This section covers a broad range of considerations for selling to the Mexican public sector. It starts with an overview of the size and process of government procurement, followed by a section on project financing to help exporters bidding on major public sector projects in Mexico.
Selling to the Government
The Government of Mexico (GOM) purchases large volumes of raw material, repair parts, finished goods, and hired services to execute important infrastructure and construction works, not to mention supplies for the broad scope of government functions.
Government Budgets and Spending
Mexico’s 2025 overall federal budget authorization is MXN 9.3 billion, or approximately USD 469 billion (up from MXN 9.07 billion in 2024). This does not include state or municipal spending and does not count private investment in public-private infrastructure projects. However, it does incorporate direct federal spending, spending tied to state-owned enterprises such as Mexican Petroleum (Petróleos Mexicanos or Pemex) and transfers to state and municipal governments. The budget includes increased spending on social programs but also channels funds to security and the energy sectors.
Table: Public entities and state-owned enterprises that have traditionally held the largest procurement budget as a percentage of total approved federal budget from 2023 to 2025.
| Public Entity/State-Owned Enterprise | % of approved federal budget for 2023 | % of approved federal budget for 2024 | % of approved federal budget for 2025 |
| Secretariat of Infrastructure, Communications and Transportation (SCT) | 0.93 | 0.95 | 1.59 |
| Secretariat of Public Education (SEP) | 4.85 | 4.84 | 5.01 |
| Secretariat of Finance and Public Credit (SHCP) | 0.30 | 0.31 | 0.29 |
| Secretariat of Health (SSA) | 2.53 | 1.07 | 0.72 |
| Secretariat of National Defense (SEDENA) | 1.35 | 2.86 | 1.70 |
| Secretariat of Navy (SEMAR) | 0.50 | 0.79 | 0.71 |
| Secretariat of Wellbeing (formerly Social Development) | 5.00 | 6.00 | 6.23 |
| Secretariat of Tourism | 1.75 | 0.02 | 0.02 |
| Mexican Petroleum (Pemex) | 8.17 | 5.31 | 4.99 |
| Federal Electricity Commission (CFE) | 5.30 | 5.44 | 5.86 |
| Mexican Institute of Social Security (IMSS) | 14.05 | 14.85 | 15.80 |
| Institute of Social Security and Services for Public Employees (ISSSTE) | 5.29 | 5.25 | 5.65 |
Source: Secretariat of Finance
State and municipal spending should not be overlooked. The largest states and cities in terms of economic size include Mexico City and the states of México, Nuevo León, Jalisco, Veracruz, Guanajuato, and Baja California, which together account for more than 50 percent of the country’s economic output.
Using Local Partners for Government Sales
For most opportunities, it is not required to have a local representative or an office in Mexico to bid on a tender and sell to the GOM. However, a local office can simplify obtaining bid documents and supporting after-sales service and parts, in addition to tracking competitors and reassuring the procuring agency of your long-term commitment to the market. Frequently, tenders in Mexico require some type of local presence and Spanish-language skills. For these reasons, we strongly recommend that U.S. companies seeking government contracts work with a partner in Mexico. The U.S. Commercial Service can assist in identifying potential partners for U.S. companies.
Navigating Mexican Government Procurement
Below is a summary of key points for U.S. exporters based on the Mexican procurement system as stated in existing law.
The Mexican Government Procurement Process
GOM procurement and contracts are governed by Article 134 of the Mexican Constitution, the Public Procurement Act (Ley de Adquisiones, Arrendamientos, y Servicios del Sector Público or LAASSP), and the Public Works Act (Ley de Obras Públicas y Servicios Relacionados con las Mismas or LOPSRM). The Secretariat for Public Administration (Secretaría de la Función Pública or SFP) is responsible for defining, monitoring, and enforcing procurement and contracting rules, including managing any objections or disagreements with the legality of the procurement process. Depending on the sector, other government ministries and agencies may have oversight on the process. For example, in the energy sector the Federal Electricity Commission (Comisión Federal de Electricidad or CFE) and the National Electric System (Sistema Eléctrico Nacional or SEN) significantly regulate tenders in their respective areas of responsibility.
Procurement Consolidation and Reform
Following the inauguration of Sheinbaum’s new administration, the GOM launched a comprehensive procurement reform agenda, introducing new legislation on public procurement procedures and public sector leasing.
