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Public Procurement
In Brazil, the applicable rules
for contracts between private individuals or corporations are quite different from the ones applicable for contracting with the Brazilian Public Administration, State-Owned Companies and Mixed-Economy Companies. Public held companies must abide to strict laws and regulations that as a rule require a public bid to be held for all contracts and sales, with a few exceptions.
The general rules on public bids and administrative contracts related to works and services within the scope of the Union, States, Federal District, and the Municipalities are set forth by Law 8,666/1993 (Procurement Law).
Law 13,303/2016 (State Owned Company Act) directed to the corporate governance of publicly held companies (state-owned companies and mixed-economy companies), made significant changes in the hiring and bidding procedures applicable to such companies. Specific regulations applied to those companies are designed to be a middle term between the regulations applicable to public companies and those applicable to private companies in general.
Petrobras, a mixed-economy company, started issuing bids abiding by the State Owned Company Act
on June 2018, and by March 2019
had already contracted over R$ 1 billion based on the new regulations.
Following are highlights of Petrobras’ contracting procedures.
1. Qualification
Companies may be enlisted in a pre-qualified list of companies
able to provide services or goods
to Petrobras. Non-pre-qualified companies are allowed to participate in tenders, provided that they comply with the qualification requirements
of the specific tender. Qualification is verified after the judgment, classification and negotiation of the proposals.
2. Publicity
Opportunities are published at Petrobras’ online system (Petronect) and notices containing the summaries of the bidding documents and contracts must be previously published in the Official Gazette, in addition to the internet.
Public companies are required to provide to any person full copies of all contracts and disclose information on the specific bidding procedure.
Petrobras Corruption Prevention Program and Integrity Risk Degree:
PETROBRAS may refuse to contract with entities that are classified as high integrity risk, as defined by Petrobras by criteria publicized at Petrobras’ website.
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