Procurement methods in Brazil
Law 14,133/2021 defines how Brazilian agencies can buy. See what each method means and what is open now.
Which method matters to you
Electronic Reverse Auction (Pregão Eletrônico)
The electronic reverse auction (pregão eletrônico) is used to buy standard goods and services — those whose quality can be defined objectively in the tender notice. Bidding happens online through successive bids, and the lowest price (or largest discount) wins. It is the most common procurement method in Brazil and the entry point for almost every new government supplier.
Direct Award (Dispensa de Licitação)
A direct award (dispensa de licitação) is a purchase without a full tender, allowed by Article 75 of Law 14,133/2021 in cases such as low-value purchases, emergencies or a previous tender with no bidders. It is still public: in electronic direct awards the agency publishes a notice, receives quotes from any supplier for a few business days and publishes the result on the PNCP. For small companies it is where the most opportunities and the least competition are.
Sole-Source Award (Inexigibilidade)
A sole-source award (inexigibilidade) applies when competition is impossible: an exclusive supplier, a renowned artist or a specialized technical service of notorious expertise. It is not a blank check — the agency must justify the choice and the price, and everything is published on the PNCP.
Electronic Competitive Bidding (Concorrência Eletrônica)
Competitive bidding (concorrência) is used for public works, engineering services and larger or more complex contracts, where the award can consider technical quality and not only price. In the electronic form the whole session runs online.
In-Person Reverse Auction (Pregão Presencial)
A reverse auction held in a physical session, with bidders’ representatives in the room. It is now the exception — the electronic reverse auction is the rule, and the agency must justify the choice.
In-Person Competitive Bidding (Concorrência Presencial)
Competitive bidding held in an in-person session. It is now the exception: Law 14,133/2021 requires the agency to justify not using the electronic form and to record the session.
Electronic Auction (asset sale) (Leilão Eletrônico)
An auction (leilão) is used to sell government assets: used vehicles, real estate, decommissioned equipment, seized goods. Here participants are buying from the government, and the highest bid wins. Inspect the asset first: it is sold as is.
In-Person Auction (asset sale) (Leilão Presencial)
An auction held in a physical session, run by an auctioneer, to sell government assets to the highest bidder.
Design Contest (Concurso)
A design contest (concurso) selects technical, scientific or artistic work in exchange for a prize or fee — architecture projects, visual identities, cultural works.