The Use of Sealed Bidding and Competitive Negotiation in Brazil and Worldwide

Abstract

For decades, both public officials and the private sector have faced the challenge of efficiently procuring goods and services to governments. This task is of utmost importance in the infrastructure area of developing countries, considering the investments required and the scarcity of funds. Corruption is always a threat. Governments have issued rules to conduct bidding seeking standardization of procedures and agility. They also encourage competition and transparency. Some rules limit discussions and others encourages them. In the U.S., both methods are equally accepted since 1984. Brazil introduced legislation on a new regime in 2011, called Differential Public Procurement Regime (RDC) and just began initial experience with it. In this context, the questions that arise are: (1) should Brazil make broader use of competitive negotiation for infrastructure and other projects? (2) Are the mechanisms of control prepared for these changes? (3) What is the role of transparency in this process? (4) Is it necessary any change in legislation in order to improve it? (5) What else should be done? Answering to these questions seems to be premature, but efforts to promote transparency, to prevent and fight corruption and impunity are highlighted, once corruption occurs no matter the bidding method applied.