On April 16, 2025, the GOM published the “Decree amending, adding to, and repealing various provisions of the Law on Public Works and Related Services”, which established a new public procurement regulatory framework governing the contracting, execution, maintenance, and oversight of public works carried out by federal government agencies and entities in Mexico.
Key changes to the Public Works Law include:
- New digital procurement platform (ComprasMX) replacing CompraNet
- Enabling electronic signing of contracts
- Setting up strategic dialogues to allow pre-tender discussions between government and bidders for technical and economic feedback
- Making market research studies compulsory pre-tender
- Enabling reverse auction mechanisms to improve pricing
- Accelerated procurement timelines
- Capping subcontracting at 49 percent
- Adding more cases to justify direct awards while also decreasing the maximum allowed for direct awards from 30 percent to 20 percent of authorized budget
- Setting requirements and resolution time frames for appeals and challenge mechanisms
- Exempting the Armed Forces from complying with the standard Public Works Law when carrying out priority, strategic, or national security projects
In addition to the Law on Public Works and Related Services, the Law on Acquisitions, Leases, and Services of the Public Sector was also enacted on April 16, 2025, which regulates the federal government’s procurement and leasing of goods and services in general.
A key component introduced under this law was the creation of the Strategic Procurement Committee, which includes the Secretariat of Anti-Corruption and Good Governance Ministry (SABG), formerly Secretaría de la Función Pública (SFP) as the regulatory authority that oversees transparency and ensures compliance as previously done under the Oficial Mayor. The committee also includes the Secretariat of Finance and Public Credit (SHCP) as the supervisory body overseeing public contracts and the Secretariat of Economy (SE) to foster consolidated purchasing. Another key requirement is that 65 percent of procurements must contain national content.
ComprasMX, the Federal Government’s new digital procurement platform, aims to further centralize and streamline the public procurement process through full automation and digitalization and allow the user to view information about the purchases made by the GOM for its operations. ComprasMX is a repository for all official tender information and documents by all bidders for tendering processes at the federal level (not state nor municipal level). ComprasMX stores each tender listing, procurement procedure, procurement type (purchase, lease or service, contracts, etc.), records on submissions, and announcements. Government agencies must make available to the general public through ComprasMX their annual program of public works and services corresponding to the following fiscal year no later than December 31 of each year.
The GOM makes purchases based on a documented need. Any agency engaging in public tenders or other procurement methods is required to post all listings on ComprasMX (see the section on tracking tenders). The GOM must set a procurement budget, enter its information into an Annual Procurement Program (APP) on ComprasMX by January 31, consider any relevant standards for regulated products, and address the agency’s objective in the short, medium, and long-term. Prior to preparing a tender, the procuring agency must complete a comprehensive market study to establish market prices and specifications.
There are three types of procurement procedures agencies can use: public tender, restricted invitation, and direct award. A public tender is the preferred method; however, there are 19 exceptions that allow government entities to forego a public tender in favor of an invitation-only or direct award procurement scheme. A restricted tender is invitation-only but must include at least three bidders. A direct award is a sole-sourced procurement and requires approval of a specific justification such as national security. When a single supplier does not exist that can fulfill the required need, the procuring agency can offer a joint bid and/or split award. While new procurement reform efforts are underway, in practice, there is still a tendency for the government to avoid the use of open international tenders in favor of invitations to bid, which are then followed by direct awards.
An agency seeking to procure a product or service will evaluate the bid on point-based, cost-benefit, or binary criteria. Through a point-based process, every component of a bid is weighted differently and varies. The cost-benefit evaluation monetizes the benefit of each component of the bid to enable cost-benefit scoring. The binary process is typically used for commodity purchases in which the procuring agency first determines bids that meet all technical requirements and then automatically awards the purchase to the lowest price bid.
Prior to the final tender’s publication, the procuring agency has the option to post a draft tender to ComprasMX for 10 days. Once this period is over, the final tender will be published. Tenders are published on the agency’s website, ComprasMX, and in Mexico’s Official Gazette.
Tracking Tenders and Bidding
ComprasMX is similar to the United States’ FedBizOpps system. It is a repository for all official federal level tender information and documents by all bidders. ComprasMX stores each tender listing, procurement procedure, procurement type (purchase, lease or service, contracts, etc.), records on submissions, and announcements.
