Price Registration System: what it is and main advantages
Posted: Sun Dec 22, 2024 4:47 am
The Price Registration System is a bidding procedure that serves to register suppliers' prices for future government purchases.
This is a way of following the principle of economy, since the use of this system helps the administration to save money when making public purchases.
Furthermore, it can also be shared between different public bodies, which reduces the costs of public procurement, while increasing the chances of businesspeople supplying the government.
Want to know more about the Price Registration System, how it works and its benefits for public administration? Then check out everything in the text below:
Register and receive free access to our Tender Notice!
What is the Price Registration System (SRP)?
The Price Registration System, or SRP, is a special bidding procedure that aims to register the price of a certain material or service that is of interest to the public authorities.
It works like this: anyone interested in selling to the government registers their product or service in minutes, with the price and technical specifications.
The data for this product is then stored with the public authorities for a certain period (no longer than 12 months) and, whenever requested, the supplier that registered a product must provide it to the public administration at the registered price.
In other words, it serves as a database with the average price of products and services to be used at the time of a public purchase.
The big difference with this modality is that the administration is not obliged to hire, acquire goods or services.
In this case, the bidder assumes the obligation to supply, but the administration does not.
With a Price Registration System, the public administration can buy or contract if it wants, when it wants and in the quantity it wants, as long as it is within the maximum quantities bid and the validity period of the minutes.
What is the Price Registration Record?
The Price Registration Record is a binding and obligatory document, that is, it is a document that generates the expectation of contracting.
It records prices, suppliers, supply conditions and all participating bodies.
This is a very important tool for saving public spending and for complying with the principle of economy in tenders.
For example, if a city hall needs to buy pens for schools, but does not know the exact quantity it needs, if demand exceeds the estimate, the city hall can benefit from the Price Registration Record to acquire a new batch without the need to carry out a new bidding process.
What is the Price Registration System for?
What is the Price Registration System for?
The Price Registration System is used when a public body wishes to register the prices of goods and services so that, at a later date, it can purchase them at the registered prices.
In this sense, the SRP serves to prevent the public administration from making successive bids for purchases of the same product.
In these cases, when the bidding process is closed, the administration makes available the Price Registration Record, which is a binding document, with characteristics of commitment for future contracting, where the prices, suppliers, participating bodies and the conditions to be practiced are registered.
In other words, once the bidding process is concluded, it is through the Price Registration Record that the bidding public body or entity will purchase from the supplier (who has the price already registered for the product or service) as many times as necessary.
Ultimately, it is a way to avoid unnecessary expenses with repeated bids to purchase the same product.
What does the legislation say?
What does the legislation say?
Currently, tenders are governed by Law No. 14,133/21, the New Tender Law, which deals with the Price Registration System in Art. 82, paragraphs 5 and 6:
Art. 82. The bidding notice for price registration shall observe the general rules of this Law and shall provide for: (...)
§ 5º The price registration system may be used for contracting goods and services, including engineering works and services, subject to the following conditions: I - prior completion of extensive market research; II - selection in accordance with the procedures provided for in regulations; III - mandatory development of a control routine; IV - periodic updating of registered prices; V - definition of the validity period of the price registration; VI - inclusion, in the price registration minutes, of the bidder who agrees to quote the goods or services at prices equal to those of the winning bidder in the bidding ranking sequence and inclusion of the bidder who maintains its original proposal.
§ 6º The price registration system may, in the form of regulation, be used in cases where bidding is not required or is waived for the acquisition of goods or the contracting of services by more than one body or entity.
Furthermore, the law also explains other cases in which the administration may use the Price Registration System to execute a public purchase in Art. 85:
Art. 85. The Administration may contract the execution of engineering works and services through the price registration system, provided that the following requirements are met: I - existence of a standardized project, without technical and operational complexity; II - permanent or frequent need for work or service to be contracted.
In other words, according to the law, the Price Registration System can only be used with extensive prior market research, with periodic updating of registered prices.
She also notes that it is necessary to follow the procedures set out in mobile phone number database the regulations, develop a control routine and define the validity period of the price register.
Furthermore, it is necessary to include, in the minutes, the bidders who agree to quote the goods or services at prices equal to the winning bidder following the bidding process and the inclusion of the bidder who maintains its original proposal.
