Corporate provider glossary in Ecuador

Acronyms and terms that show up in tenders, contracts and vendor approvals in Ecuador, explained in plain language.

Company and taxes

Ariba / SAP Business Network: The online systems where some multinationals, Halliburton among them, register their suppliers and receive their invoices. Being registered there, with contact and banking details up to date, is part of being that company's supplier. Registration is usually followed by periodic reviews of the supplier's performance.
Business reference letter: A letter signed by a current client stating that the supplier delivers. For a purchasing department it is worth more than any piece of marketing, especially when it comes from a company that audits its suppliers. It is typically a single page signed by whoever coordinates the service at the client company.; See the proposal for companies
Company profile (ficha de empresa): A one-page summary of what the company does, since when, for whom, what certifications it holds, and a single contact. It is the document the purchasing department keeps on file for the supplier and the one people check when they ask who the company is. Mismatched phone numbers or emails between the profile and the proposal raise doubts.; See the proposal for companies
General tax regime (régimen general): The standard way of paying taxes in Ecuador: VAT every month and income tax every year. It differs from RIMPE, the regime designed for small businesses. For a corporate buyer, a supplier being on the general regime signals that it invoices with VAT and files returns regularly.
RUC: A business's identification number with the SRI. It shows who the business is, what activities it is registered for, and where it is located. Companies check it online before contracting, so it matters that the registered activity match what the supplier sells: a RUC with a mismatched activity can stall the qualification process.; What documents to request from a staff transportation provider
S.A.S.(Sociedad por Acciones Simplificada (simplified stock company)): The fastest and cheapest way to set up a company in Ecuador. It is incorporated online and can have a single shareholder. It is the route usually chosen by businesses that started as a sole proprietorship and need to become a company, for example to formalize their accounting or meet the requirements of large clients.
SERCOP / RUP: SERCOP is Ecuador's public procurement system, and RUP is the State's supplier registry. They only apply when a business wants to sell to a public entity, such as EP Petroecuador. SERCOP's transportation forms are also a good reference for what is expected of a carrier.
Sole proprietor vs. company: Two ways of holding a business. As a sole proprietor (persona natural), the business is under one person's name and ID. As a company, for example an S.A.S., the business is a separate entity with its own name and assets. Both invoice with a RUC and can be approved as vendors; what changes is the accounting and who is liable with their own assets.
SRI(Servicio de Rentas Internas (Ecuador's tax authority)): Ecuador's tax authority. It issues the RUC and the tax compliance certificate, a document stating the business has no outstanding debts or pending filings. That certificate can be downloaded from SRI online in minutes, and it is worth renewing for every proposal, since a qualification process asks for an up-to-date one.; What documents to request from a staff transportation provider
Supplier file (carpeta de proveedor): The set of documents a supplier submits when a company qualifies it: RUC, SRI and IESS certificates, insurance, business references, and, in transportation, vehicle and driver records. It is submitted as a single PDF, all at once. What is missing from the file often weighs more in the decision than any argument in the proposal.; What documents to request from a staff transportation provider
Supplier qualification (homologación): The process by which a company reviews and approves a supplier before buying from it. The purchasing department requests documents, verifies them, and registers the supplier in its system. It first confirms the supplier exists legally, pays its taxes, and has its people insured; only then does it look at pricing and the proposal.; What documents to request from a staff transportation provider

