New framework modernizes government purchasing, strengthens transparency, and streamlines competitive bidding processes across all public entities.
The Puerto Rico General Services Administration (Administración de Servicios Generales, or ASG) has released Regulation 9734, the new Uniform Regulation for Purchases and Auctions of Goods, Works, and Non-Professional Services—a sweeping reform that reshapes how the Puerto Rico government acquires everything from office supplies to major construction projects.
Set to take effect 30 days after filing with the Department of State, the regulation represents the most significant update to Puerto Rico's public procurement framework since the passage of Law 73-2019. For contractors, suppliers, and government entities alike, understanding these changes is essential.
The regulation was signed on January 26, 2026, filed with the Department of State on February 9, 2026. It takes effect March 11, 2026.
At its core, the new regulation reinforces ASG's role as Puerto Rico's centralized purchasing authority. All government entities (Entidades Gubernamentales) must now conduct their acquisitions of goods, works, and non-professional services exclusively through ASG, without exception.
Exempt entities (Entidades Exentas)—while not required to route purchases through ASG—must still follow the bidding methods established in the regulation and participate in centralized contracts for previously-bid categories. This means that when ASG has an active centralized contract in place, exempt entities cannot conduct independent acquisitions for those same goods or services.
The practical effect is significant: greater purchasing power through consolidated contracts, more consistent pricing across government, and reduced opportunities for fragmented or inefficient procurement.
One of the regulation's most consequential provisions is its detailed guidance on distinguishing professional services from non-professional services. This matters enormously because professional services are contracted under separate legal authority and are not subject to the competitive bidding requirements that govern non-professional services under Law 73-2019.
The regulation acknowledges that this distinction requires case-by-case interpretive analysis, but for the first time provides illustrative lists that offer concrete guidance.
Non-Professional Services (Subject to Competitive Bidding):
The regulation identifies the following as non-professional services that must be procured through ASG's competitive processes:
Professional Services (Exempt from Competitive Bidding):
By contrast, the following are classified as professional services—requiring advanced degrees, professional licenses, or specialized intellectual or artistic skills—and fall outside ASG's competitive procurement framework:
The Technology Services Line
The regulation draws a particularly important line within technology services. Basic, routine technology work—installing hardware, configuring devices, entering data, performing preventive maintenance—is classified as non-professional and requires competitive bidding. But sophisticated technology work involving design, development, security architecture, AI, and systems integration is classified as professional services exempt from competitive procurement.
This distinction will be significant for government IT contracting. Agencies must carefully analyze whether a proposed technology engagement falls on the "basic support" side (competitive bid required) or the "specialized/professional" side (direct contracting permitted).
Mixed-Nature Contracts
When an acquisition presents characteristics of both professional and non-professional services, the regulation requires prior ASG authorization. The requesting entity's Nominating Authority must certify that the transaction is not a subterfuge to evade competitive procedures.
ASG will evaluate mixed-nature requests by determining which category constitutes the principal service—considering the primary purpose, scope, cost, and functional importance of each component. If the non-professional element is principal, competitive bidding applies. If the professional element is principal and the non-professional component is merely incidental, the acquisition may proceed under professional services rules—though if a centralized contract exists for the non-professional component, that portion must still be acquired through ASG's platforms.
Why This Matters
For contractors, the classification determines the entire contracting pathway. Professional services can be negotiated directly with agencies; non-professional services must run through ASG's formal competitive processes. For government entities, misclassification risks audit findings, contract challenges, and potential sanctions. The regulation's explicit examples provide the clearest guidance to date on where common service categories fall.
The regulation establishes clear monetary thresholds that determine which procurement method applies:
Micro Purchases (up to $5,000): Simplified acquisition requiring only one quotation, designed for immediate, low-value needs.
Informal Purchases ($5,001 - $50,000): Requires solicitation of three quotations from registered suppliers through ASG's electronic system.
Informal Auctions ($50,001 - $250,000): A more structured competitive process that includes formal invitations, specifications documents (pliegos), and documented evaluation criteria—but still administered by the Auxiliary Administration of Acquisitions rather than the full Auction Board.
Formal Auctions and Sealed Proposal Requests (over $250,000): The most rigorous process, requiring Auction Board oversight, public opening of bids, and formal adjudication resolutions.
For construction projects specifically, the regulation provides tailored procedures including mandatory site inspections, pre-bid meetings, and specific bonding requirements that scale with project value.
Beyond traditional competitive bidding, the regulation introduces several modern procurement tools:
Reverse Auctions: A real-time electronic bidding process where suppliers submit progressively lower prices, driving competitive pricing for standardized goods and services.
