GENERAL PROVISIONS

Section I
of the Principles 

Art. 1^O  This Law establishes general rules on public tenders and administrative contracts related to works, services, including advertising, purchases, disposals and leases within the scope of the Powers of the Union, States, Federal District and Municipalities.

Single paragraph. Subject to the regime of this Law, in addition to direct administration bodies, special funds, autarchies, public foundations, public companies, mixed-capital companies and other entities controlled directly or indirectly by the Union, States, Federal District and Counties. 

Art. two^O  Works, services, including advertising, purchases, disposals, concessions, permissions and leases of the Public Administration, when contracted with third parties, will necessarily be preceded by a bidding process, except for the cases provided for in this Law. 

Single paragraph. For the purposes of this Law, a contract is considered to be any agreement between bodies or entities of the Public Administration and individuals, in which there is an agreement of wills for the formation of a bond and the stipulation of reciprocal obligations, whatever the denomination used.

Art. 3^O  The bidding is intended to ensure compliance with the constitutional principle of isonomy and to select the most advantageous proposal for the Administration and will be processed and judged in strict accordance with the basic principles of legality, impersonality, morality, equality, publicity , administrative probity, binding to the summons instrument, objective judgment and related matters.

I – admit, foresee, include or tolerate, in the call notice, clauses or conditions that compromise, restrict or frustrate its competitive nature and establish preferences or distinctions due to the place of birth, headquarters or domicile of the bidders or any other impertinent circumstance or irrelevant to the specific object of the contract;

II – establish differentiated treatment of a commercial, legal, labor, social security or any other nature, between Brazilian and foreign companies, including with regard to currency, modality and place of payment, even when financing from international agencies is involved, subject to the provisions of next paragraph and art. 3^O of Law No.^O 8,248, of October 23, 1991.

§ two^O  Under equal conditions, as a tiebreaker, preference will be ensured, successively, to goods and services:

I – produced or provided by Brazilian companies with national capital;

II – produced in the country;

III – produced or provided by Brazilian companies.

IV – produced or provided by companies that invest in research and technology development in the country. (Included by Law No. 11,196 of 2005)

§ 3^O  The bidding will not be confidential, the acts of its procedure being public and accessible to the public, except for the content of the proposals, until the respective opening.

§ 4 (Vetoed). (Included by Law No. 8,883 of 1994)

Art. 4^O All those who participate in bidding promoted by the bodies or entities referred to in art. 1 have a subjective public right to faithfully observe the relevant procedure established in this law, and any citizen may monitor its development, provided that he does not interfere in such a way as to disturb or prevent the work from being carried out.

Single paragraph. The bidding procedure provided for in this law characterizes a formal administrative act, whether practiced in any sphere of Public Administration.

Art. 5^O  All values, prices and costs used in the bids will have the national currency as monetary expression, except for the provisions of art. 42 of this Law, each Administration unit, in the payment of obligations related to the supply of goods, leases, execution of works and rendering of services, must obey, for each differentiated source of funds, the strict chronological order of the dates of its liabilities, except when there are relevant reasons of public interest and upon prior justification from the competent authority, duly published.

§ two^O  The correction referred to in the previous paragraph, whose payment will be made together with the principal, will be charged to the same budget appropriations that met the credits to which they refer. (Wording provided by Law No. 8.883 of 1994)

§ 3^O  Observing the provisions of the caput, payments arising from expenses whose amounts do not exceed the limit referred to in item II of art. 24, without prejudice to the provisions of its sole paragraph, must be made within a period of up to 5 (five) business days, counted from the presentation of the invoice.  (Included by Law No. 9648 of 1998)

Section II
Of the Definitions 

II - Service - any activity intended to obtain a certain utility of interest to the Administration, such as: demolition, repair, installation, assembly, operation, conservation, repair, adaptation, maintenance, transport, leasing of goods, advertising, insurance or technical work -professionals;

III – Purchase – all remunerated acquisition of goods to be supplied at once or in installments;

IV – Disposal – any transfer of ownership of assets to third parties;

V – Large-scale works, services and purchases – those whose estimated value exceeds 25 (twenty-five) times the limit established in line “c” of item I of art. 23 of this Law;

VI – Guarantee Insurance – the insurance that guarantees the faithful fulfillment of the obligations assumed by companies in bids and contracts;

VII – Direct execution – that which is carried out by the bodies and entities of the Administration, by their own means;

VIII - Indirect execution - that which the body or entity contracts with third parties under any of the following regimes: (Wording provided by Law No. 8.883 of 1994)

a) global price contract – when the execution of the work or service is contracted for a certain and total price;

b) contract for unit price – when the execution of the work or service is contracted for a certain price of specific units;

w) (Vetoed). (Wording provided by Law No. 8.883 of 1994) 

d) task – when manpower is adjusted for small jobs for a certain price, with or without supply of materials;

e) full contract - when a project is contracted in its entirety, comprising all the stages of the works, services and necessary installations, under the full responsibility of the contractor until its delivery to the contractor in conditions of entry into operation, meeting the technical and legal requirements for its use in conditions of structural and operational safety and with the appropriate characteristics for the purposes for which it was contracted;

IX - Basic Project - set of necessary and sufficient elements, with an adequate level of precision, to characterize the work or service, or complex of works or services object of the bidding, prepared based on the indications of the preliminary technical studies, which ensure the technical viability and the adequate treatment of the environmental impact of the project, which allows the evaluation of the cost of the work and the definition of methods and execution period, and must contain the following elements: 

a) development of the chosen solution in order to provide an overview of the work and clearly identify all its constituent elements;

b) global and localized technical solutions, sufficiently detailed, in order to minimize the need for reformulation or variants during the phases of elaboration of the executive project and of execution of the works and assembly; 

c) identification of the types of services to be carried out and of materials and equipment to be incorporated into the work, as well as their specifications that ensure the best results for the undertaking, without frustrating the competitive nature of its execution;

d) information that allows the study and deduction of constructive methods, provisional installations and organizational conditions for the work, without frustrating the competitive character for its execution;

e) subsidies for setting up the bidding plan and management of the work, including its schedule, supply strategy, inspection rules and other necessary data in each case;

f) detailed budget of the overall cost of the work, based on quantities of services and supplies properly evaluated;

X – Executive Project – the set of necessary and sufficient elements for the complete execution of the work, in accordance with the relevant norms of the Brazilian Association of Technical Norms – ABNT;

XI – Public Administration – the direct and indirect administration of the Union, the States, the Federal District and the Municipalities, including entities with legal personality governed by private law under the control of public authorities and foundations established or maintained by them;

XII – Administration – body, entity or administrative unit through which the Public Administration operates and acts concretely;

XIII – Official Press – official publication vehicle of the Public Administration, being for the Union the Official Gazette of the Union, and for the States, the Federal District and the Municipalities, whatever is defined in the respective laws; (Wording provided by Law No. 8.883 of 1994)

XIV – Contractor – is the body or entity that signed the contractual instrument;

XV – Contractor – the individual or legal entity that signs a contract with the Public Administration;

XVI – Commission – commission, permanent or special, created by the Administration with the function of receiving, examining and judging all documents and procedures related to bidding processes and the registration of bidders.

Section III
Works and Services 

Art. 7^O  Bids for the execution of works and for the provision of services shall comply with the provisions of this article and, in particular, with the following sequence:

§ 1^O  The execution of each stage will be obligatorily preceded by the conclusion and approval, by the competent authority, of the works related to the previous stages, with the exception of the executive project, which may be developed concurrently with the execution of the works and services, provided that it is also authorized by the Administration .

§ two^O  Works and services may only be tendered when:

III – budgetary resources are foreseen to ensure the payment of obligations arising from works or services to be performed in the current financial year, in accordance with the respective schedule;

§ 3^O  It is forbidden to include in the object of the bidding the obtaining of financial resources for its execution, whatever its origin, except in the cases of projects executed and explored under the concession regime, under the terms of the specific legislation.

§ 4^O  It is also forbidden to include, in the object of the bidding process, the supply of materials and services without forecast quantities or whose quantities do not correspond to the actual forecasts of the basic or executive project.

§ 5^O  It is prohibited to carry out a bidding process whose object includes goods and services without similarity or with exclusive brands, characteristics and specifications, except in cases where it is technically justifiable, or even when the supply of such materials and services is carried out under the contracted administration regime. , provided for and detailed in the invitation to tender.

§ 7^O  The monetary restatement of payment obligations will not yet be computed as the value of the work or service, for the purpose of judging the price proposals, from the final date of each measurement period until the respective payment, which will be calculated using the same established criteria obligatorily in the invitation.

§ 8^O  Any citizen may request from the Public Administration the quantities of works and unit prices of a given work carried out.

§ 9^O  The provisions of this article also apply, where appropriate, to cases of waiver and unenforceability of bidding.

Art. 8^O  The execution of works and services must always be fully programmed, foreseeing their current and final costs and taking into account the deadlines for their execution.

Single paragraph.  Delaying the execution of a work or service, or its installments, for no reason, is prohibited, if there is a budget forecast for its total execution, except for financial insufficiency or proven technical reason, justified in a detailed order of the authority referred to in art. 26 of this Law.  (Wording provided by Law No. 8.883 of 1994)

Art. 9^O  May not participate, directly or indirectly, in the bidding or execution of work or service and the supply of goods necessary for them:

I – the author of the project, basic or executive, individual or legal entity; 

II – company, alone or in a consortium, responsible for preparing the basic or executive project or of which the author of the project is a director, manager, shareholder or holder of more than 5% (five percent) of the voting or controlling capital, responsible technician or subcontractor;

III – civil servant or leader of a contracting body or entity or responsible for the bidding process.

§ 1^O  The participation of the author of the project or the company referred to in item II of this article is permitted in the bidding of work or service, or in the execution, as a consultant or technician, in the functions of inspection, supervision or management, exclusively at the service of the Interested administration. 

§ two^O  The provisions of this article do not prevent the bidding or contracting of work or services that include the preparation of an executive project as a charge of the contractor or for the price previously fixed by the Administration.

§ 3^O  Indirect participation, for the purposes of the provisions of this article, is considered to be the existence of any technical, commercial, economic, financial or labor relationship between the author of the project, individual or legal entity, and the bidder or person responsible for the services, supplies and works, including supplies of goods and services necessary for them.

§ 4^O  The provisions of the previous paragraph apply to the members of the bidding committee.

Art. 10. The works and services may be performed in the following ways: (Wording provided by Law No. 8.883 of 1994)

I – direct execution;

II – indirect execution, in the following regimes: (Wording provided by Law No. 8.883 of 1994)

a) contract for global price;

b) contract for unit price;

w) (Vetoed). (Wording provided by Law No. 8.883 of 1994)

d) task;

e) full-time contract.

Single paragraph. (Vetoed). (Wording provided by Law No. 8.883 of 1994)

Art. 11. Works and services intended for the same purposes will have projects standardized by type, category or class, except when the standard project does not meet the peculiar conditions of the location or the specific requirements of the enterprise.

Art. 12. In the basic projects and executive projects of works and services, the following requirements will be mainly considered: (Wording provided by Law No. 8.883 of 1994)

I – security;

II – functionality and adequacy to the public interest;

III – economy in execution, conservation and operation;

IV – possibility of employing labor, materials, technology and raw materials existing on site for execution, conservation and operation;

V – ease of execution, conservation and operation, without prejudice to the durability of the work or service;

VI – adoption of appropriate technical, health and safety standards; (Wording provided by Law No. 8.883 of 1994)

VII – environmental impact.

Section IV
Specialized Professional Technical Services 

Art. 13.  For the purposes of this Law, specialized professional technical services are considered to be work related to:

I – technical studies, planning and basic or executive projects;

II – opinions, expertise and evaluations in general;

III – technical assistance or consultancy and financial or tax audits; (Wording provided by Law No. 8.883 of 1994)

IV – inspection, supervision or management of works or services;

V – sponsorship or defense of legal or administrative claims;

VI – training and improvement of personnel;

VII – restoration of works of art and assets of historical value.

VIII - (Vetoed). (Included by Law No. 8,883 of 1994)

§ 1^O With the exception of cases where bidding is not required, contracts for the provision of specialized professional technical services should, preferably, be concluded through a tender, with a prior stipulation of a prize or remuneration.

§ two^O To the technical services provided for in this article, the provisions of art. 111 of this Law. 

§ 3^O The company providing specialized technical services that presents a list of members of its technical staff in a bidding process or as an element of justification for waiver or unenforceability of bidding, will be obliged to ensure that said members perform personally and directly the services object of the contract.

Section V
Shopping 

Art. 14. No purchase will be made without the proper characterization of its object and indication of the budgetary resources for its payment, under penalty of nullity of the act and responsibility of whoever gave it cause.

I – comply with the principle of standardization, which imposes compatibility of technical and performance specifications, observing, when applicable, the maintenance conditions, technical assistance and guarantee offered;

II – be processed through a price registration system;

III – submit to acquisition and payment conditions similar to those of the private sector;

IV – be subdivided into as many portions as necessary to take advantage of the peculiarities of the market, aiming at economy;

V – be based on the prices charged within the scope of Public Administration bodies and entities.

