Bidding exemptions, sole-source procurement, bidder qualification and government contracts

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When the government can award contracts without competitive bidding, the 2026 exemption thresholds, required qualification documents and the rules governing government contracts.

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Introduction

In the previous lesson, we covered the types and stages of public procurement. This lesson looks at the details that determine whether a public purchase succeeds: when a government agency may contract without competitive bidding, how to define the subject of the contract, what documents a supplier must submit to qualify, and how a government contract works from signing through oversight.

This lesson follows Law 14.133/2021. Where the rules differ from Law 8.666/1993, repealed on 30/12/2023, we explain the previous rule because many study materials still rely on the old law.

Direct contracting: exemptions and cases where competition is not feasible

Competitive bidding is the rule. Exemptions and cases where competition is not feasible are exceptions; together, the law calls them direct contracting (arts. 72 to 75). They are not the same:

  • When competition is not feasible, competitive bidding is impossible: there is no viable competition, either because only one supplier exists or because the proposed contract cannot be assessed through objective comparisons.
  • With a bidding exemption, competitive bidding would be possible, but the law allows the agency to forgo it because the cost of the process outweighs the benefit or because special circumstances apply (an emergency, a low contract value or an earlier bidding process that attracted no bidders). Even when an exemption is available, the official must weigh the costs and benefits of holding a competition.

Direct contracting does not mean dispensing with the procurement process. Under art. 72, the file must include: a document formally stating the need (and, where applicable, a preliminary technical study, risk analysis, terms of reference or project plan); a cost estimate; legal and technical opinions, where applicable; proof that funding is available; evidence that the contractor meets the minimum qualification requirements; the reason for choosing that contractor; justification for the price; and authorization from the competent authority. The authorization for direct contracting, or a summary of the contract, must be published on an official website.

Previous rule: under Law 8.666, an official who authorized an exemption or a contract without competition had 3 days to notify a higher authority, which then had 5 days to ratify the decision and publish it in the official gazette (art. 26). That ratification procedure no longer applies. It has been replaced by the documentation required under art. 72 and publication, including on the PNCP.

When competition is not feasible (art. 74)

Competitive bidding is not required whenever competition is not feasible, particularly in these cases:

  1. Exclusive supplier: materials, equipment or goods that can be supplied only by one producer, company or exclusive commercial representative. Exclusivity must be demonstrated by a certificate of exclusivity, an exclusivity agreement, a manufacturer’s declaration or another reliable document. Choosing a supplier based on brand preference is prohibited (§ 1º).
  2. Performing arts professional, engaged directly or through an exclusive agent, provided they are recognized by specialist critics or the public.
  3. Specialized technical services of a predominantly intellectual nature provided by a professional or company with recognized expertise: studies and designs, opinions and expert assessments, consulting and audits, construction oversight, legal representation, training and art restoration, among others. This exception cannot be used for advertising and publicity services.
  4. Contracts that must or may be awarded through accreditation, where all interested providers that meet the requirements can be contracted (for example, participating clinics that perform tests).
  5. Purchase or lease of property whose facilities and location make that particular property necessary, subject to a prior valuation and confirmation that no suitable vacant public property is available (§ 5º).

A professional or company has recognized expertise when its standing in its field—based on past performance, studies, experience, publications, organization, equipment, technical team or other qualifications—supports the conclusion that its work is essential and recognized as suitable for the contract (art. 74, § 3º).

Previous rule: Law 8.666 required exclusivity to be proved by a certificate from a commercial registry, union, federation or employers’ confederation. The new law accepts any reliable document. The wording on recognized expertise also changed: the old law described the work as "indiscutivelmente o mais adequado"; the new law says "reconhecidamente adequado".

