Selling to the Government
The U.S.-Chile Free Trade Agreement (FTA) calls for open tendering, including the name of the supplier and the value of the contract. The FTA provisions cover all non-construction procurements by over twenty Chilean central government entities, as well as local government agencies. The agreement also calls for non-discriminatory “national treatment” for either country’s suppliers. Tender opportunities should be published at least thirty days in advance and technical specifications or requirements should be performance-based. The agreement further establishes an impartial authority to review any challenges filed against specific procurement awards.
ChileCompra, the Government of Chile’s procurement website, was established in March 2000 to serve as the central source for all regional and federal Chilean government procurement. Administered by the ChileCompra Directorate, the platform announces State needs for goods and services and connects public buyers with private suppliers. The system was implemented to increase transparency, promote opportunities, and reduce government procurement costs. According to ChileCompra, in 2024, the system facilitated more than $17 billion in purchases, a 17 percent increase over 2023.
ChileCompra manages MercadoPublico, the transactional platform through which more than 850 public agencies buy products and services from companies of all sizes throughout the country. According to Licita más, in 2023, 1,048 purchasing organizations conducted transactions via MercadoPublico, totaling nearly 2 million purchase orders. To participate in public tenders, all companies, local and foreign, must register free of charge on MercadoPublico. All bidders must post a bank and/or guarantee bond, usually equivalent to ten percent of the total bid, to ensure compliance with specifications and delivery dates. Bidding is best done through a local agent who is registered, well connected, and familiar with Chilean government bidding procedures.
The Chilean Armed Forces are recognized for prioritizing the acquisition of high-quality defense equipment and transparent procurement procedures. The Chilean defense market is very competitive, and the major suppliers of defense equipment are from Europe, Canada, Israel, and the United States. These companies are present in country, either through a local representative, establishing a branch office, or hiring a single employee based in Chile.
The Army, Navy, and Air Force maintain separate registration lists and any company interested in registering as a supplier should follow the instructions outlined on each branch’s website. While the forms are available electronically, paper copies must be submitted to the points of contact listed below via courier.
Chilean Army
División Adquisiciones del Ejército
Address: Santa Isabel 1651
City: Santiago, Chile 8320000
Email: divae.crcp@ejercito.cl
Chilean Navy
Dirección de Abastecimiento de la Armada
Address: Almirante Señoret 47
City: Valparaiso, Chile 2361804
Email: reg.especial@armada.cl
Chilean Air Force
División de Abastecimiento - Comando Logístico
Address: Avda. Pedro Aguirre Cerda 5500, Cerrillos
City: Santiago, Chile
Email: Registro.proveedores@fach.mil.cl
U.S. companies bidding on foreign government tenders may also qualify for U.S. Government advocacy. Within the U.S. Commerce Department’s International Trade Administration, the Advocacy Center coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters in competition with foreign firms in foreign government projects or procurement opportunities. The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agency officials expressing support for the U.S. exporters directly to the foreign government. Consult the Advocacy Center’s program web page on trade.gov for additional information.
In addition, the U.S. Commercial Service in Chile recommends U.S. companies assign a representative or agent in Chile to facilitate doing business with the Armed Forces. There are many programs offered by the U.S. Commercial Service to support U.S. companies in their effort to find a local representative.
Financing of Projects
Chile has a well-developed Financial Services sector and local banks have access to capital funds at competitive prices. The activity of multilateral banks in the country resembles more developed countries.
Multilateral Development Banks and Financing Government Sales
Price, payment terms, and financing can be a significant factor in winning a government contract. Many governments finance public works projects through borrowing from the Multilateral Development Banks (MDB). The Guide to Doing Business with Multilateral Development Banks provides an overview about how to work with MDBs. The International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five different Multilateral Development Banks (MDBs): the African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; the Inter-American Development Bank; and the World Bank.
Learn more by contacting the following offices:
Commercial Liaison Office to the World Bank
Commercial Liaison to the Inter-American Development Bank