Public Service Contract Management and Supply Agreements

Posted on Jan 29, 2025 in Law & Jurisprudence

Contract Management Services

Contract management services encompass all service contracts aimed at managing a public service.

Management Concerned: The employer manages the service at their own risk.
Concert with Natural or Legal Person: The employer shares the service with the Administration, participating in the proportion fixed in the contract.
Incorporation of Mixed Economy: When the administration, or a public entity, competes with natural or legal persons.

The award will be by open, restricted (through competitions), or negotiated procedure.

Service contracts may be terminated by compliance or by resolution of contract.

After the contract period, the service reverts to the government. The contractor must deliver the works and installations as per the contract.

Typical reasons for resolution include:

Administration’s delay in delivering purchases or aids.
Rescue of service by the Administration for public interest reasons.
Suppression of the service for public reasons.
Impossibility of operating the service due to management decisions after the contract.

Supply contracts target the purchase, lease, or acquisition of goods considered movable.

Supply contracts include:

Those where the employer provides a plurality of goods sequentially at a unit price, without a precise definition of the total amount or duration.
The purchase and lease of computer equipment and systems for information processing (excluding software, which is a service contract).
Workmanship where the goods to be delivered must be prepared according to specific characteristics established by the Administration, even if the employer provides the materials.

Adjudication is done by open and restricted procedures (auction or tender).

Supply contracts may be terminated by compliance or by resolution of contract.

After the delivery of supplies under the contract.

Typical reasons for resolution include:

Suspension of supply commencement for over 6 months from the contract’s delivery date.
Suspension of supply for over one year by agreement with management.
Modifications involving changes to the contract price exceeding 20% or representing a substantial change in the provision.