On 1 April 2021, Law nº 14,133/2021 or the New Public Procurement General Law (“New Public Procurement Law“) was published, substituting Law nº 8,666/1993. The Brazilian president, however, has vetoed 26 items of the bill approved by the National Congress.
In more detail
After much anticipation, the New Public Procurement Law was published, substituting Law nº 8,666/1993. This new law is applicable to public entities in the federal, state and municipal levels. State-controlled companies, however, are only reached by the new definitions of crimes related to public procurement since they are subject to a specific legal regime set forth by Law n º13,303/2016.
The New Public Procurement Law updates concepts used in the previous norm from 1993, integrating rules and mechanisms created by specific legislation as well as consolidated case law by the Judicial Branch and control entities (such as Accounts Courts). The New Public Procurement Law also brings a series of new relevant rules that must be followed by the Public Administration and private parties.
For the next two years, entities of the Public Administration will be able to choose to conduct procurement procedures (either direct hiring or public tenders) based on either the New Public Procurement Law or on Law nº 8,666/1993. The same law used in the procurement procedure must rule contracts.
The Brazilian president vetoed 26 items approved by the Legislative Branch. The National Congress will now conduct further analysis and may strike down such vetoes.
Our Public Law team will conduct events to discuss the most relevant topics in the New Public Procurement Law and is also available for individual discussions (including on specific themes) and/or further clarifications on the subject.