Coronavirus: Opportunity with the public sector in emergency contracting

With the recent declaration of the coronavirus pandemic state (COVID-19) made by the World Health Organization (WHO) and the increase of confirmed cases in Brazil, the Brazilian society has been feeling sensible changes.

We are facing a very critical scenario and the right measures in favor of public health that public authorities have been adopting in social isolation will bring significant impacts to the Brazilian economy.

However, even against this backdrop, it is possible to see new opportunities.

With the declaration of a state of public calamity by the government of São Paulo last March 20(see news here), as well as the indications that the same will occur at the federal level, since approved on the same date by the Federal Senate(see news here), opportunities are opening up for simplified hiring with the public sector.

At the federal level, on February 6, 2020, Law No. 13,979/20 was enacted, which provides for measures to address the public health emergency of international importance arising from the coronavirus responsible for the 2019 outbreak, and will remain in force while such state of international emergency persists.

The aforementioned Law 13979/20 expressly provides for temporary waiver of bidding for the acquisition of goods, services and health inputs to be used in the emergency resulting from COVID-19, providing a more specific case, but already covered by Law 8666/93, which already provides for waiver of bidding in situations of emergency or public calamity.

The public administration must establish an administrative procedure justifying the waiver of the bidding, meeting some basic requirements, such as:

  • Characterize the emergency situation, describing the facts and events;
  • Describe the reasons for choosing the supplier or service provider - points such as availability of the product for prompt delivery, distribution logistics, expertise;
  • Price compatible with the market;
  • Publicity of the contract and supplier information on the official website of the contracting public body.

Although Law 13979/20 is only applicable to the federal public administration, the States, Municipalities and the Federal District may carry out their contracts in a simplified manner, based on Law 8666/93.

Furthermore, with the international movement restrictions imposed by several countries affected by the pandemic of COVID-19 and the global impacts on production, companies with local production may be a viable alternative to ensure the supply and supply of essential products for public authorities to act in combating the sad emergency situation we face.

The Barcellos Tucunduva Infrastructure and Energy team is at your disposal - [email protected].