While users may consult and keep track of procurement processes (uploaded tender documents, timelines, etc.) without needing to register in ComprasMX, if they represent a company that is interested in participating, it is necessary to register on the platform. Companies should complete the following to pursue a GOM procurement contract:
- Go to ComprasMX: https://comprasmx.buengobierno.gob.mx/compras-mx (Google offers an option to translate to English)
- Select “Bidders, Suppliers, Contractors”, then click on “Register Bidders, Suppliers, and Contractors” in Compras MX
- Go to “Material de Apoyo”
- Select “Guía de navegación en el portal ComprasMX” in the “Dependencias y entidades” tab
NOTE: Companies seeking to access the site must have a Mexican tax ID
The system offers a PDF guide to register in ComprasMX as a company.
As part of the Secretariat of Finance and Public Credit’s (Secretaría de Hacienda y Crédito Público or SHCP) integrated strategy, it issued a decree to incorporate in ComprasMX the Federal Digital Store (Tienda Digital del Gobierno Federal), a system for federal government agencies to procure goods or services electronically.
We encourage U.S. firms to carefully analyze tender specifications. They may differ from entity to entity as well as in the value of the purchase, type of goods or services, and regulatory requirements. A bid will be disqualified if not received within the specified period. Bids can also be disqualified for not meeting technical requirements, even items as small as a discrepancy in a comma between a bidder’s corporate name and the name appearing in its certifications. Likewise, each tender includes a specific schedule for participants to ask questions.
If a tender specifies a certain brand or gives preference to a supplier, a complaint can be filed with the Directorate General of Complaints (Dirección General de Quejas) or Internal Control Body (Órgano de Control Interno) at the procuring agency before the contract is awarded. Bids should only include the exact specifications listed in the tender. “Additional solutions” and/or specifications not listed in the tender request can disqualify the bid. In addition, complaints may also be filed with the Secretaría de Anticorrupción y Buen Gobierno (SABG).
Finally, U.S. firms should communicate regularly with their Mexican representative and fine-tune all details related to the required documents. There have been cases of disqualification based upon seemingly insignificant omissions on the part of bidders to comply with tender requirements and procedures.
Corruption in Government Procurement
Corruption exists in many forms in Mexico and has the potential to influence tenders. The use of exceptions such as shortened procurement windows and sole source awards is common. Federal-level procurements generally have better oversight and anti-corruption safeguards than at the sub-national level. Despite these concerns, U.S. companies regularly win government contracts based on the strength of their bid.
Sector-Specific Procurement Developments
As noted at the beginning of this section, the new centralized public procurement system is still evolving, and there have been significant changes in key procurement-heavy sectors.
- Defense. The Mexican Secretariat of National Defense (Secretaría de la Defensa Nacional or SEDENA), including the Mexican Air Force (Fuerza Aérea Mexicana or FAM) and the Mexican Navy (Secretaría de Marina or SEMAR), handles the defense procurement process through its internal offices. Each entity’s General Comptroller’s Office (Oficial Mayor), rather than through SHCP, leads these procurements. SEDENA and SEMAR operate more independently in their procurement decisions than other cabinet agencies and government offices. Both institutions will use the annual budgets assigned by SHCP and may follow the requirements of the Public Procurement Act and Public Works Act outlined above. However, defense procurements are not obliged to adhere to the Public Works Law when carrying out priority, strategic, or national security projects. The criteria for registering new suppliers on ComprasMX remain the same as in past administrations. SEDENA is still managing the procurement to equip the new National Guard.
- CS Mexico notes that the option of direct assignments (sole source provider), which is allowed under the current Mexican Acquisition Law, has been used more frequently in recent years. It is worth mentioning that in the last few years, SEDENA and SEMAR have often used the mechanisms of per invitation only and direct assignments for their acquisition processes. International open tenders are less common and have had more limited use. See the Aerospace and Safety and Security sections of this guide for more information and contacts for our team.
- Health. On June 2, 2025, as part of the Sheinbaum Administration’s reform package, a decree was published introducing new criteria to encourage domestic investment in the production of medicines, health supplies, and medical devices. The criteria will apply to procurement procedures beginning in fiscal year 2026 for medicines, health supplies, and medical devices scheduled for delivery in 2027. As of September 2025, the detailed rules on how companies will be evaluated under the decree have not yet been published. In 2025, there is a significant decline in budget allocation for the health sector of approximately 11 percent. For a comprehensive overview of the healthcare industry and these recent developments, please refer to the Healthcare Products and Services section of this guide.
