What changes with the new bidding law that comes into force in April

Public Administration, unlike private companies, has no autonomy to buy, rent or hire works, services or products, as it does not work with its own resources, but public. Therefore, it is necessary to carry out bids, which are mandatory administrative proceedings for the hiring of goods and services by the Government.

The new bidding law aims to establish simpler, modern and safe processes.

We list the 5 major changes with the new bidding law:

1) Change of narrative: from control to governance;

2) Extinction and creation of bidding modalities;

3) A new look at contract management;

4) Auxiliary procedures: instruments that can transform public hiring;

5) National Hiring Portal: Transparency and Sharing.

From April 2023, the new Bidding Law (No. 14,133/2021) will enter into full effectiveness, establishing general bidding and hiring for the direct, local and foundational public administrations of the Union, States, Municipalities and the Federal District.

The processes will have greater flexibility, and are simplified and standardized, reducing the amount of steps and documentation required. With this, fewer administrative and judicial resources will be used

When the new law comes into force, bids that are still in force by old legislation (8.666/93) will continue to follow the rules established by this law until the end of the bidding process. This means that it will not be possible to use both rules in the same process or during the execution of the administrative contract. The purpose of this measure is to avoid legislative conflicts.

The transition to the new law will be gradual and the new bids, as of April 3, 2023, must be conducted in accordance with the new rules established by Law 14.133/2021.

This movement can benefit Brazilian companies and brands, regardless of size, in many ways. Some of the main benefits include a greater guarantee of the integrity and transparency of procedures, increased competitiveness under the conditions of greater equality and flexibility of bidding processes, all from the use of technology, encouraging risk mitigation, conflict solution prioritization by extrajudicial means and investment in sustainable measures by companies, increasing the confidence of these organizations.

Want to know more about these changes?

We at Audilink we can help you in this adaptation to the new rules with our expert team. Contact us!