.

Article 2.
. SELECTING PATTERNS. The selection of the contractor shall be in accordance with the procedures for selecting public tender, abbreviated selection, merit and direct contracting, based on the following rules:
1. Public tender. The selection of the contractor shall be made generally through public tender, with the exceptions noted in paragraphs 2, 3 and 4 of this article.
When the state agency so determines, supply in a competitive bidding process may be fully or partially presented dynamically by reverse auction, under the conditions specified in the regulations. Effective Jurisprudence

2. abbreviated selection. Abbreviated Selection corresponds to the type of objective selection scheduled for cases where the characteristics of the object to contract, the circumstances of the contract or the amount or destination of the goods, works or service may preempt simplified processes to ensure efficiency contract management.

The National Government will regulate the matter.
Shall be grounds for the following abbreviated selection:
a) The acquisition or supply of goods and services of uniform technical characteristics and common use by entities which correspond to those with the same technical specifications, with regardless of design or descriptive characteristics and patterns of objectively defined share performance and quality. Effective Jurisprudence

For the acquisition of these goods and services entities shall, provided that the rule so indicate, make use of reverse auction procedures or catalog shopping instruments arising from the conclusion of framework agreements or procedures prices acquisition commodity exchanges;

B) Contracting minor. Minor means that the values ​​listed below, determined on the basis of annual budgets of public entities expressed in minimum monthly wages.
For entities that have a greater than or equal to 1,200,000 minimum monthly wages annual budget, the lower amount will be up to 1,000 minimum monthly wages.
Those who have an annual budget exceeding 850,000 minimum monthly wages and lower than 1,200,000 monthly minimum wages, the lower amount will be up to 850 minimum monthly wages.
Those who have an annual budget exceeding 400,000 minimum monthly wages and less than 850,000 minimum monthly wages, the lower amount will be up to 650 minimum monthly wages.
Those who have an annual budget exceeding 120,000 minimum monthly wages and less than 400,000 minimum monthly wages, the lower amount will be up to 450 minimum monthly wages.
Those with a lower annual budget 120,000 minimum monthly wages, the lower amount will be up to 280 minimum monthly wages;

C) Notwithstanding the provisions of Law 100 of 1993 and Law 1122 of 2007, the conclusion of contracts for the provision of health services. The corresponding regulations shall determine the guarantees provided by contractors. The payments can be made through trusteeships;

D) Hiring whose public bidding process has been declared void; in which case the entity shall start the abbreviated selection within four months from the declaration of initial process deserted;

E) The sale of state assets, except for those that the Law 226 of 1995 refers to.

In the processes of alienation of state assets may be used instruments auction and generally all those authorized by private law, as long as developing the process of disposal mechanisms ensure transparency, efficiency and objective selection.
In any case, for the sale of goods should be based on the value of commercial appraisal and valuation adjust this according to the associated costs while expected marketing, administration, taxes and maintenance to determine the minimum price which should transfer the property, in accordance with the regulations for the purpose by the Government.
The alienation of property forming part of the Fund for Rehabilitation, Social Investment and Fight against Organized Crime, Frisco, will be made by the National Narcotics Directorate, observing the principles of Article 209 of the Constitution and regulations issued by the National Government, taking into account the recommendations to the effect imparted by the National Narcotics Council.
Regulation shall determine the form of selection, through public invitation of the real estate agents that act as promoters of sales, which in turn, in order appraisals of the assets are duly registered appraisers serve in the National Register of Valuers and who will answer for their actions in solidarity with the promoters.
The rules and procedures should address the management and promoters and advertising process must ensure free competition and opportunity for those involved in it.
The property will be disposed of through direct sale in a closed or public auction. The award for direct sale shall be made in open court, where initial offers are known and a second offering, against which the good who bid the lowest price will be awarded is made. At public auction, according to the rules defined for its implementation, the well will be awarded to the highest bidder.
The sale involves goods prior publication in a newspaper of national circulation, determined the base price. Interested in acquiring the goods must deposit at least 20% of sales value basis to participate in the tender;

F) products of agricultural origin or destination offered on bags legally constituted products;

G) Acts and contracts whose direct object's own commercial and industrial activities of the State Industrial and Commercial and Societies of Mixed Economy, with the exception of contracts without limitation identifies Article 32 of the law 80 of 1993;

H) contracts of entities in charge of implementing protection programs threatened persons, demobilization and reintegration into civilian life of individuals and groups outside the law are, including care the respective family groups, care programs for people displaced by violence, programs to protect human rights of groups of people living on the street, children or young people involved in youth groups that have engaged in conduct against economic wealth and sustain violent clashes of different types, and population highly vulnerable to exclusion recognized state requiring training, social rehabilitation and preparation for work, including trust contracts that demand;

I) The procurement of goods and services required for national defense and security.

