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Sunday, Jul 06, 2025

Costa Rican Digital Vehicle Licensing Bid Faces Another Setback

INS Required to Revise Tender Proposal Following Contraloría's Approval of Objections
The Instituto Nacional de Seguros (INS) in Costa Rica has encountered another delay in its efforts to digitize vehicle licensing, following a directive from the Contraloría General de la República (CGR), the national comptroller's office.

In response to objections raised by potential vendors, the INS is required to amend the tender document for the digital vehicle licensing system for the second time.

The CGR, on this past Wednesday, confirmed that it has partially upheld three out of the five objections submitted by companies interested in the tender.

As a result, it has instructed the INS, a state-owned insurance agency, to make necessary adjustments and set a new date for the submission of bids.

Alfredo Aguilar, who manages the Public Procurement Division at the CGR, detailed the objections, which included concerns over the experience assessment of potential vendors, criteria for verifying license tags, the security of the digital system, and international certification evaluations.

Aguilar stated, "Once the resolution is communicated, the INS needs to comply with this regulatory body’s directives, amend the necessary conditions in the tender documents, and set a revised date for the submission of bids."

In response, _La Nación_ newspaper reached out to the INS regarding its next steps following the CGR’s decision.

The INS indicated that it is currently processing these inquiries.

The initiative began in June 2023 with the INS seeking a partnership to provide 1.5 million digital vehicle tags utilizing Radio Frequency Identification (RFID) technology.

This system is intended to efficiently manage vehicle registrations, with RFID technology allowing for the simultaneous reading of numerous items using radio waves.

However, the process has encountered multiple hurdles.

Previously, in March of last year, the CGR annulled the awarding of the contract to a Costa Rican-Mexican consortium, PC Central Neology, ruling that the procurement process must start anew.

In October of 2024, a new bidding process was initiated.

Just a month later, based on objections from interested vendors, the CGR requested changes to the tender proposal.

Now, the INS is compelled to revise the requirements, highlighting ongoing complications in implementing this technological transition.
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