New Brazilian Public Procurement General Law
On April 1st, 2021, the New Public Procurement General Law was published – Law nº 14,133/2021 -, which substitutes Law nº 8,666/1993 (“New Public Procurement Law“). The Brazilian President has vetoed 26 items of the bill approved by the National Congress.
After much expectation the New Public Procurement Law was published, substituting Law nº 8,666/1993, which is applicable to public entities in 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 2 years, entities of the Public Administration will be able to choose whether to conduct procurement procedures (either direct hiring or public tenders) based on 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 has vetoed 26 items approved by the Legislative Branch. The National Congress will now analyze and may strike down such vetoes.
