For many European companies, expanding into Brazil has traditionally meant focusing on private-sector customers. Public procurement has often remained an overlooked opportunity.
That is about to change. The EU-Mercosur Agreement is set to improve European companies’ access to Brazil’s public procurement market through greater transparency, fairer competition and clearer procurement procedures.
Participating successfully, however, requires more than identifying the right tender. Companies must understand Brazil’s procurement procedures, registration requirements and administrative framework before submitting their first bid.
This guide explains how.
A Market Worth Competing For
Brazil’s public sector is one of the country’s largest purchasers of goods, services and infrastructure. Every year, federal ministries, state governments, municipalities and state-owned enterprises procure products and services worth hundreds of billions of Brazilian reais, covering virtually every sector of the economy.
The procurement market ranges from large infrastructure projects and public transport systems to medical equipment, software, cybersecurity, renewable energy, water treatment, environmental technologies and professional consulting services.
In recent years, Brazil has also modernized the way public procurement is conducted. The introduction of Law No. 14,133/2021, commonly referred to as Brazil’s New Procurement Law, replaced much of the previous procurement framework with a more transparent and standardized system.
A major step in this modernization was the creation of the Portal Nacional de Contratações Públicas (PNCP), a centralized online portal where public tenders are published and procurement information is made available electronically. Combined with Compras.gov.br, Brazil’s federal electronic procurement platform, much of the procurement process has become digital, improving transparency and making participation considerably easier for both domestic and international suppliers.
For European companies, the market is particularly attractive in sectors where technological expertise, sustainability and engineering capabilities play an important role. Water management, renewable energy, (smart)infrastructure, maritime technology, environmental services, healthcare and digital transformation all align closely with areas in which European companies are considered international experts.
As Brazil continues investing in nationwide modernization and public services, demand for specialized solutions is expected to increase further.
A More Level Playing Field
Although foreign companies have long been able to participate in certain Brazilian public tenders, the EU-Mercosur Agreement represents an important step towards creating a more predictable and transparent procurement environment.
The agreement contains a dedicated Government Procurement chapter (Chapter 12) aimed at improving market access for European suppliers. Among other commitments, the parties agree to greater transparency in procurement procedures, clearer publication of tender opportunities, objective qualification criteria and non-discriminatory treatment of suppliers covered by the agreement.
These measures reduce one of the historical barriers to entering the Brazilian public sector. Rather than relying solely on local familiarity with procurement procedures, companies will increasingly benefit from procurement rules designed to provide greater legal certainty and fairer competition.
It is important, however, to understand what the agreement does not change.
The agreement does not create the right to participate—it strengthens the conditions under which European companies compete.
Procurement legislation, qualification requirements and tender documentation remain fully applicable. Companies must still comply with registration procedures, provide the required documentation and satisfy all technical and administrative requirements established by the contracting authority.
In other words, the market becomes more accessible, but successful participation still depends on careful preparation.
Participating in a Brazilian Public Tender
While every procurement procedure has its own specific requirements, participation generally follows the same sequence of steps.
Step 1. Identify the right tender
The first step is identifying procurement opportunities that match your products or services.
Most federal tenders are published through the Portal Nacional de Contratações Públicas (PNCP), which serves as Brazil’s national procurement portal. Federal electronic procurement procedures are generally conducted through Compras.gov.br, while individual states and municipalities may continue using their own procurement platforms.
Before deciding to participate, carefully review the tender documentation. Particular attention should be paid to technical specifications, eligibility criteria, qualification requirements, submission deadlines and any local registration obligations. These documents ultimately determine whether a foreign supplier is eligible to participate.
Step 2. Register as a supplier
Companies participating in federal procurement procedures generally register through gov.br and the SICAF (Sistema de Cadastramento Unificado de Fornecedores) supplier registration system.
SICAF functions as Brazil’s centralized supplier database and records information such as company details, legal representatives, financial standing and qualification documents used throughout the procurement process.
Recognizing the growing participation of foreign suppliers, the Brazilian federal government has even published an official English-language operational manual explaining how international companies can register and participate in federal procurement procedures.
Step 3. Appoint a local representative
While foreign companies can participate in Brazilian public procurement, many choose to appoint a Brazilian representative to facilitate the process.
This may be a local lawyer, commercial agent, implementation partner or another authorized representative acting under a formal Power of Attorney. Depending on the tender, this representative may receive official communications, submit documentation, participate in electronic bidding sessions or assist with administrative procedures.