3. Merit Competition. It corresponds to the intended mode for the selection of consultants or projects in which it is able to use systems open tender or prequalification. In the latter case, the formation of Ia list of prequalified will be made through a public call, allowing provide limited lists of bidders reasoned decision, which means notified in estrados stakeholders in Ia public hearing forming Ia list, using the effect, among others, criteria of experience, intellectual capacity and organization of the proposers, as applicable.
In accordance with the conditions specified in the regulations, developing these selection processes, technical proposals or projects may be submitted anonymously to a plural jury, deliberating odd and qualified
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4. Direct hire. The selection mode direct contracting only proceed in the following cases:
a) Urgency manifest;

B) Contracting of loans;

C) interadministrativos contracts, provided that the obligations arising therefrom directly related to the subject of the executing agency stated in the law or its regulations.
Works contracts, supply, provision of conformity assessment of standards or technical regulations, public trust and fiduciary assignments are excluded when public higher education institutions or companies of mixed economy with majority state or legal persons, non-profit association formed by public bodies, or federations of local authorities are executing. These contracts may be performed by them, provided they participate in public bidding processes or abbreviated procurement in accordance with the provisions of paragraphs 1 and 2 of this article. Effective Notes

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In those cases in which the rules applicable to the procurement of the executing agency other than the Law 80 of 1993, the execution of these contracts will in any case under this law, unless the executing agency develops its activity in competition with the private sector or the implementation of the inter-administrative contract is directly related to the development of their activity. Effective Notes

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In cases where the executing State entity to outsource some of the activities under the main contract may neither she nor the subcontractor, hire or link to natural or legal persons who have participated in the preparation of studies, designs and projects directly related to the subject of the main contract.
Will be exempt from the figure of inter-administrative contract, insurance contracts state entities;

D) The procurement of goods and services in the defense sector and the Administrative Department of Security, DAS *, requiring reservation for purchase; Effective Notes

E) contracts for the development of scientific and technological activities;

F) trust management contracts entered into by local authorities when they begin the Debt Restructuring Agreement referred to Law 550 of 1999, 617 of 2000 and the rules that modify or add, as long as celebrate with public sector financial institutions;
G) Where there is no plurality of bidders in the market;

H) For the provision of professional services and management support, or for the execution of artistic works that can only be entrusted to certain individuals;

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I) the lease or purchase of buildings.
J) The procurement of goods and services of National Intelligence (DNI), requiring reservation for purchase. Effective Notes

5) Minimum Contract amount. Hiring whose value does not exceed 10 percent of the lower amount of the entity regardless of its purpose, it shall be made in accordance with the following rules:
a) an invitation will be issued for a term not less than one business day , in which the object to hire, the budget allocated for this purpose, as well as the required technical conditions shall be indicated;
B) The term specified in the invitation to submit an offer can not be less than one business day;
C) The entity shall select, by notice of acceptance of the offer, the proposal with the lowest price, provided they meet the required conditions;
D) Communication of acceptance with the tender form for all purposes the contract, based on which the respective budget record shall be made. PARAGRAPH 1.
. The particularities of the procedure specified herein, as well as the possibility to have institutions make these acquisitions in establishments that meet the definition of "department store" indicated by the Superintendency of Industry and Commerce, will be determined in the regulations for the purpose by the National Government. PARAGRAPH 2.
. Hiring in this article refers to be made exclusively with the rules listed there and in its regulations. In particular it will not apply the provisions of Law 816 of 2003, or Article 12 of Law 1150 of 2007. Effective Notes

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. The body shall justify prior to the opening of the selection process concerned manner, the legal arguments supporting the selection mode proposed advance. PARAGRAPH 2.
. The rate applicable for the implementation of each of the causes that numeral 2th this article refers to procedure shall observe the principles of transparency, economy, accountability and the following rules:
1. advertising will be given to all procedures and actions.
2. For the selection to that referred to in subparagraph b) of paragraph 2th this article shall be a general principle the public call and may be used mechanisms draw public hearing, to define the number of participants in the corresponding selection process when the number of expressions of interest is greater than ten (10). It is the responsibility of the legal representative of the state agency, take the necessary measures in order to ensure the neatness of the respective draw.
3. Without exception, the bids submitted in each of the selection process should be assessed objectively, exclusively applying the rules contained in the specifications or equivalent. For the selection to that referred to in subparagraph a) of paragraph 2th this Article, the 2nd and 3rd articles of Law 816 of 2003
PARAGRAPH 3. shall not apply. The national government will have the power to standardize the general conditions of the tender documents and contracts of state entities, in the case of acquisition or supply of goods and services of uniform technical characteristics and common use by the entities. Effective Jurisprudence

