Provisional Measure bidding law changes in Brazil

The federal government passed a measure to ease the Bidding Law for large infrastructure projects

The federal government passed a measure to ease the Bidding Law for large infrastructure projects. Provisional Measure 527 creates a more flexible procurement rules, which apply not only to projects to develop in the host cities, if not to be identified to extend capital 350 km away from them.

The aim of the measures is to minimize delays in the works.

Briefly, the modifications included in the Provisional Measure 527 are:

• FIFA and IOC: no limits on the increased costs for construction. Tenders law provided for a 25% work and 50% for reforms.
• Investment phase: delivery of documents will only be made after evaluation of proposals and will only be required of the winner of the tender.
• Integrated Procurement: a single company will be responsible for all stages of a work. Current legislation allows different bids for basic and executive projects.
• Stealth: previously estimated budget will be released only after the end of the tender. If all proposals are superior to the expectation must be accepted that that is closest to the value. While the supervisory bodies at all times have access to the data.
• Transparency: The government's proposal will be secret and disclosed only for the internal control and external, as the Court of Accounts of the Union. At present, it is public data. 
• Bonus: the contractor for works and services may receive a variable compensation based on their performance, defined by goals. Currently there is no bonus for anyone who anticipates delivery.
• Airports: the capitals that are up to 350 km away from the host cities will make infrastructure and contracting services for airports within the rules differentiated.
• Brands: let the specifications indicated in the tender brands of goods, which is currently banned.