§ 1^O The registration of prices will be preceded by extensive market research.

§ two^O Registered prices will be published quarterly for Management guidance, in the official press.

§ 3^O The price registration system will be regulated by decree, taking into account regional peculiarities, subject to the following conditions:

I – selection made through competition;

II – prior stipulation of the system for controlling and updating registered prices;

III – validity of registration not exceeding one year.

§ 4^O The existence of registered prices does not oblige the Administration to sign the contracts that may arise from them, being allowed to use other means, respecting the legislation related to bidding, being assured to the beneficiary of the registration preference under equal conditions.

§ 5^O The control system originating from the general price framework, when possible, should be computerized.

§ 6^O Any citizen is a legitimate party to contest the constant price of the general framework due to its incompatibility with the prevailing market price.

§ 7^O When purchasing, the following must also be observed:

§ 8^O The receipt of material with a value greater than the limit established in art. 23 of this Law, for the invitation modality, it must be entrusted to a commission of at least 3 (three) members.

Art. 16. Publicity will be given, monthly, in an official publication or on a bulletin board with wide public access, the list of all purchases made by the Direct or Indirect Administration, in order to clarify the identification of the purchased good, its unit price, the quantity purchased, the name of the seller and the total value of the operation, and purchases made with waiver and unenforceability of bidding may be grouped by items. (Wording provided by Law No. 8.883 of 1994)

Section VI
Disposals 

 Art. 17. The disposal of Public Administration assets, subject to the existence of duly justified public interest, will be preceded by an evaluation and will comply with the following rules:

I – when immovable, it will depend on legislative authorization for bodies of direct administration and autarchic and foundational entities, and, for all, including parastatal entities, it will depend on prior evaluation and bidding in the form of competition, waived in the following cases:

a) gift in payment;

b) donation, permitted exclusively to another public administration body or entity, from any sphere of government, except for the provisions of subparagraphs f and H; (Wording provided by Law No. 11,481 of 2007)

c) exchange, for another property that meets the requirements contained in item X of art. 24 of this Law;

d) investiture;

e) sale to another body or entity of the public administration, of any sphere of government; (Included by Law No. 8883 of 1994)

f) free or onerous disposal, leasing, granting of real right of use, lease or permission to use residential real estate constructed, intended for or actually used within the scope of housing programs or land regularization of social interest developed by administrative bodies or entities public; (Wording provided by Law No. 11,481 of 2007) 

g) procedures for legitimizing possession dealt with in the art. 29 of Law no.^O 6,383, of December 7, 1976, upon the initiative and deliberation of the Public Administration bodies in whose legal competence such attribution is included; (Included by Law No. 11,196 of 2005)

h) free or onerous disposal, leasing, granting of real right to use, lease or permission to use real estate for commercial use at local level with an area of up to 250 m² (two hundred and fifty square meters) and inserted within the scope of programs of land regularization of social interest developed by public administration bodies or entities; (Included by Law No. 11,481 of 2007)

II - when movable, it will depend on prior evaluation and bidding, waived in the following cases:

a) donation, allowed exclusively for purposes and use of social interest, after evaluating its opportunity and socio-economic convenience, regarding the choice of another form of disposal;

b) exchange, permitted exclusively between bodies or entities of the Public Administration;

c) sale of shares, which may be traded on the stock exchange, subject to specific legislation;

d) sale of securities, pursuant to the relevant legislation;

e) sale of goods produced or marketed by Public Administration bodies or entities, by virtue of their purposes;

f) sale of materials and equipment to other bodies or entities of the Public Administration, without foreseeable use by those who have them.

§ 1^O  The properties donated based on item “b” of item I of this article, after the reasons that justified their donation ceased, will revert to the assets of the donating legal entity, their alienation by the beneficiary being prohibited.

§ two^O The Administration may also grant title of ownership or real right to use real estate, exempt from bidding, when the use is intended:  (Wording provided by Law No. 11,196 of 2005)

I – to another body or entity of the Public Administration, whatever the location of the property; (Included by Law No. 11,196 of 2005)

II – the natural person who, under the terms of the law, regulation or normative act of the competent body, has implemented the minimum requirements for culture and housing in a rural area located in the Legal Amazon region, defined in art. two^O of Law No.^O 5,173, of October 27, 1966, higher than that legally subject to legitimization of possession referred to in line g of item I of the caput of this article, in compliance with the area limits defined by normative act of the Executive Power. (Included by Law No. 11,196 of 2005) (Regulation) 

§ two^O-A. The hypotheses of item g of item I of the caput and item II of § 2^O of this article are exempt from legislative authorization, but are subject to the following conditions: (Included by Law No. 11,196 of 2005)

I – application exclusively to areas in which the detention by a private individual is demonstrably prior to 1^O December 2004; (Included by Law No. 11,196 of 2005)

II – submission to the other requirements and impediments of the legal and administrative regime for the allocation and land regularization of public lands; (Included by Law No. 11,196 of 2005)

III – prohibition of concessions for exploitation hypotheses not contemplated in the agrarian law, in the laws for the allocation of public lands, or in the legal or administrative norms of ecological-economic zoning; It is (Included by Law No. 11,196 of 2005)

IV – provision for automatic termination of the concession, notification being waived, in case of declaration of utility, or public need or social interest. (Included by Law No. 11,196 of 2005)
§ two^O-B. The hypothesis of item II of § 2^O of this article: (Included by Law No. 11,196 of 2005)

I – only applies to property located in a rural area, not subject to prohibition, impediment or inconvenience to its exploitation through agricultural activities; (Included by Law No. 11,196 of 2005)

II – is limited to areas of up to fifteen fiscal modules, as long as it does not exceed one thousand and five hundred hectares, with the exemption of bidding for areas exceeding this limit being prohibited; (Wording provided by Law No. 11,763, of 2008)

III – may be combined with the amount of area resulting from the figure provided for in line g of item I of the caput of this article, up to the limit provided for in item II of this paragraph. (Included by Law No. 11,196 of 2005)

IV – (VETOED) (Included by Law No. 11,763 of 2008)

§ 3^O  Investiture is understood, for the purposes of this law: (Wording provided by Law No. 9648 of 1998) 

I – the sale to owners of properties bordering the remaining area or resulting from public works, an area that becomes unusable in isolation, for a price never lower than the valuation and provided that this does not exceed 50% (fifty percent) of the constant value of the item “a” of item II of art. 23 of this law; (Included by Law No. 9648 of 1998)

II – the alienation, to the legitimate direct owners or, in their absence, to the Government, of properties for residential purposes built in urban centers attached to hydroelectric power plants, provided that they are considered expendable in the operation phase of these units and do not integrate the category of assets reversible at the end of the concession. (Included by Law No. 9648 of 1998)

§ 4^O  The donation with a charge will be tendered and its instrument will obligatorily contain the charges, the deadline for its fulfillment and the reversal clause, under penalty of nullity of the act, the bidding being waived in the case of duly justified public interest; (Wording provided by Law No. 8.883 of 1994)

§ 5^O  In the case of the previous paragraph, if the grantee needs to offer the property as a financing guarantee, the reversion clause and other obligations will be guaranteed by a second-degree mortgage in favor of the donor. (Included by Law No. 8,883 of 1994)

§ 6^O  For the sale of movable property valued, individually or globally, in an amount not exceeding the limit provided for in art. 23, item II, item “b” of this Law, the Administration may allow the auction. (Included by Law No. 8,883 of 1994)

§ 7^O  (VETOED). (Included by Law No. 11,481 of 2007)

Art. 18.  In bidding for the sale of real estate, the qualification phase will be limited to proof of payment of an amount corresponding to 5% (five percent) of the assessment. (Revoked by Law No. 8,883 of 1994)

Art. 19.  Real estate owned by the Public Administration, the acquisition of which has resulted from judicial proceedings or in lieu of payment, may be disposed of by act of the competent authority, subject to the following rules:

I – assessment of alienable assets;

II – proof of the need or usefulness of the sale;

III – adoption of the bidding procedure, under the modality of competition or auction. (Wording provided by Law No. 8.883 of 1994)

Chapter II
Bidding

Section I
Modalities, Limits and Waiver

 

Art. 20.  Bids will be carried out at the location where the interested department is located, except for reasons of public interest, duly justified.

Single paragraph.  The provisions of this article shall not prevent the authorization of interested parties residing or headquartered elsewhere.

Art. 21. The notices containing the summaries of public notices of bids, price quotations, tenders and auctions, although carried out at the location of the interested department, must be published in advance, at least, once: (Wording provided by Law No. 8.883 of 1994)

I – in the Federal Official Gazette, in the case of a bidding process carried out by a body or entity of the Federal Public Administration and, also, in the case of works financed partially or totally with federal resources or guaranteed by federal institutions; (Wording provided by Law No. 8.883 of 1994)

II – in the Official Gazette of the State, or of the Federal District in the case, respectively, of a bidding process carried out by a body or entity of the State or Municipal Public Administration, or of the Federal District; (Wording provided by Law No. 8.883 of 1994)

III – in a daily newspaper with wide circulation in the State and also, if any, in a newspaper circulating in the Municipality or in the region where the work will be carried out, the service provided, the asset supplied, sold or rented, and the Administration may also, according to the bidding, use other means of dissemination to expand the area of competition. (Wording provided by Law No. 8.883 of 1994)

§ 1^O  The published notice will contain the indication of the place where interested parties can read and obtain the full text of the public notice and all information about the bidding process.

§ two^O  The minimum period for receipt of proposals or the holding of the event will be:

I - forty-five days to: (Wording provided by Law No. 8.883 of 1994)

a) contest; (Included by Law No. 8883 of 1994)

b) competition, when the contract to be signed contemplates the full contract regime or when the bidding is of the “best technique” or “technical and price” type; (Included by Law No. 8883 of 1994)

II – thirty days to: (Wording provided by Law No. 8.883 of 1994)

a) competition, in cases not specified in item “b” of the previous item; (Included by Law No. 8883 of 1994)

b) price assessment, when the bidding is of the “best technique” or “technical and price” type; (Included by Law No. 8883 of 1994)

III – fifteen days for taking prices, in cases not specified in item “b” of the previous item, or auction; (Wording provided by Law No. 8.883 of 1994)

IV – five business days for invitation. (Wording provided by Law No. 8.883 of 1994)

§ 3^O  The deadlines established in the previous paragraph will be counted from the last publication of the summary public notice or the issuance of the invitation, or even from the effective availability of the public notice or the invitation and respective annexes, the later date prevailing. (Wording provided by Law No. 8.883 of 1994)

§ 4^O  Any change in the notice requires disclosure in the same way as the original text, reopening the period initially established, except when, unquestionably, the change does not affect the formulation of the proposals.

Art. 22.  The bidding modalities are:

I – competition;

II – taking prices;

III – invitation;

IV – contest;

V – auction.

§ 1^O  Competition is the bidding modality between any interested parties that, in the initial phase of preliminary qualification, prove to have the minimum qualification requirements demanded in the public notice for the execution of its object.

§ two^O  Pricing is the bidding modality between duly registered interested parties or who meet all the conditions required for registration up to the third day prior to the date of receipt of proposals, subject to the necessary qualification.

§ 3^O  Invitation is the type of bidding between interested parties in the branch relevant to its object, registered or not, chosen and invited in a minimum number of 3 (three) by the administrative unit, which will post, in an appropriate place, a copy of the invitation to bid and will extend it to the others registered in the corresponding specialty who express their interest up to 24 (twenty-four) hours in advance of the presentation of proposals.

§ 4^O  Contest is the type of bidding between any interested parties for the choice of technical, scientific or artistic work, through the institution of prizes or remuneration to the winners, according to criteria contained in the public notice published in the official press at least 45 (forty-five) days in advance.

§ 5^O  Auction is the type of bidding between any interested parties for the sale of movable property unusable for the administration or legally seized or pledged products, or for the disposal of real estate provided for in art. 19, to whoever offers the highest bid, equal to or greater than the appraisal value. (Wording provided by Law No. 8.883 of 1994)

§ 6^O  In the case of § 3^O of this article, with more than 3 (three) possible interested parties in the square, with each new invitation, made for an identical or similar object, it is mandatory to invite at least one more interested party, as long as there are uninvited registrations in the last bids.  (Wording provided by Law No. 8.883 of 1994)

§ 7^O  When, due to market limitations or manifest lack of interest from the guests, it is impossible to obtain the minimum number of bidders required in § 3^O of this article, these circumstances must be duly justified in the process, under penalty of repeating the invitation.

§ 8^O  The creation of other bidding modalities or the combination of those referred to in this article is prohibited.

