Risks and Opportunities to act in Bid

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Risks and Opportunities to act in Bid

  • 26 de December de 2018

By Caroline Esther Buss

Government is the largest buyer in Brazil. All federal entities – the Federal Government, the States, the Municipalities and the Federal District, are obliged to purchase consumer goods by means of a bidding process, process in which the Administration selects the most advantageous proposal, that is, less costly and with the best possible quality for the contracting of a work, a service, the purchase of a product, rental or disposal.

Each entity has its own competence to legislate, resulting from its political and administrative autonomy. Law nº. 8.666/93 provides the general rules for all entities; however, it is possible that other regulations complement the process, such as determining different rules for registration, different deadlines, among others.

Regardless of the branch of activity of the company, it is always important that the administrator develop strategies and a plan for the business continuity. The option to participate in bidding can be very advantageous to the entrepreneur, when it meets the stipulated strategic objectives.

The contracts with the Administration generally have a delivery time of not less than twelve months, and may be renewed without a new bidding, for specific periods, depending on the type of product or service, as well as the bidding modality. In this way, once win the contest, you can count on the revenue coming from the contract for the duration of this event, at least.

The funds to cover the contracts originate from government transfers, according to the availability of the public budget, and the commitment note informing the origin heading accompanies each contract. Care should be taken to consider that, at the beginning of each year, there is a vote for approval of the budget plan, which may lead to delays in payments, especially in this period.

The legislation offers favors to micro and small companies and there is also forecast that bids of up to R$ 80 thousand be exclusive to companies framed under these conditions, with the purpose of inserting small enterprises in the world of government contracts. Especially at the municipal level, there are many opportunities for small businesses.

When choosing to supply the Government, it must be considered, however, that the provision of services and the sale of products will necessarily take place through a process that, unfortunately, is still quite bureaucratic, in which the bidding company must attend all the requirements of the convocation notices contest, being regular with their fiscal, tax and labor obligations, and also present proposals with competitive prices.

It is necessary to carefully analyze the current costs of the company and consider future expenses and contingencies, including considering the inflation factor, in order to have greater security to offer a minimum value that does not generate a loss in the effectiveness of the contract, even because the Administration can analyze the feasibility of the offered values and does not accept proposals with prices that are not sustainable.

It is also necessary to keep in mind that the company that participates in events must meet the conditions of qualification, accreditation and, in case of hiring, be able to execute all contractual clauses, being subject to severe penalties in case of partial or total non-compliance of the supply contract to the Public Administration.

Finally, organization and constant control are essential for companies that choose to supply the Government. Each public notice has particularities and the first step is always to analyze it thoroughly to ensure that the company can fully meet your requirements. There are tools that help in monitoring opportunities in newspapers and official bodies. The company must anticipate and keep up to date the documentation that proves its regularity, being that, in most cases, the deadlines for collecting and sending the documents to the bidding bodies are very short.