The Public Procurement Code was reformed with the aim of simplifying, reducing bureaucracy and accelerating public procurement in Portugal. The new rules were published in the Official Gazette and enter into force on October 1st, significantly increasing the thresholds for the use of less competitive procedures, reducing documentary requirements and changing the prior control mechanisms of the Court of Auditors.
In the acquisition of goods and services, direct award rises from the current 20 thousand euros to 75 thousand euros and prior consultation to 130 thousand euros. In public works contracts, direct award increases fivefold to 150 thousand euros and prior consultation rises from 150 thousand euros to one million. The reform also eliminates unnecessary documents from proposals, allows the correction of formal errors and ends the mandatory review of execution projects and the obligation to set the base price.
Ana Filipa Urbano, a lawyer at Dower Law Firm, and Ricardo Maia Magalhães, partner at Cerejeira Namora, Marinho Falcão, consider that updating the thresholds was necessary and allows for more efficient procurement. However, they identify risks: in public works, the absence of prior review of projects may lead to errors detected during execution, with additional works, delays and increased costs. The end of the mandatory base price may hinder expenditure control and contribute to inflation of prices presented by economic operators.
The reform is linked to changes in the audit model of the Court of Auditors, which now has more subsequent control instead of prior audit, and introduces a "spontaneous initiative" mechanism that allows private parties to present projects to public entities without a tender. In litigation, arbitration becomes fully voluntary and conciliation committees are recovered as an alternative. The lawyers heard by ECO consider that the real test of the reform will be on the ground.