§ 9^O  In the case of paragraph 2^O of this article, the administration may only demand from the unregistered bidder the documents provided for in arts. 27 to 31, which prove qualification compatible with the object of the bidding, under the terms of the public notice. (Included by Law No. 8,883 of 1994)

Art. 23.  The bidding modalities referred to in items I to III of the previous article will be determined according to the following limits, in view of the estimated value of the contract:

I – for engineering works and services: (Wording provided by Law No. 9648 of 1998)

a) invitation – up to R$ 150,000.00 (one hundred and fifty thousand reais); (Wording provided by Law No. 9648 of 1998)

b) price survey – up to R$ 1,500,000.00 (one million, five hundred thousand reais);  (Wording provided by Law No. 9648 of 1998)

c) competition: above R$ 1,500,000.00 (one million, five hundred thousand reais);  (Wording provided by Law No. 9648 of 1998)

II – for purchases and services not referred to in the previous item:(Wording provided by Law No. 9648 of 1998)

a) invitation – up to R$ 80,000.00 (eighty thousand reais);  (Wording provided by Law No. 9648 of 1998)

b) price survey – up to R$ 650,000.00 (six hundred and fifty thousand reais); (Wording provided by Law No. 9648 of 1998)

c) competition – above R$ 650,000.00 (six hundred and fifty thousand reais).  (Wording provided by Law No. 9648 of 1998)

§ 1^O  The works, services and purchases made by the administration will be divided into as many portions as are technically and economically viable, proceeding with the bidding with a view to making better use of the resources available in the market and increasing competitiveness, without loss of economy of scale.  (Wording provided by Law No. 8.883 of 1994)

§ two^O  In the execution of works and services and in the purchase of goods, divided in the terms of the previous paragraph, to each stage or set of stages of the work, service or purchase, a separate bidding must correspond, preserving the relevant modality for the execution of the object in bidding .  (Wording provided by Law No. 8.883 of 1994)

§ 3^O  Competition is the appropriate bidding modality, whatever the value of its object, both in the purchase or disposal of real estate, except for the provisions of art. 19, as well as in concessions of real right of use and in international biddings, admitting in the latter case, observing the limits of this article, the taking of prices, when the body or entity has an international register of suppliers or the invitation, when not there is a supplier of the good or service in the country. (Wording provided by Law No. 8.883 of 1994)

§ 4^O  In cases where invitation is appropriate, the Administration may use price assessment and, in any case, competition.

§ 5^O  The use of the “invitation” or “price survey” modality, as the case may be, is prohibited for portions of the same work or service, or even for works and services of the same nature and in the same location that may be carried out jointly and concomitantly, whenever the sum of their values characterizes the case of "price taking" or "competition", respectively, under the terms of this article, except for the installments of a specific nature that may be executed by people or companies with a different specialty from that of the executor of the work or service.   (Wording provided by Law No. 8.883 of 1994)

§ 6^O  The industrial organizations of the direct Federal Administration, in view of their peculiarities, will obey the limits established in item I of this article also for their purchases and services in general, provided that for the acquisition of materials applied exclusively in the maintenance, repair or manufacture of operational means military belonging to the Union.  (Included by Law No. 8,883 of 1994)

§ 7^O In the purchase of goods of a divisible nature and provided that there is no damage to the set or complex, the quotation of a quantity lower than that demanded in the bidding is allowed, with a view to increasing competitiveness, and the public notice may set a minimum quantity to preserve the economy of scale .  (Included by Law No. 9648 of 1998)

§ 8^O In the case of public consortia, double the values mentioned in the caput of this article will apply when formed by up to 3 (three) entities of the Federation, and triple, when formed by a greater number. (Included by Law No. 11,107 of 2005)

Art. 24.  Bidding is not required:

 I – for engineering works and services with a value of up to 10% (ten percent) of the limit provided for in item “a”, of item I of the previous article, provided that they do not refer to portions of the same work or service or even for works and services of the same nature and in the same place that can be carried out jointly and concurrently; (Wording provided by Law No. 9648 of 1998)

 II – for other services and purchases worth up to 10% (ten percent) of the limit provided for in line “a”, of item II of the previous article and for disposals, in the cases provided for in this Law, provided that they do not refer to installments of a same service, purchase or disposal of a larger amount that can be carried out at once;  (Wording provided by Law No. 9648 of 1998)

III – in cases of war or serious disturbance of order; 

IV – in cases of emergency or public calamity, when there is an urgency to respond to a situation that may cause damage or compromise the safety of people, works, services, equipment and other goods, public or private, and only for the goods necessary for the service emergency or calamitous situation and for parts of works and services that can be completed within a maximum period of 180 (one hundred and eighty) consecutive and uninterrupted days, counted from the occurrence of the emergency or calamity, the extension of the respective contracts being prohibited;

V – when interested parties do not attend the previous bidding and this, justifiably, cannot be repeated without prejudice to the Administration, maintaining, in this case, all the pre-established conditions;

VI – when the Union has to intervene in the economic domain to regulate prices or normalize supply;

VII – when the proposals presented contain prices that are manifestly higher than those practiced in the national market, or are incompatible with those set by the competent official bodies, cases in which, observing the sole paragraph of art. 48 of this Law and, if the situation persists, the direct award of goods or services will be admitted, for a value not greater than that stated in the registration of
prices, or services;

VIII – for the acquisition, by a legal entity governed by internal public law, of goods produced or services provided by a body or entity that integrates the Public Administration and that has been created for this specific purpose on a date prior to the effectiveness of this Law, provided that the price hired is compatible with what is practiced in the market; (Wording provided by Law No. 8.883 of 1994)

IX – when there is a possibility of compromising national security, in cases established by decree of the President of the Republic, after hearing the National Defense Council;

X – for the purchase or leasing of property intended to meet the main purposes of the administration, whose installation and location needs determine its choice, provided that the price is compatible with the market value, according to a prior evaluation;(Wording provided by Law No. 8.883 of 1994)

XI – in the contracting of the remainder of the work, service or supply, as a result of contractual termination, provided that the classification order of the previous bidding is met and the same conditions offered by the winning bidder are accepted, including the price, duly corrected;

XII – in purchases of fresh produce, bread and other perishables, within the time necessary for carrying out the corresponding bidding processes, carried out directly based on the price of the day; (Wording provided by Law No. 8.883 of 1994)

XIII – in the contracting of a Brazilian institution charged by regulation or by statute with research, teaching or institutional development, or an institution dedicated to the social recovery of the prisoner, provided that the contractor has an unquestionable ethical and professional reputation and is not for profit;(Wording provided by Law No. 8.883 of 1994)

XIV – for the acquisition of goods or services under the terms of a specific international agreement approved by the National Congress, when the conditions offered are manifestly advantageous for the Government;   (Wording provided by Law No. 8.883 of 1994)

XV – for the acquisition or restoration of works of art and historical objects, of certified authenticity, provided they are compatible or inherent to the purposes of the body or entity.

XVI – for the printing of official journals, standardized forms for use by the administration, and official technical editions, as well as for the provision of computer services to legal entities governed by internal public law, by bodies or entities that form part of the Public Administration, created for that specific purpose;(Included by Law No. 8,883 of 1994)

XVII – for the acquisition of components or parts of national or foreign origin, necessary for the maintenance of equipment during the technical guarantee period, from the original supplier of such equipment, when such exclusivity condition is indispensable for the validity of the guarantee; (Included by Law No. 8,883 of 1994)

XVIII – in the purchase or contracting of services for the supply of ships, vessels, air units or troops and their means of displacement when on a possible short-term stay in ports, airports or locations other than their headquarters, due to operational movement or training, when the exiguity of the legal deadlines may compromise the normality and purposes of the operations and provided that their value does not exceed the limit provided for in item “a” of item II of art. 23 of this Law: (Included by Law No. 8,883 of 1994)

XIX – for purchases of material for use by the Armed Forces, with the exception of materials for personal and administrative use, when there is a need to maintain the standardization required by the logistical support structure of naval, air and land assets, upon the opinion of a commission established by decree; (Included by Law No. 8,883 of 1994)

XX – in the contracting of a non-profit association for people with physical disabilities, with proven suitability, by bodies or entities of the Public Administration, for the provision of services or supply of labor, provided that the contracted price is compatible with what is practiced in the market. (Included by Law No. 8,883 of 1994)

XXI – For the acquisition of goods intended exclusively for scientific and technological research with resources granted by CAPES, FINEP, CNPq or other research promotion institutions accredited by CNPq for this specific purpose. (Included by Law No. 9648 of 1998)

XXII – in the contracting of supply or supply of electric energy and natural gas with concessionaire, permittee or authorized person, according to the norms of the specific legislation; (Included by Law No. 9648 of 1998) 

XXIII – in the contract carried out by a public company or government-controlled company with its subsidiaries and controlled companies, for the acquisition or disposal of goods, provision or obtaining of services, provided that the contracted price is compatible with that practiced in the market. (Included by Law No. 9648 of 1998)

XXIV – for the signing of service provision contracts with social organizations, qualified within the scope of the respective spheres of government, for activities contemplated in the management contract. (Included by Law No. 9648 of 1998)

XXV – in the contract carried out by a Scientific and Technological Institution – ICT or by a development agency for the transfer of technology and for the licensing of the right to use or exploit protected creation. (Included by Law No. 10,973 of 2004)

XXVI – in the execution of a program contract with an entity of the Federation or with an entity of its indirect administration, for the provision of public services in an associated manner under the terms authorized in a public consortium contract or in a cooperation agreement. (Included by Law No. 11,107 of 2005)

XXVII – in contracting the collection, processing and sale of recyclable or reusable urban solid waste, in areas with a selective garbage collection system, carried out by associations or cooperatives formed exclusively by low-income individuals recognized by the government as collectors of recyclable materials , using equipment compatible with technical, environmental and public health standards. (Wording provided by Law No. 11,445 of 2007). 

XXVIII – for the supply of goods and services, produced or provided in the country, which cumulatively involve high technological complexity and national defense, upon the opinion of a commission specially appointed by the highest authority of the body. (Included by Law No. 11,484 of 2007).

XXIX – in the acquisition of goods and contracting of services to serve the military contingents of the Brazilian Single Forces employed in peacekeeping operations abroad, necessarily justified in terms of price and choice of supplier or executor and ratified by the Force Commander. (Included by Law No. 11,783 of 2008).

Single paragraph. The percentages referred to in items I and II of the caput of this article will be 20% (twenty percent) for purchases, works and services contracted by public consortia, government-controlled companies, public companies and by a qualified autarchy or foundation, in accordance with the law, as Executive Agencies. (Wording provided by Law No. 11,107 of 2005)

Art. 25.  Bidding is not required when there is unfeasibility of competition, in particular:

I – for the acquisition of materials, equipment, or genres that can only be supplied by a producer, company or exclusive commercial representative, brand preference is prohibited, and proof of exclusivity must be provided through a certificate provided by the local trade registration agency in which the bidding process or the work or the service would take place, by the Union, Federation or Employer Confederation, or even by equivalent entities;

II – for contracting technical services listed in art. 13 of this Law, of a singular nature, with professionals or companies of notorious specialization, the unenforceability for publicity and dissemination services being prohibited;

III – for hiring professionals from any artistic sector, directly or through an exclusive entrepreneur, as long as they are recognized by specialized critics or public opinion.

§ 1^O  A professional or company whose concept in the field of their specialty, due to previous performance, studies, experiences, publications, organization, equipment, technical staff, or other requirements related to their activities, is considered to be of notorious specialization, allows inferring that their work is essential and arguably the most adequate to the full satisfaction of the object of the contract.

§ two^O  In the event of this article and in any of the waiver cases, if overbilling is proven, the supplier or service provider and the responsible public agent are jointly and severally liable for the damage caused to the Public Treasury, without prejudice to other applicable legal sanctions.

Art. 26. The exemptions provided for in §§ 2^O and 4^O of art. 17 and in item III et seq. of art. 24, the situations of unenforceability referred to in art. 25, necessarily justified, and the delay provided for at the end of the sole paragraph of art. 8^O of this Law must be communicated, within 3 (three) days, to the superior authority, for ratification and publication in the official press, within 5 (five) days, as a condition for the effectiveness of the acts. (Wording provided by Law No. 11,107 of 2005)

Section II
Qualification 

III – constitutive act, statute or social contract in force, duly registered, in the case of commercial companies, and, in the case of joint-stock companies, accompanied by documents electing their managers;

IV – registration of the articles of incorporation, in the case of civil companies, accompanied by proof of the current board of directors;

V – authorization decree, in the case of a foreign company or society operating in the country, and act of registration or authorization for operation issued by the competent body, when the activity so requires.

II – proof of enrollment in the state or municipal taxpayer register, if any, related to the bidder's domicile or headquarters, relevant to its field of activity and compatible with the contractual object;

III – proof of regularity with the Federal, State and Municipal Treasury of the domicile or headquarters of the bidder, or another equivalent, as provided by law;

IV – proof of regularity regarding Social Security and the Severance Indemnity Fund (FGTS), demonstrating regular status in complying with social charges established by law. (Wording provided by Law No. 8.883 of 1994)

II – proof of aptitude for carrying out a relevant and compatible activity in characteristics, quantities and terms with the object of the bidding, and indication of the facilities and equipment and technical personnel adequate and available to carry out the object of the bidding, as well as the qualification of each member of the technical team who will be responsible for the work;

III – proof, provided by the bidding body, that it received the documents, and, when required, that it became aware of all the information and local conditions for the fulfillment of the obligations object of the bidding process;

IV – proof of compliance with requirements set forth in special law, when applicable. 

