Electronic auction: the definitive GUIDE to selling to the Government!
Posted: Sun Dec 22, 2024 4:48 am
Do you know what an electronic auction is and what it is for?
The electronic auction is a great tool for public management, which allows managers to optimize the process of acquiring products and services in a transparent, efficient and fast way.
Law No. 14,133/21 establishes that digital bidding processes, such as the Electronic Auction, are mandatory in several spheres of public administration, as we can see in the first paragraph of Art. 1:
Art. 1 This Law establishes general bidding and contracting rules for the direct, autarchic and foundational Public Administrations of the Union, States, Federal District and Municipalities…
NLLC 14.133/21
This requirement is a very important advance in the legislation on bidding in Brazil, since the electronic format of the modalities, such as electronic auction, is a way to bring more transparency to public accounts.
Before the New Bidding Law came into effect, the electronic auction was governed by the old decree no. 10.024/19 . With the arrival of 14.133/21 it is being replaced as well as other regulations.
Understand everything about the electronic auction, how it works and much more in the following text:
Register and take advantage of sales opportunities for the Public Authorities!
What is an electronic auction?
An electronic auction is nothing more than a type of bidding process for the acquisition or contracting of common goods and services of any estimated value.
The competition for supply takes place through electronic public sessions and involves successive proposals and bids.
One of the main objectives of electronic auctions is to speed up the contracting of common goods and services and provide greater transparency in public spending.
Therefore, the sessions are open to all types of public and interested parties can follow the process, checking the bid values, the duration of the competition and the winners.
This is another way of ensuring that there is no favoritism of any kind, since the identity of the bidders is not revealed until the end of the process.
How does the electronic auction work?
In general, what defines the contracts carried out through the Electronic Auction are the characteristics of the objects.
In the case of the Auction, the objects must be of a common nature, that is, they must be defined by usual market characteristics, such as chairs, computers, plates or spoons.
In the Electronic Auction, first of all, the proposals are opened and only then the documentation is presented.
The session takes place remotely, through electronic systems that are connected to the internet, as regulated by law no. 14.133/21 .
It works like this: interested companies enter the system responsible for the bidding and register.
After that, the interested company completes the registration process - which varies according to each Purchasing Portal - to be eligible to participate in the auction.
In electronic auctions, the choice is determined by the lowest price or greatest discount, that is, the auctioneer only finds out who the participants are in the qualification phase.
This is a way to increase the number of participants in the bidding, increasing transparency and competitiveness among suppliers.
What types of goods and services are common to be bid on in the auction? As we briefly mentioned above, goods and services are items that are more easily found on the market. Examples of common goods are pens, paper, tables, computers, vehicles, etc. Common services, on the other hand, involve things like making keys, maintaining vehicles, laying floors, replacing tiles, painting walls, etc. In other words, a good or service is considered common when it is possible to establish, for the purpose mobile phone number database of evaluating proposals and based on specifications used in the market, quality and performance standards specific to an object. Since it is not possible to list everything that is common, it is up to the manager, in the search for the most advantageous proposal for the Administration, to decide on the electronic auction method whenever the objective is considered common. When an option falls on the electronic auction method, managers must justify their decision in a motivated and detailed manner.
Who can participate in an auction?
Any individual or company may participate in any bidding process provided that they meet all the necessary requirements and their annexes.
However, the following may not participate in the bidding processes:
The author of the basic or executive project, whether a natural or legal person;
The company, individually or in a consortium, responsible for preparing a basic or executive project of which the author of the project is a director, manager, shareholder or holder of more than 5% of the capital with voting rights, or controller, responsible, technician or subcontractor;
The server or manager of the contracting body or entity or person responsible for the bidding;
Individual or legal entity that is unable to participate in the bidding process due to a sanction imposed on them;
Anyone who maintains a technical, commercial, economic, financial, labor or civil relationship with a director of the contracting body or entity or with a public agent who performs a function in the bidding process or acts in the supervision or management of the contract, or who is their spouse, partner or relative in a direct line, collateral line or by affinity, up to the third degree, and this prohibition must be expressly stated in the bidding notice;
Controlling, controlled or affiliated companies, under Law No. 6,404 of December 15, 1976, competing with each other;
Individual or legal entity that, in the 5 (five) years prior to the publication of the notice, has been convicted in court, with a final judgment, for exploitation of child labor, for subjecting workers to conditions analogous to slavery or for hiring adolescents in cases prohibited by labor legislation.
