Brazil moves to make public tenders more sustainable

Brazil will have a new bidding framework in place starting next year. The law, which replaces existing legislation, will take effect a few months later than originally planned because the federal government realized that neither public agencies nor professionals were prepared for the new rules in April, the original implementation date. 

The new law on tendering aims to modernize public procurement processes and places greater emphasis on sustainability criteria in proposals for the purchase of goods, services, and public works by government entities.

However, the implementation of the new regulation has been questioned, as experts point to the resistance of procurement professionals — possibly due to a lack of understanding and training — as a major challenge in this process.   

According to the new legislation, Brazil’s sustainable development must be a guiding principle of public procurement. This means that indirect costs, such as the life cycle and environmental footprint or greenhouse gas emissions of a given product or service, must be taken into account when considering its purchase through a public contract. 

“It’s therefore possible to conclude that a numerically superior offer could be considered the lowest price if it’s more beneficial to the environment,” says Carlos Nitão, chief attorney at the National Education Development Fund (FNDE) and a researcher on public tenders and contracts. 

The new law also encourages social inclusion initiatives in public procurement, such as hiring people who are socially vulnerable, such as women who have been victims of domestic violence.