Direct Procurement
Designed a prior notice system as part of Chile's Public Procurement Law implementation to reduce discretionary direct contracting. The module enables competing vendors to challenge sole-source justifications and request alternative acquisition procedures for contracts over 1,000 UTM.
Challenge
Buyers had full discretion to declare unique suppliers without validation. No mechanism existed for vendors offering equivalent goods/services to participate, and no public visibility into the volume of direct contracts.
Process
Conducted moderated usability testing with 7 public institutions that regularly procure via direct contracts over 1,000 UTM. Achieved 5.3/7 satisfaction score. Users recognized the prior notice procedure positively enhanced system transparency.
Blueprint
Below you can see some of the design proposals that were implemented for this project.
Solution delivered
- New workflow within Mercado Público to create direct contracts with mandatory justification
- Visual identification system for purchase orders flagging sole-source procurement
- 5-day public notice period allowing vendor challenges
Impact
Following implementation, direct procurement decreased 23% in 2025 (from US$2.99B to US$2.37B), with a 40% reduction in direct contract purchase orders. Featured in La Tercera coverage of procurement reform results
23%
Direct procurement decreased
From US$2.99B to US$2.37B, with a 40%
reduction in direct contract purchase orders.