PARÁGRAFO 4o. The state authorities may not require payment of any value for the right to participate in a selection process, why may not be charging the relevant specifications.
Regarding the issue of copies of these documents will follow the provisions in Article 24 of the Administrative Code.
PARÁGRAFO 5O. The price framework that clause 2 of the literal means) of paragraph 2th this article, agreements will set the terms of an offer to purchase or supply of goods and services of uniform technical characteristics and of common use to state entities for a period of time, in the form, terms and conditions of delivery, quality and guarantee in the agreement. Effective Jurisprudence

The selection of suppliers as a result of the realization of a framework agreement price, will give state agencies that sign the agreement, the possibility that by direct purchase orders, purchase goods and services.
Accordingly, between each of the entities to formulate direct purchase orders and the respective supplier a contract under the terms and conditions provided for in the agreement will be formed.
The National Government will indicate the entity or entities that will be responsible for designing, organizing and holding the price framework agreements. The regulations will establish the conditions under which the use of price framework agreements will be mandatory for the entities of the Executive Branch of Public Power in the National Order, subject to the General Contracting Code of the Public Administration.
In the case of autonomous bodies and the legislative and judicial branches, as well as territorial entities, they can design, organize and conclude framework agreements own prices, without prejudicing adhere to the framework agreements to the preceding paragraph.

PARÁGRAFO 6o. The Government may establish different procedures within the various causes of abbreviated selection, so that they accommodate to the particularities of the objects to hire, without prejudice to the possibility of establishing common procedures. The same can be done about the merits contest. Effective Notes

PARÁGRAFO TRANSIENT. Until the national government not issued the relevant regulations, will not be able to use the abbreviated selection as selection mode.


ARTICLE 3. ELECTRONIC PROCUREMENT. In accordance with the provisions of Law 527 of 1999, the conduct of the proceedings, the issue of administrative acts, documents, contracts and general acts arising from pre-contractual and contractual activity may take place electronically. For processing, reporting and publication of such acts, media, electronic media and applications may be used. Mechanisms and instruments through which entities comply with the disclosure obligations of the contractual process would be identified by the Government. Effective Jurisprudence

This is without prejudice to the publications provided for in paragraph 3 of Article 30 of Law 80 of 1993.
In order to realize the objectives of the preceding paragraph, the Government will develop the System mail for procurement, Secop which:
a) you have the technological capabilities to conduct electronic procurement processes under the selection methods outlined in article 2 of this law as defined by the regulations;
B) Serve as a single point of data entry and report generation for state entities and citizens;
C) will have the official information of the booked with public money, for which establish patterns that may take place and ensure their dissemination through electronic channels;
D) Integrate the Enterprise Single Register of Chambers of Commerce, the Unico Journal of Government Contracting and other systems involving public contract management. Likewise, it will be coordinated with the Information System for Monitoring the State Procurement, SICE, created by Law 598 of 2000, without it losing its autonomy to exercise fiscal control of public procurement. Editor's Notes

. In any case Secop administration will create a new entity.
The Secop will be administered by an agency designated by the Government, without prejudice to the autonomy that confers respect SICE Law 598 of 2000 to the Office of the Comptroller General of Colombia. Editor's Notes

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ARTICLE 4. DISTRIBUTION OF RISKS state contracts. The specifications or their equivalents should include the estimation, classification and allocation of predictable risks involved in recruitment.
In public tenders, the specifications of state entities should indicate the time when, prior to the submission of bids, bidders and the entity will review the allocation of risks in order to establish distribution final.

The 5th ITEM. SELECTION OF STRICT. It is objective selection in which the choice is made to the entity more favorable offer and purposes she seeks, without considering factors of affection or interest and, in general, any kind of subjective motivation. Consequently, selection factors and qualifications established entities in the specifications or their equivalent, shall consider the following criteria:

1. The legal capacity and conditions of experience, financial capacity and organization of the proposers will be subject to verification of compliance as qualifying requirements for participation in the selection process and not grant score, except as provided in paragraph 4 of this Article. The requirement of such conditions should be appropriate and proportionate to the nature of the contract to be signed and its value. The documentary verification of the above conditions will be made by the Chambers of Commerce in accordance with the provisions in Article 6 of this law, according to which the respective certification will be issued. Effective Jurisprudence


2. The absolute best deal will be that, taking into account technical and economic factors of choice and accurate and detailed thereof contained in the specifications or their equivalent weights, turns out to be the most advantageous for the entity, without the favorability the different factors constituting the contents in these documents. In public works contracts, the shortest period offered will not be evaluated. The company made comparisons of the case by matching the offers received and consulting prices or market conditions and studies and deductions of the entity or consultants or advisors agencies designated areas.
In the selection process in which takes into account the technical and economic factors, the most advantageous offer will be the result of applying any of the following:
a) The weighting of the elements of quality and supported in scores or price formulas indicated in the specifications; or
b) The weighting of the elements of quality and price that represent the best cost-benefit to the entity. Effective Notes

