Since 31.12.2023, with the revocation of the Law of Public Bids and Contracts (8.666/93), the Auction Law (10.520/2022) and of the Differentiated Hiring Regime Law (12.462/2011), the New Bidding Law – “NLLC” (14.133/2021) became the principal regulation regarding the public bids held by the Union, States, Municipalities, and the Federal District.

Five categories were established: bid, competition, contest, auction, and the unprecedented competitive dialogue (Article 28, I to V). In addition, the so-called “phase reversal” became the rule to all the categories, and no longer an auction exclusivity. In the inversion, the qualification no longer occurs in the initial phase of the process, as some sort of requirement in order to participate in the stages of bid and proposal presentations and becomes subsequent to the trial. Therefore, the bidding procedure is optimized, because in case the documents of the winner are not in accordance with the bid invitation’s requirements, the documents of the competitor who came in second place are analyzed, without further delays on the trade fair.

In general, “NLLC” demonstrates a higher concern regarding the planning of public contracting. Apart from only regulating the bidding processes, the legislation aspires an adjustment in mindset, claiming for a better commitment by decision-makers to the budget legislation and the consequent creation of an environment with more efficient resource allocation (as exemplified by Article 11, Sole Paragraph).

Another instrument which contributes to planning and has suffered changes is the price registration system. The possibility for an agency to adhere to the price registration records of other agencies (which is known as “ride”) became expressly predicted per law (Article 86, Paragraph 2th). Also, the duration of the records may be postponed for two years (Article 84, caption). This imposes to the Administration the duty of knowing and projecting its purchasing needs according to the new maximum duration period. Not only the record of the price system, but also the management of the Federal Public Administration acts are regulated by the Decree n° 11.462/2023.

There was also relevant modification regarding the deadlines of contract duration. The “NLLC” authorizes the signing of contracts for the continuous supply of goods – and not only for the provision of continuous services anymore. Those contracts may be concluded within the initial deadline of up to five years and can be renewed for up to ten years (Articles 106 e 107). According to the previous law, the contracts could be renewed for “equal and successive periods”, until the limit of five years.

Finally, we have prepared an index with the main topics regarding the “NLCC” and its respective legal devices: https://bit.ly/4bZj6zB

The Administrative Law, Infrastructure and Regulation team it’s at disposal for suggestions and clarifications.