Countries › Panama › Guide › 3. Investing › Selling to the Panamanian State: procedures, thresholds, bonds and bid challenges under the public procurement law (Ley 22 de 2006)

Selling to the Panamanian State: procedures, thresholds, bonds and bid challenges under the public procurement law (Ley 22 de 2006)

Last verified: 2026-10-29 · Status: Stable

Public purchases in Panama run through the PanamaCompra electronic system under Ley 22 de 2006 as consolidated in 2020, and foreign companies can bid on the same terms as Panamanian ones if they are lawfully constituted. Purchases up to B/.50,000 use the simplified contratación menor; above that the public tender is won on price, while complex contracts above B/.500,000 can use best value scoring with price weighted 40 to 49 percent. Bids above B/.500,000 need a 10 percent bid bond, nominative shares and a beneficial owner statement, and challenges go to the Public Procurement Administrative Tribunal.

Panama's currency, the balboa (B/.), is at par with the US dollar, which circulates as legal tender (Ley 84 de 1904; see fx/dollarization-and-the-balboa). USD figures therefore equal the balboa figures.

Key facts

Ceiling for the simplified contratación menor procedure	50000 USDLey 22 de 2006 (texto único) art. 57, as of 2026-10-29 · in force
Minimum amount for the best value tender (complex contracts)	500000 USDLey 22 de 2006 (texto único) art. 59, as of 2026-10-29 · in force
Bid bond for procurements with reference price above B/.500,000	10 %Ley 22 de 2006 (texto único) art. 122, as of 2026-10-29 · in force
Beneficial ownership disclosure threshold for corporate bidders above B/.500,000	10 %Ley 22 de 2006 (texto único) art. 41, as of 2026-10-29 · in force
Deadline to appeal an award to the procurement tribunal	5 business daysLey 22 de 2006 (texto único) art. 157, as of 2026-10-29 · in force
Price preference for micro and small enterprises in contratación menor	5 %Ley 22 de 2006 (texto único) art. 57, as of 2026-10-29 · in force

The rule

1. National or foreign individuals and companies may contract with the State unless disqualified, among other reasons, for being in default on contract fines or barred, being in liquidation, giving false information, being a foreign company not lawfully constituted under its own law or not meeting Panamanian rules for operating, or having certain criminal convictions in the five prior years.Texto Único de la Ley 22 de 27 de junio de 2006, ordered by Ley 153 de 2020 (Gaceta Oficial 29107-A de 7 de septiembre de 2020), art. 24, 2020-09-07 official text · verified 2026-10-29

2. Contractor selection procedures are: contratación menor, public tender (licitación pública), best value tender (licitación por mejor valor), framework agreement tender, reverse auction and auction of public assets.Texto Único de la Ley 22 de 27 de junio de 2006, ordered by Ley 153 de 2020 (Gaceta Oficial 29107-A de 7 de septiembre de 2020), art. 56, 2020-09-07 official text · verified 2026-10-29

3. Contratación menor covers goods, services or works not exceeding B/.50,000 with minimal formalities and no bid bond; purchases up to B/.10,000 use an expedited quotation procedure. Entities should prefer micro and small enterprises registered as such in PanamaCompra if they meet the requirements and their price is no more than 5 percent above the lowest bid from a non MSME.
Example: An entity buying B/.40,000 of IT equipment uses contratación menor; a qualified micro enterprise offering B/.41,500 beats a large firm offering B/.40,000, being within 5 percent. / US$40,000 purchase; US$41,500 MSME bid wins.Texto Único de la Ley 22 de 27 de junio de 2006, ordered by Ley 153 de 2020 (Gaceta Oficial 29107-A de 7 de septiembre de 2020), art. 57, 2020-09-07 official text · verified 2026-10-29

4. The public tender is used above B/.50,000 and price is the deciding factor among bids meeting the technical requirements. The best value tender is used for highly complex goods, services or works above B/.500,000: technical, economic, administrative and financial aspects are scored, price weighs no less than 40 percent and no more than 49 percent of the points, and the entity sets an overprice margin of at most 20 percent of its estimated price.Texto Único de la Ley 22 de 27 de junio de 2006, ordered by Ley 153 de 2020 (Gaceta Oficial 29107-A de 7 de septiembre de 2020), arts. 58 and 59, 2020-09-07 official text · verified 2026-10-29

5. Tender notices are published in PanamaCompra with minimum periods by amount: for goods and services, three business days (over B/.10,000 to B/.50,000), five (over B/.50,000 to B/.175,000) and thirty (over B/.175,000); for works, three, five (to B/.300,000), ten (to B/.3,000,000), fifteen (to B/.7,000,000) and thirty business days above B/.7,000,000, with shortened periods of no less than eight business days in specified cases.Texto Único de la Ley 22 de 27 de junio de 2006, ordered by Ley 153 de 2020 (Gaceta Oficial 29107-A de 7 de septiembre de 2020), arts. 47 and 48, 2020-09-07 official text · verified 2026-10-29

