From April 2, Petrobras Rio Unit has started procurement of goods and services under the new legal system – Law 13.303/16, and from May 15 all Petrobras units in Brazil will also be running under the new rules. See below a summary of the process:

Step 1 - Vendors List Registration

Foreign suppliers can register for the supply of goods and services. The registration is available for all goods items and around 60 different services items. If you are not yet, get registered in Petrobras vendor’s list – benefits are:

a) You have easier access to all public bids through your private area in the Petronect system;

b) You receive notifications by email on the bids and pre-qualification process;

c) You mitigate the risk of not being qualified when winning a bid.

It is highly recommended that the process is coordinated by a Portuguese spoken person, as the bulk of information and communication with Petrobras is in Portuguese. Registration must be updated yearly. If you are already listed, you must urgently adjust the items as all 1.600 goods and services items are under a full modification and updating process.

Step 2 – Risk analysis

Check the CFM (Materials Supply Conditions) and the standard drafts contracts and bid notices related to your product or service on Petronect page. This will help you being prepared way before the bid is launched: you have access to the terms and conditions, duties and obligations, civil liability and other relevant aspects that will be the basis for your proposed price. All drafts are supposed to be published on May 15 (according to Petrobras).

Step 3 – Pre-qualification

Pre-qualify for goods and services items open for pre-qualification process (in Petronect system). Fifty nine (59) items of goods and services will be subject to pre-qualification as they are considered high-technology items. Benefits: you will be eligible to participate to bids restricted to pre-qualified suppliers, even though your pre-qualification process is not finalized. The pre-qualification must also be updated yearly. Some documents may be replaced by documents already approved in Step 1, with the relevant complements. Check for the current open pre-qualification process at https://www.petronect.com.br/irj/portal/anonymous/pt purchasing and contracting, prequalification, prequalification open.

Important: Step 1 and 3 may be performed at the same time.

Step 4 - Analyze the bid notice and specific bid requirements

Follow up the international call for bid process through your logged in area in Petronect – or in the public area if you have not concluded your vendor’s list registration (Step 1); get access to the full list of requirements; analyze the bid notice and all requirements to make sure your company is capable of complying with all items. Important: the bids for Rio are already online! Take a look at https://www.petronect.com.br/irj/portal/anonymous/pt (purchasing and contracting; public bidding; published)

The bid notice may be challenged up to 5 working days before the bid for non-compliance with the legislation (lack of clarity, missing information, favoring of participants, restriction of competitiveness, etc.)

Step 5 - Bid

If you decide to proceed, you will bid through Petronect system and Petrobras will select one proposal only (the most advantageous one according to the stipulated criteria). If your company win and comply with all requirements of the bid notice, you will be called to negotiate with Petrobras. If the price proposed is up to Petrobras budget for this bid, you will go to the next phase of qualification – if you are already listed in the vendors list (Step 1) this phase will be skipped, except if the bid notice require additional specific items.

Step 6 – Appeal phase

At the sole appeal phase, competitors may challenge Petrobras’ decisions and your proposal (and vice-versa if you are not the winner).

Step 7 – Award phase

PETROBRAS awards the bid and approves the result or cancel - if no bidder price is equal or inferior to the stipulated budget and for other specific reasons.

This is the basic process, subject to modification in specific circumstances.