§ 1^O  Proof of aptitude referred to in item II of the caput of this article, in the case of tenders relating to works and services, will be made by means of certificates provided by legal entities governed by public or private law, duly registered with the competent professional entities, limited to the requirements of : (Wording provided by Law No. 8.883 of 1994)

I – technical-professional training: proof of the bidder having in its permanent staff, on the date scheduled for the delivery of the proposal, a higher-level professional or another duly recognized by the competent entity, holder of a certificate of technical responsibility for the execution of work or service of similar characteristics, limited exclusively to the most relevant portions and significant value of the object of the bidding, prohibited the requirements of minimum quantities or maximum terms;  (Included by Law No. 8,883 of 1994)

§ two^O  The portions of greater technical relevance and significant value, mentioned in the previous paragraph, will be defined in the invitation to tender. (Wording provided by Law No. 8.883 of 1994)

§ 3^O  Proof of aptitude will always be admitted through certificates or attestations of works or similar services of equivalent or greater technological and operational complexity.

§ 4^O  In bids for the supply of goods, proof of aptitude, when applicable, will be made through certificates provided by a legal entity governed by public or private law.

§ 5^O  It is prohibited to demand proof of activity or aptitude with limitations of time or season or even in specific places, or any others not provided for in this Law, which inhibit participation in the bidding process. 

§ 6^O  The minimum requirements related to site installations, machines, equipment and specialized technical personnel, considered essential for the fulfillment of the object of the bidding, will be met upon presentation of an explicit list and a formal declaration of their availability, under the applicable penalties, prohibited ownership and pre-location requirements.

§ 8^O  In the case of large-scale works, services and purchases of high technical complexity, the Administration may require the execution methodology from the bidders, whose evaluation, for the purpose of acceptance or not, will always precede the price analysis and will be carried out exclusively by objective criteria.

§ 9^O  Bidding of high technical complexity is understood to be one that involves high specialization, as an extremely relevant factor to guarantee the execution of the object to be contracted, or that may compromise the continuity of the provision of essential public services.

§ 10.  The professionals appointed by the bidder for the purpose of proving the technical-professional qualification referred to in item I of § 1^O of this article shall participate in the work or service object of the bidding, admitting the replacement by professionals with equivalent or greater experience, provided that approved by the administration. (Included by Law No. 8,883 of 1994)

§ 11. (Vetoed). (Included by Law No. 8,883 of 1994)

§ 12. (Vetoed). (Included by Law No. 8,883 of 1994) 

I - balance sheet and financial statements for the last fiscal year, already required and presented in accordance with the law, which prove the good financial situation of the company, their replacement by trial balances or provisional balance sheets being prohibited, and may be updated by official indices when closed more than 3 (three) months from the date of submission of the proposal;

II – negative certificate of bankruptcy or concordata issued by the distributor of the registered office of the legal entity, or of asset execution, issued at the domicile of the individual;

III – guarantee, in the same terms and criteria provided for in the “caput” and § 1^O of art. 56 of this Law, limited to 1% (one percent) of the estimated value of the object of the contract.

§ 1^O  The requirement for indices will be limited to demonstrating the financial capacity of the bidder with a view to the commitments it will have to assume if the contract is awarded, the requirement of minimum amounts of previous billing, profitability or profitability indices being prohibited. (Wording provided by Law No. 8.883 of 1994)

§ two^O  The Administration, in purchases for future delivery and in the execution of works and services, may establish, in the invitation to bid, the requirement of minimum capital or minimum equity, or even the guarantees provided for in § 1^O of art. 56 of this Law, as objective data to prove the economic and financial qualification of the bidders and for the purpose of guaranteeing the performance of the contract to be subsequently signed.

§ 3^O  The minimum capital or net equity value referred to in the previous paragraph may not exceed 10% (ten percent) of the estimated value of the contract, and proof must be provided in relation to the date of submission of the proposal, as provided by law, Updating to this date through official indices is allowed.

§ 4^O  A list of commitments assumed by the bidder that imply a decrease in operating capacity or absorption of financial availability may also be required, calculated according to updated shareholders' equity and its rotation capacity.

§ 5^O  The proof of good financial situation of the company will be made objectively, through the calculation of accounting indices provided for in the public notice and duly justified in the administrative process of the bidding that started the bidding process, prohibited the requirement of indices and values not usually adopted for correct assessment of sufficient financial situation to fulfill the obligations arising from the bidding. (Wording provided by Law No. 8.883 of 1994)

§ 6 (Vetoed). (Wording provided by Law No. 8.883 of 1994)

Art. 32. The documents required for qualification may be presented in original, by any process of copy authenticated by a competent notary or by a civil servant of the administration or publication in an official press organ. (Wording provided by Law No. 8.883 of 1994)

§ 3^O  The documentation referred to in this article may be replaced by a cadastral registration issued by a public body or entity, provided that it is provided for in the public notice and the registration has been made in compliance with the provisions of this Law.

§ 4^O  Foreign companies that do not operate in the country, as much as possible, will meet, in international bids, the requirements of the previous paragraphs through equivalent documents, authenticated by the respective consulates and translated by a sworn translator, and must have legal representation in Brazil with express powers to receive service of process and respond administratively or judicially.

§ 5^O  It will not be required, for the qualification referred to in this article, prior payment of fees or fees, except those referring to the provision of the public notice, when requested, with its constituent elements, limited to the value of the effective cost of graphic reproduction of the documentation provided.

§ 6^O  The provisions of § 4^O of this article, in § 1^O of art. 33 and in § 2^O of art. 55, does not apply to international tenders for the acquisition of goods and services whose payment is made with the financing product granted by an international financial organization of which Brazil is a member, or by a foreign cooperation agency, nor in cases of contracting with a company foreign, for the purchase of equipment manufactured and delivered abroad, provided that for this case there has been prior authorization from the Chief of the Executive Branch, nor in cases of acquisition of goods and services carried out by administrative units based abroad.

III – presentation of the documents required in arts. 28 to 31 of this Law by each consortium member, admitting, for the purpose of technical qualification, the sum of the amounts of each consortium member, and, for the purpose of economic and financial qualification, the sum of the values of each consortium member, in the proportion of their respective participation, and the Administration may establish, for the consortium, an increase of up to 30% (thirty percent) of the amounts required for an individual bidder, this increase not being required for consortia composed, in their entirety, of micro and small companies as defined in law;

IV – impediment of participation of a consortium company, in the same bidding process, through more than one consortium or separately;

V – joint liability of the members for the acts performed in the consortium, both in the bidding phase and in the execution of the contract.

§ 1^O  In the consortium of Brazilian and foreign companies, the leadership will mandatorily be the responsibility of the Brazilian company, in compliance with the provisions of item II of this article.

§ two^O  The winning bidder is obliged to promote, before the conclusion of the contract, the constitution and registration of the consortium, under the terms of the commitment referred to in item I of this article.

Section III
Registration Records 

Art. 34.  For the purposes of this Law, Public Administration bodies and entities that frequently carry out bidding processes will keep registration records for the purpose of qualification, in the regulatory manner, valid for a maximum of one year. (Regulation)

§ 1^O  The cadastral register must be widely disseminated and must be permanently open to interested parties, the unit responsible for it being obliged to proceed, at least annually, through the official press and daily newspaper, to a public call for the updating of existing records and for the admission of new interested parties.

§ two^O  Administrative units are allowed to use the registration records of other bodies or entities of the Public Administration.

Art. 35.  When requesting registration in the register, or updating it, at any time, the interested party will provide the necessary elements to satisfy the requirements of art. 27 of this Law.

Art. 36. Applicants will be classified by categories, taking into account their specialization, subdivided into groups, according to the technical and economic qualification evaluated by the elements contained in the documentation listed in arts. 30 and 31 of this Law.

§ 1^O  Registrants will be provided with a certificate, renewable whenever they update their registration.

§ two^O  The performance of the bidder in fulfilling the obligations assumed will be noted in the respective cadastral register.

Art. 37.  At any time, the registration of the registrant who fails to meet the requirements of art. 27 of this Law, or those established for cadastral classification.

Section IV
Procedure and Judgment 

Art. 38.  The bidding procedure will start with the opening of an administrative process, duly notified, filed and numbered, containing the respective authorization, a brief indication of its object and the own resource for the expense, and to which the following will be added in due course: 

I – public notice or invitation and respective annexes, when applicable;

II – proof of publication of the summary public notice, pursuant to art. 21 of this Law, or the delivery of the invitation;

III – act of designation of the bidding committee, the administrative or official auctioneer, or the person responsible for the invitation;

IV – original of the proposals and of the documents that instruct them;

V – minutes, reports and deliberations of the Judging Committee;

VI – technical or legal opinions issued on the bidding, waiver or unenforceability;

VII – acts of adjudication of the object of the bidding process and its homologation;

VIII – appeals eventually presented by the bidders and respective manifestations and decisions;

IX – order of annulment or revocation of the bidding, when applicable, with detailed grounds;

X – term of contract or equivalent instrument, as the case may be;

XI – other proof of publications;

XII – other documents related to the bidding process.

Single paragraph. The drafts of the bidding notices, as well as the contracts, agreements, covenants or adjustments must be previously examined and approved by the Administration's legal counsel. (Wording provided by Law No. 8.883 of 1994)

Art. 39. Whenever the estimated value for a bid or for a set of simultaneous or successive bids exceeds 100 (one hundred) times the limit provided for in art. 23, item I, item “c” of this Law, the bidding process will be initiated, mandatorily, with a public hearing granted by the responsible authority at least 15 (fifteen) working days before the date foreseen for the publication of the notice, and disclosed, at least 10 (ten) business days prior to its completion, by the same means provided for advertising the bidding process, to which all interested parties will have access and the right to all relevant information.

Single paragraph. For the purposes of this article, simultaneous biddings are considered those with similar objects and scheduled to take place at intervals not exceeding thirty days, and successive biddings those in which, also with similar objects, the subsequent public notice has a date prior to one hundred and twenty days after the end of the contract resulting from the previous bidding process. (Wording provided by Law No. 8.883 of 1994)

Art. 40. The public notice will contain in the preamble the order number in annual series, the name of the interested department and its sector, the modality, the execution regime and the type of the bidding, the mention that it will be governed by this Law, the place, day and time to receive the documentation and proposal, as well as to start opening the envelopes, and must indicate the following:

I – object of the bidding process, in a succinct and clear description;

II – term and conditions for signing the contract or withdrawing the instruments, as provided for in art. 64 of this Law, for the execution of the contract and for the delivery of the object of the bidding process;

III – sanctions in case of default;

IV – place where the basic project can be examined and purchased;

V – if there is an executive project available on the date of publication of the bidding notice and the place where it can be examined and acquired;

VI – conditions for participation in the bidding, in accordance with arts. 27 to 31 of this Law, and form of submission of proposals;

VII – judgment criteria, with clear provisions and objective parameters;

VIII – locations, times and access codes of the means of distance communication in which elements, information and clarifications related to the bidding process and the conditions for meeting the obligations necessary for the fulfillment of its object will be provided;

IX – equivalent payment conditions between Brazilian and foreign companies, in the case of international bids;

X - the criterion of acceptability of unit and global prices, as the case may be, the setting of maximum prices being allowed and the setting of minimum prices prohibited, statistical criteria or ranges of variation in relation to reference prices, except for the provisions of paragraphs 1 and 2 of art. 48; (Wording provided by Law No. 9648 of 1998)

XI – readjustment criterion, which should portray the effective variation in the cost of production, accepting the adoption of specific or sectoral indices, from the scheduled date for submission of the proposal, or the budget to which this proposal refers, until the date of compliance of each plot; (Wording provided by Law No. 8.883 of 1994)

XII – (Vetoed). (Wording provided by Law No. 8.883 of 1994)

XIII – limits for payment of installation and mobilization for the execution of works or services that will be compulsorily foreseen separately from the other installments, stages or tasks;

XIV - terms of payment, providing for:

§ 1^O  The original of the public notice must be dated, initialed on all pages and signed by the authority that issued it, remaining in the bidding process, and extracting full or summarized copies of it, for its dissemination and supply to interested parties.

§ 3^O  For the purposes of the provisions of this Law, performance of the contractual obligation is considered to be the provision of the service, the execution of the work, the delivery of the good or part thereof, as well as any other contractual event to which the occurrence of the issuance of a document of charge. 

§ 4^O  In purchases for immediate delivery, understood as those with a delivery period of up to thirty days from the scheduled date for submission of the proposal, the following may be waived:  (Included by Law No. 8,883 of 1994)

I – the provisions of item XI of this article; (Included by Law No. 8,883 of 1994)

II – the financial update referred to in paragraph “c” of item XIV of this article, corresponding to the period between the due date and the date foreseen for payment, provided that it does not exceed fifteen days. (Included by Law No. 8,883 of 1994)

Art. 41.  The Administration cannot fail to comply with the rules and conditions of the notice, to which it is strictly bound.

