How to win government contracts and tenders in Brazil

Navigating Government Contracting in Brazil: A Comprehensive Guide for Businesses

Brazil’s public procurement landscape provides substantial opportunities for businesses prepared to navigate its complex regulatory framework. With approximately R$40 billion allocated annually through about 20,000 contracting procedures, understanding legal requirements, registration processes, and compliance obligations is essential. This guide consolidates insights from Brazilian legislation, official portals, and intergovernmental agreements, offering actionable strategies for successfully securing government contracts.

Legal Framework Governing Public Procurement

The New Public Procurement Law (Lei nº 14.133/2021)

Brazil's legal landscape for public procurement has been transformed by Lei nº 14.133/2021, replacing the earlier Law nº 8.666/1993. The new law emphasizes transparency by mandating the publication of all tenders on the centralized Portal Nacional de Contratações Públicas (PNCP). Key provisions include:

• Guaranteeing equal treatment of bidders
• Incorporating sustainability criteria
• Simplifying dispute resolution mechanisms

The new law defines clear procurement modalities that align with international practices:

• Concorrência: For complex, high-value projects needing technical evaluations.
• Pregão (Electronic auction): Digitally conducted price-centric bidding on platforms like Compras.gov.br.
• Diálogo Competitivo: Interactive bidding allowing proposal refinement through dialogue.

All municipalities must fully incorporate these reforms by January 2026, ensuring nationwide regulatory standardization.

Registration Requirements and Documentation

Establishing Eligibility

Foreign businesses seeking government contracts are required to establish a local entity—such as subsidiaries or joint ventures—registered with Receita Federal do Brasil. Essential disclosures include providing details of ultimate beneficial ownership. Critical registrations include:

• Siscomex (Integrated Foreign Trade System): Required for companies importing goods. Import quotas are validated biannually.
• Digital Certificates: Issued by ICP-Brasil accredited authorities, enabling the authentication of electronic invoices (NF-e and NFS-e).

Navigating Electronic Invoicing

Electronic invoicing of goods and services is mandatory. Invoices validated by SEFAZ systems must accompany product movements (DANFE) with digital XML archives kept for at least five years. Non-compliance can result in substantial penalties, reaching up to 20% of gross revenue.

The Bidding Process Under Current Legislation

Stages of Public Tenders

Public procurement involves well-defined phases outlined under Lei nº 14.133/2021:

• Preparatory Phase: Includes needs assessment and budget allocations published annually in the Plano Anual de Contratação (PCA) accessible via PNCP.
• Evaluation and Judging (Julgamento): Proposals undergo technical and financial assessment, typically weighted 70% cost-effectiveness and 30% innovation or sustainability, depending on sector-specific criteria.
• Award and Appeal Processes: Challenges to contract awards must be presented within five days of the decision and are reviewed by Tribunais Administrativos Federais (TAF).

Electronic platforms like Compras.gov.br streamline the bidding process in municipalities like São Paulo, ensuring transparency and efficiency.

Compliance and Anti-Corruption Measures

The Conselho Administrativo de Defesa Econômica (CADE) rigorously enforces antitrust laws. Recent investigations such as Operation Novo Rumo have tackled significant cartel schemes in public infrastructure projects. Companies found in violation face hefty fines ranging from BRL 50,000 to 20% of annual corporate revenues. Proactive compliance strategies involve integrity pacts, internal audits, and robust third-party controls.

Impact of Trade Agreements on Market Access

Brazil does not participate in the WTO Government Procurement Agreement (GPA); therefore, access to its government procurement markets is significantly influenced by regional trade agreements. One such example, the EU-Mercosur Agreement, addresses government procurement, promising mutual recognition provisions and simplified market entry conditions upon completing full ratification. Domestic preference rules remain prevalent, especially in strategic infrastructure and national security sectors, frequently demanding joint ventures with local companies and specific local content quotas.

Practical Steps for Foreign Businesses

Foreign companies intending to participate successfully in Brazilian government tenders should:

• Partner Locally: Collaborate with established Brazilian entities to navigate finance and regulatory complexity, obtain required certifications, and meet eligibility conditions.
• Implement Digital Integration: Leverage digital solutions connected to governmental systems (SEFAZ/Siscomex) to ensure accuracy in invoicing processes and reporting compliance.
• Monitor Procurement Portals Actively (PNCP): Regularly use government procurement platforms, customize alerts based on keywords, sector, or project size to stay informed about upcoming opportunities.

Adopting these strategies while strictly adhering to the evolving regulatory landscape positions enterprises competitively in Brazil—the largest economy in Latin America.

[1] https://www.clydeco.com/en/insights/2025/03/navigating-trade-wars-perspectives-from-brazil
[2] https://edicomgroup.com/blog/electronic-invoicing-brazil
[3] https://www.spglobal.com/commodity-insights/en/news-research/latest-news/metals/021125-brazilian-trade-sources-expect-negotiation-and-concession-on-trump-steel-tariffs
[4] https://www.iatp.org/eu-mercosur-agreement-old-pledges-new-impacts
[5] https://www.gov.br/cade/en/matters/news/cade-and-government-agencies-launch-operation-to-investigate-alleged-bid-rigging-in-public-works
[6] https://support.google.com/googleplay/android-developer/answer/15987130
[7] https://en.wikipedia.org/wiki/Government_procurement
[8] https://lawsofbrazil.com/setting-up-a-company-in-brazil/
[9] https://www.gov.br/pncp/pt-br
[10] https://capital.sp.gov.br/web/gestao/w/compras-p%C3%BAblicas-avan%C3%A7am-com-a-nova-lei-de-licita%C3%A7%C3%B5es-e-contratos
[11] https://portaldatransparencia.gov.br/entenda-a-gestao-publica/licitacoes-e-contratacoes
[12] https://www.gov.br/anp/en/rounds-anp/open-acreage/oac/cartilha-opc-site-ing.pdf
[13] https://www.gov.br/compras/pt-br/acesso-a-informacao/noticias
[14] https://www.jetro.go.jp/en/database/procurement/national/articles/344672/2025022100040001.html
[15] https://tradebetablog.wordpress.com/2025/02/19/e-commerce-initiative-latest-blocked/