6. In procurements above B/.500,000, companies taking part must have all their shares issued in nominative form and file with the Dirección General de Contrataciones Públicas a sworn statement naming every individual who directly or indirectly is beneficial owner of at least 10 percent of the issued shares; consortium members that are companies must comply too.Texto Único de la Ley 22 de 27 de junio de 2006, ordered by Ley 153 de 2020 (Gaceta Oficial 29107-A de 7 de septiembre de 2020), art. 41, 2020-09-07 official text · verified 2026-10-29

7. Bidders in procurements with a reference price above B/.500,000 post a bid bond, generally of 10 percent of the bid value, valid up to 120 business days (180 for complex contracts); refusing to sign after award forfeits the bond and bars the bidder for six months, or one year where no bond was required. Contracts above B/.50,000 require a performance bond, which covers the contract period plus one year for movable goods and three years for construction defects. Advance payments may not exceed 20 percent of the contract and need a bond for 100 percent of the advance.
Cost to do it: Bid bond 10 percent of the bid above B/.500,000; for a B/.2,000,000 bid, a B/.200,000 bond (US$200,000), usually bought from an insurer or bank for a premium.
Example: B/.2,000,000 bid: B/.200,000 bid bond. / US$2,000,000 bid: US$200,000 bid bond.Texto Único de la Ley 22 de 27 de junio de 2006, ordered by Ley 153 de 2020 (Gaceta Oficial 29107-A de 7 de septiembre de 2020), arts. 122, 123 and 124, 2020-09-07 official text · verified 2026-10-29

8. Foreign individuals and companies contracting with the State must include in the contract a waiver of diplomatic claims except for denial of justice; the rule also covers companies owned or controlled by foreigners and assignments of the contract to foreigners.Texto Único de la Ley 22 de 27 de junio de 2006, ordered by Ley 153 de 2020 (Gaceta Oficial 29107-A de 7 de septiembre de 2020), art. 99, 2020-09-07 official text · verified 2026-10-29

9. Before award, interested parties and bidders may file a claim (acción de reclamo) with the Dirección General de Contrataciones Públicas against illegal or arbitrary acts in the procedure; claims against the tender documents must be filed at least one business day before bids are due in contratación menor and three or four business days before the act in tenders, depending on amount. After award, bidders may file an appeal (recurso de impugnación) with the Tribunal Administrativo de Contrataciones Públicas within five business days of notice, which suspends the award for the challenged items and requires a bond of 10 percent of the reference price for goods and services or 15 percent for works.
Cost to do it: Appeal bond 10 percent (goods and services) or 15 percent (works) of the reference price; claim bond 10 percent of the reference price where art. 126 requires it.
Example: Appealing a B/.1,000,000 works award requires a B/.150,000 bond. / US$1,000,000 works award: US$150,000 appeal bond.Texto Único de la Ley 22 de 27 de junio de 2006, ordered by Ley 153 de 2020 (Gaceta Oficial 29107-A de 7 de septiembre de 2020), arts. 125, 153 and 157, 2020-09-07 official text · verified 2026-10-29

Amount	Procedure	Bid bond	Performance bond
Up to B/.10,000	Contratación menor by quotation	No	Only if the entity requires it
Over B/.10,000 to B/.50,000	Contratación menor	No	Only if the entity requires it
Over B/.50,000 to B/.500,000	Public tender (price decides)	No	Yes
Over B/.500,000	Public tender, or best value tender if highly complex	Yes, generally 10 percent	Yes

Procedures and bonds by amount (texto único of Ley 22 de 2006).

Worked example

A Brazilian medical equipment maker wants to sell B/.3,000,000 (US$3,000,000) of imaging equipment to a public hospital.
It registers in PanamaCompra, confirms its shares are nominative and files the beneficial owner statement, since the amount exceeds B/.500,000.
It posts a bid bond of B/.300,000 (10 percent) and, on winning, a performance bond and signs a contract with a waiver of diplomatic claims.
A losing bidder has five business days to appeal to the procurement tribunal, posting a bond of 10 percent of the reference price.

Step by step

Register as a supplier in PanamaCompra and keep corporate and tax documents current.
Monitor notices in PanamaCompra; check the publication period for the amount.
Check eligibility: lawful constitution, no disqualification, nominative shares and beneficial owner statement above B/.500,000.
Raise questions or file a claim against the tender documents within the art. 153 deadlines.
Submit the bid with any required bid bond; after award, post the performance bond and sign.
If you lose, assess an appeal to the Tribunal Administrativo de Contrataciones Públicas within five business days.

Common traps

Bearer shares disqualify corporate bidders in procurements above B/.500,000.
Refusing to sign after winning bars the company from State contracts for six months or a year.
The appeal suspends only the challenged items when the award is by line.
Contracts with foreign parties carry a mandatory waiver of diplomatic claims, which affects treaty planning.

Sources

← Public private partnerships in Panama under Ley 93 de 2019: B/.15 million floor, public initiative only, 30 year terms and arbitration in PanamaChoosing an investment regime in Panama: general regime, ten year stability, SEM, EMMA, Panama Pacífico or a free zone →

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