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3. Notwithstanding the provisions of paragraph 1 of this Article, the specifications for contracts whose purpose is the acquisition or supply of goods and services of uniform technical characteristics and common use, state entities shall include only factor evaluation the lower price offered. Effective Jurisprudence

4. will make use of rating factors intended to assess the technical aspects of the bid or project processes for selection of consultants. In accordance with the conditions specified in the regulations, they may be used criteria specific experience of the bidder and the team, in the field in question.
In no case may include the price, as a factor of choice for the selection of consultants. PARAGRAPH 1.
. The absence of requirements or lack of documents relating to the intended procurement or the proposer, not necessary for the comparison of proposals will not do enough title for the rejection of the offers made. Consequently, those requirements do not affect the proposed allocation score may be requested by the entities at any time up to the award. Notwithstanding the foregoing, in those selection processes in which the auction mechanism is used, they must be requested to the time prior to their implementation.

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. Certifications quality management systems are not subject to qualification, nor may be established as a qualifying document to participate in tenders or contests. Effective Jurisprudence


ARTICLE 6o. VERIFICATION OF CONDITIONS OF BIDDERS. All national or foreign domiciled or with a branch in Colombia, who aspire to enter into contracts with state entities, natural or legal persons entered in the Register of Bidders of the Business Register of the Chamber of Commerce with jurisdiction in their primary residence.
Will not be required for this record or classification in cases of direct contracting; contracts for the provision of health services; minimum amount contracts; alienation of state property; contracts aimed at acquiring agricultural products origin or destination offered on products legally constituted bags; acts and contracts which have as their direct object the characteristics of industrial and commercial state enterprises and mixed economy companies and concession contracts of any kind commercial and industrial activities. In the aforementioned cases, contracting entities shall comply with the verification work conditions proponents.
This register shall contain the information related to the experience, legal, financial and organizational capacity of the proposer and ranking.
6.1. The process of registration in the Register of Bidders (RUP). It is up to the proposers entered in the register in accordance with the documents. Chambers of commerce will document verification of information submitted by interested parties upon registration in the register.

Certificate of Registration of Bidders will be full proof of the circumstances stated therein are made and have been verified by the Chambers of Commerce. In this regard, verification of the conditions set out in paragraph 1 of Article 5 of this Act, shall be demonstrated solely with the respective certificate RUP where shall contain such conditions. Consequently, state entities in procurement processes may not require or provide documentation proponents to be used to effect the registration.
Notwithstanding the above, only in those cases where the characteristics of the object to hire verification proposing additional requirements to those contained in the Register is required, the entity may make such verification directly.
When the information presented to the Chamber of Commerce is not enough, either inconsistent or does not contain all of the elements in the regulations for its existence and validity, this shall refrain from registration, renewal or updating appropriate, without prejudice to any legal action that may be required.
The information must be kept updated and renewed in the form and at the intervals specified in the regulations. The information contained in the register is public and its consultation is free.
6.2. Information on contracts, fines and penalties to enrollees. State entities send monthly to the Chamber of Commerce of residence, information concerning contracts, the amounts involved, compliance, fines and penalties related to contracts that have been awarded, which are implemented and executed.
The terms of reference information and the terms of permanence of the same in the register they would be identified by the Government.
The public servant responsible for forwarding the information, which it fails to incur grounds for misconduct.
6.3. The challenge of registration in the National Register of Bidders (RUP). Following the verification that paragraph 6.1 of this article referred to the House will publish the registration act, against which any person may appeal for reinstatement to the respective Chamber of Commerce, during the ten (10) business days following the publication, without for it required to demonstrate any interest. In order for the challenge to be admissible should be given bank or insurance company surety to guarantee any damages that may cause the enrollee. The decision to resolve the internal appeal, appeal will not proceed.
In signing the registration, any person may sue developing its nullity action under the Administrative Code. For the effect will be competent Judge of Administrative in a single instance.
The filing of the complaint shall not suspend the registration, nor shall be grounds for suspension of ongoing selection process in which the proponent is a party. The process will be dealt with by the ordinary referred to the Administrative Code procedure. Following a decision, it shall take effect in the future only.
When developing a process of selecting a state entity notice the existence of possible irregularities in the information content of the ORs, which may affect compliance with the requirements of the proposer in the process in question, suspend the selection process and challenge to the Chamber of Commerce registration, for which they are not required to provide any security. For processing and adoption of the decision Chambers of Commerce have a period of twenty (20) days. A decision in the previous term had not been adopted, the organization will resume the selection process according to the information registered in the ORs.
In the event that the Chamber of Commerce established the existence of serious inconsistencies will cancel the registration being in this case disqualified from contracting with state entities for a period of five (5) years, subject to criminal proceedings a place there. In case of recidivism disability is permanent. Effective Jurisprudence

The same penalties provided in the preceding paragraph will be preached in the event that the Judge of Administrative Litigation declare void the act of registration.
The information contained in the register is public and its consultation is free.

