This Country Procurement AssessmentReport (CPAR) intends to contribute to a dialogue with thegovernment, on its procurement policy and management agenda,by surveying the existing situation, assessing the situationin light of appropriate standards, indicating a meaningfularray of issues that could be incorporated into thegovernment's agenda, and examining the desirability,and workability of practices that would address thoseissues. It represents an effort by the Bank, to seek furtherways to support the reform, and modernization of governmentprocurement in Brazil. Notwithstanding the constrainingenvironment imposed by the 1993 legislation, the countrymoved forward to modern practices, developing anInternet-based system to implement the electronic version ofCOMPRASNET, unanimously rated satisfactory. Nonetheless, thecurrent legal framework lays no foundation for a disputeresolution system for government contracts, whereexhaustively detailed legal provisions, discourage flexibleinterpretations, and allow the disqualification of proposalsfor reasons that are not substantial. In addition, there islack of a normative entity, i.e., a policy-making agencyresponsible for developing procurement norms, and ensuringstandardization of documents and procedures, thus leaving agap in the procurement function, filled at times by thelegal departments of the agencies, by the FederalSecretariat of Internal Control, and the Courts of Accounts,or by other law enforcement units, that are not specializedin government procurement. Recommendations include theestablishment of a normative entity, the development ofstandard bidding documents, the introduction of Web-basedplanning, dispute resolution, and bulk buying, and, creatingwithin the new procurement law, an effective disputeresolution system for contract implementation.
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