§ 1^O  Any citizen is a legitimate party to challenge the bidding notice for irregularity in the application of this Law, and must file the request up to 5 (five) business days before the date set for opening the qualification envelopes, and the Administration must judge and respond to the challenge within 3 (three) business days, without prejudice to the option provided for in § 1^O of art. 113.

§ two^O  The bidder who does not do so by the second business day preceding the opening of the qualification envelopes in competition, the opening of the envelopes with the invitation proposals, price survey or tender, or the holding of an auction, the failures or irregularities that would vitiate this public notice, in which case such communication will not have the effect of an appeal. (Wording provided by Law No. 8.883 of 1994)

§ 3^O  The challenge made in a timely manner by the bidder will not prevent him from participating in the bidding process until the decision becomes final and unappealable.

§ 4^O  The disqualification of the bidder implies preclusion of its right to participate in the subsequent phases.

Art. 42.  In competitions with an international scope, the public notice must adjust to the guidelines of monetary policy and foreign trade and meet the requirements of the competent bodies.

§ 1^O  When the foreign bidder is permitted to quote a price in foreign currency, the Brazilian bidder may also do so.

§ two^O  Payment made to the Brazilian bidder eventually contracted as a result of the bidding referred to in the previous paragraph will be made in Brazilian currency, at the current exchange rate on the business day immediately preceding the date of the effective payment. (Wording provided by Law No. 8.883 of 1994)

§ 4^O  For the purpose of judging the bidding process, the proposals submitted by foreign bidders will be increased by encumbrances resulting from the same taxes that exclusively burden Brazilian bidders regarding the final sale operation.

§ 5^O  For carrying out works, providing services or acquiring goods with funds from financing or donations from an official foreign cooperation agency or multilateral financial body to which Brazil is a party, the conditions arising from international agreements, protocols, conventions or treaties approved by the National Congress, as well as the norms and procedures of those entities, including the criteria for selecting the most advantageous proposal for the administration, which may include, in addition to price, other evaluation factors, provided they are required by them to obtain financing or donation, and that they also do not conflict with the principle of objective judgment and are the subject of a reasoned order by the executing body of the contract, this order ratified by the immediately superior authority. (Wording provided by Law No. 8.883 of 1994)

III – opening of the envelopes containing the bids of qualified bidders, provided that the deadline has elapsed without an appeal being lodged, or there has been express withdrawal, or after judgment of the lodged appeals;

IV – verification of compliance of each proposal with the requirements of the public notice and, as the case may be, with the prices current in the market or set by a competent official body, or even with those contained in the price registration system, which must be duly registered in the judgment minutes, promoting the disqualification of non-compliant or incompatible proposals;

V – judgment and classification of the proposals according to the evaluation criteria contained in the notice;

VI – deliberation of the competent authority regarding the homologation and adjudication of the object of the bidding process.

§ 1^O  The opening of the envelopes containing the documentation for qualification and the proposals will always be carried out in a previously designated public act, of which detailed minutes will be drawn up, signed by the bidders present and by the Commission.

§ two^O  All documents and proposals will be initialed by the bidders present and by the Commission.

§ 3^O  The Commission or higher authority is entitled, at any stage of the bidding process, to carry out due diligence aimed at clarifying or complementing the instruction of the process, the subsequent inclusion of a document or information that should originally have been included in the proposal is forbidden.

§ 4^O  The provisions of this article apply to competition and, where applicable, to tenders, auctions, price assessments and invitations. (Wording provided by Law No. 8.883 of 1994)

§ 5^O  Once the bidders' qualification phase has passed (items I and II) and the proposals have been opened (item III), they cannot be disqualified for reasons related to the qualification, except due to supervening facts or facts only known after the judgment.

§ 6^O  After the qualification phase, the proposal cannot be withdrawn, except for a fair reason resulting from a supervening fact and accepted by the Committee.

 

Art. 44. When judging the proposals, the Commission will take into account the objective criteria defined in the public notice or invitation, which must not contradict the norms and principles established by this Law.

§ 1^O  The use of any confidential, secret, subjective or reserved element, criterion or factor that may even indirectly evade the principle of equality between bidders is prohibited.

§ two^O  Any offer of advantage not foreseen in the notice or invitation will not be considered, including subsidized or non-repayable financing, nor price or advantage based on the offers of the other bidders.

§ 3^O  Proposals that present symbolic global or unitary prices, negligible or of zero value, incompatible with the prices of inputs and market wages, plus the respective charges, will not be accepted, even if the invitation to bid does not establish minimum limits, except when refer to materials and installations owned by the bidder, for which he waives part or all of the remuneration. (Wording provided by Law No. 8.883 of 1994)

§ 4^O  The provisions of the previous paragraph also apply to proposals that include foreign labor or imports of any nature.(Wording provided by Law No. 8.883 of 1994)

Art. 45. The judgment of the proposals will be objective, and the Bidding Committee or the person responsible for the invitation must carry out it in accordance with the types of bidding, the criteria previously established in the invitation to bid and in accordance with the factors exclusively referred to therein, in order to enable its measurement by bidders and control bodies. 

§ 1^O  For the purposes of this article, the following constitute types of bidding, except in the tender modality: (Wording provided by Law No. 8.883 of 1994)

I – the lowest price – when the criterion for selecting the most advantageous proposal for the Administration determines that the bidder who presents the proposal in accordance with the specifications of the public notice or invitation and offers the lowest price will be the winner;

IV – the one with the highest bid or offer – in cases of disposal of goods or concession of real right of use. (Included by Law No. 8,883 of 1994)

§ two^O  In the event of a tie between two or more bids, and after complying with the provisions of § 2^O of art. 3^O of this Law, the classification will be done, obligatorily, by drawing lots, in a public act, for which all the bidders will be summoned, prohibited any other process.

§ 3^O  In the case of bidding of the “lowest price” type, among the bidders considered qualified, the classification will be in ascending order of the proposed prices, prevailing, in the event of a tie, exclusively the criterion provided for in the previous paragraph. (Wording provided by Law No. 8.883 of 1994) 

§ 4^O  For contracting IT goods and services, the administration will observe the provisions of art. 3^O of Law No.^O 8,248, of October 23, 1991, taking into account the factors specified in your paragraph 2^O and adopting the obligatory type of bidding “technical and price”, allowing the use of another type of bidding in the cases indicated by decree of the Executive Branch. (Wording provided by Law No. 8.883 of 1994)

§ 5^O  The use of other types of bidding not provided for in this article is prohibited.

§ 6^O  In the case provided for in art. 23, § 7, as many proposals as necessary will be selected until the quantity demanded in the bidding is reached.  (Included by Law No. 9648 of 1998)

Art. 46.  The “best technique” or “technical and price” bidding types will be used exclusively for services of a predominantly intellectual nature, in particular in the elaboration of projects, calculations, inspection, supervision and management and of consulting engineering in general and, in particular, for the preparation of preliminary technical studies and basic and executive projects, subject to the provisions of § 
4^O of the previous article. (Wording provided by Law No. 8.883 of 1994) 

§ 1^O  In biddings of the “best technique” type, the following procedure will be adopted, clearly explained in the bidding instrument, which will set the maximum price that the Administration proposes to pay:

I – the envelopes containing the technical proposals exclusively from the previously qualified bidders will be opened and then the evaluation and classification of these proposals will be carried out according to the relevant and appropriate criteria for the bid object, clearly and objectively defined in the invitation to tender and which consider the qualification and the proponent's experience, the technical quality of the proposal, including methodology, organization, technologies and material resources to be used in the works, and the qualification of the technical teams to be mobilized for its execution;

II – once the technical proposals have been classified, the bidders who have reached the minimum valuation established in the invitation to bid will be opened and the proposed conditions negotiated with the best ranked bidder, based on the detailed budgets presented and respective unit prices and having as reference the limit represented by the lowest price proposal among the bidders that obtained the minimum valuation;

III – in the event of an impasse in the previous negotiation, an identical procedure will be adopted, successively, with the other bidders, in order of classification, until an agreement is reached for the contract;

IV – price proposals will be returned intact to bidders who are not preliminarily qualified or who do not obtain the minimum valuation established for the technical proposal.

§ two^O  In bids of the “technical and price” type, in addition to item I of the previous paragraph, the following procedure will be adopted, clearly explained in the bidding instrument:

I – the evaluation and valuation of price proposals will be carried out, in accordance with objective criteria pre-established in the invitation to tender;

II – the classification of the bidders will be made according to the weighted average of the valuations of the technical and price proposals, in accordance with the pre-established weights in the invitation to bid.

§ 3^O  Exceptionally, the types of bidding provided for in this article may be adopted, by express authorization and with detailed justification from the highest authority of the promoting Administration contained in the bidding act, for the supply of goods and execution of works or provision of large-scale services mostly dependent on technology clearly sophisticated and of restricted domain, attested by technical authorities of recognized qualification, in cases where the intended object admits alternative solutions and execution variations, with significant repercussions on its quality, productivity, yield and durability concretely measurable, and these can be adopted to the free choice of bidders, in accordance with the criteria objectively established in the invitation to bid.

II – proposals with a global value higher than the established limit or with prices that are manifestly unfeasible, thus considered those that have not demonstrated their viability through documentation that proves that the costs of the inputs are consistent with those of the market and that the productivity coefficients are compatible with the execution of the object of the contract, conditions that are necessarily specified in the invitation to bid. (Wording provided by Law No. 8.883 of 1994)

§ 1  For the purposes of the provisions of item II of this article, proposals whose values are less than 70% (seventy percent) of the lowest of the following values are considered to be manifestly unfeasible, in the case of lower price bids for engineering works and services:  (Included by Law No. 9648 of 1998)

a) arithmetic mean of the values of the proposals greater than 50% (fifty percent) of the value budgeted by the administration, or (Included by Law No. 9648 of 1998)

b) amount budgeted by management. (Included by Law No. 9648 of 1998)

§ 2 Bidders classified as in the previous paragraph whose global bid value is less than 80% (eighty percent) of the lowest value referred to in items “a” and “b”, will be required, for the signature of the contract, to provide additional guarantee, among the modalities provided for in § 1 of art. 56, equal to the difference between the value resulting from the previous paragraph and the value of the corresponding
proposal. (Included by Law No. 9648 of 1998) 

§ 3 When all bidders are disqualified or all proposals are disqualified, the administration may set a period of eight working days for bidders to submit new documentation or other proposals cleared of the causes referred to in this article, with the option, in case of invitation, to reduction of this period to three working days. (Included by Law No. 9648 of 1998)

Art. 49.  The competent authority for approving the procedure may only revoke the bidding process for reasons of public interest arising from a supervening fact duly proven, relevant and sufficient to justify such conduct, and must annul it for illegality, ex officio or at the instigation of third parties, by means of an opinion written and duly substantiated.

§ 1^O  The annulment of the bidding procedure due to illegality does not generate an obligation to indemnify, except for the provisions of the sole paragraph of art. 59 of this Law.

§ two^O  The nullity of the bidding procedure leads to the nullity of the contract, except for the provisions of the sole paragraph of art. 59 of this Law.

Art. 50. The Administration may not enter into the contract by disregarding the order in which the proposals are ranked or with third parties outside the bidding process, under penalty of nullity.

Art. 51. Preliminary qualification, enrollment in the cadastral register, its alteration or cancellation, and the proposals will be processed and judged by a permanent or special commission of at least 3 (three) members, at least 2 (two) of whom are qualified servants belonging to to the permanent staff of the Administration bodies responsible for the bidding process.

§ 1^O  In case of invitation, the Bidding Committee, exceptionally, in small administrative units and in view of the scarcity of available personnel, may be replaced by a servant formally appointed by the competent authority.

§ 3^O  The members of the Bidding Commissions will be jointly and severally liable for all acts performed by the Commission, unless a divergent individual position is duly substantiated and recorded in the minutes drawn up at the meeting in which the decision was taken.

§ 4^O  The investiture of the members of the permanent Commissions will not exceed 1 (one) year, with the reappointment of all its members to the same commission in the subsequent period prohibited.

§ 5^O  In the case of a tender, the judgment will be made by a special commission made up of people of unblemished reputation and recognized knowledge of the matter under examination, public servants or not.

Art. 52.  The contest referred to in § 4^O of art. 22 of this Law must be preceded by its own regulation, to be obtained by interested parties at the place indicated in the notice.

§ two^O  The auctioned goods will be paid in cash or in the percentage established in the notice, not less than 5% (five percent) and, after signing the respective minutes drawn up at the auction site, immediately delivered to the bidder, who will be obliged to pay the remainder within the period stipulated in the call notice, under penalty of losing in favor of the Administration the amount already paid.

§ 3^O  In international auctions, payment of the installment in cash can be made within twenty-four hours. (Wording provided by Law No. 8.883 of 1994)

§ 4^O  The auction announcement must be widely publicized, especially in the municipality where it will be held. (Included by Law No. 8,883 of 1994)

Chapter III
CONTRACTS

Section I
Preliminary Provisions

Art. 54. The administrative contracts dealt with in this Law are regulated by its clauses and by the precepts of public law, applying to them, in addition, the principles of the general theory of contracts and the provisions of private law.