PARÁGRAFO 1. To participate in the selection process works contracts, the residual capacity of the proposer or hiring K must be equal to or greater than the institution has established for this purpose in the specifications || | to set the residual capacity of the proposer or K contracting should consider all contracts that have implemented the proponent when submitting the offer. The development and execution of the contract may result in values ​​that are deemed canceled the contractor to establish the actual recruitment K, at every opportunity. The National Government will regulate the matter. Editor's Notes

Paragraph 2. The regulations specify the conditions of verification of the information paragraph 1 of Article 5 refers, in charge of each contracting entity, in the case of foreign individuals not domiciled in the country or legal persons who have not established foreign branch in Colombia.
The regulations indicate exhaustively the documents subject to verification that clause 1, Article 6
PARAGRAPH 3. The Government shall fix the amount of fees to be incurred for the cameras concerns trading in respect of registration and for renewal, modification and updating, and certifications as may be solicited in connection therewith. To this end, the Government should take into account the cost incurred by the chambers of commerce for the operation of registration, issuing certificates, and challenge procedures.

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ARTICLE 7. WARRANTIES IN HIRING. The contractor shall provide only guarantee compliance with the obligations arising from the contract. Proponents will provide guarantee of seriousness of the offers made.
The guarantees consist issued by insurance companies legally authorized to operate in Colombia, in bank guarantees and generally in other hedging mechanisms authorized by the regulations to the effect risk policies. In the case of policies, they do not expire for nonpayment of premium or by unilateral revocation. The national government will indicate the general conditions that must be included in the policies of compliance with state contracts.
The National Government will indicate the criteria entities for collateral requirements, the kinds and levels of risks under contracts, as well as cases where the characteristics and complexity of the contract to celebrate, warranty it can be divided taking into account the stages or risks related to the execution of the respective contract.
The occurrence of the loss that protect the guarantees will be communicated by the respective public entity to the insurer by notification of the administrative act so declare.
Guarantees shall not be binding on the borrowing, in interadministrativos in the insurance and contracts whose value is less than 10% of the minor to this Law, in which case it will be up to the entity to determine the need to require it, given the nature of the object of the contract and payment, as well as others specified in the regulations.
PARÁGRAFO TRANSIENT. During the period between the effective date of the amendment contained in this law and the issue of regulatory referred to in this article to decree, state agencies continue to implement applicable legislation and regulations in force.

Article 8. PUBLICATION OF DRAFT specifications, AND PREVIOUS STUDIES. In order to provide the public the information that allows your content to comment, entities shall publish draft specifications or their equivalent, under the conditions specified in the regulations. The published information must be accurate, responsible, fair, adequate and timely.
The publication of draft specifications or equivalent generates no obligation for the entity to open the selection process.
Along with the draft specifications previous studies and documents which formed the basis for development will be published.
Entities shall publish the reasons are welcome or reject the comments to draft specifications.


Article 9. THE AWARD. In the event referred to in Article 273 of the Constitution and generally in public bidding processes, the award shall be made a mandatory public hearing, by reasoned resolution, which means notified to the bidder favored at that hearing. Effective Jurisprudence

During the same hearing, and prior to the adoption of the final award decision, interested parties may comment on the response given by the contracting entity to the comments submitted regarding the evaluation reports.
The awarding act is irrevocable and obliges the entity and the successful bidder. Notwithstanding the foregoing, if within the period between contract award and signing the same period, comes an inability or incompatibility or if it is proved that the act was obtained by illegal means, this may be revoked, in which case, the entity may apply the provisions of the final paragraph of paragraph 12 of Article 30 of Law 80 of 1993.
Without prejudice to the powers that Article 18 of Law 80 of 1993 is concerned, in those cases where the entity declare the expiration of the contract and is pending execution a percentage equal to or greater than fifty percent (50%) of the same, with the exception of concession contracts, you can hire the qualified in second place bidder in the process respective selection, following a review of the conditions that may apply.

ARTICLE 10. TREATMENT FOR cooperatives and associations TERRITORIAL ENTITIES. Cooperatives, associations formed by local authorities and the general public solidarity character entities shall be subject to the provisions of General Contracting of the Public Administration. Holding contracts with state entities associations or cooperatives and local authorities generally supportive entities, will be submitted to the selection process that treats this law, which will participate on an equal footing with individuals.

ARTICLE 11 DEADLINE FOR SETTLEMENT OF CONTRACTS. The settlement of the contracts will be made by mutual agreement within the period fixed in the contract documents or their equivalents, or within the agreed by the parties for the purpose. In the absence of such term, the settlement will be made within four (4) months following the expiry of the term provided for the execution of the contract or the issuance of an administrative act ordering the termination or the date of the agreement that available.