In this way, when the bidder who offered the lowest price is unable to supply, others who are willing to supply at the same price may be called upon.
Finally, the law highlights that the execution of engineering works and services can only take place when there is a standardized project, without technical or operational complexity or when there is a permanent or frequent need for work or service to be contracted.
In which bidding modalities can the Price Registration System be adopted?
The Price Registration System is mainly used in electronic auctions, in which the most advantageous proposal is selected in strict compliance with the principle of equality, since the purchase is planned for future contracting.
If you want to know more about electronic bidding and other bidding methods, then read the other text we wrote on the subject:
Bidding Modalities: types and main questions answered
The Price Registration System and multiple contractors
Another interesting detail about the Price Registration System is that it is shared between several public bodies and entities.
Therefore, it is possible that in the same Price Registration Record more than one public body or entity are included as beneficiaries, which are called the Managing Body and the Participating Body.
There is also the Non-Participating Body or Entity, known as “Carona”, which, even if not participating in the bidding procedures, can adhere to a Price Registration Record.
What is Carona in the Price Registration System?
As we have seen, the “Carona” is the Non-Participating Body or Entity. In other words, it does not participate in the bidding procedures, but can adhere to a Price Registration Record to be able to make public purchases at the prices registered in the system.
However, adherence to Carona only depends on legal discipline, that is, it is up to the federation body or entity (be it municipal, state or federal) to create its own regulations through decrees.
The Union, for example, only allows other federal bodies to use Carona.
What are the benefits of the Price Registration System in the bidding process?
What are the benefits of the Price Registration System in the bidding process?
Now that you know everything about the Price Registration System, let's take a look at the main benefits of implementing this feature. Check it out:
Fewer bids
The main benefit of using a Price Registration System is the fact that the government will need to make fewer bids.
As we have seen throughout the text, the SRP is used mainly for recurring contracts, eliminating the need for another bidding process.
This is in line with the principle of economy, which governs the bidding universe, since a bidding process is costly and using the SRP is a way of maintaining transparency and saving resources at the same time.
Speed in acquisitions
Another advantage of Price Registration Systems is the fact that they ensure much faster acquisitions.
Unlike bidding processes, which involve the creation and publication of a notice and several phases, with the SRP, the best offers are available whenever the public authority needs them, which guarantees a much faster delivery of the contracted goods or services.
Increased competitiveness
Implementing a Price Registration System also increases the competitiveness of bidders, as a participant who has made a higher bid may agree to bid at the same price as the winning bidder.
Eliminates storage problems
The government buys a lot and in large quantities. If it always buys everything it needs at once, then it will have a big problem, which is: where to store all the purchased material?
In this sense, a Price Registration System helps to solve this problem, since the government will be able to make more than one purchase in smaller batches.
This way, stock and storage problems are resolved and the government is not forced to rent a logistics warehouse to store everything it has purchased, for example.
Shared registry
Another great advantage of the Price Registration System is that it can be shared among other public bodies that want to make similar purchases.
This is an advantage both for the government, which will be able to save the resources it would spend on tenders, and for the entrepreneur interested in selling to the government.
This is because, with your prices in the System, the chances of selling to multiple public bodies increase considerably, as several entities will have the price offered at their disposal to make any necessary purchases.
Resource saving
Resource saving
Finally, the Price Registration System is a way for the government to save resources, as there is no requirement for prior budgetary reservation.
As we have seen, the Price Registration System is available to public bodies in case they need to purchase new lots when demand exceeds the initial order.
It is a way of enforcing the principle of economy; the system allows the public authorities to save on spending on bidding processes and when acquiring goods.
In other words, the government does not need to spend money before purchasing the items it needs.
Read also: How to participate in a bidding process: step by step guide to the entire process
Conclusion
As you have seen, the Price Registration System serves to provide the government with a database containing prices and suppliers willing to supply the public system at the lowest possible price.
Therefore, it is a way for the government to save money, since bidding processes can be very costly and the use of SRP results in fewer bids, faster acquisitions, increased competitiveness and even eliminates storage problems.
Furthermore, we cannot forget to mention the Shared Registry, which allows other public bodies to also have access and the possibility of using the system's prices when making their purchases.
