Quick Reversal of Contract Cancellation Decision by Legal Directorate
The Legal Directorate initially called for the cancellation of a contract, only to reverse its decision shortly after. The Costa Rican Institute of Aqueducts and Sewers (AyA) appeared to hastily award a contract without proper competition, raising concerns about the process.
Lack of Public Tender in AyA Advertising Contract Award
AyA should have conducted a public tender to assess which advertising agencies would offer the best deal. Instead, they relied on a one-page and one-paragraph “market study” to award the ¢2.313 million contract to Sinart.
AyA Board of Directors Approves Sinart Contract
On February 7, AyA’s Board of Directors approved the contract award to the National Radio and Television System (Sinart) for all of AyA’s media advertising and audiovisual production. The contract is set to last for four years.
New General Public Procurement Law and Healthy Competition
As of December 1, there is a new General Public Procurement Law in place that promotes healthy competition over direct contracts between State institutions. However, AyA’s records show minimal effort in considering other companies’ offers, with their market study only presenting prices from two private companies, a private firm, and Sinart, without specifying the scope of those estimates.
Limited Bids and Quick Market Study Completion
Of the five private providers invited to submit bids, only three participated. The market study was completed just 48 hours after receiving bids. The contract awarded to Sinart will cover a media advertising plan, TV and radio ads, and monitoring of social media networks.
The advertising contract awarded by AyA to Sinart raises questions about the transparency and fairness of the process. The lack of a public tender and the quick reversal of the contract cancellation decision by the Legal Directorate highlight the need for more stringent oversight and adherence to the new General Public Procurement Law, promoting healthy competition in future contracts
