Salvador Enacts New Regulation to Boost Local Small Businesses in Public Procurement
Salvador implements a new public procurement decree favoring local micro and small businesses to stimulate local economic growth and job creation.
- • Decreto nº 42.035/2026 prioritizes local micro and small businesses in public procurement.
- • Local businesses can be prioritized if bids are up to 10% higher than competitors from other regions.
- • The decree encourages contract splitting and subcontracting to include more small local businesses.
- • Priority is given to local fresh food producers for school meals and community programs.
Key details
The city of Salvador has introduced Decreto nº 42.035/2026, establishing the Programa Salvador Compra do Pequeno Negócio, aimed at prioritizing micro and small local businesses in public procurement processes. This new regulation grants preference to local businesses—such as microenterprises, small businesses, individual microentrepreneurs, and family farmers—by allowing proposals from these entities to be prioritized if their bids are equal to or up to 10% higher than those from outside regions. The decree also encourages splitting contracts to foster participation from smaller businesses and mandates subcontracting local microenterprises for portions of services and projects. Additionally, it prioritizes fresh, perishable food products from local producers for school meals and community assistance programs.
Mila Paes, Secretary of Economic Development, Employment and Income (SEMDEC), emphasized the decree as a significant innovation designed to support local entrepreneurship, retain wealth within the community, generate employment, and strengthen Salvador's economic foundation. The Municipal Committee for Debureaucratization and Economic Development facilitated the decree’s creation to streamline public administration and improve the business environment. SEMDEC will provide technical assistance to integrate the program’s guidelines into procurement planning and maintain transparency through the Government Purchasing Portal, reporting small business participation in public contracts.
This initiative underscores Salvador’s commitment to empowering smaller local suppliers, enhancing economic growth and community development through public procurement policies.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
