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Procurement Procedures and Bid-Rigging in Brazil

  • César MattosEmail author
Chapter
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Part of the International Law and Economics book series (ILEC)

Abstract

Law 8,883/93, the so-called “procurement law”, includes the main provisions related to the purchases of the Brazilian government. Some key changes to this legislation have been introduced since 2002, altering the whole format of the auctions for the sake of government procurement. Our goal in this article is to assess the impact of the new rules of procurement on bid-rigging and steering of contracts. On the one hand, the transition from a first-price sealed bid auction to an (English) open bid auction facilitated cartels. On the other hand, electronic auctions introduced a welcome bidder anonymity, which had the opposite effect. The article also comments on the impact of some other new rules on the possibility of bid-rigging in Brazilian government procurement like the introduction of the possibility for post-auction negotiation on prices and the change in the time for checking bidder eligibility.

Keywords

Bid-rigging Procurement law in Brazil Auctions Cartel 

JEL

L41 K21 K42 

References

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Copyright information

© Springer International Publishing Switzerland 2016

Authors and Affiliations

  1. 1.Office of the Legislative CounselBrasíliaBrazil

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