Bidding exemptions (art. 75)

The law lists dozens of grounds for exempting a contract from competitive bidding. These are the ones most relevant to purchasing:

  • Contract value (items I and II): construction and engineering services or vehicle maintenance services below one threshold, and other services and purchases below another.
  • No bids or no valid bids (item III): when a bidding process held less than a year earlier attracted no bidders or no valid bids, or when the prices offered were clearly above market rates, provided the original bidding terms remain unchanged.
  • Emergency or public calamity (item VIII): only for goods needed to address the situation and for portions of construction work and services that can be completed within 1 year of the event. These contracts cannot be extended, and the same company cannot be contracted again on the same grounds.
  • Perishable goods (fruit, vegetables, poultry, eggs, bread and similar items) purchased during the time needed to complete a bidding process, and program agreements with a government entity within a public consortium (item XI; see lesson 20), among other cases.

Previous rule: Law 8.666 allowed emergency contracts lasting up to 180 calendar days (art. 24, item IV). The limit is now 1 year, with no extension or repeat contract with the same company on the basis of the same emergency.

The law also requires an investigation into the responsibility of anyone whose failure to plan allowed the emergency to arise (art. 75, § 6º). This is known as a manufactured emergency: a cleaning contract expires, no one started the bidding process in time, and the agency rushes to award an exempt contract. Brazil’s Federal Court of Accounts regularly instructs agencies to start bidding processes far enough in advance to avoid emergency contracts caused by delays.

Bidding-exemption thresholds in 2026

In 2021, art. 75 set thresholds of R$ 100.000,00 for construction, engineering and vehicle maintenance, and R$ 50.000,00 for purchases and other services. The federal executive updates these amounts every 1º de janeiro based on the IPCA-E inflation index, by decree (art. 182). For 2026, the applicable measure is Decree 12.807, dated 29 de dezembro de 2025, in force since 1º/1/2026:

Provision of Law 14.133What it covers2026 amount
Art. 75, IExemption: construction, engineering services and vehicle maintenanceR$ 130.984,20
Art. 75, IIExemption: purchases and other servicesR$ 65.492,11
Art. 75, § 7ºVehicle maintenance excluded from the total under § 1ºR$ 10.478,74
Art. 95, § 2ºVerbal contract (small purchases paid for immediately)R$ 13.098,41
Art. 70, III e art. 75, IV, cResearch and development: the ceiling for waiving qualification documents when purchasing products, and the exemption ceiling when the contract covers construction or engineering servicesR$ 392.952,63

For public consortia and autonomous agencies and foundations designated as executive agencies, the thresholds in items I and II are doubled (art. 75, § 2º), to R$ 261.968,40 and R$ 130.984,22 in 2026.

Value-based bidding-exemption thresholds: Law 8.666 in 1998 and after Decree 9.412/2018, and Law 14.133 as originally enacted and in 2026.
Value-based bidding-exemption thresholds: Law 8.666 in 1998 and after Decree 9.412/2018, and Law 14.133 as originally enacted and in 2026.

Two safeguards apply to value-based exemptions:

  • No splitting purchases: the threshold applies to the total a spending unit pays during the fiscal year for items of the same type (the same line of business), not to each purchase separately (art. 75, § 1º). Breaking a purchase into smaller transactions to stay below the threshold is unlawful.
  • Publication and competition: preferably, the agency should first post a notice on an official website for at least 3 business days to receive offers from other interested suppliers (art. 75, § 3º). At the federal level, this takes the form of an electronic exemption procedure (SEGES/ME Normative Instruction 67/2021), a short bidding round on Compras.gov.br. Payment should preferably be made by payment card (§ 4º).

Previous rule: under Law 8.666, the value-based exemption threshold was 10% of the ceiling for the invitation-to-bid procedure: R$ 8.000 and R$ 15.000 from 1998, rising to R$ 17.600 and R$ 33.000 after Decree 9.412/2018. The current threshold is nearly four times higher.

In 2026, a federal institute bought cleaning supplies through bidding exemptions three times for the same spending unit: R$ 28.000 in March, R$ 22.000 in June and R$ 20.000 in September. Is the third purchase compliant?

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Answer: No, because the total is R$ 70.000, exceeding the R$ 65.492,11 threshold for items of the same type in the fiscal year — § 1º of art. 75 requires the unit to add up its annual spending on the same type of item. Treating each below-threshold purchase separately is precisely the reasoning behind unlawful splitting. The first two purchases totaled R$ 50.000 and were still within the limit.

