• The federal government’s objective with the measure is to attract new international suppliers;
• With the change, this requirement to partner with a national organization will only be made if the foreign company effectively wins the bid.

Brazil‘s government is changing the rules for the participation of foreign companies in tenders (a process by which the Brazilian government opens public competition for the contracting of products and services).

The Secretariat of Management, subordinated to the Special Secretariat for Debureaucratization, Management and Digital Government, of the Ministry of Economy, has published this Tuesday a normative instruction which alters the rules for the operation of the Unified Registration System for Suppliers (Sicaf), within the scope of the Federal Executive Branch.

ALSO READ: Brazilian government studies proposal to expand home equity in the country

According to the Brazilian newspaper Valor Econômico, the main change in the new regulation is that foreign companies will be able to participate in bids directly, without a national representative. The federal government’s objective with the measure is to attract new international suppliers.

ALSO READ: Air Nostrum will be the first foreign airline to operate domestic flights in Brazil

Before that, foreign companies could enter bidding processes as long as they had a Brazilian company as a partner in the dispute. With the change, this requirement to partner with a national organization will only be made if the foreign company effectively wins the bid.