Public procurement system market study

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Our application is related to a market study on the public procurement system of Chile. It is the first was the first of its nature in Chile to analyze the public procurement system from a competitive lens, including not only how it was working but whether the rules were in itself pro-competitive or not. Our main conclusion is that even though Chile has a good public procurement system, where all transactions are recorded centrally, there is plenty to perfect to make it a more competitive and efficient system. A preliminary draft of this study was published on the 25th of August of 2020, and on the next day the Minister of Finance announced a legal reform to amend the public procurement system taking as a guide the FNE´s market study. This bill was introduced to Congress on March 30th, 2021 and in fact considers most of the FNE´s proposals. Furthermore, ChileCompra implemented some of the recommendations that did not require a law in a recent bidding process for a software framework agreement. They made a competitive first stage process where only one provider was selected, and the result was quite impressive and they secured, for example, a 65% discount in Microsoft Office when compared to the previous framework agreement.