Lecture: The new challenges of the Municipal Public Administration

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mostakimvip04
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Lecture: The new challenges of the Municipal Public Administration

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We invite the purchasing teams – Auctioneers, Orderers and Support Teams, to the lecture on the new challenges of the Municipal Public Administration in the application of the new Electronic Auction Decree , which will be held on 10/09/2019 in Montes Claros/MG , in the auditorium of AMAMS – ASSOCIATION OF MUNICIPALITIES OF THE MINING AREA OF SUDENE.

This important meeting will address relevant issues regarding the new model for creating and operating purchasing processes in the auction modality and the innovations that will occur in public contracts with the new legislation.

The Sustainable Environmental Development Consortium of Northern Minas Gerais – CODANORTE, in partnership with the Public Procurement Portal, aims to train teams involved in municipal public procurement, from direct and indirect municipal administration bodies, to achieve the best results in their processes, ensuring speed, transparency and economy , within all legal aspects of the new legislation.



Once you have gathered all the information and know everything the notice should contain, it is time to think about the structure of the document.

If you've ever seen an announcement, you've probably noticed that they are usually divided into topics to make reading more fluid and enlightening.

Furthermore, it is a way for readers to find information more quickly, as the most important information is always highlighted in some way.

The important thing is that you follow a line of reasoning that helps you list the information by relevance. One tip is, if you prefer, to group the topics together first and then develop each one separately.

3- Place all the participation rules
As we saw in the previous topics, the notice also serves to manage the entire bidding process. Therefore, it must have clear rules for all interested parties.

This is the most important part of the document. Therefore, always remember to include the rules of participation, sanctions in case of non-compliance and rules of conduct.

4- Don't forget the guarantees
In addition to the rules of the selection process, you cannot forget to include the necessary guarantees, if applicable to the notice you are preparing.

Guarantees are a way of ensuring that the notice will be fulfilled as expected even if unforeseen events occur.

5- Try to write from the reader's perspective
When you are writing a bidding notice, try to always do so taking into account the reader's point of view.

In other words, you need to put yourself in the shoes of the person reading the text to know whether everything that is being said in the text is clear and whether there is room for doubt or not.

Therefore, always ask yourself and question the type of doubt that may arise when reading the competition notice. Something that seems obvious to you may not be obvious to the reader, so explain it.

6- Follow the principles governing bidding
Finally, the most important tip that the Public Procurement Portal can give you is that you uk business email database always follow the principles that govern tenders, especially those of speed, economy and compliance.

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Guarantees that must be provided for in the notice

Guarantees that must be provided for in the notice
As we saw in the previous topic, one of the most important pieces of information in some notices are the guarantees.

The New Bidding Law talks about this in its Article 96. Check it out:

Art. 96. At the discretion of the competent authority, in each case, provision of a guarantee may be required, subject to provision in the notice, for contracts for works, services and supplies.

§ 1º The contractor shall be entitled to choose one of the following types of guarantee: I - cash or public debt securities issued in written form, registered in a centralized settlement and custody system authorized by the Central Bank of Brazil, and assessed by their economic values, as defined by the Ministry of Economy; II - surety insurance; III - bank guarantee issued by a bank or financial institution duly authorized to operate in the country by the Central Bank of Brazil.

In other words, in bids where contractual guarantees are necessary, bidders have the right to choose one of three forms: cash deposit, bank guarantee or surety insurance .

At these times, you also need to pay attention to what Article 98 of the New Bidding Law says . Check it out:

Art. 98. In the contracting of works, services and supplies, the guarantee may be up to 5% (five percent) of the initial value of the contract, with the possibility of increasing this percentage to up to 10% (ten percent), provided that it is justified by analysis of the technical complexity and risks involved.

When you are writing the notice, it is important that all this information is very clear in the document, as the supplier can choose one of the three types of guarantee available.

See below the differences between each of these types of guarantee:

Security deposit
Cash guarantees are a deposit of a percentage of the value of the work or purchase into the government's account to ensure that the company will comply with what was contractually demanded by the government.

This amount varies from 5% to 10% of the initial value of the work and, depending on the size of the demand, paying this amount may be simply impossible for many companies without affecting their cash flow.

Bank Guarantee
A bank guarantee, on the other hand, is a contract through which a bank will act as guarantor of the work, that is, it will assume responsibility in the event of non-compliance with the contract signed with the government.

This is a much more affordable option than cash deposits, however, it is quite bureaucratic and requires a good history with the bank on the part of those interested in selling to the government.

Warranty Insurance
Finally, surety insurance is a type of guarantee that provides protection against tax executions and other cases of legal action that put a company's assets or financial flow at risk.

It covers possible losses in the execution of a contract up to the maximum limit expressed in the policy. In these cases, the insurer acts as a guarantor for companies contracted by the government if they fail to fulfill their contractual obligations.

If the company that wins the bid, for any reason, breaks the contract, the public authorities are insured against losses.

Benefits of Surety Bond

Benefits of Surety Bond
Check out the benefits of choosing a surety bond below:

No costs for public entities
The public entity protects itself against potential expenses that may occur when it requires insurance guarantee from interested parties.

If one of the winners fails to fulfill the contract, the entity will be obliged to hire the services of the second-placed bidder, which may be more expensive than those of the first-placed bidder.

In other words, at the end of the day, the surety bond acts as a cost-saving mechanism, since, in these cases, the insurer pays the difference between the price offered by the original winner of the contest and the new one, preventing the government from spending more than what was defined in the bidding process.

Streamlined processes
In addition to avoiding unnecessary costs for the government, another benefit of the surety bond is that it is much faster than other forms of guarantees described in the New Bidding Law.

The deposit is more expensive and may even take longer to be calculated. The bank guarantee, on the other hand, can take days to be authorized by the banks.

The surety bond has a much faster process, which does not depend on so many documents and can be activated in just a few hours.

Easy for the bidder
Finally, the main advantage of surety bonds is that they are easier for the bidder. The entire process is quick and can be done entirely online, taking no more than 15 minutes.

Furthermore, policies are approved in just a few hours, which ensures even greater speed for the bidding process.
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