In cases where the contractor is not presented to the liquidation notice or summons that will make the entity, or the parties do not reach an agreement on its content, the entity will have the power to unilaterally liquidate within the following two (2) months, in accordance with Article 136 of the CCA

If the deadline previously set was not completed the liquidation, the same can be performed at any time within two years following the expiration of the term referred to the preceding paragraphs, by mutual agreement or unilaterally, without prejudice as provided in Article 136 of the CCA
contractors have the right to make exceptions to the settlement by mutual agreement, and in this event the unilateral liquidation proceed only in relation to aspects that have not been agreed.
ARTICLE 12. PROMOTION IN PUBLIC PROCUREMENT DEVELOPMENT. In accordance with Articles 13, 333 and 334 of the Constitution, the Government shall define the conditions and amounts according to existing international commitments, for developing selection processes, state entities adopt in benefit of MSMEs, limited to those in which, prior to the opening of the respective resolution process, has expressed interest in the plural number of MSMEs which has been determined in the regulations calls.
regulations may also provide for preferential conditions for the supply of goods and services produced by MSMEs, respecting the amounts and conditions contained in existing international commitments.
In any case, it should guarantee the satisfaction of the technical and economic conditions required in the recruitment and selection according done with the modalities of selection to the General Contracting Code of the Public Administration is concerned.

Similarly, in the specifications state agencies, provide either of mechanisms to promote the execution of state contracts the provision of goods and services by people living in extreme poverty, displaced by violence, people undergoing reintegration and, subject to special constitutional protection under the conditions specified in the regulations; provided that the conditions of quality and compliance of the contractual object is guaranteed. PARAGRAPH 1.
. In the selection process to be developed based on the first paragraph, entities may make limited calls that benefit MSMEs the municipal level or for the execution of the contract department. PARAGRAPH 2.
. Without prejudice to the provisions of Articles 5 and 6 of Law 1150 of 2007 for MSMEs to participate in the calls to which this article refers, must prove at least one year of existence, for which they must present the certificate issued by the chamber of commerce or the authority competent for such accreditation. PARAGRAPH 3.
. In the execution of the contracts which this article refers to, entities and contractors shall observe the provisions of Articles 90 to 95 of Law 418 of 1997 and the rules that modify, add or subrogated. Effective Notes

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ARTICLE 13. GENERAL PRINCIPLES OF CONTRACTUAL ACTIVITY FOR THE STATUTE ENTITIES NOT SUBJECT GENERAL RECRUITMENT OF PUBLIC ADMINISTRATION. State entities that by law have an outstanding contractual regime of General Contracting Public Administration, apply in developing its contractual activity, according to its special legal regime, the principles of administrative functions and fiscal management of dealing articles 209 and 267 of the Constitution, respectively as appropriate and shall be subject to the regime of disabilities and incompatibilities prescribed by law for government procurement.

ARTICLE 14. CONTRACTUAL REGIME OF FIRMS AND TRADE OF THE STATE, THE MIXED ECONOMY COMPANY, ITS SUBSIDIARIES AND COMPANIES WITH STATE MAJORITY SHARE. The Industrial and Commercial State, Societies of Mixed Economy in which the State has interest greater than fifty percent (50%), its subsidiaries and partnerships between public entities majority owned higher state than fifty percent (50 %), shall be subject to the General Contracting public Administration, except those engaged in commercial activities in competition with the public, national or international or markets private sector and / or regulated, in which case they are governed by the legal provisions and regulations applicable to their economic and commercial activities, subject to the provisions of Article 13 of this law. contracts science and technology, by Law 29 of 1990 and the existing regulatory provisions governing excepted. Effective Notes


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ARTICLE 15 OF CONTRACTUAL REGIME OF STATE FINANCIAL INSTITUTIONS. The 1st paragraph of Article 32 of Law 80 of 1993 shall read as follows:
"Article 32.
" Paragraph 1o. Contracts entered Credit institutions, insurance companies and other financial institutions at the state, not subject to the provisions of General Contracting of the Public Administration and governed by the laws and regulations applicable to such activities .
In any case, his contractual activity is subject to the provisions of Article 13 of this Law. "

ARTICLE 16. INSTITUTIONS IN THE DEFENSE SECTOR EXCEPTED. Contracts entered Satena, Indumil, Hotel Tequendama, the Science and Technology Corporation for the development of the naval, maritime and fluvial industry and the Corporation -Cotecmar- Colombian Aeronautics Industry -CIAC- not subject to the provisions General Contracting of Public Administration and shall be governed by the laws and regulations applicable to its business arrangements.
In any case its contractual activity is subject to the provisions of Article 13 of this Law. Effective Jurisprudence