A municipal department awarded an emergency contract for garbage collection after a flood. After 11 months, the service is still needed and the bidding process has not finished. What does Law 14.133 allow?

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Answer: None of the above: the emergency contract cannot be extended, and the company cannot be contracted again on the basis of the same emergency — art. 75, VIII, sets a 1-year limit and prohibits extensions and repeat contracts. The 180-day option may tempt anyone who studied Law 8.666; the planning failure that caused the delay must also be investigated.

The subject of the contract: knowing what to buy

The subject of the contract must be clearly defined in the bidding notice: acquiring it is the purpose of the process. The law defines each type in art. 6º:

  • Construction work: any activity that creates a new physical space or substantially changes a property (construction, renovation, expansion or restoration), carried out directly (by the agency’s own staff) or indirectly (by contractors).
  • Service: an activity that provides something useful to the government agency, such as repairs, maintenance, transport, cleaning, security, insurance or specialist professional work.
  • Purchase: the paid acquisition of goods supplied in a single delivery or in installments.
  • Disposal: transfer of ownership of property to third parties (sale, donation or exchange).
  • Leasing, concessions and permits.

A procurement often goes wrong at the request stage: the requesting unit is unclear, the purchasing team and procurement officer do not ask questions, and the resulting purchase fails to meet the unit’s needs. Law 14.133 sought to address this by making planning mandatory during the preparatory stage (art. 18). This includes the document formally stating the need; the preliminary technical study (ETP), which assesses the need and possible solutions; and the terms of reference, which describe the item or service, quantity, delivery conditions and payment terms. Technical standards, such as those issued by ABNT, and standardized product catalogs help agencies write specifications without favoring a brand. The annual procurement plan (art. 12, item VII) brings together everything the agency intends to buy that year, linking procurement to the demand forecasting we covered in the inventory section.

Supplier qualification

Qualification means checking whether a bidder has the legal, technical, tax and financial capacity to fulfill the contract. Under art. 62, qualification falls into four categories: legal; technical; tax, social security and labor; and financial.

CategoryRequirements under Law 14.133
Legal standing (art. 66)Proof of the person’s legal existence (articles of association, registration or identity document) and, where applicable, authorization to carry out the activity.
Technical qualifications (art. 67)Registration with the relevant professional council; certificates of technical and operational capacity; details of personnel and facilities; compliance with requirements under specific laws; and a declaration that the bidder is familiar with local conditions.
Tax, social security and labor compliance (art. 68)CPF or CNPJ registration; state or municipal registration; proof of good standing with federal, state and municipal tax authorities, Social Security, the FGTS and the Labor Courts; and a declaration that the bidder does not employ minors in circumstances prohibited by art. 7º, XXXIII, of the Constitution.
Financial capacity (art. 69)Balance sheets and financial statements for the last two fiscal years, plus a certificate showing no bankruptcy proceedings.

The provisions of the new law most likely to appear on exams:

  • Only the winning bidder submits documents. Other bidders simply declare that they meet the requirements. Supporting documents are required from the winner, while proof of tax compliance is required only after bids have been evaluated (art. 63).
  • Limits on technical-capacity certificates. Certificates may be required only for the most significant parts of the contract or those of substantial value, defined as parts worth at least 4% of the total estimated value. The minimum quantity bidders must demonstrate cannot exceed 50% of those parts (art. 67, §§ 1º and 2º). Certificates cannot be restricted by date or location.
  • Minimum share capital or net worth of up to 10% of the estimated contract value may be required for purchases involving future delivery and for works and services (art. 69, § 4º). Minimum past revenue and profitability ratios cannot be required (§ 2º).
  • Bid security of up to 1% of the estimated value may be required as a prequalification condition (art. 58).
  • Waivers of documentation. Qualification requirements may be waived in whole or in part for immediate-delivery contracts, contracts worth less than one-quarter of the threshold for waiving competitive bidding for purchases (about R$ 16.373,03 in 2026), and research and development products worth up to R$ 392.952,63 (art. 70, item III, using the amounts set by Decree 12.807/2025).
  • Documents cannot be replaced after submission, except through a request to clarify or supplement information about a fact that already existed, or to update a document that expired after bids were received (art. 64).