- Infrastructure. It appears that tenders for these projects will be advertised on ComprasMX. However, there have been indications that agencies managing the various projects may opt for direct award solicitations when directed by President Sheinbaum, or when there is an interest in focusing on preferred identified suppliers. See sections of this guide on Transportation Infrastructure, Energy, and Oil and Gas for more details, and contact the U.S. Commercial Service Mexico for assistance.
Advocacy
United States companies bidding on a GOM tender may also qualify for U.S. Government (USG) Advocacy. Within the U.S. Commerce Department’s International Trade Administration, the Advocacy Center coordinates USG interagency advocacy efforts on behalf of U.S. exporters competing with foreign firms in foreign government projects or procurement opportunities. The Advocacy Center works closely with our network of domestic U.S. Commercial Service Export Assistance Centers and with the U.S. Commercial Service in Mexico 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 USG agency officials expressing support for the U.S. exporters directly to the foreign government. Consult Advocacy for Foreign Government Contracts for additional information.
Project Financing
For large infrastructure projects, several financing instruments are available. Project consortia often develop a finance mix between development banks, multilaterals, commercial banks, and national export credit agencies such as the U.S. Export-Import Bank.
The Export-Import Bank of the United States (EXIM)
EXIM, an independent agency of the U.S. Government, offers various short, medium, and long-term export finance and insurance programs. Of specific interest to U.S. exporters are the guarantees for medium term loans to foreign buyers of capital equipment. Most loans are made by U.S. banks with EXIM’s guarantee. More than 86 percent of EXIM’s transactions in recent years directly benefited small businesses. According to the EXIM Bank’s 2024 Annual Report, the bank’s total exposure in Mexico was USD 847 million and guarantee authorizations were USD 54 million. Mexico remains one of the largest markets in EXIM’s portfolio as the third-largest country in terms of exposure, surpassed only by Mozambique and Saudi Arabia.
Much of EXIM’s activity is under so-called bundling facilities, which are large, medium-term loans made to a Mexican bank by a U.S. bank with the guarantee of EXIM. The Mexican bank then makes loans to Mexican companies for the purchase of American capital goods. There also are several United States-based banks that extend EXIM bank credits in Mexico. The major Mexican commercial banks have signed agreements with EXIM to grant lines of credit to Mexican firms that purchase U.S.-made products. Many major Mexican banks have Master Guarantee Agreements. Such credits generally are available only to Mexican blue-chip companies and to their suppliers with firm contracts.
There are many U.S. banks active in the Mexican market, particularly U.S. brokers and banks working with EXIM programs. The U.S. Commercial Service Mexico maintains a list of these banks. Please contact Sylvia Montano (Sylvia.Montano@trade.gov) for more information.
The United States International Development Finance Corporation (DFC)
DFC works in partnership with the private sector to finance solutions to the most critical challenges in the developing world. It does so through several tools, including equity financing (direct and indirect), debt financing (direct loans and guarantees), political risk insurance, and technical development (feasibility studies and technical assistance). Special emphasis is currently being given to supporting projects that focus on areas such as infrastructure and critical minerals, energy, food security and agriculture, and health.
DFC does not offer equipment or trade financing, refinancing, or sovereign loans. Selected partners must be majority-owned and controlled by the private sector (less than 50 percent government ownership).
United States Small Business Administration (SBA)
SBA provides financial and business development assistance to encourage and help small businesses develop an export component to their operations. The SBA assists businesses in obtaining the capital needed to explore, establish, or expand in international markets. SBA’s export loans are available under SBA’s guaranty program. Prospective applicants should tell their lenders to seek SBA participation if the lender is unable or unwilling to make the loan directly.
SBA also offers an Export Revolving Line of Credit (ERLC) program that is designed to help small businesses obtain short-term financing to sell their products and services abroad. The program guarantees repayment to a lender in the event an exporter default. The ERLC protects only the lender from default by the exporter; it does not cover the exporter should a foreign buyer default on payment. Lenders and exporters must determine whether foreign receivables need credit risk protection. Please visit www.sba.gov for more information.
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 Multilateral Development Banks (MDB). The Guide to Doing Business with the Multilateral Development Banks gives an overview on working with MDBs. The International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five different 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 Multilateral Development Banks: Locations and Liaison Contacts.
Resources
- Inter-American Development Bank (Information on IDB sovereign projects)
- Export-Import Bank
- Country Limitation Schedule
- Development Finance Corporation
- SBA’s Office of International Trade
- USDA Commodity Credit Corporation
- Federal Trade Commission
- World Bank (Guidance on Finding Business Opportunities)
- Trade Finance Guide for U.S. Exporters