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New rules applicable to the federal Public Administration contracting with suppliers of services

The Ministry of Planning, Development and Management has set forth new rules for contracting the supply of services under the regime of indirect execution by the federal Public Administration (direct, autarchic and foundational). Said new rules reveal a concern of the Public Administration about public procurement procedures.

On 26 May 2017, the Ministry of Planning, Development and Management published Normative Instruction No 5 (“IN 05/17”), which defines rules and guidelines for the direct, autarchic and foundational federal Public Administration contracting the supply of services under the regime of indirect execution.

IN 05/17 revoked IN 02/08 (that previously dealt with the matter), and is the result of efforts to comply with determinations of the Federal Audit Court (Tribunal de Contas da União). It aims at improving procurement governance at the federal Public Administration

IN 05/17 is far more detailed than IN 02/08, and brings innovations that reveal a great concern of the Public Administration with the planning of contracting, which concern may be noticed, for example, in the definition of instruments for contractual risk management. Said instruments must be updated in the subsequent phases of the contracting procedure, after each relevant event.

The new regulation also establishes instruments for the control of contractual performance, such as the obligation to implement mechanisms to monitor the use of materials applied, both for inspection purpose and prices comparison in future bidding procedures. IN 05/17 also provides for the inspection by users of public services, consisting of satisfaction surveys to assess the key elements the service’s quality rating.

In addition, the newly enacted rules provide on the amendment of contracts – including their extension, renegotiation and price adjustment –, as well as on the cases of retention of guarantees offered by contractors or of any credits in their favor. IN 05/17 also contemplates several models that should guide the Public Administration in all stages of the contracting procedure.

The full understanding of this new regulation may influence the decision of those interested in participating in bids launched by the federal Public Administration.

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July 07, 2017