Cities will not easily give up on tenders. The line of jurisprudence is tightening.
Recent rulings clarify regulations on in-house orders, allowing municipalities to contract their own companies if they provide over 90% of services to the municipality. However, many municipal companies also engage in profitable commercial activities, which disqualifies them from this procedure. To circumvent these restrictions, some local governments have created subsidiary companies to handle commercial tasks, enabling the parent company to claim compliance with the 90% rule. This restructuring allows municipalities to avoid historical data that would not support their claims, often using financial forecasts for newly established companies to justify in-house contracts, particularly for waste collection services.
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