§ 1^O  The contracts must clearly and precisely establish the conditions for their execution, expressed in clauses that define the rights, obligations and responsibilities of the parties, in accordance with the terms of the bidding process and the proposal to which they are linked.

§ two^O  Contracts resulting from waiver or unenforceability of bidding must comply with the terms of the act that authorized them and the respective proposal.

Art. 55.  Necessary clauses in every contract are those that establish:

III – the price and payment conditions, the criteria, base date and periodicity of price readjustment, the criteria for monetary restatement between the date of performance of obligations and the date of effective payment;

IV – the deadlines for starting stages of execution, completion, delivery, observation and final receipt, as the case may be;

V – the credit for which the expense will run, with the indication of the programmatic functional classification and the economic category;

VI – the guarantees offered to ensure its full execution, when required;

XII – the legislation applicable to the execution of the contract and especially to omissions;

XIII – the contractor's obligation to maintain, throughout the performance of the contract, in compatibility with the obligations assumed by him, all the qualification conditions required in the bidding process.

§ 1 (Vetoed). (Wording provided by Law No. 8.883 of 1994)

§ two^O  Contracts entered into by the Public Administration with individuals or legal entities, including those domiciled abroad, must necessarily contain a clause declaring that the jurisdiction of the seat of the Administration is competent to resolve any contractual issue, except as provided in § 6^O of art. 32 of this Law.

Art. 56.  At the discretion of the competent authority, in each case, and provided that it is provided for in the invitation to tender, the provision of a guarantee may be required in contracting works, services and purchases.

§ 1^O  It will be up to the contractor to choose one of the following types of guarantee: (Wording provided by Law No. 8.883 of 1994)

I – collateral in cash or public debt securities, which must have been issued in book-entry form, upon registration in a centralized settlement and custody system authorized by the Central Bank of Brazil and valued at their economic values, as defined by the Ministry of Farm; (Wording provided by Law No. 11,079 of 2004)

II – guarantee insurance; (Wording provided by Law No. 8.883 of 1994)

III – bank guarantee. (Wording provided by Law No. 8.883, of 6.8.94)

§ two^O  The guarantee referred to in the caput of this article will not exceed five percent of the value of the contract and will have its value updated under the same conditions as that one, except as provided for in paragraph 3^O of this article. (Wording provided by Law No. 8.883 of 1994)

§ 3^O  For large-scale works, services and supplies involving high technical complexity and considerable financial risks, demonstrated through a technically approved opinion by the competent authority, the guarantee limit provided for in the previous paragraph may be increased to up to ten percent of the contract value. (Wording provided by Law No. 8.883 of 1994)

§ 4^O  The guarantee provided by the contractor will be released or refunded after the execution of the contract and, when in cash, monetarily updated.

§ 5^O  In cases of contracts involving the delivery of goods by the Administration, of which the contracted party will be the depositary, the value of these goods must be added to the value of the guarantee. 

Art. 57.  The duration of the contracts governed by this Law will be restricted to the validity of the respective budgetary credits, except for those relating to:

I – projects whose products are included in the goals established in the Multi-Year Plan, which may be extended if there is interest from the Administration and provided that this has been foreseen in the call for proposals;

II – the provision of services to be performed on an ongoing basis, which may have their duration extended for equal and successive periods with a view to obtaining more advantageous prices and conditions for the administration, limited to sixty months; (Wording provided by Law No. 9648 of 1998)

IV – the rental of equipment and the use of computer programs, the duration of which may be extended for a period of up to 48 (forty-eight) months after the beginning of the term of the contract.

§ 1^O  The deadlines for the start of the execution, completion and delivery stages are subject to extension, provided that the other clauses of the contract are maintained and the maintenance of its economic and financial balance is ensured, provided that any of the following reasons occur, duly notified in the process:

I – alteration of the project or specifications, by the Administration;

II - supervenience of an exceptional or unpredictable fact, foreign to the will of the parties, which fundamentally alters the conditions of execution of the contract;

III – interruption of the execution of the contract or reduction of the pace of work by order and in the interest of the Administration;

IV – increase in the quantities initially provided for in the contract, within the limits permitted by this Law;

V – impediment to the performance of the contract due to a fact or act of a third party recognized by the Administration in a document contemporaneous with its occurrence; 

VI – omission or delay of measures in charge of the Administration, including regarding the expected payments that result, directly, impediment or delay in the performance of the contract, without prejudice to the legal sanctions applicable to those responsible. 

§ two^O  Any extension of time must be justified in writing and previously authorized by the competent authority to sign the contract.

§ 3^O  The contract has an indefinite term.

§ 4^O  Exceptionally, duly justified and with authorization from the higher authority, the period referred to in item II of the caput of this article may be extended for up to twelve months. (Included by Law No. 9648 of 1998)

Art. 58.  The legal regime of administrative contracts established by this Law gives the Administration, in relation to them, the prerogative of:

I – modify them, unilaterally, to better suit public interest purposes, respecting the rights of the contracted party;

II – terminate them, unilaterally, in the cases specified in item I of art. 79 of this Law;

III – supervise their execution;

IV – apply sanctions motivated by total or partial non-execution of the adjustment; 

V – in the case of essential services, provisionally occupy movable, immovable, personnel and services related to the object of the contract, in the event of the need to safeguard the administrative investigation of contractual defaults by the contractor, as well as in the event of termination of the administrative contract.

§ 1^O  The economic-financial and monetary clauses of the administrative contracts cannot be changed without the prior agreement of the contracted party.

§ two^O  In the event of item I of this article, the economic and financial clauses of the contract must be reviewed in order to maintain the contractual balance.

Art. 59.  The declaration of nullity of the administrative contract operates retroactively, preventing the legal effects that it, ordinarily, should produce, in addition to deconstituting those already produced.

Single paragraph.  Nullity does not exempt the Administration from the duty to indemnify the contracted party for what it has performed up to the date on which it is declared and for other damages regularly proven, provided that it is not attributable to it, promoting the responsibility of those who caused it.

 

Section II
Formalization of Contracts 

 

Art. 60.  The contracts and their additions will be drawn up in the interested departments, which will keep a chronological file of their autographs and a systematic record of their extract, except those relating to real rights over real estate, which are formalized by instrument drawn up in a notary's office, joining everything is copied in the process that gave rise to it.

Single paragraph.  The verbal contract with the Administration is null and void, except for small prompt payment purchases, understood as those with a value not exceeding 5% (five percent) of the limit established in art. 23, item II, item “a” of this Law, made in advance. 

Art. 61. Every contract must mention the names of the parties and their representatives, the purpose, the act that authorized its drawing up, the number of the bidding process, waiver or unenforceability, the subjection of the contracting parties to the rules of this Law and to the contractual clauses .

Single paragraph.  The summarized publication of the contract instrument or its amendments in the official press, which is an indispensable condition for its effectiveness, will be provided by the Administration until the fifth working day of the month following its signature, to occur within twenty days of that date, whatever its value, even if free of charge, subject to the provisions of art. 26 of this Law. (Wording provided by Law No. 8.883 of 1994)

Art. 62. The contract instrument is mandatory in cases of competition and price-taking, as well as in waivers and unenforceability whose prices are included within the limits of these two bidding modalities, and optional in others where the Administration can replace it with other suitable instruments. , such as a contract letter, expense commitment note, purchase authorization or service execution order.

§ 3^O  The provisions of art. 55 and 58 to 61 of this Law and other general rules, where applicable:

I – to insurance, financing, leasing contracts in which the Public Power is the lessee, and to others whose content is governed, predominantly, by rule of private law;

II – contracts to which the Administration is a party as a public service user.

§ 4^O  The “contract term” is not required and the replacement provided for in this article is optional, at the discretion of the Administration and regardless of its value, in cases of purchase with immediate and full delivery of the purchased goods, which do not result in future obligations, including technical assistance.

Art. 63. Any bidder is allowed to know the terms of the contract and the respective bidding process and, to any interested party, to obtain a certified copy, upon payment of the due fees.

Art. 64.  The Administration will regularly summon the interested party to sign the term of contract, accept or withdraw the equivalent instrument, within the established period and conditions, under penalty of forfeiting the right to contract, without prejudice to the sanctions provided for in art. 81 of this Law.

§ 1^O  The notice period may be extended once, for the same period, when requested by the party during its duration and provided that there is a justified reason accepted by the Administration.

§ two^O  The Administration, when the summoned does not sign the term of contract or does not accept or withdraw the equivalent instrument within the established period and conditions, call the remaining bidders, in order of classification, to do so in the same period and under the same proposed conditions by the first classified, including the updated prices in accordance with the call notice, or revoke the bidding regardless of the commission provided for in art. 81 of this Law.

Section III
Amendment of Contracts

I – unilaterally by the Administration:

a) when there is a modification of the project or specifications, for better technical adequacy to its objectives;

b) when it is necessary to modify the contractual value as a result of a quantitative increase or decrease in its object, within the limits permitted by this Law;

II - by agreement of the parties:

a) when convenient the replacement of the execution guarantee;

b) when it is necessary to modify the regime for executing the work or service, as well as the mode of supply, in view of technical verification of the inapplicability of the original contractual terms;

 

c) when it is necessary to modify the payment method, due to the imposition of supervening circumstances, keeping the initial value updated, prepayment being prohibited, in relation to the established financial schedule, without the corresponding consideration for the supply of goods or execution of work or service ;

d) to re-establish the relationship that the parties initially agreed between the contractor's charges and the administration's retribution for the fair remuneration of the work, service or supply, aiming at maintaining the initial economic-financial balance of the contract, in the event of unforeseeable events occurring , or foreseeable but with incalculable consequences, delaying or impeding the execution of the agreement, or, even, in case of force majeure, act of God or fact of the prince, configuring an extraordinary and non-contractual economic area. (Wording provided by Law No. 8.883 of 1994) 

§ 1^O  The contractor is obliged to accept, under the same contractual conditions, the additions or deletions that are made in the works, services or purchases, up to 25% (twenty-five percent) of the updated initial value of the contract, and, in the particular case of renovation of building or equipment, up to the limit of 50% (fifty percent) for their additions.

§ two^O  No addition or deletion may exceed the limits established in the previous paragraph, except: (Wording provided by Law No. 9648 of 1998)

§ 4^O  In the case of suppression of works, goods or services, if the contractor has already acquired the materials and placed them at the work site, these must be paid by the Administration for the acquisition costs regularly proven and monetarily corrected, and compensation may be applicable for other damages that may arise of deletion, provided they are regularly proven.

§ 5^O  Any taxes or legal charges created, amended or extinguished, as well as the supervening of legal provisions, when occurring after the date of submission of the proposal, with proven repercussions on the contracted prices, will imply their revision, upwards or downwards, as the case may be.

§ 6^O  In the event of a unilateral amendment to the contract that increases the contracted party's charges, the Administration must restore, by amendment, the initial economic-financial balance.

§ 7^O (VETOED) 

§ 8^O  The variation of the contractual value to face the price adjustment foreseen in the contract itself, the financial updates, compensations or penalties resulting from the payment conditions foreseen therein, as well as the commitment of supplementary budget appropriations up to the limit of its corrected value, do not characterize alteration thereof, and may be registered by means of a simple apostille, eliminating the need to enter into an amendment.

Section IV
Execution of Contracts 

Art. 66.  The contract must be faithfully executed by the parties, in accordance with the agreed clauses and the rules of this Law, each one responding for the consequences of its total or partial non-performance.

Art. 67. The execution of the contract must be monitored and supervised by a specially appointed representative of the Administration, being allowed the hiring of third parties to assist and subsidize him with information pertinent to this attribution. 

§ 1^O  The Administration representative will record in his own record all occurrences related to the execution of the contract, determining what is necessary to regularize the observed faults or defects.

§ two^O  Decisions and measures that go beyond the competence of the representative must be requested from their superiors in a timely manner for the adoption of appropriate measures.

Art. 68. The contractor must maintain a representative, accepted by the Administration, at the site of the work or service, to represent him in the execution of the contract.

Art. 69. The contracted party is obliged to repair, correct, remove, rebuild or replace, at its own expense, in whole or in part, the object of the contract in which there are defects, defects or inaccuracies resulting from the execution or from the materials used.

Art. 70. The contracted party is responsible for damages caused directly to the Administration or to third parties, resulting from its fault or willful misconduct in the execution of the contract, not excluding or reducing this responsibility the inspection or follow-up by the interested body.

§ 1^O  The default of the contractor, with reference to labor, tax and commercial charges does not transfer to the Public Administration the responsibility for their payment, nor may it encumber the object of the contract or restrict the regularization and use of works and buildings, including before the Real Estate Registry . (Wording provided by Law No. 9,032 of 1995)

§ two^O  The Public Administration is jointly and severally liable with the contracted party for the social security charges resulting from the execution of the contract, under the terms of art. 31 of Law No. 8.212, of July 24, 1991. (Wording provided by Law No. 9,032 of 1995)

§ 3 (Vetoed). (Included by Law No. 8,883 of 1994) 

Art. 72. The contractor, in the performance of the contract, without prejudice to contractual and legal responsibilities, may subcontract parts of the work, service or supply, up to the limit allowed, in each case, by the Administration.

