Bidding - how it works and modalities

When administrators of government agencies need to buy, lease or contract products, works or services, it is necessary to carry out a process called Bidding. In a general context, bidding is a formal competition procedure between companies that wish to offer their services to public organizations.

It is a process carried out in a public and transparent manner and which needs to comply with some basic principles. The need for this process is justified by the fact that public institutions do not have own funds, but with government resources, which must be properly applied and declared.

The procedures for carrying out a Bidding are provided for in Federal Law 8666 of 1993, therefore, the smallest instances of public administration, that is, states and municipalities, cannot create their own laws to govern this type of contract. In addition Law 10520/2002 complements the rules for conducting a bid.

Process

A bidding process begins in an internal phase, given the institution's need to acquire, sell, assign, lease or contract products or services. Then, those responsible must publish the

notice with bidding rules so that all companies eligible to compete can be made aware of it.

To qualify for a bidding process, interested parties must present the following conditions: legal qualification; technical qualification; economic-financial qualification; fiscal and labor regularity and regularity with workers' rights.

The public administration, on the other hand, should be concerned with the basic principles of bidding:

- Legality;

- Impersonality;

- Morality;

- Equality;

- Advertising;

- Administrative probity;

- Link to the summons instrument;

- And objective judgment.

A bid cannot be confidential. All acts in the process must be public and accessible. The only part that is kept confidential are the proposals, until they can be opened.

Modalities

When a public organization carries out a bidding process, it must establish in its own notice which will be the modality and the requirements for all interested parties to apply. There are six types of bidding: Competition, Pricing, Invitation, Tender, Auction and Auction.

In general, what defines the modality is the type of product or service that will be tendered and the amounts involved. In the case of Competition, criteria are established for the granting of the right to use, carry out works or services, or even purchase and sell public goods.

already the Price taking it is made from a Cadastral Registration Certificate (CRC), previously made by those interested in offering services to the government. You must certify the required requirements no later than three days before the end of the proposal period.

The fastest bids can be carried out through the modality called Invitation. There is no need for a notice and a minimum number of three bidders is chosen and invited. Others interested in participating in the process can attend, as long as they demonstrate their desire within twenty-four hours before the submission of proposals.

O Competition it is a very common form of bidding for the choice of scientific, artistic or technical work. In this modality, the best project is hired, not the best company. The winner receives an award or remuneration. The notice must be published in the official press at least 45 days in advance, and the choice is made by a specialized commission.

The sale of goods that no longer serve the public administration, seized goods or pledged assets must be made through a Auction. In this modality, interested parties appear on the date set for the session in order to formulate a verbal proposal.

The last modality created was the Trading floor, instituted by Law 10520/02. As in the auction itself, from this modality, the acquisition of goods and services is regulated. In this case, proposals are written and delivered, but can be changed on the opening day, as appropriate.

Contracts without bidding

Despite the legislation for the purchase and sale of goods or provision of services to the government, in some cases, bidding is unnecessary, namely:

- In emergency situations;

- In cases of previous bidding canceled due to fraud or abuse of economic power;

- Intervention in the economic domain (price freeze, for example);

- Small value contracts, as established by law;

- Absence of interested parties;

- By Presidential Decree, when the situation compromises national security;

- Purchase of perishable goods, when there is a bidding process in progress.


by Rafael Batista
Brazil School Team

Source: Brazil School - https://brasilescola.uol.com.br/o-que-e/geografia/o-que-e-licitacao.htm

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