ARTICLE 17. THE RIGHT TO DUE PROCESS. Due process will be a guiding principle in matters of contractual punitive actions.
In furtherance of the above and the duty of supervising and monitoring contracts corresponding to the entities subject to the General Contracting Code of the Public Administration will have the power to impose fines which have been agreed in order to admonish the contractor to comply with its obligations. This decision must be preceded by hearing that affected must have a minimum procedure that guarantees the right to due process and proceeds contractor only as the fulfillment of obligations by the contractor is pending. It also may declare failure in order to enforce the pecuniary penalty clause in the contract.
PARÁGRAFO. The penalty clause and fines thus imposed shall be paid directly by state entities, can go to the effect, among others, compensation mechanisms of sums due to the contractor, collection of collateral, or any other means to obtain payment including the compulsory jurisdiction.
PARÁGRAFO TRANSIENT. The powers provided for in this Article shall be allocated with respect to the terms of fines or pecuniary penalty clause agreed in contracts concluded prior to the issuance of this law and in that autonomy of the parties had foreseen competition state entities to impose and enforce them.

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ARTICLE 18 OF DISABILITIES FOR HIRE. Adiciónese a literal j) to paragraph 1 and a paragraph to the 1st paragraph of article 8 of Law 80 of 1993, as follows:
"Article 8..
J) Individuals who have been declared legally responsible for committing crimes of embezzlement, extortion, bribery, malfeasance in all its forms and transnational bribery, as well as their counterparts in other jurisdictions. This inability will be extended to companies that are members of such persons, other than open corporations ". Effective Jurisprudence

In the grounds of disability by blood or marriage, the links disappear by death or dissolution of marriage.

ARTICLE 19. THE RIGHT TO TURN. Article 4 of Law 80 of 1993, Section 10 will read as follows.
"Article 4o.
. "10 They respect the order of presentation of payments by contractors. Only for reasons of public interest, the head of the entity may amend the order by recording such action.
For this purpose, entities must keep track of submission by the contractors, the documents required to make the payments under contracts, so that they can verify strict respect for the right turn. This register shall be public.
The provisions of this paragraph shall not apply with respect to those payments whose supports have been presented in an incomplete or are pending compliance with requirements of the contract are derived ".

ARTICLE 20 OF ENGAGEMENT WITH INTERNATIONAL ORGANIZATIONS. Contracts or funded in whole or in amounts equal to or greater than fifty percent agreements (50%) with funding from agencies cooperation, assistance or international aid, may be subject to the regulations of such entities. Otherwise, they are subject to the procedures established in Law 80 of 1993. Counterpart resources related to these transactions may have the same treatment.
The contracts or agreements with foreign entities under public law or bodies of international law whose purpose is the development of programs of promotion, prevention and health care; contracts and agreements necessary for the operation of the ILO; contracts and agreements carried out in developing the integrated system monitoring illicit crops; contracts and agreements for the operation of the World Food Programme; contracts and agreements for the development of educational support programs for displaced and vulnerable populations developed by UNESCO and IOM; contracts or agreements financed from multilateral credit organizations and foreign government agencies, may be subject to the regulations of such entities.
State entities may not enter into contracts or agreements for the administration or management of their own resources or those assigned to them by public budgets, cooperation agencies, assistance or international aid.
. The contracts or agreements with foreign entities under public law, may be subject to the rules of such bodies. PARAGRAPH 2.
. State agencies will be required to report the information to the control bodies and Secop on the implementation of the contracts to which this Article. PARAGRAPH 3.
. In any cooperation project involving state resources must be quantified in national currency, the contributions in kind of the entity, organization or person cooperating as well as the Colombian national entity. The comptroller exercise fiscal control on projects and contracts made with multilateral agencies.

ARTICLE 21 OF THE DELEGATION AND DEVOLUTION TO HIRE. Article 12 of Law 80 of 1993, will have a 2nd paragraph and paragraph as follows:
In any case, heads and representatives of state legal entities will be exempted by virtue of the delegation of duties control and monitoring of the pre-contractual and contractual activity. Effective Jurisprudence

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PARÁGRAFO. For the purposes of this Act, the term deconcentration proper distribution of work that the head or legal representative of the entity, without incurring administrative autonomy in the exercise. Consequently, against the activities carried out under the administrative decentralization will not proceed any resources. " Effective Jurisprudence

ARTICLE 22 OF annulment of arbitration awards. Effective Notes

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ARTICLE 23. CONTRIBUTIONS TO SOCIAL SECURITY SYSTEM. The second paragraph and the 1st paragraph of Article 41 of Law 80 shall read as follows:
"Article 41.
For implementation will require the approval of the security and existence of the corresponding, except budgetary availabilities concerned contracting with resources for future fiscal years in accordance with the provisions of the organic law of the budget. The proponent and the contractor must certify that they are up to date in payment of payroll taxes relating to the Comprehensive Social Security System and own the Seine, ICBF and Family Compensation, where applicable. PARAGRAPH 1.
. The requirement in the final part of the second paragraph of this article must be substantiated for each payment derived from the state contract.
The public servant without just cause not verify the payment of contributions which this article refers to incur grounds for misconduct, which shall be punished under the current disciplinary regime.