Art. 73.  Once the contract is executed, your object will be received:

I – in the case of works and services:

b) definitively, by a servant or commission designated by the competent authority, by means of a detailed term, signed by the parties, after the expiry of the period of observation, or inspection that proves the adequacy of the object to the contractual terms, observing the provisions of art. 69 of this Law;

II – in the case of equipment purchases or leasing:

a) provisionally, for the purpose of later verification of the conformity of the material with the specification;

§ 1^O  In cases of acquisition of large-scale equipment, receipt will be made through a detailed term and, in the others, through a receipt.

§ two^O  Provisional or definitive receipt does not exclude civil liability for the soundness and safety of the work or service, nor ethical and professional responsibility for the perfect execution of the contract, within the limits established by law or by the contract.

§ 3^O  The term referred to in item “b” of item I of this article cannot exceed 90 (ninety) days, except in exceptional cases, duly justified and provided for in the public notice.

§ 4^O  In the event that the detailed term or the verification referred to in this article are not, respectively, drawn up or carried out within the established deadlines, they will be considered as carried out, provided that they are communicated to the Administration in the 15 (fifteen) days prior to exhaustion of the same.

I – perishable foodstuffs and prepared food;

II – professional services;

III – works and services of value up to the provisions of art. 23, item II, item “a”, of this Law, provided that they do not consist of appliances, equipment and installations subject to verification of operation and productivity.

Single paragraph.  In the cases of this article, receipt will be made upon receipt.

Art. 75.  Except for provisions to the contrary contained in the notice, invitation or normative act, the tests, tests and other evidence required by official technical standards for the proper execution of the object of the contract are the responsibility of the contracted party.

Art. 76.  The Administration will reject, in whole or in part, work, service or supply performed in disagreement with the contract.

Section V
Non-performance and Termination of Contracts 

Art. 77. The total or partial non-performance of the contract gives rise to its termination, with the contractual consequences and those provided for by law or regulation.

Art. 78.  Grounds for termination of the contract are:

I – non-compliance with contractual clauses, specifications, projects or deadlines;

II – irregular fulfillment of contractual clauses, specifications, projects and deadlines;

III – the slowness of compliance, leading the Administration to prove the impossibility of completing the work, service or supply, within the stipulated deadlines;

IV – unjustified delay in starting the work, service or supply;

V – the stoppage of the work, service or supply, without just cause and prior communication to the Administration;

VI – the total or partial subcontracting of its object, the association of the contracted party with another, the total or partial assignment or transfer, as well as the merger, spin-off or incorporation, not admitted in the public notice and in the contract;

VII – failure to comply with the regular determinations of the designated authority to monitor and supervise its execution, as well as those of its superiors;

VIII - the repeated commission of faults in its execution, noted in the form of § 1^O of art. 67 of this Law;

IX – the declaration of bankruptcy or the initiation of civil insolvency;

X – the dissolution of the company or the death of the contractor;

XI – social alteration or modification of the purpose or structure of the company, which jeopardizes the execution of the contract;

XIII – the suppression, by the Administration, of works, services or purchases, resulting in modification of the initial value of the contract beyond the limit allowed in § 1^O of art. 65 of this Law;

XIV - the suspension of its execution, by written order of the Administration, for a period exceeding 120 (one hundred and twenty) days, except in the case of public calamity, serious disturbance of internal order or war, or even for repeated suspensions that total the same period, regardless of the mandatory payment of indemnities for the successive and contractually unforeseen demobilizations and mobilizations and other foreseen ones, ensuring the contractor, in these cases, the right to opt for the suspension of the fulfillment of the assumed obligations until the situation is normalized;

XV - the delay of more than 90 (ninety) days of payments due by the Administration arising from works, services or supplies, or portions thereof, already received or executed, except in cases of public calamity, serious disturbance of internal order or war, assured to the contracted the right to opt for the suspension of the fulfillment of its obligations until the situation is normalized;

XVI – the non-release, by the Administration, of an area, place or object for the execution of work, service or supply, within the contractual terms, as well as the sources of natural materials specified in the project;

XVII - the occurrence of acts of God or force majeure, regularly proven, preventing the execution of the contract.

Single paragraph. Cases of contractual termination will be formally motivated in the case file, ensuring the contradictory and ample defense.

XVIII – non-compliance with the provisions of item V of art. 27, without prejudice to the applicable criminal sanctions. (Included by Law No. 9,854 of 1999)

I – determined by a unilateral and written act of the Administration, in the cases listed in items I to XII and XVII of the previous article;

II – amicable, by agreement between the parties, reduced to term in the bidding process, as long as it is convenient for the Administration;

III – judicial, under the terms of the legislation;

IV – (Vetoed).  (Wording provided by Law No. 8.883 of 1994)

§ 1^O  Administrative or amicable termination must be preceded by written and reasoned authorization from the competent authority.

§ two^O  When the termination takes place based on items XII to XVII of the previous article, without the contractor being at fault, he will be compensated for the regularly proven damages that he has suffered, with the right to:

I – warranty return;

II – payments due for the performance of the contract up to the date of termination;

III – payment of the cost of demobilization.

§ 3 (Vetoed).(Wording provided by Law No. 8.883 of 1994)

§ 4 (Vetoed).(Wording provided by Law No. 8.883 of 1994)

§ 5^O In the event of an impediment, stoppage or suspension of the contract, the execution schedule will be automatically extended for the same period.

I – immediate assumption of the object of the contract, in the state and place in which it is found, by act of the Administration;

II – occupation and use of the premises, installations, equipment, material and personnel employed in the execution of the contract, necessary for its continuity, in the form of item V of art. 58 of this Law;

III – execution of the contractual guarantee, to reimburse the Administration, and the amounts of fines and indemnities owed to it;

IV – retention of credits arising from the contract up to the limit of damages caused to the Administration.

§ 1^O  The application of the measures provided for in items I and II of this article is at the discretion of the Administration, which may continue the work or service by direct or indirect execution.

§ two^O  The Administration is allowed, in the event of bankruptcy of the contracted party, to maintain the contract, being able to take control of certain activities of essential services.

§ 3^O  In the event of item II of this article, the act must be preceded by express authorization from the competent Minister of State, or State or Municipal Secretary, as the case may be.

§ 4^O  The termination referred to in item IV of the previous article allows the Administration, at its discretion, to apply the measure provided for in item I of this article.

Chapter IV
ADMINISTRATIVE SANCTIONS AND JUDICIAL RELIEF

Section I
General Provisions 

Art. 81.  The unjustified refusal of the successful bidder to sign the contract, accept or withdraw the equivalent instrument, within the period established by the Administration, characterizes the total breach of the obligation assumed, subjecting it to the legally established penalties.

Single paragraph.  The provisions of this article do not apply to bidders summoned pursuant to art. 64, § 2^O of this Law, who do not accept the contract, under the same conditions proposed by the first successful bidder, including the term and price.

Art. 82. Administrative agents who practice acts in disagreement with the precepts of this Law or aiming to thwart the objectives of the bidding are subject to the sanctions provided for in this Law and in the regulations themselves, without prejudice to the civil and criminal responsibilities that their act entails.

Art. 83. The crimes defined in this Law, even if simply attempted, subject their perpetrators, when public servants, to the loss of office, job, function or elective mandate, in addition to criminal sanctions.

Art. 84.  A public servant, for the purposes of this Law, is considered to be one who exercises, even if temporarily or without remuneration, a position, function or public employment.

§ 1^O  A public servant, for the purposes of this Law, is equivalent to a person who holds a position, job or function in a parastatal entity, thus considered, in addition to foundations, public companies and government-controlled companies, other entities under the direct or indirect control of the Public Power.

§ two^O  The penalty imposed will be increased by a third when the perpetrators of the crimes provided for in this Law occupy a position in a commission or a position of trust in a body of direct administration, autarchy, public company, mixed economy company, public foundation, or other entity. controlled directly or indirectly by the Government.

Art. 85. The criminal offenses provided for in this Law pertain to bids and contracts entered into by the Union, States, Federal District, Municipalities, and respective municipalities, public companies, government-controlled companies, public foundations, and any other entities under their direct or indirect control.

Section II
Administrative Sanctions 

Art. 86. Unjustified delay in executing the contract will subject the contracted party to a late payment fine, as provided for in the invitation to tender or in the contract.

§ 1^O  The fine referred to in this article does not prevent the Administration from unilaterally terminating the contract and applying the other sanctions provided for in this Law.

§ two^O  The fine, applied after a regular administrative process, will be deducted from the guarantee of the respective contractor.

§ 3^O  If the fine exceeds the value of the guarantee provided, in addition to its loss, the contracted party will be responsible for the difference, which will be deducted from payments eventually due by the Administration or, when applicable, charged in court.

Art. 87.  For total or partial non-performance of the contract, the Administration may, with prior defense guaranteed, apply the following sanctions to the contracted party:

I – warning;

III – temporary suspension of participation in bidding and impediment to contract with the Administration, for a period not exceeding 2 (two) years;

IV – declaration of disqualification from bidding or contracting with the Public Administration while the reasons determining the punishment last or until rehabilitation is promoted before the very authority that applied the penalty, which will be granted whenever the contractor reimburses the Administration for the resulting damages and after the term of the sanction applied based on the previous item has elapsed.

§ 1^O  If the fine applied exceeds the value of the guarantee provided, in addition to its loss, the contracted party will be liable for the difference, which will be deducted from payments eventually due by the Administration or charged in court.

§ two^O  The sanctions provided for in items I, III and IV of this article may be applied together with those in item II, provided the prior defense of the interested party, in the respective process, within a period of 5 (five) working days.

§ 3^O  The sanction established in item IV of this article is the exclusive competence of the Minister of State, the State or Municipal Secretary, as the case may be, with the interested party being allowed to defend the respective process, within a period of 10 (ten) days from the opening of the view, and may rehabilitation is requested after 2 (two) years of its application.

Art. 88.  The sanctions provided for in items III and IV of the previous article may also be applied to companies or professionals who, due to contracts governed by this Law:

I – have suffered a final conviction for committing, by malicious means, tax fraud in the collection of any taxes;

II – have committed unlawful acts aimed at thwarting the objectives of the bidding process;

III – demonstrate that they do not have the suitability to contract with the Administration due to unlawful acts committed.

Section III
Of Crimes and Punishments 

Art. 89.  Dismissing or not requiring bidding outside the cases provided for by law, or failing to observe the formalities relevant to the waiver or non-requirement:
Penalty – detention, from 3 (three) to 5 (five) years, and fine.

Single paragraph.  The same penalty incurs the person who, having proven to have contributed to the consummation of the illegality, benefited from the illegal waiver or unenforceability, to enter into a contract with the Public Power.

Art. 90. Frustrating or defrauding, through adjustment, combination or any other expedient, the competitive nature of the bidding procedure, with the aim of obtaining, for oneself or for others, an advantage arising from the award of the object of the bidding:

Penalty – detention, from 2 (two) to 4 (four) years, and fine.

Art. 91. Sponsor, directly or indirectly, a private interest before the Administration, causing the initiation of a bidding process or the execution of a contract, whose invalidation is decreed by the Judiciary:

Penalty – detention, from 6 (six) months to 2 (two) years, and fine. 

Art. 92.  Admit, enable or give rise to any modification or advantage, including contractual extension, in favor of the successful bidder, during the execution of contracts entered into with the Government, without authorization by law, in the call for bids or in the respective contractual instruments, or, also, pay the invoice with disregard for the chronological order of its chargeability, subject to the provisions of art. 121 of this Law: (Wording provided by Law No. 8.883 of 1994)

Penalty – detention, from two to four years, and a fine. (Wording provided by Law No. 8.883 of 1994)

Single paragraph.  The same penalty applies to the contractor who, having proven to have contributed to the consummation of the illegality, obtains an undue advantage or unfairly benefits from the contractual modifications or extensions.

Art. 93. Prevent, disturb or defraud the performance of any act of bidding procedure:

Penalty – detention, from 6 (six) months to 2 (two) years, and fine.

Art. 94.  Investigate the secrecy of the proposal presented in a bidding process, or provide a third party with the opportunity to violate it:

Penalty – detention, from 2 (two) to 3 (three) years, and a fine. 

Art. 95.  Remove or seek to remove a bidder, through violence, serious threat, fraud or offer of advantage of any kind:

Penalty – detention, from 2 (two) to 4 (four) years, and a fine, in addition to the penalty corresponding to the violence.

Single paragraph.  Incurs the same penalty who abstains or gives up bidding, due to the advantage offered.

