The Public Contracts Code undergoes a deep revision starting October 1st, the most significant since 2017, with 154 articles amended, 34 new ones added, and 8 repealed. The Government presents this reform as a deregulation measure, with emphasis on the substantial increase in public procurement thresholds.
In construction works, direct award rises from 30 thousand to 150 thousand euros and prior consultation from 150 thousand to one million euros. In the purchase of goods and services, direct award goes from 20 thousand to 75 thousand euros and prior consultation from 75 thousand to 130 thousand euros. In practice, public tendering for works is no longer necessary for the vast majority of small and medium-sized municipalities.
The reform brings positive measures recognized by the author, such as the elimination of declarations that only served to exclude proposals due to formal defects, the creation of alternative dispute resolution mechanisms with a conciliation committee, and the obligation for the Administration to use documents it already possesses. However, concerns are raised about the new flexibility regime that allows contracting authorities to set aside legal rules through their own judgment of utility, without a proportional reinforcement of oversight mechanisms.
The author warns that the sanction that prevented anyone with a history of serious non-compliance from bidding for one year disappears, in a decree that gives so much freedom in choosing who is invited. He concludes that the Code has gone from deciding to permitting, and that the success of the reform will depend on each entity having or not having the means to plan correctly, noting that only in three or four years, when the works are completed, will it be possible to evaluate the results. The article is authored by Fábio Amorim, a lawyer and master's degree holder in Administrative Law.