It is important to remember that any and all technical, commercial, economic, financial or labor-related links between the author of the project, an individual or legal entity, and the bidder or person responsible for the services, supplies and works, including members of the bidding committee, are considered “indirect participation”.
The author of the project is permitted to participate in the bidding for works or services, or in the execution, only as a consultant or technician, provided that this is in the functions of inspection, supervision or management and, exclusively, in the service of the Administration.
What are the differences between the Auction and other modalities?
We already know what a public auction is, its types and its advantages. However, there are other types of bidding . It is important to know a little more about each one to understand the difference between them and auctions:
Public Competition - This type of bidding is generally used to purchase special goods and services. This procedure has stricter requirements for the qualification phase;
Auctions - Auctions, in turn, are held to sell movable goods that are useless to the Public Administration in order to obtain income.
Competitive Dialogue - This is a new type. It is applied in cases where the solution to a problem - whatever it may be - is not previously defined by a service or product on the market;
Contest - This type of bidding seeks technical, scientific or artistic work by establishing prizes or remuneration for the winners, according to the criteria of the notice. In the case of contests, there is no competitive phase in the price dispute, since the amount to be paid has already been previously defined in the notice of invitation.
What are the phases of the Auction?
According to law 14.133/21 , for an electronic auction to be carried out successfully and within the law, it must follow some specific phases.
Learn a little more about them:
Preparatory phase
In the preparatory phase, the internal activities of the public body are developed. In other words, in the preparatory phase, the presentation of the justification for the need for the contract, the verification of budget availability, the preparation of the terms of reference, with a precise indication of the object, the preparation of the notice and the appointment of the auctioneer and his support team will take place.
External phase
In the external phase, on the other hand, the following steps will be covered:
Calling of interested parties - the notice is published and those interested in being bidders register in the process;
Receipt of proposals - Bidders submit their proposals;
Analysis of proposals - in this phase, the administration analyzes the proposals given by the bidders;
Bidding phase - in the bidding phase, bidders compete for who has the possibility of offering the best price for the final product;
Acceptance of Proposals - after the bidding phase, the administration expresses interest in one of the proposals;
Verification of the qualification or disqualification of bidders - the winning bidder must prove his/her qualification to supply the product or service;
Expression of intention to appeal - the administration announces the first place and the bidders who did not win can contest the indication of the winner;
Admissibility judgment - the auctioneer verifies whether the appeal meets the legal requirements;
Appeal phase - the administration decides whether the appeal is valid or not. If valid, the winner of the bidding process is changed;
Awarding of the object to the winning bidder of the electronic auction - the administration confirms the purchase with the winning bidder;
Process approval - the administrative manager validates the purchase or contracting of the product or service.
Undertaking or bidding, why not both?
What changes in the electronic auction between decree 10.024/19 and Law 14.133/21
Law 14.133/21 , also known as the New Bidding Law, was created to speed up, increase efficiency and transparency in the bidding process, especially due to the pandemic scenario caused by Covid-19.
Since the electronic auction was already one of the most efficient and modern bidding methods, Law 14.133/21 did not change much regarding how the electronic auction works.
Since it is an electronic bidding method, there is no need to send physical documents (which can compromise the fairness of the bidding process) or for the personal presence of representatives of the bidders, which became unfeasible with social isolation.
How to participate in an electronic auction
Participating in an electronic auction is very simple. First, you must register according to the rules of the notice on a digital platform, such as the Public Procurement Portal .
Then, you must be present at the online session and present your proposals in the chat. If you are the bidder who offered the lowest price or the biggest discount, you win the bidding phase of the auction.
From there, you just have to go through the qualification phase , and if there is any appeal, you must wait for the judgment of the possible questions presented by the other bidders.
Conclusion
As we saw during the text, auctions are a type of bidding process aimed at the purchase or contracting of goods or services by the Government.
Any person or company can participate in auctions, as long as they meet the basic requirements proposed in the notice.
The auctions also have their data open to ensure transparency in the process and so that society can monitor purchases made by the Government.
Now that you know what an electronic auction is and how it works, how about registering on the Public Procurement Portal and becoming a supplier?