Open Market: A streamlined informal auction variant where quotation requests go to all registered suppliers in a given category, with the contract awarded to whoever offers the best value.
Requests for Proposals (RFP and Sealed RFP): Negotiated procurement methods that allow for discussions with proposers, technical evaluations weighted against price, and "best and final offer" rounds—particularly useful for complex or specialized acquisitions.
Requests for Qualifications (RFQ): A two-phase process where suppliers first demonstrate their qualifications, and only pre-qualified proposers advance to submit full proposals. This is designed for highly technical or specialized procurements.
The regulation takes an aggressive stance on procurement integrity:
Communications Blackout Period: Once a bidding process is underway, all ex parte communications between government officials (including Auction Board members, evaluators, and purchasing specialists) and bidders are strictly prohibited. This blackout extends from the pre-publication phase through adjudication notification.
Lobbyist Restrictions: Auction Board members, buyers, and procurement specialists cannot meet with registered lobbyists representing parties with interests in pending procurements.
Confidentiality Requirements: All bid information, proposals, internal evaluations, and working documents remain confidential until adjudication. Violation of confidentiality provisions may result in disciplinary action, including termination.
Special Investigations Office: ASG's Office of Special Investigations (Oficina de Investigaciones Especiales) has authority to monitor, investigate, and intervene with government entities to enforce compliance. The office can issue corrective action plans and recommend sanctions.
The regulation mandates compliance with Puerto Rico's preferential purchasing laws, including:
ASG may conduct exclusive bidding processes limited to entities that qualify under these preferential policies, effectively reserving certain procurements for local businesses.
While competitive bidding is the default, the regulation defines specific circumstances where exceptional (non-competitive) purchases are permitted:
Critically, exceptional purchase requests must be signed by the requesting entity's Nominating Authority (typically the agency head)—no delegation is permitted. Each request must include detailed written justification explaining why competitive methods are not viable and certifying that the request is not a subterfuge to avoid ordinary procurement procedures.
The regulation provides detailed guidance on post-award contract administration:
Purchase Orders vs. Contracts: Simple, one-time acquisitions of goods may proceed with purchase orders alone. Recurring services, construction projects, and complex acquisitions require formal contracts in addition to purchase orders.
Change Orders: Any modification that increases contract value must be requested by the Petitioning Entity's Nominating Authority before the additional work is performed or goods delivered. Changes exceeding 25% of the original value require detailed justification explaining why a new competitive process should not be initiated.
Centralized Contracts: ASG's centralized contracts—including multi-year agreements—establish pricing and terms that government entities access through individual purchase orders. These contracts remain the exclusive domain of ASG; individual entities cannot negotiate separate multi-year agreements.
The regulation establishes a graduated penalty structure:
Contractors who fail to fulfill their obligations face bond execution, exclusion from the Unified Bidder Registry (RUL), and liability for any price differential if the government must re-procure from alternative sources.
Late delivery penalties for construction projects scale with contract value, ranging from $300/day for projects under $100,000 to $8,000/day (or a negotiated figure) for projects exceeding $50 million.
The regulation takes effect 30 days after filing with the Department of State. All bidding processes published prior to the effective date will continue under the rules in effect at the time of publication.
The regulation expressly repeals Regulation No. 9230 (November 18, 2020) and its amendment, Regulation 9292 (July 23, 2021), along with any other conflicting policies, procedures, circulars, or internal memoranda.
For businesses seeking government contracts in Puerto Rico, the new regulation demands attention to several key areas:
Registry Requirements: Active registration in ASG's Unified Bidder Registry (RUL) is essential. Bidders found inactive at bid opening have only five business days to remedy their status or face disqualification.
Bonding: Performance bonds, payment bonds, and bid bonds remain standard requirements, with specific percentages tied to contract type and value. Failure to provide required bonds within specified timeframes can result in bond execution and registry exclusion.
Electronic Systems: All procurement processes run through ASG-authorized electronic systems. Mastering these platforms is now a competitive necessity.
Compliance Documentation: Preferential purchasing certifications, sole-source certifications, and other compliance documentation must be current and accurate.
Puerto Rico's new procurement regulation reflects broader trends in government purchasing: centralization for efficiency, technology-enabled transparency, and rigorous anti-corruption controls. For the business community, the framework offers clearer rules and more predictable processes—but also demands meticulous attention to procedural requirements.
As the regulation takes effect, contractors, suppliers, and government entities should review their internal processes to ensure alignment with the new requirements. Those who adapt quickly will be best positioned to compete for Puerto Rico's government contracts under this modernized framework.
For questions about how the new Puerto Rico procurement regulations may affect your government contracting strategy, contact Maceira Zayas Law & Strategy.
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