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The judgment of the proposals shall be objective, having as its criteria the lowest price, the besttechnique or the combination of technique and price, according to the type of invitation to bid.It is prohibited to establish differentiated treatment of a commercial, legal, labor, social security or anyother nature, between Brazilian and foreign companies, including as regards the currency, modalityand place of the payments, even when the financing of international agencies is involved.As a tiebreaker criterion, under equal conditions, preference will be ensured, successively, to thegoods and services: produced in the Country, produced or rendered by Brazilian companies andproduced or rendered by companies that invest in technology research and development in theCountry.In invitation to bid processes a margin of preference may be established for manufactured productsand for domestic services that meet Brazilian technical standards.The margin of preference will be established on the basis of studies reviewed periodically, at intervalsof no more than five (5) years, which take into consideration: the generation of jobs and income, theeffect on the collection of federal, state and municipal taxes, technological development andinnovation conducted in the Country, additional cost of products and services, and, in their reviews,the retrospective analysis of results.For the manufactured products and domestic services resulting from the technological developmentand innovation carried out in the Country, an additional margin of preference to the one provided onthe basis of the criteria listed above, may be established.The preference margins by product, service, group of products or group of services, will be defined bythe federal Executive Branch. The sum of the margins cannot exceed the sum of 25% of the price ofthe foreign manufactured products and services.The above provisions do not apply to the goods and services whose production or rendering capacityin the Country is less than: the quantity to be purchased or contracted.The margin of preference may be extended, totally of partially, to the goods and services originatingfrom the Member States of Mercosur – Southern Cone Common Market.In the case of a consortium between a foreign company and Brazilian company, the Braziliancompany will necessarily assume leadership, regardless of the origin of its capital (national or foreign).At the discretion of the Public Administration, guarantees may be required for the contracting of works,services and purchases, which shall not exceed 5% of the contract value, with the exception of cases63

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