Even though not every tender legally requires local representation, having experienced support on the ground makes the process considerably more efficient. Beyond overcoming language barriers, a local representative can help interpret tender requirements, communicate with contracting authorities and ensure documentation is submitted correctly and on time.
For many first-time participants, local expertise significantly reduces administrative risk.
Step 4. Prepare the required documentation
Brazilian public procurement places considerable emphasis on documentation. Before participating, companies should ensure that all required corporate and technical documents are available and properly legalized.
Frequently requested documents include company registration extracts, articles of association, audited financial statements, bank references, technical references, ISO certifications and declarations confirming the company’s legal standing.
Foreign documents generally require an apostille under the Hague Apostille Convention before being accepted in Brazil. In addition, procurement documents often need to be translated into Portuguese by a Brazilian sworn translator (tradução juramentada).
Because obtaining apostilles and certified translations can take time, preparing documentation well before the submission deadline is strongly recommended.
Step 5. Verify whether a CNPJ is required
One of the most common questions among foreign companies concerns the need for a Brazilian company registration number, known as a CNPJ.
The answer depends on the procurement procedure.
Some tenders—particularly those involving the direct supply of imported goods—may allow participation without establishing a Brazilian legal entity. Other contracts, especially those involving long-term services, maintenance, engineering works or local execution, may require either a Brazilian subsidiary or cooperation with a locally established partner.
The tender documentation always takes precedence. Companies should therefore verify these requirements before beginning the registration process rather than after being selected.
Step 6. Submit your electronic bid
Most federal procurement procedures are now conducted entirely online.
After completing the registration process and preparing the required documentation, suppliers submit their qualification documents and financial proposal electronically through the designated procurement platform.
Many procedures also include a live electronic bidding session, comparable to a reverse auction, during which qualified suppliers may improve their price in real time while competing against other participants.
Once the bidding phase has concluded, the contracting authority evaluates both the technical qualifications and the commercial proposal before announcing the provisional award.
Step 7. Complete the award procedure
Being selected as the preferred bidder does not automatically conclude the procurement process.
Following the provisional award, contracting authorities may request additional supporting documentation before the contract is formally signed. Depending on the nature of the procurement, this may include original certificates, technical approvals, product documentation, insurance certificates or performance guarantees.
Certain sectors, such as healthcare, engineering or telecommunications, may also require additional registrations or regulatory approvals before execution of the contract can begin.
Carefully monitoring post-award deadlines is therefore just as important as submitting a compliant bid.
Before You Submit Your Bid
Before participating in a Brazilian public tender, make sure you have:
✔ Identified the appropriate tender and reviewed all eligibility requirements
✔ Registered in SICAF (where applicable)
✔ Verified whether local representation or a CNPJ is required
✔ Prepared and legalized all required corporate documentation
✔ Confirmed any technical certification or regulatory requirements
✔ Checked all submission deadlines (Brasília time)
A well-prepared submission significantly reduces the risk of disqualification due to administrative errors.
In Short
Brazil’s public procurement market is becoming increasingly accessible to European companies. Procurement reform, digitalization and the EU-Mercosur Agreement are creating new opportunities for foreign suppliers across a wide range of sectors.
Participating in a Brazilian public tender requires more than identifying an interesting opportunity. Companies must understand the procurement process, meet the administrative and technical requirements, and prepare thoroughly before submitting their first bid.
The EU-Mercosur Agreement may improve market access, but successful participation will continue to depend on careful preparation, local knowledge and a thorough understanding of Brazil’s procurement framework. Companies that invest in all three will be best positioned to compete in Latin America’s largest public procurement markets.
SOURCES
- European Commission – EU-Mercosur Agreement: Official Agreement Text (Government Procurement Chapter)
- European Commission – EU-Mercosur Trade Agreement Overview
- Government of Brazil (gov.br) – Portal Nacional de Contratações Públicas (PNCP)
- Government of Brazil (gov.br) – Compras.gov.br – Federal Electronic Procurement Platform
- Government of Brazil (gov.br) – SICAF – Unified Supplier Registration System
- Government of Brazil (gov.br) – English Guide for Foreign Suppliers Participating in Brazilian Public Procurement
- Government of Brazil – Law No. 14,133/2021 (Brazil’s New Procurement Law)