Article – Coronavirus measures in Brazil – Provisional Measure 926: Public Procurement Procedures

Law 13,979/20, which was approved in February of this year to regulate the repatriation of Brazilians who were in China and other restrictive measures, was amended by Provisional Measure 926/20 (PM 926) to regulate the public bidding procedures in relations to the purchase of goods, equipment and services (including engineering services).

REGULATIONS FOR PUBLIC PROCUREMENT PROCEDURES TO MEET THE NEEDS ARISING FROM THE CORONAVIRUS CRISIS 

  • The PM waives the standard bidding procedures and allows direct procurement for goods, equipment, services (including engineering) needed to deal with the public health emergency.
  • The PM allows the hiring of a company without good standing or with its right to participate in public bids suspended, when the company is the only supplier. 
  • The PM also allows the acquisition of used equipment.
  • When the supply of a certain goods, equipment or services are restricted, the presentation of tax and labor clearance certificates (or other qualification requirement) may be waived. Yet, companies will still need to provide clearance certificate from the Social Security authorities and demonstrate that it does not allow the performance of night shifts, dangerous or unhealthy work for children under 18 years old and of any work for children under 16 years old except for apprentice (older than 14 years old).
  • For tenders under the reverse auction bidding proceeding (pregão), the normal process term will be reduced by half and public hearings will not be required.
  • The exceptions provided for in the PM apply to bids whose maximum values ​​do not exceed:
    • R$ 150,000.00 (approx. US$ 30,000.00) for engineering services; and
    • R$ 1,500,000.00 (approx. US$ 300,000.00) for general goods, equipment and services.

 

FCR Law team has extensive experience to assist companies to prepare and participate to public procurement. 

Please do not hesitate to contact us for any additional information or assistance that your company may require.

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