So, did you like the text? Then take the opportunity to learn more about the Public Procurement Portal!
This is a way of following the principle of economy, since the use of this system helps the administration to save money when making public purchases.
Furthermore, it can also be shared between different public bodies, which reduces the costs of public procurement, while increasing the chances of businesspeople supplying the government.
Want to know more about the Price Registration System, how it works and its benefits for public administration? Then check out everything in the text below:
Register and receive free access to our Tender Notice!
What is the Price Registration System (SRP)?
The Price Registration System, or SRP, is a special bidding procedure that aims to register the price of a certain material or service that is of interest to the public authorities.
It works like this: anyone interested in selling to the government registers their product or service in minutes, with the price and technical specifications.
The data for this product is then stored with the public authorities for a certain period (no longer than 12 months) and, whenever requested, the supplier that registered a product must provide it to the public administration at the registered price.
In other words, it serves as a database with the average price of products and services to be used at the time of a public purchase.
The big difference with this modality is that the administration is not obliged to hire, acquire goods or services.
In this case, the bidder assumes the obligation to supply, but the administration does not.
With a Price Registration System, the public administration can buy or contract if it wants, when it wants and in the quantity it wants, as long as it is within the maximum quantities bid and the validity period of the minutes.
What is the Price Registration Record?
The Price Registration Record is a binding and obligatory document, that is, it is a document that generates the expectation of contracting.
It records prices, suppliers, supply conditions and all participating bodies.
This is a very important tool for saving public spending and for complying with the principle of economy in tenders.
For example, if a city hall needs to buy pens for schools, but does not know the exact quantity it needs, if demand exceeds the estimate, the city hall can benefit from the Price Registration Record to acquire a new batch without the need to carry out a new bidding process.
What is the Price Registration System for?
What is the Price Registration System for?
The Price Registration System is used when a public body wishes to register the prices of goods and services so that, at a later date, it can purchase them at the registered prices.
In this sense, the SRP serves to prevent the public administration from making successive bids for purchases of the same product.
In these cases, when the bidding process is closed, the administration makes available the Price Registration Record, which is a binding document, with characteristics of commitment for future contracting, where the prices, suppliers, participating bodies and the conditions to be practiced are registered.
In other words, once the bidding process is concluded, it is through the Price Registration Record that the bidding public body or entity will purchase from the supplier (who has the price already registered for the product or service) as many times as necessary.
Ultimately, it is a way to avoid unnecessary expenses with repeated bids to purchase the same product.
What does the legislation say?
What does the legislation say?
Currently, tenders are governed by Law No. 14,133/21, the New Tender Law, which deals with the Price Registration System in Art. 82, paragraphs 5 and 6:
Art. 82. The bidding notice for price registration shall observe the general rules of this Law and shall provide for: (...)
§ 5º The price registration system may be used for contracting goods and services, including engineering works and services, subject to the following conditions: I - prior completion of extensive market research; II - selection in accordance with the procedures provided for in regulations; III - mandatory development of a control routine; IV - periodic updating of registered prices; V - definition of the validity period of the price registration; VI - inclusion, in the price registration minutes, of the bidder who agrees to quote the goods or services at prices equal to those of the winning bidder in the bidding ranking sequence and inclusion of the bidder who maintains its original proposal.
§ 6º The price registration system may, in the form of regulation, be used in cases where bidding is not required or is waived for the acquisition of goods or the contracting of services by more than one body or entity.
Furthermore, the law also explains other cases in which the administration may use the Price Registration System to execute a public purchase in Art. 85:
Art. 85. The Administration may contract the execution of engineering works and services through the price registration system, provided that the following requirements are met: I - existence of a standardized project, without technical and operational complexity; II - permanent or frequent need for work or service to be contracted.
In other words, according to the law, the Price Registration System can only be used with extensive prior market research, with periodic updating of registered prices.
She also notes that it is necessary to follow the procedures set out in mobile phone number database the regulations, develop a control routine and define the validity period of the price register.
Furthermore, it is necessary to include, in the minutes, the bidders who agree to quote the goods or services at prices equal to the winning bidder following the bidding process and the inclusion of the bidder who maintains its original proposal.