ARTICLE 24 OF CONTRACTUAL REGIME REGIONAL AUTONOMOUS CORPORATIONS. Hiring Autonomous Regional Corporations including the Regional Autonomous Corporation of Rio Grande de la Magdalena, it will be submitted to the General Contracting Public Administration contained in Law 80 of 1993 and other rules that modify, repeal or add.

ARTICLE 25. INVESTMENT IN COMMON ORDINARY FUNDS. The 4th paragraph of paragraph 5 of Article 32 of Law 80 of 1993 shall read as follows:
"Article 32. state contracts.
Selection hiring trust companies, whether public or private, be made with strict observance of the procurement procedure or contest provided for in this law. However, the cash surpluses of state entities may invest directly in ordinary mutual funds managed by trust companies, without resorting to a public bidding process.


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ARTICLE 27 OF THE EXTENSION OF CONCESSIONS CONTRACTS FOR THE PROVISION OF TELECOMMUNICATION SERVICES AND TELEVISION. The duration of current and future concessions for the provision of telecommunications services and activities, including television, will be ten (10) years renewable for equal periods. In any case there will be automatic or free extensions.

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ARTICLE 29 ELEMENTS THAT MUST BE MET IN THE STATE OF PUBLIC LIGHTING CONTRACTS. All contracts in municipalities or districts delivered to grant the provision of street lighting to third parties, they must be subject in everything to Law 80 of 1993, contain the guarantees required therein, include the clause reversal of the entire infrastructure administered built or modernized, making mandatory the modernization of the system, incorporated into the financial model and contain the corresponding period in keeping with the financial model. Also, they have a suitable interventoría. contract operation, management, modernization, and maintenance of that is clearly differentiated through which electricity is purchased intended for the public lighting, as this is governed by the Laws 142 and 143 of 1994. The Creg regulate the contract and the cost of billing and collection service together with the power of the contribution created by Law 97 of 1913 and 84 of 1915 bound for the financing of this special service inherent energy. The effect on the date of this law, contracts must comply with the provisions here. Effective Jurisprudence


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transitional regime. Recruitment processes underway at the date on which this law into force, remain subject to the rules in force at the time of initiation. Contracts or agreements Article 20 of this law that are running at the time of its entry into force, continue to be governed by the rules in effect at the time of its conclusion until settlement, without it being possible to add them or extend them concerns .

ARTICLE 32. REPEAL. From the effective date of this law, the following articles are repealed Act 80 of 1993: Paragraph of Article 2; the expression "in addition to obtaining utilities whose protection guaranteed by the State" in the second paragraph of Article 3; the 4th paragraph of Article 13, Article 22; paragraph 1 and the 1st paragraph of Article 24; the clause 2 of paragraph 15, the numeral 19 and the expression "the requirement of the designs shall not apply when the object of the procurement is the construction or manufacturing designs proponents" in subparagraph second paragraph 12 of Article 25, Article 29, paragraph 11 of Article 30, Article 36, paragraph of Article 39 and paragraph 1o of Article 60, with the exception of "the successive contracts, those whose performance or compliance may be long in time and others require it be liquidated "Article 61 and the terms" competition "and" terms of reference "included throughout the text of Law 80 of 1993, and the expression:" When the subject of the contract consists of studies or technical, intellectual or specialized jobs, the selection process will be called tender and also effected by public invitation ".
The following provisions shall also repealed: The 2nd paragraph of Article 50 of Law 789 of 2002, as amended by article 1 of Law 828 of 2003, Article 66 of Law 454 of 1998, paragraph d) of Article 27 of law 99 of 1993 and Article 19 of law 161 of 1994 also were invalidated the provisions of Decree 1900 of 1990 and law 182 of 1995 that run counter to the provisions of this law.
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ARTICLE 33. EFFECTIVE DATE. This law shall come into force six (6) months after its promulgation, with the exception of Article 6 which shall enter into force eighteen (18) months after its promulgation. PARAGRAPH 1.
. Pending the entry into force of Article 6 of this law entities may verify the information of the proponents that paragraph 1 of article 5 of this law refers to. PARAGRAPH 2.
. The Articles 9 and 17 come into effect once this law is enacted.
The President of the honorable Senate,
TORRES Dilian Francisca Toro.
The Secretary General of the honorable Senate,
The President of the honorable Chamber of Representatives, APE CUELLO ALFREDO
The Secretary General of the honorable House of Representatives, ANGELINO
Published and execute.
Given in Bogotá, DC, on July 16, 2007.

Alvaro Uribe Minister of Interior and Justice Carlos Holguín Sardi
The Minister of Finance and Public Credit, Óscar Iván Zuluaga
The Director of the National Planning Department,


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