Share

Competition

Fighting bid rigging in Brazil: A review of federal public procurement

 

Português 

Brazil’s competition authority (CADE) has invited the OECD to assess the Brazilian public procurement framework in light of the OECD Recommendation and Guidelines for Fighting Bid Rigging in Public Procurement.  

During the process, the OECD will assess the main rules governing public procurement in Brazil at the federal level as well as procurement practices of major federal procurers. The OECD’s assessment will be presented in a report including recommendations to improve competition in public procurement.

As part of the project, the OECD will also:

  • train senior public procurement officials on the risks of bid rigging, the forms it can take and OECD good practices to design competitive tenders;
  • train senior officials from various public organisations on actions for damages for harm caused by anticompetitive acts; and
  • deliver a training manual for procurement officials.

brasilia

Background

‌Bid rigging in public tenders involves firms conspiring to raise prices or lower the quality of their bid. It is an illegal anti-competitive practice which costs governments and taxpayers billions of dollars every year across the world.

A significant share of cartel enforcement in many OECD countries concerns bids rigging cases. This shows that there is awareness of the importance of stopping collusive practices, but also that there is room to improve compliance with competition rules in public procurement and ensure that the public sector buys the right thing, at the right price.  

The OECD Recommendation and Guidelines for Fighting Bid Rigging in Public Procurement were designed to reduce the risks of bid rigging through careful design of the procurement process and to help detect bid rigging conspiracies.

Project stages

The OECD project team will:

1

Analyse Brazil’s public procurement laws and regulations as well as the institutional setting, all at the federal level.

2

Interview national stakeholders to collect facts and insights.

3

Identify good practices on fighting bid rigging from other jurisdictions.

4

Recommend legal and practical improvements.

5

Provide capacity building in preventing and detecting bid rigging.

Links

Fighting Bid Rigging in Public Procurement

OECD Recommendation on Fighting Bid Rigging in Public Procurement

More OECD competition work on Brazil

Mexico-OECD partnership for fighting bid rigging in government contracts

Competition in Latin America

Latin American and Caribbean Competition Forum

OECD competition home page

 

Related Documents