Under the previous law: Law 8.666 required every bidder to submit a qualification envelope before bids were considered. Only the most recent fiscal year’s balance sheet was required, and Labor Court compliance became a requirement in 2011. Qualifying everyone first was the rule; now it is the exception.

Supplier registration and SICAF

To avoid requesting the same paperwork for every tender, the law provides for supplier registration: a supplier submits its qualification documents once, is classified by category and receives a certificate that can be renewed whenever its registration is updated (art. 88). The law requires all public bodies to use a unified supplier register on the PNCP, open to the public and permanently accepting new registrations (art. 87). As of January 2026, the decree governing that unified register was still being drafted, according to the Ministry of Management’s list of regulatory acts.

For now, the federal government continues to use SICAF (Unified Supplier Registration System), a SIASG module governed by Decree 3.722/2001 and operated through the Compras.gov.br portal. A company that is not registered with SICAF may still bid and submit the documents required by the tender notice. Before awarding or extending a contract, however, the public body must check the company’s tax compliance and consult the register of companies deemed ineligible or suspended (Ceis) and the register of penalized companies (Cnep) (art. 91, § 4º).

A public works project has an estimated value of R$ 5 milhões. What is the highest minimum share capital (or minimum net worth) that the tender notice may require under Law 14.133?

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Answer: R$ 500 mil — art. 69, § 4º, allows a requirement of up to 10% of the estimated value: 10% × 5.000.000 = 500.000. R$ 50 mil would be 1%, the limit for bid security, which is a separate requirement.

Administrative contracts

An administrative contract is an agreement in which a public body, acting in its official capacity, contracts with a private party or another entity to serve a public-interest objective on terms it sets. It is governed by its provisions and public law; general contract principles and private law apply only where needed to fill gaps (art. 89). Art. 92 lists the mandatory provisions, including the subject matter, the contract’s connection to the tender notice, price and adjustment criteria, deadlines, guarantees, rights and responsibilities, penalties, and grounds for termination.

Special powers under administrative contracts

What distinguishes an administrative contract from a private one is the public body’s superior legal position. It has powers that a private party would not have, known as special administrative powers (art. 104):

  1. amend the contract unilaterally to better serve the public interest, while respecting the contractor’s rights;
  2. terminate it unilaterally in the circumstances provided by law;
  3. oversee its performance;
  4. impose penalties for complete or partial nonperformance;
  5. temporarily take control of assets, personnel and services connected with the contract when essential services are at risk or to investigate breaches by the contractor.

These powers are limited by the requirement to preserve the contract’s economic and financial balance: financial terms cannot be changed without the contractor’s consent, and a unilateral change that increases the contractor’s obligations requires the public body to restore that balance (art. 104, §§ 1º and 2º). Under the previous law: the same powers appeared in art. 58 of Law 8.666, while what was called rescission is now called termination of the contract (art. 137).

When the formal contract document may be replaced

A formal contract document is mandatory, but it may be replaced by a contract letter, expenditure commitment note, purchase authorization or service order in two cases: contracts awarded without competitive bidding on the basis of value, and purchases involving immediate, complete delivery with no future obligations, including technical support, regardless of value (art. 95). Oral contracts are void, except for small purchases or services paid for immediately, up to R$ 13.098,41 in 2026 (art. 95, § 2º).

Under the previous law: Law 8.666 tied the formal contract requirement to the concorrência and tomada de preços tender procedures. Because those value-based categories no longer exist, the new law instead uses the value-based bidding waiver and immediate delivery as its criteria.

Publication of the contract on the PNCP is required for it to take effect: within 20 business days of signing if there was a tender, or within 10 business days for a direct award (art. 94).