Making things simple makes a difference! Let's join us?
Stay up to date with all the news from the Portal by accessing our social networks.
The electronic auction is a great tool for public management, which allows managers to optimize the process of acquiring products and services in a transparent, efficient and fast way.
Law No. 14,133/21 establishes that digital bidding processes, such as the Electronic Auction, are mandatory in several spheres of public administration, as we can see in the first paragraph of Art. 1:
Art. 1 This Law establishes general bidding and contracting rules for the direct, autarchic and foundational Public Administrations of the Union, States, Federal District and Municipalities…
NLLC 14.133/21
This requirement is a very important advance in the legislation on bidding in Brazil, since the electronic format of the modalities, such as electronic auction, is a way to bring more transparency to public accounts.
Before the New Bidding Law came into effect, the electronic auction was governed by the old decree no. 10.024/19 . With the arrival of 14.133/21 it is being replaced as well as other regulations.
Understand everything about the electronic auction, how it works and much more in the following text:
Register and take advantage of sales opportunities for the Public Authorities!
What is an electronic auction?
An electronic auction is nothing more than a type of bidding process for the acquisition or contracting of common goods and services of any estimated value.
The competition for supply takes place through electronic public sessions and involves successive proposals and bids.
One of the main objectives of electronic auctions is to speed up the contracting of common goods and services and provide greater transparency in public spending.
Therefore, the sessions are open to all types of public and interested parties can follow the process, checking the bid values, the duration of the competition and the winners.
This is another way of ensuring that there is no favoritism of any kind, since the identity of the bidders is not revealed until the end of the process.
How does the electronic auction work?
In general, what defines the contracts carried out through the Electronic Auction are the characteristics of the objects.
In the case of the Auction, the objects must be of a common nature, that is, they must be defined by usual market characteristics, such as chairs, computers, plates or spoons.
In the Electronic Auction, first of all, the proposals are opened and only then the documentation is presented.
The session takes place remotely, through electronic systems that are connected to the internet, as regulated by law no. 14.133/21 .
It works like this: interested companies enter the system responsible for the bidding and register.
After that, the interested company completes the registration process - which varies according to each Purchasing Portal - to be eligible to participate in the auction.
In electronic auctions, the choice is determined by the lowest price or greatest discount, that is, the auctioneer only finds out who the participants are in the qualification phase.
This is a way to increase the number of participants in the bidding, increasing transparency and competitiveness among suppliers.
What types of goods and services are common to be bid on in the auction? As we briefly mentioned above, goods and services are items that are more easily found on the market. Examples of common goods are pens, paper, tables, computers, vehicles, etc. Common services, on the other hand, involve things like making keys, maintaining vehicles, laying floors, replacing tiles, painting walls, etc. In other words, a good or service is considered common when it is possible to establish, for the purpose mobile phone number database of evaluating proposals and based on specifications used in the market, quality and performance standards specific to an object. Since it is not possible to list everything that is common, it is up to the manager, in the search for the most advantageous proposal for the Administration, to decide on the electronic auction method whenever the objective is considered common. When an option falls on the electronic auction method, managers must justify their decision in a motivated and detailed manner.
Who can participate in an auction?
Any individual or company may participate in any bidding process provided that they meet all the necessary requirements and their annexes.
However, the following may not participate in the bidding processes:
The author of the basic or executive project, whether a natural or legal person;
The company, individually or in a consortium, responsible for preparing a basic or executive project of which the author of the project is a director, manager, shareholder or holder of more than 5% of the capital with voting rights, or controller, responsible, technician or subcontractor;
The server or manager of the contracting body or entity or person responsible for the bidding;
Individual or legal entity that is unable to participate in the bidding process due to a sanction imposed on them;
Anyone who maintains a technical, commercial, economic, financial, labor or civil relationship with a director of the contracting body or entity or with a public agent who performs a function in the bidding process or acts in the supervision or management of the contract, or who is their spouse, partner or relative in a direct line, collateral line or by affinity, up to the third degree, and this prohibition must be expressly stated in the bidding notice;
Controlling, controlled or affiliated companies, under Law No. 6,404 of December 15, 1976, competing with each other;
Individual or legal entity that, in the 5 (five) years prior to the publication of the notice, has been convicted in court, with a final judgment, for exploitation of child labor, for subjecting workers to conditions analogous to slavery or for hiring adolescents in cases prohibited by labor legislation.
