This review of public procurement in Nuevo León is the first OECD Public Procurement Review conducted at the subnational level in any OECD country or non-member economy. This review thoroughly describes the role public procurement can play in enhancing good governance and public administration at the subnational level. This is important, because, on average, two-thirds of OECD spending related to public procurement occurs at this level.
Nuevo León is one of the most important federal states in Mexico. Highly industrialised, it is located in the northeast part of the country. The current administration of the State Government of Nuevo León (SGNL), elected for the 2015-2021 term, is reorganising the structure of the government. Importantly, the administration is working to centralise the procurement of goods and services under the Secretariat of Administration (Secretaría de Administración, SA). Changes to the procurement legislation in 2013 and the reorganisation of state secretariats in 2016 expanded the role of the central purchasing body in Nuevo León.
The administration could reap significant benefits by creating a strong procurement structure that would allow both for more consolidation and the uptake of framework agreements. This would significantly improve and simplify common purchases. In terms of further improving efficiency and effectiveness, the SGNL faces several challenges. First, it needs to establish an electronic procurement system. Second, it needs to determine how the SA will exercise its role and be empowered as a leading force within the public procurement system. The OECD policy recommendations underline the importance of the SGNL’s ability to advance to the next stage, while proposing concrete avenues for implementation.