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Public procurement preference margin
On 28 September 2012, the Brazilian government decided in Decree no. 7.816 to apply a margin of preference of 14% to 17% to the public procurement of various nationally produced vehicles.
The margins of preference are set as follows:
This means that if the lowest bid comes from a foreign company, a domestic contractor will be preferred by the government if he offers a price that is within the range of the lowest bid plus the preferential margin. Brazil's preferential margins-scheme was introduced by Law no. 12.349/2010 in the realm of the Plano Brasil Maior, i.e., Greater Brazil Plan (see related measure).
The measure, Decree no. 7.816, came into power with its publication in the Official Gazette on 1 October 2012 and stayed in effect until 31 December 2013.
In December 2013, the scheme was prolonged for an additional two years by Decree no. 8.171/2013.
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