It is important to remember that any and all technical, commercial, economic, financial or labor-related links between the author of the project, an individual or legal entity, and the bidder or person responsible for the services, supplies and works, including members of the bidding committee, are considered “indirect participation”.
The author of the project is permitted to participate in the bidding for works or services, or in the execution, only as a consultant or technician, provided that this is in the functions of inspection, supervision or management and, exclusively, in the service of the Administration.
What are the differences between the Auction and other modalities?
We already know what a public auction is, its types and its advantages. However, there are other types of bidding . It is important to know a little more about each one to understand the difference between them and auctions:
Public Competition - This type of bidding is generally used to purchase special goods and services. This procedure has stricter requirements for the qualification phase;
Auctions - Auctions, in turn, are held to sell movable goods that are useless to the Public Administration in order to obtain income.
Competitive Dialogue - This is a new type. It is applied in cases where the solution to a problem - whatever it may be - is not previously defined by a service or product on the market;
Contest - This type of bidding seeks technical, scientific or artistic work by establishing prizes or remuneration for the winners, according to the criteria of the notice. In the case of contests, there is no competitive phase in the price dispute, since the amount to be paid has already been previously defined in the notice of invitation.
What are the phases of the Auction?
According to law 14.133/21 , for an electronic auction to be carried out successfully and within the law, it must follow some specific phases.
Learn a little more about them:
Preparatory phase
In the preparatory phase, the internal activities of the public body are developed. In other words, in the preparatory phase, the presentation of the justification for the need for the contract, the verification of budget availability, the preparation of the terms of reference, with a precise indication of the object, the preparation of the notice and the appointment of the auctioneer and his support team will take place.
External phase
In the external phase, on the other hand, the following steps will be covered:
Calling of interested parties - the notice is published and those interested in being bidders register in the process;
Receipt of proposals - Bidders submit their proposals;
Analysis of proposals - in this phase, the administration analyzes the proposals given by the bidders;
Bidding phase - in the bidding phase, bidders compete for who has the possibility of offering the best price for the final product;
Acceptance of Proposals - after the bidding phase, the administration expresses interest in one of the proposals;
Verification of the qualification or disqualification of bidders - the winning bidder must prove his/her qualification to supply the product or service;
Expression of intention to appeal - the administration announces the first place and the bidders who did not win can contest the indication of the winner;
Admissibility judgment - the auctioneer verifies whether the appeal meets the legal requirements;
Appeal phase - the administration decides whether the appeal is valid or not. If valid, the winner of the bidding process is changed;
Awarding of the object to the winning bidder of the electronic auction - the administration confirms the purchase with the winning bidder;
Process approval - the administrative manager validates the purchase or contracting of the product or service.
Undertaking or bidding, why not both?
What changes in the electronic auction between decree 10.024/19 and Law 14.133/21
Law 14.133/21 , also known as the New Bidding Law, was created to speed up, increase efficiency and transparency in the bidding process, especially due to the pandemic scenario caused by Covid-19.
Since the electronic auction was already one of the most efficient and modern bidding methods, Law 14.133/21 did not change much regarding how the electronic auction works.
Since it is an electronic bidding method, there is no need to send physical documents (which can compromise the fairness of the bidding process) or for the personal presence of representatives of the bidders, which became unfeasible with social isolation.
How to participate in an electronic auction
Participating in an electronic auction is very simple. First, you must register according to the rules of the notice on a digital platform, such as the Public Procurement Portal .
Then, you must be present at the online session and present your proposals in the chat. If you are the bidder who offered the lowest price or the biggest discount, you win the bidding phase of the auction.
From there, you just have to go through the qualification phase , and if there is any appeal, you must wait for the judgment of the possible questions presented by the other bidders.
Conclusion
As we saw during the text, auctions are a type of bidding process aimed at the purchase or contracting of goods or services by the Government.
Any person or company can participate in auctions, as long as they meet the basic requirements proposed in the notice.
The auctions also have their data open to ensure transparency in the process and so that society can monitor purchases made by the Government.
Now that you know what an electronic auction is and how it works, how about registering on the Public Procurement Portal and becoming a supplier?
Making things simple makes a difference! Let's join us?
Stay up to date with all the news from the Portal by accessing our social networks.