Bid is the administrative process responsible for choosing the suitable company to be contracted by the public administration to supply its products and/or services.
The bids are mainly aimed at choosing the most advantageous options for public bodies, that is, contracting services or purchasing products with the best quality and the lowest price.
O bidding process must be public and accessible to all citizens, as provided for in the right of publicity. In addition, this must also follow all the principles of the bidding, such as:
- Principle of Equality (Isonomy): equal treatment between all interested parties in the bidding process.
- Principle of Impersonality: used to avoid subjectivism during the bidding process. For this, all decision criteria must be previously detailed and established.
- Principle of Morality: the entire process must be compatible with the rules of morals, ethics, good customs and administrative legality.
Bidding processes must still follow the principles of Legality, gives Link to the Call Instrument, of Objective judgment It's from speed.
As a rule, the bidding process is previously established in the call notice issued by the public agency, which is based on the principles defined by the so-called Public Procurement Law (Law No. 8.666, of June 21, 1993).
THE Bidding Law has the objective of helping the public agency to ensure the best available proposal, in relation to quality and price.
Bidding modalities
In Brazil, the law provides for six types of bidding: Public bidding, Price taking, Invitation, Tender, Electronic auction or Auction.
- Competition: must follow the orders provided for in the notice. This modality is intended for the concession of engineering works and services above R$1.5 million, and for the purchase and services of other types in amounts above R$650 thousand.
- Price taking: when it is necessary to submit the mandatory registration certificate (CRC), proving to be consistent with all requirements for participation in the bidding.
- Invitation: there is no publication of notice. The Public Administration may invite a minimum group of three bidders to consider their proposals. However, other interested parties may attend the presentation of proposals (even without prior registration), in an attempt to show interest.
- Competition: aimed at choosing a technical, scientific or artistic work for use by the Public Administration. In this case, a special award or remuneration is usually given to the authors of the selected works.
- Auction: modality instituted by Law No. 10,520, of July 17, 2002, instituted the process for the acquisition of common goods and services. This model is distinguished by being applied by States and Municipalities and not just by the Union.
- Auction: it consists of the sale of goods that are not suitable for use by the Public Administration, such as pledged goods or legally seized goods, for example.
Bidding Types
Many people confuse bidding modalities with bidding types, but both are different.
Bidding types are the judgment criteria used to select the most advantageous type of business by the Public Administration. The main ones are: Lowest price; Best Technique; and Technique and Price.
- Lowest price: when the most advantageous proposal for the public entity is the lowest price.
- Best technique: when the proposal chosen by the public entity is based on technical characteristics.
- Technique and price: it consists of the proposal with the best cost-benefit ratio, that is, a balanced balance between good techniques and good prices for the Public Administration.
- Highest bid: when related to the sale of goods, the bidder that offers the highest value for the product is the one awarded.
See also: the meaning of Disposal of Assets.