In this way, when the bidder who offered the lowest price is unable to supply, others who are willing to supply at the same price may be called upon.
Finally, the law highlights that the execution of engineering works and services can only take place when there is a standardized project, without technical or operational complexity or when there is a permanent or frequent need for work or service to be contracted.
In which bidding modalities can the Price Registration System be adopted?
The Price Registration System is mainly used in electronic auctions, in which the most advantageous proposal is selected in strict compliance with the principle of equality, since the purchase is planned for future contracting.
If you want to know more about electronic bidding and other bidding methods, then read the other text we wrote on the subject:
Bidding Modalities: types and main questions answered
The Price Registration System and multiple contractors
Another interesting detail about the Price Registration System is that it is shared between several public bodies and entities.
Therefore, it is possible that in the same Price Registration Record more than one public body or entity are included as beneficiaries, which are called the Managing Body and the Participating Body.
There is also the Non-Participating Body or Entity, known as “Carona”, which, even if not participating in the bidding procedures, can adhere to a Price Registration Record.
What is Carona in the Price Registration System?
As we have seen, the “Carona” is the Non-Participating Body or Entity. In other words, it does not participate in the bidding procedures, but can adhere to a Price Registration Record to be able to make public purchases at the prices registered in the system.
However, adherence to Carona only depends on legal discipline, that is, it is up to the federation body or entity (be it municipal, state or federal) to create its own regulations through decrees.
The Union, for example, only allows other federal bodies to use Carona.
What are the benefits of the Price Registration System in the bidding process?
What are the benefits of the Price Registration System in the bidding process?
Now that you know everything about the Price Registration System, let's take a look at the main benefits of implementing this feature. Check it out:
Fewer bids
The main benefit of using a Price Registration System is the fact that the government will need to make fewer bids.
As we have seen throughout the text, the SRP is used mainly for recurring contracts, eliminating the need for another bidding process.
This is in line with the principle of economy, which governs the bidding universe, since a bidding process is costly and using the SRP is a way of maintaining transparency and saving resources at the same time.
Speed in acquisitions
Another advantage of Price Registration Systems is the fact that they ensure much faster acquisitions.
Unlike bidding processes, which involve the creation and publication of a notice and several phases, with the SRP, the best offers are available whenever the public authority needs them, which guarantees a much faster delivery of the contracted goods or services.
Increased competitiveness
Implementing a Price Registration System also increases the competitiveness of bidders, as a participant who has made a higher bid may agree to bid at the same price as the winning bidder.
Eliminates storage problems
The government buys a lot and in large quantities. If it always buys everything it needs at once, then it will have a big problem, which is: where to store all the purchased material?
In this sense, a Price Registration System helps to solve this problem, since the government will be able to make more than one purchase in smaller batches.
This way, stock and storage problems are resolved and the government is not forced to rent a logistics warehouse to store everything it has purchased, for example.
Shared registry
Another great advantage of the Price Registration System is that it can be shared among other public bodies that want to make similar purchases.
This is an advantage both for the government, which will be able to save the resources it would spend on tenders, and for the entrepreneur interested in selling to the government.
This is because, with your prices in the System, the chances of selling to multiple public bodies increase considerably, as several entities will have the price offered at their disposal to make any necessary purchases.
Resource saving
Resource saving
Finally, the Price Registration System is a way for the government to save resources, as there is no requirement for prior budgetary reservation.
As we have seen, the Price Registration System is available to public bodies in case they need to purchase new lots when demand exceeds the initial order.
It is a way of enforcing the principle of economy; the system allows the public authorities to save on spending on bidding processes and when acquiring goods.
In other words, the government does not need to spend money before purchasing the items it needs.
Read also: How to participate in a bidding process: step by step guide to the entire process
Conclusion
As you have seen, the Price Registration System serves to provide the government with a database containing prices and suppliers willing to supply the public system at the lowest possible price.
Therefore, it is a way for the government to save money, since bidding processes can be very costly and the use of SRP results in fewer bids, faster acquisitions, increased competitiveness and even eliminates storage problems.
Furthermore, we cannot forget to mention the Shared Registry, which allows other public bodies to also have access and the possibility of using the system's prices when making their purchases.
So, did you like the text? Then take the opportunity to learn more about the Public Procurement Portal!