By: Leonardo Neri
The Bill that updates the Bidding Law was approved by the National Congress, but it still awaits approval by the President of the Republic. During this period, Mazzucco & Mello will provide introductory articles to explain the new rules. In this first text, we will present the main structural changes to the Bidding Process. Enjoy your reading!
On December 10, 2020, the Federal Senate approved, awaiting presidential sanction or veto, Bill (PL) No. 4,253/2020, which establishes general bidding and contracting rules in relation to the spheres of government: Union, States, Federal District and Municipalities and which will repeal Laws 8,666/1993 (Bidding Law), 10,520/2002 (Auction Law) and 12,462/2011 (Differentiated Public Contracting Regime – RDC).
The Bill contains several important changes, including measures to reduce the risk of fraud or overpricing and promote the efficiency of bids and contracts, including advances in the transparency of public procurement processes, since the average budget of the Administration may be confidential, causing bidders to offer prices that are actually closer to market prices.
Among other measures, if the Project is approved, the phases of the bidding process will be reversed, in which, after the announcement of the notice, the proposals will be judged and only after the proposals have been classified will the bidders be qualified, resulting in a faster process. Under the law still in force, candidates qualify and, after that, the proposals are judged.
Furthermore, in order to speed up the procedure, Bill 4,253/2020 provides for the holding of electronic bidding processes as a general rule, elevated to the principle of virtualization, thus, the contracting procedures will be electronic. However, exceptionally, it allows bidding processes to be in person, when motivated, and the public session must be recorded in minutes and using audio and video technological resources.
Another relevant aspect is the new values for direct contracting, that is, without bidding. The text of the Bill limits the amount to R$50,000 for general contracts and R$100,000 for works, engineering services and maintenance of motor vehicles. It also eliminates the Invitation and Price Quotation modality, in order to maintain a more transparent and accessible procedure, since such modalities limit the number of participants, facilitating combinations between companies and other frauds.
Until the Bill is sanctioned by the President and comes into force, all procedures must be carried out in compliance with the current bidding legislation. After the legislative process is completed, new bidding processes will be carried out under the auspices of the new law and the procedures that were initiated previously will be completed in accordance with the repealed law, always observing the Constitutional principles and those provided for in Article 5 of the Bill, including legality, administrative probity, equality, transparency and competitiveness.