Download the article here: Law No. 47-25 on Public Procurement
On July 28, 2025, the Executive Branch enacted Law No. 47-25 on Public Procurement (hereinafter, “Law 47-25”), repealing and replacing Law No. 340-06 on Public Procurement, as well as its implementing regulations contained in Decree No. 416-23. This is a comprehensive structural reform that redesigns the National Public Procurement and Contracting System (SNCCP) in the Dominican Republic.
The new law responds to multiple factors:
- the need to strengthen the transparency and traceability of procurement processes;
- alignment with international standards in governance and the fight against corruption;
- and leveraging the State’s purchasing power as an instrument of public policy, aimed at promoting sustainability, economic development, and social inclusion.
- The most relevant aspects of the reform are highlighted below, as well as the legal and practical implications arising from its implementation.
- Expansion of the Scope of Application and New Exclusions
One of the main new features of Law 47-25 is the expansion of its institutional scope. Unlike Law 340-06, which was limited primarily to central public administration entities, the new regulation extends its application to:
- the Legislative and Judicial Branches in their administrative functions;
autonomous constitutional bodies; - public trusts;
- state-owned enterprises with a public stake exceeding 50%; and
- public corporations that manage public funds.
In contrast, the law more precisely defines the exclusions. Exceptions include, among others:
- contracts between States;
- the sale or lease of State assets;
- acquisitions in contexts of health emergencies;
- INESPRE operations;
- the contracting of non-profit associations and political parties.
However, the regulation reaffirms that, although public credit operations are governed by their own special legislation, contracts financed with such resources are subject to Law 47-25. Likewise, regarding Public-Private Partnerships (PPPs), it expressly refers to Law No. 47-20, reinforcing the conceptual separation from the concession regime.
2. Guiding Principles and Institutional Strengthening
Law 47-25 expands the catalog of guiding principles, increasing from nine in the previous legislation to twenty-one. Among the most relevant are: impartiality, inclusion, legality, sustainability, planning, administrative simplification, promotion of national production, and administrative due process.
This new axiological framework transforms public procurement into a process normatively guided by substantive values, beyond mere procedural observance.
At the same time, the role of the General Directorate of Public Procurement (DGCP) as the governing body is strengthened. The DGCP is granted unequivocal powers to regulate, resolve administrative appeals, impose sanctions, suspend procedures, and administer the SECP (Electronic Public Procurement System). This institutional reinforcement consolidates the DGCP as a centralized authority, with regulatory, supervisory, and disciplinary powers.
3. Modernization of Procedures
The new regulations reorganize ordinary procedures, maintaining traditional modalities (national and international public bidding, works draw, simplified contracting, minor contracting, and direct contracting), but introduce modern and more flexible mechanisms:
- Framework agreements: agreements with suppliers for standardized goods and services, with predefined conditions and prices.
- Abbreviated public bidding processes, with reduced deadlines.
- Joint procurement between several entities.
- Innovation partnerships, focused on research projects and innovative solutions.
- Performance-based contracting, which links payment to performance indicators.
- Likewise, the Virtual Store, managed by the DGCP, is created as an electronic platform to centralize and make small-scale purchases transparent.
Regarding exceptional procedures, the law introduces a more rigorous and controlled catalog. Emergency and national security processes will require a presidential decree, covering natural disasters, health emergencies, shortages, and public service interruptions. Other exceptions remain, such as exclusivity, urgency, partial termination of contracts, acquisitions under favorable conditions, contracting of universities, or specialized legal services.
4. Transparency, Technology, and Professionalization
One of the pillars of Law 47-25 is the mandatory use of the SECP, which ensures that all phases of the processes are traceable, auditable, and accessible in real time. Digitization is complemented by the implementation of systems for
Prevention, monitoring, and compliance, including the appointment of compliance officers by the DGCP.
At the same time, mandatory professionalization of public procurement committees and units is established, with ongoing training programs aimed at improving technical quality and ethics in procurement management.
5. Sanctioning Regime and Criminal Liability
The new law introduces a comprehensive sanctioning regime, combining administrative, disciplinary, and criminal sanctions.
In the case of public officials, the following offenses are considered: unjustified delays in payments, awarding contracts to disqualified suppliers, obstructing access to files, or awarding contracts despite a suspension issued by the DGCP.
Sanctions include immediate disqualification, prison sentences of 2 to 5 years, and fines of 20 to 50 minimum wages.
For state suppliers, crimes such as bribery (penalties of 4 to 10 years and proportional fines) and collusion (2 to 5 years) are classified as such.
A particularly significant development is the criminal liability of legal entities in public procurement matters.
Companies may be sanctioned when crimes are committed for their benefit by directors or representatives, in the absence of adequate internal controls. Sanctions include fines of 500 to 5,000 minimum wages, as well as the permanent closure of establishments.
6. Social inclusion, sustainability, and economic development
Law 47-25 transforms public procurement into an instrument of social and economic policy. The quota reserved for MSMEs is increased from 20% to 30%, with the addition that 10% must be allocated to companies led by women.
These measures are accompanied by incentives such as:
- 30% advance payments upon signing the contract; Relaxation of tax requirements (six-month period for regularization);
- Reduction of required guarantees.
7. Transitional Regime and Entry into Force
The law grants the Executive Branch 120 days to issue its implementing regulations and establishes a 180-day deadline for their entry into force, so they will enter into force on January 24, 2026.
Procurement procedures initiated before that date will continue to be regulated by Law 340-06 until their conclusion, which establishes a dual transitional regime that will require special attention from contracting entities and bidders.
Law No. 47-25 marks a milestone in the evolution of Dominican administrative law and the management of public resources. It does not limit itself to perfecting procedural techniques: it transforms procurement into a strategic tool for national development, combining regulatory rigor, technological innovation, social inclusion, and sustainability.
The legal community must now support this process, analyzing its implications at the constitutional, administrative, criminal, and corporate levels. The real challenge will lie in its practical implementation: training, institutional strengthening, and ethical commitment from all stakeholders.
Ultimately, Law 47-25 not only redefines the rules of the game regarding public procurement, but also inaugurates a new era in the relationship between the State, suppliers, and citizens, in which trust, transparency, and sustainable development take center stage.
Public procurement is no longer just an administrative process: it has become a strategic instrument for the country’s development.
