The Organic Law on Public Integrity (LOIP), published on June 26, 2025, in the Official Register, introduced a robust package of reforms to various legal frameworks, including the Organic Law of the National Public Procurement System (LOSNCP). The central aim of these reforms is to strengthen transparency, institutional ethics, preventive oversight, and the fight against corruption in the use of public resources. Below are the main regulatory changes introduced, along with a detailed explanation of each:
1. Strengthening of the Unified Supplier Registry (RUP)
The amended Article 18 of the Organic Law of the National Public Procurement System (LOSNCP) establishes that any natural or legal person wishing to contract with the State must be registered in the Unified Supplier Registry (RUP). This registration is mandatory and subject to fees and contributions determined by SERCOP, based on a progressive and differentiated system that takes into account the size and nature of the supplier. However, actors from the popular and solidarity economy, microenterprises, and small-scale family farmers are exempt from these fees. Registration fees are non-refundable, and SERCOP is authorized to verify the information submitted by applicants through interoperability with other state entities.
Additionally, numeral 4 of Article 19 introduces a new ground for automatic suspension from the RUP: failure to comply with tax, labor, or formal obligations with entities such as the Internal Revenue Service (SRI), the Ecuadorian Social Security Institute (IESS), or Superintendencies — or any other entity with coercive enforcement authority. This suspension is triggered without the need for a judicial ruling and immediately restricts the supplier’s participation in public procurement processes.
2. Mandatory Use of the Public Procurement Portal
The mandatory use of digital traceability and the publication of all stages of the process is imposed, including those carried out under special regimes. The principle of open data will govern information management, allowing real-time digital auditing and citizen oversight.
3. Mandatory Certification for Public Officials
The obligation for public officials involved in public procurement processes to obtain certification issued by SERCOP is reinforced. This certification will include technical evaluations, biometric authentication, and electronic monitoring to ensure competence, integrity, and ethical compliance by public operators.
4. New Functions of SERCOP and Use of Institutional Intelligence
SERCOP takes on a more strategic role through the implementation of artificial intelligence tools, predictive analytics, and automated early warning systems to prevent fraud or irregularities in bidding or contract awarding processes. It will also be able to monitor compliance with ethical and transparency standards in real time. Additionally, SERCOP is expressly prohibited from issuing secondary regulations with regulatory force, limiting its normative role to technical manuals and operational models.
5. Redefinition of Procurement Modalities
Several key procurement modalities are redefined. “Minor amount” processes are limited to a maximum of US$10,000 per contract, and mechanisms are established to prevent artificial splitting and the circumvention of procurement procedures. The “Inclusive Fair” is reserved for actors in the popular and solidarity economy, promoting local public purchasing. Likewise, the use of the Electronic Catalog remains mandatory, unless a technical and economic justification is approved by SERCOP.
SERCOP may establish the procedure to follow in cases where registered suppliers are found to lack actual production capacity, and may determine possible sanctions or disqualification from the RUP.
6. Transparency and Competition in Special Procurement Regimes.
As a general rule, procurements under special regimes must now also be published on the Public Procurement Portal and adhere to the principle of competition, except for those expressly exempted by the Law or its Regulations.
7. New Principles and Objectives of the System
New principles are incorporated, such as integrity, sustainability, simplification, and “best value for money,” which involves evaluating not only price but also the quality, sustainability, innovation, and social benefits of the goods and services offered. Additionally, the system now includes objectives such as the prevention of money laundering, the fight against corruption and organized crime, and institutional strengthening.
8. Inter-Institutional Oversight and Automatic Debt Compensation
The law includes the authority to coordinate actions among the Office of the Comptroller General, the Attorney General’s Office, the Financial and Economic Analysis Unit (UAFE), and the Superintendencies. Additionally, before settling any public contract, entities must verify whether the contractor has outstanding debts with the Comptroller. If such debts exist, the amount may be automatically withheld and transferred to the State, thereby offsetting the obligation.
9. Regulation of International Procurement and Public Health
A significant reform is introduced to numeral 1 of Article 2 of the LOSNCP, relating to special procurement regimes. Through this amendment, health sector entities — including public social security institutions — may prioritize the acquisition of medicines and strategic goods through international organizations, provided that three essential conditions are met: optimization of public spending, assurance of quality, and the safety and efficacy of the goods acquired.
In addition, the General Regulations of the LOSNCP are now required to incorporate mechanisms for corporate purchasing, allowing various public entities to acquire medicines and related services through joint, competitive, and transparent processes. These mechanisms may result in virtual lists enabled for direct purchasing, the use of which will be mandatory for entities participating in corporate procurement.
This reform aims to address the historical shortcomings of the healthcare system in the supply of medicines, combat corruption in sensitive public procurement processes, and simultaneously standardize quality and reduce costs.
Other Relevant Reforms Identified
- Creation of an Anti-Money Laundering and Anti-Corruption Unit within SERCOP, with the authority to alert the UAFE and the Attorney General’s Office.
- Inclusion of ethical requirements and a mandatory declaration of conflicts of interest in public procurement.
- Elimination of mandatory membership in chambers of production or professional associations as a condition for contracting.
Entry into Force
The reforms entered into force upon the publication of the LOIP in the Official Register on June 26, 2026. The transitional provisions grant SERCOP specific timeframes to implement adjustments to the Electronic Catalog, operator certification, and system reorganization. Likewise, the Executive Branch must develop a new Regulation or amend the existing one to ensure proper implementation of the new reforms.