Unprecedented nullification of the biannual public tender formedicine procurement.

April 25, 2025

Following up on our March newsletter No. 5, on April 8, 2025, the Ministry for AntiCorruption and Good Government declared the nullity of the entire public tender for
the 2025–2026 consolidated procurement of medicines, coordinated by BIRMEX,
and ordered the procedure to be restarted based on a new market investigation.

The resolution declaring nullity was based on irregularities detected by the Ministry,
mainly due to breaches of the tender terms and formal errors during the process,
including:

• Inconsistencies in the minimum bid percentages established in the call and
  its annexes.
• Improper fiscal and technical requirements imposed on participants.
• Irregularities related to requirements involving exclusive rights or patents.

Additionally, the same resolution highlights that:

• All previously issued supply orders will be honored, as well as requests for
  purchase orders.
• The rights of awarded companies will be respected, and institutions must
  pay for all products that have been delivered and accepted.
• In cases where no overpricing was identified, a new direct award will be
  given to the previously selected supplier.
• In cases involving pricing irregularities, a new bidding process will be carried
  out to determine a new awardee.
• Current contracts will be terminated early to allow for the new procedure.
  However, until such termination occurs, contracts must be fulfilled to avoid
  penalties.
• Awards made by direct assignment were not affected by this resolution.

The decision does not identify or sanction any specific company, nor does it affect
their right to participate in future tenders. However, sanctions against government
officials or companies cannot be ruled out in the future.

Companies that consider themselves affected may challenge the resolution.
However, as this is a general measure that impacts all awarded companies equally,
legal challenges are considered unlikely to succeed.

At OLIVARES, we are closely monitoring this development and remain available to
assist our clients in preparing for the new process, evaluating whether to challenge
the resolution, and ensuring regulatory compliance in an increasingly rigorous
environment.