Personnel and workplace safety

EPP(Equipo de protección personal (personal protective equipment)): The equipment that protects the worker: reflective vest, helmet, and gloves, among others. Oil companies require the driver to carry it in the vehicle, under the Occupational Safety and Health Regulation (Decreto 2393). SERCOP's transportation forms also include it among supplier requirements.
HSE / SSA / SSO(Health, Safety, Environment · Seguridad, Salud y Ambiente · Seguridad y Salud Ocupacional): Three acronyms for the same thing: the area of a company that looks after safety, health, and the environment. At an oil company it is the area that checks the supplier operates without accidents, and it usually asks the supplier to name an HSE lead on its organization chart.
HSE policy: A one-page document in which the company commits to safety, health, and the environment, and states how it puts that into practice. Every oil company prequalification questionnaire asks for it. Many companies already work safely without having it in writing; the policy is how they prove it.
HSE prequalification questionnaire: The form oil companies send a supplier before hiring it. It covers four areas: safety leadership and commitment, policy and objectives, organization and staff competence, and risk assessment and management. It is answered with documents, not statements.
IESS: Ecuador's social security system. Enrolling a worker means paying their health and retirement insurance every month. The certificate of no outstanding debt shows those payments are current, and large companies request it with every contract. Some also require the payroll list of enrolled employees to approve each payment.; What documents to request from a staff transportation provider
Stop Work Authority: A rule from Halliburton and much of the oil industry: anyone can stop a job or a trip if they see something unsafe, without facing consequences for doing so. In transportation it means a passenger can ask the vehicle to stop, and the driver must comply.

Transportation

Civil liability insurance: The policy that covers damage the service causes to other people, including passengers. In staff transportation it is separate from SPPAT and the vehicle insurance, and it is one of the policies required in oil company bid specs. Coverage above the minimum can count as added value.; What documents to request from a staff transportation provider
Comprehensive insurance: Vehicle insurance that covers own damage, theft, and damage to third parties. Oil companies require it from their carriers in addition to SPPAT, which is mandatory but only covers accident victims. It is requested per unit, with an active policy, and it is worth checking that the expiration date covers the whole contract.
Defensive driving: A preventive driving course: it teaches drivers to anticipate road risks instead of reacting to them. CAPETRA is one of the certifications that includes it. Oil companies will not let drivers operate within their sites without having passed it, so each driver's certificate is part of the file.; See executive transport
GPS: The satellite tracker installed in the vehicle. Oil companies require it on every unit to know its location during the service, and SERCOP's transportation forms require it under the transit regulations. For the client it also has a practical use: knowing what time the vehicle will arrive.
Journey management procedure: The protocol for each trip, known in English as journey management: departure and arrival times, route, rest stops, a ban on cell phone use, speed limits, and what to do if something happens. Oil companies require it for staff transportation, and ask for it in writing even when the supplier already practices it.
Professional license (type C, D, E): Licenses required to drive for work. Type C is for taxis and light commercial vehicles, type D for buses and passenger transportation, and type E for heavy trucks. Points are the license's balance: each fine subtracts from it. A valid license with a full point balance is the first thing a buyer asks for.; What documents to request from a staff transportation provider
RTV(Revisión técnica vehicular (vehicle technical inspection)): The official inspection of a vehicle's condition. For private use it is annual; for commercial transportation it is every six months, under the transit regulations. Each unit's certificate is part of what a corporate buyer requests before approving a transportation provider.; What documents to request from a staff transportation provider
SPPAT(Sistema Público para Pago de Accidentes de Tránsito (Ecuador's mandatory traffic accident insurance)): Ecuador's mandatory insurance paid together with vehicle registration, covering victims of a traffic accident. Since it is tied to the registration, it is requested per unit. It is a floor: companies that audit their suppliers also require comprehensive insurance and civil liability coverage.; What documents to request from a staff transportation provider
Transportation categories (modalidades): The types of permits for transporting passengers in Ecuador. Tourism covers traveler and airport transfers, usually in vans. Institutional covers a company's staff transportation. Executive corresponds to the highest taxi category. Each category has its own requirements and its own permit.

Events and venues

ARCSA: Ecuador's health and safety regulatory agency. It grants the permit to prepare and serve food, which applies to catering and to an event venue's kitchen, and requires food handling certificates for the staff who prepare it. Corporate clients often ask about both before booking a large event.
LUAE(Licencia Única de Actividades Económicas (single business operating license)): The Quito Municipality's permit for a venue to operate. It covers land use, outdoor advertising, and the establishment's operation. For a large corporate event, the purchasing department usually asks for it along with the Fire Department permit, which is annual.