Decree-Law No. 177/2026 was published today, introducing several amendments to the Public Procurement Law, representing one of the most far-reaching and structural reforms of the public procurement regime in Portugal.

We highlight the following amendments:

1. Digital public procurement and artificial intelligence
The digital integration of public procurement is enshrined, with recognition of the possibility of using digital systems, including artificial intelligence, subject to principles of transparency, human oversight, security and interoperability.

2. Increase in procedural thresholds
The thresholds for prior consultation and direct award are raised significantly:

• For works contracts, the thresholds rise to €1,000,000 and €150,000, respectively;
• For goods and services, to €130,000 and €75,000.

3. Simplification and greater flexibility in procurement

• Unsolicited proposals: It is now permitted for any economic operator to submit an unsolicited proposal to the contracting authority to provide any services under public contracts, accompanied by a technical study. If the contracting authority uses the technical study in preparing the tender documents and the author of the initiative participates in the procedure, but their proposal is neither excluded nor awarded, they are entitled to be reimbursed for the costs demonstrably incurred in preparing the technical study submitted.
• Information systems trial period: When preparing a procurement procedure for the acquisition of information systems and technologies, the contracting authority may arrange for, or accept, the free and temporary provision of such systems for the purpose of evaluating them.
• Special prior consultation: A new simplified procedure in which the contracting authority invites at least five entities; this applies to contracts whose estimated value is both below the European thresholds and below €2,000,000, and which relate, in particular, to the implementation of projects financed by European funds, the promotion of social housing or the development of digital transformation processes.
• Procurement in exceptional circumstances: In the event of a state of siege, a state of emergency or a state of disaster, contracting authorities may resort to a simplified direct award of up to €500,000 for works and up to €100,000 for goods and services.
• Greater flexibility in public procurement: For contracts valued below the European thresholds, contracting authorities may waive or include any rules or formalities, in particular setting minimum requirements for the technical and financial capacity of tenderers, adopting a phased evaluation of tenders, an electronic auction or a negotiation phase.

4. Non-award

Provision is now expressly made for the possibility of non-award where all proposals are deemed unsatisfactory because none of them has achieved the minimum overall score set out in the tender programme or the invitation to tender.

5. Qualification and interoperability
Contracting authorities are obliged to obtain qualification documents ex officio through interoperable systems with other public authorities, accepting as sufficient proof information obtained via State tools, including digital wallets.

6. Grounds for exclusion from participation
A new ground for exclusion from participation is added for economic operators with evidence of anti-competitive practices in previous procedures. On the other hand, economic operators whose tax or social security affairs are not in order are permitted to participate, provided that the debt does not exceed €10,000 and they assign the claim to the social security or the tax authorities, authorising the contracting authority to withhold the amounts owed.

7. Bank guarantee
The threshold for exemption from providing a bank guarantee is doubled, rising from €500,000 to €1,000,000.

8. Contract amendment
The right of the contracting party to financial compensation in the event of an abnormal and unforeseeable change in circumstances is expressly enshrined.

9. Alternative dispute resolution
A fully voluntary arbitration regime is established. Alternative forms of dispute resolution are also promoted, through technical conciliation committees.

This Decree-Law shall enter into force on 1 October 2026.

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