Art. 96.  Fraud, to the detriment of the Public Treasury, of a bidding process initiated for the acquisition or sale of goods or merchandise, or a contract arising therefrom:

Art. 98.  Impede, prevent or make it difficult, unfairly, the registration of any interested party in the registration records or improperly promote the alteration, suspension or cancellation of the registration of the registrant:

Penalty – detention, from 6 (six) months to 2 (two) years, and fine.

Art. 99.  The penalty provided for in art. 89 to 98 of this Law consists of the payment of an amount fixed in the sentence and calculated in percentage rates, whose basis will correspond to the value of the advantage effectively obtained or potentially obtainable by the agent.

§ 1^O  The indices referred to in this article cannot be less than 2% (two percent), nor greater than 5% (five percent) of the value of the contract bid or concluded with waiver or unenforceability of bidding.

§ two^O  The proceeds from the collection of the fine will revert, as the case may be, to the Federal, District, State or Municipal Treasury.

Section IV
Process and Judicial Procedure

Art. 101. Any person may provoke, for the purposes of this Law, the initiative of the Public Ministry, providing it, in writing, with information about the fact and its authorship, as well as the circumstances in which the occurrence took place.

Single paragraph.  When the communication is verbal, the authority will order to reduce it to term, signed by the presenter and by two witnesses.

Art. 102. When judges, members of the Courts or Boards of Accounts or holders of bodies that are part of the internal control system of any of the Powers, in records or documents known to them, verify the existence of the crimes defined in this Law, they shall send copies to the Public Prosecution Service and the documents necessary to file the complaint.

Art. 103.  A subsidiary private criminal action will be admitted if the latter is not filed within the legal period, applying, where appropriate, the provisions of arts. 29 and 30 of the Criminal Procedure Code.

Art. 104. Once the complaint has been received and the defendant summoned, he will have a period of 10 (ten) days to present a written defense, counted from the date of his interrogation, being able to gather documents, list the witnesses he has, in a number not exceeding 5 (five) , and indicate the other evidence you intend to produce.

Art. 105.  Once the prosecution and defense witnesses have been heard and the investigative measures deferred or ordered by the judge have been carried out, a period of 5 (five) days will be opened successively for each party for final arguments.

Art. 106. Once this period has elapsed, and the records are concluded within 24 (twenty-four) hours, the judge will have 10 (ten) days to issue the sentence.

Art. 107.  The judgment may be appealed within a period of 5 (five) days.

Art. 108. In the processing and judgment of the criminal offenses defined in this Law, as well as in the appeals and executions that concern them, the Criminal Procedure Code and the Penal Execution Law.

Chapter V
ADMINISTRATIVE RESOURCES 

Art. 109.  The acts of the Administration arising from the application of this Law are the following:

I – appeal, within a period of 5 (five) working days from the notice of the act or the drawing up of the minutes, in the cases of:

a) qualification or disqualification of the bidder;

b) judgment of proposals;

c) annulment or revocation of the bidding process;

d) rejection of the application for registration in the cadastral register, its alteration or cancellation;

e) termination of the contract, referred to in item I of art. 79 of this Law;  (Wording provided by Law No. 8.883 of 1994)

f) application of warning, temporary suspension or fine;

II – representation, within 5 (five) working days of notification of the decision related to the object of the bidding or contract, that there is no hierarchical appeal;

III – request for reconsideration of the decision of the Minister of State, or State or Municipal Secretary, as the case may be, in the case of § 4^O of art. 87 of this Law, within 10 (ten) working days of the notification of the act.

§ 1^O  The subpoena of the acts referred to in item I, items “a”, “b”, “c” and “e”, of this article, excluding those relating to a warning and fine for late payment, and in item III, will be made through publication in the press official, except for the cases provided for in items "a" and "b", if the bidders' agents are present at the time the decision was adopted, when it may be made by direct communication to the interested parties and drawn up in the minutes.

§ two^O  The appeal provided for in paragraphs "a" and "b" of item I of this article will have suspensive effect, and the competent authority may, with good reason and present reasons of public interest, attribute to the appeal lodged a suspensive effect to the other appeals.

§ 3^O  Once filed, the appeal will be communicated to the other bidders, who may contest it within 5 (five) business days.

§ 4^O  The appeal will be directed to the superior authority, through the intermediary of the one that practiced the appealed act, which may reconsider its decision, within a period of 5 (five) working days, or, within the same period, have it raised, duly informed, and must, in this case, the decision will be rendered within a period of 5 (five) business days, counted from the receipt of the appeal, under penalty of liability.

§ 5^O  No period of appeal, representation or request for reconsideration begins or runs without the file of the case being open to the interested party. 

§ 6^O  In the case of bids carried out in the form of "invitation letter", the deadlines established in items I and II and in paragraph 3^O of this article will be two business days.  (Included by Law No. 8,883 of 1994)

 

Chapter VI
FINAL AND TRANSITIONAL PROVISIONS 

Art. 110.  In counting the terms established in this Law, the starting day will be excluded and the due date will be included, and consecutive days will be considered, except when expressly provided to the contrary.

Single paragraph.  The deadlines referred to in this article only begin and expire on business hours at the body or entity.

Art. 111. The Administration may only hire, pay, reward or receive a project or specialized technical service provided that the author assigns the property rights relating to it and the Administration can use it in accordance with the provisions of the competition regulation or in the adjustment for its preparation.

Single paragraph.  When the project refers to an immaterial work of a technological nature, not susceptible to privilege, the assignment of rights will include the supply of all data, documents and information elements relevant to the technology of conception, development, fixation on physical support of any nature and application of the work.

Art. 112. When the object of the contract is of interest to more than one public entity, it will be up to the contracting body, before the interested entity, to respond for its proper execution, inspection and payment.

§ 1^O Public consortia may carry out a bidding process from which, under the terms of the public notice, administrative contracts entered into by bodies or entities of the consortium entities of the Federation will result. (Included by Law No. 11,107 of 2005)

§ two^O The interested entity is allowed to monitor the bidding process and the execution of the contract. (Included by Law No. 11,107 of 2005) 

Art. 113.  The control of expenses arising from contracts and other instruments governed by this Law will be carried out by the competent Court of Accounts, in accordance with the relevant legislation, with the interested bodies of the Administration being responsible for demonstrating the legality and regularity of the expenditure and execution, under the terms of the Constitution and without prejudice to the internal control system provided for therein.

§ 1^O  Any bidder, contractor or natural or legal person may represent the Court of Auditors or the bodies that are part of the internal control system against irregularities in the application of this Law, for the purposes of the provisions of this article.

§ two^O  The Courts of Accounts and the bodies that are part of the internal control system may request for examination, up to the business day immediately preceding the date of receipt of the proposals, a copy of the bidding notice already published, obliging the bodies or entities of the Administration interested to adoption of relevant corrective measures that, based on this examination, are determined.  (Wording provided by Law No. 8.883 of 1994)

Art. 114.  The system established in this Law does not prevent the pre-qualification of bidders in competitions, to be carried out whenever the object of the bidding recommends a more detailed analysis of the technical qualification of the interested parties.

§ 1^O  The adoption of the pre-qualification procedure will be done upon proposal of the competent authority, approved by the immediately superior.

§ two^O  In the pre-qualification, the requirements of this Law regarding competition, the call of interested parties, the procedure and the analysis of the documentation will be observed.

Art. 115. The Administration bodies may issue rules relating to the operational procedures to be observed in the execution of bids, within the scope of their competence, subject to the provisions of this Law.

Single paragraph.  The rules referred to in this article, after approval by the competent authority, must be published in the official press.

Art. 116. The provisions of this Law apply, where appropriate, to covenants, agreements, adjustments and other similar instruments entered into by bodies and entities of the Administration.

§ 1^O  The execution of an agreement, agreement or adjustment by the bodies or entities of the Public Administration depends on the prior approval of the competent work plan proposed by the interested organization, which must contain, at least, the following information: 

I – identification of the object to be executed;

II – goals to be achieved;

III – stages or phases of execution;

IV – financial resources application plan;

V – disbursement schedule;

VI – prediction of the beginning and end of the execution of the object, as well as the conclusion of the scheduled steps or phases;

VII – if the adjustment includes an engineering work or service, proof that the own resources to complement the execution of the object are duly assured, unless the total cost of the undertaking is borne by the entity or decentralizing body.

§ two^O  Once the agreement is signed, the transferring entity or body will inform the Legislative Assembly or the respective Municipal Council.

§ 3^O  The installments of the agreement will be released in strict accordance with the approved application plan, except in the following cases, in which they will be retained until the correction of the occurring improprieties:

I – when there has been no proof of good and regular application of the installment previously received, in accordance with the applicable legislation, including through local inspection procedures, carried out periodically by the entity or body that decentralizes the resources or by the competent body of the Administration’s internal control system Public;

II – when deviation of purpose in the application of resources is verified, unjustified delays in the fulfillment of the programmed stages or phases, practices that violate the fundamental principles of Public Administration in hiring and other acts practiced in the execution of the agreement, or the executor’s default in relation to other basic covenants;

III – when the executor fails to adopt the remedial measures indicated by the participant transferring the resources or by members of the respective internal control system. 

§ 4^O  Agreement balances, while not used, will be mandatorily invested in savings accounts at an official financial institution if their use is expected to last one month or more, or in a short-term financial investment fund or open market operation backed by public debt securities, when they are used in terms of less than one month.

§ 5^O  The financial revenues earned in the form of the previous paragraph will be compulsorily computed in credit of the agreement and applied, exclusively, in the object of its purpose, and must be included in a specific statement that will integrate the rendering of accounts of the adjustment.

§ 6^O  Upon completion, termination, rescission or termination of the agreement, agreement or adjustment, the remaining financial balances, including those arising from the revenue obtained from the financial investments made, will be returned to the entity or body transferring the funds, within the non-extendable period of 30 (thirty) days of the event, under penalty of the immediate establishment of a special accounting of the person responsible, provided by the competent authority of the body or entity holding the resources.

Art. 117.  The works, services, purchases and disposals carried out by the bodies of the Legislative and Judiciary Powers and the Court of Auditors are governed by the rules of this Law, where applicable, in the three administrative spheres.

Art. 118.  The States, the Federal District, the Municipalities and indirect administration entities must adapt their rules on bidding and contracts to the provisions of this Law.

Art. 119.  Mixed-capital companies, public companies and foundations and other entities directly or indirectly controlled by the Union and by the entities referred to in the previous article will publish their own regulations duly published, subject to the provisions of this Law.

Single paragraph.  The regulations referred to in this article, within the scope of Public Administration, after being approved by the higher-level authority to which the respective bodies, societies and entities are bound, must be published in the official press.

Art. 120.  The values established by this Law may be reviewed annually by the Federal Executive Power, which will publish them in the Official Gazette of the Union, observing as an upper limit the general variation of market prices in the period. (Wording provided by Law No. 9648 of 1998) 

Single paragraph.  The Federal Executive Branch will publish in the Federal Official Gazette the new values officially in force on the occasion of each event mentioned in the “caput” of this article, ignoring fractions lower than Cr$ 1.00 (one cruzeiro real).  (Wording provided by Law No. 8.883 of 1994)

Art. 121.  The provisions of this Law do not apply to tenders initiated and contracts signed prior to its effectiveness, except for the provisions of art. 57, in paragraphs 1^O, 2^O and 8^O of art. 65, in item XV of art. 78, as well as the provisions of the “caput” of art. 5^O, with respect to the payment of obligations in chronological order, which may be observed, within a period of ninety days from the effectiveness of this Law, separately for obligations related to contracts governed by legislation prior to Law n.^O 8666, of June 21, 1993. (Wording provided by Law No. 8.883 of 1994)

Single paragraph. Contracts related to Union assets continue to be governed by the provisions of Decree-Law No.^O 9,760, of September 5, 1946, with its amendments, and those relating to internal or external credit operations entered into by the Union or the granting of a guarantee by the National Treasury, continue to be governed by the relevant legislation, applying this Law, where applicable.

Art. 122. In airline concessions, a specific bidding procedure will be observed, to be established in the Brazilian Aeronautical Code.

Art. 123. In their administrative tenders and contracting, departments headquartered abroad will observe local peculiarities and the basic principles of this Law, in the form of specific regulations.

Art. 124. The provisions of this Law that do not conflict with the specific legislation on the subject apply to bidding processes and contracts for the permission or concession of public services. (Wording provided by Law No. 8.883 of 1994)

Single paragraph. The requirements contained in items II to IV of § 2^O of art. 7^O will be waived in tenders for concession of services with prior execution of works in which disbursement by the granting Public Administration was not foreseen.  (Included by Law No. 8,883 of 1994)

Art. 125.  This Law enters into force on the date of its publication. (Renumbered pursuant to the provisions of article 3 of Law No. 8,883 of 1994)

Art. 126.  Any provisions to the contrary are hereby revoked, especially Decree-Laws n.^Os 2,300, of November 21, 1986, 2,348, of July 24, 1987, 2,360, of September 16, 1987, Law no.^O 8,220, of September 4, 1991, and art. 83 of Law no.^O 5,194, of December 24, 1966.(Renumbered pursuant to the provisions of article 3 of Law No. 8,883 of 1994)