Performance guarantees, duration and oversight

  • Performance guarantee: the contractor chooses between a cash deposit or government bonds, a surety bond, a bank guarantee or a capitalization bond. The amount may be up to 5% of the initial contract value, rising to 10% depending on complexity and risk (arts. 96 and 98). For major construction and engineering projects, it may reach 30% through a surety bond with a completion clause, under which the insurer takes over the project if the contractor fails to finish it (art. 99).
  • Duration: ongoing services and supplies may be contracted for up to 5 years and extended to a total of 10 years, provided the tender notice allows it and the extension is shown to be advantageous (arts. 106 and 107). Under Law 8.666, the limit was 60 months.
  • Oversight: one or more appointed inspectors must monitor performance and may receive assistance from contracted third parties. An inspector records all incidents, orders deficiencies to be corrected and refers matters beyond their authority to superiors (art. 117). Inspectors must understand the technical subject matter: appointing someone without an IT background to oversee computer maintenance satisfies a formality but leaves the contractor without effective oversight.

Changes: amendments and administrative entries

The contractor must accept unilateral increases or reductions of up to 25% of the updated initial contract value on the same terms. For building or equipment renovations, increases may reach 50% (art. 125). These changes are formalized through a contract amendment.

Changes that do not amend the contract can instead be recorded through a simple administrative entry: price adjustments or repricing already provided for in the contract, financial updates and compensation arising from payment terms, the commitment of additional appropriations, and changes to the contractor’s registered company name (art. 136).

Penalties

Depending on the severity of a contractual breach, the penalties are a warning; a fine of 0,5% to 30% of the contract value; a ban on bidding for and entering into contracts with the contracting public entity for up to 3 years; or a declaration of ineligibility, lasting 3 to 6 years, that applies across the country’s public administration (art. 156).

A building maintenance contract was signed for R$ 400.000. During performance, the public body needs to expand the service without the contractor’s agreement. What is the highest value the contract can reach through a unilateral increase?

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Answer: R$ 500.000 — art. 125 permits a unilateral increase of up to 25% of the updated initial value: 400.000 × 1,25 = 500.000. The 50% limit (R$ 600.000) applies only to building or equipment renovations; ordinary building maintenance is not a renovation.

References

  • BRAZIL. Law No. 14.133 of April 1, 2021. Public Procurement and Administrative Contracts Law.
  • BRAZIL. Decree No. 12.807 of December 29, 2025. Updates the amounts in Law 14.133 effective January 1, 2026.
  • BRAZIL. Decree No. 3.722 of January 9, 2001 (SICAF).
  • SEGES/ME. Normative Instruction No. 67 of July 8, 2021 (waiver of competitive bidding through electronic procedures).
  • ENAP. Procurement in Public Administration. Course materials by Professor Antonieta, 2005 (the basis for the original lessons, written under Law 8.666).

Exercises

Easy

1) Explain the difference between a waiver of competitive bidding and cases where competition is not feasible, giving two examples of each.

2) Name three types of goods, works or services that may be put out to tender, with examples.

3) Name three documents required for bidder qualification and identify the category each belongs to.

4) Name two documents that may replace a formal contract document and explain when this is permitted.

5) Why does the value threshold for waiving competitive bidding change every year? Where can the current threshold be found?

6) A reverse-auction tender notice for furniture has an estimated value of R$ 800.000. What is the highest bid security it may require? If the contract is signed for R$ 250.000, what range of fines may it specify for nonperformance?

Hard

7) A federal public agency designated as an executive agency bought office supplies without competitive bidding in 2026: R$ 48.000 in February, R$ 39.000 in May and R$ 35.000 in August, each time through the same management unit.
a) What value threshold for waiving competitive bidding applies to it?
b) Were all three purchases lawful?
c) How much more can it spend on office supplies without competitive bidding before the end of the fiscal year?
d) If it were not an executive agency, which purchase would have exceeded the threshold?

8) A public works project has an estimated value of R$ 3.200.000 and includes the following components: concrete structure (R$ 900.000, including 2.400 m² of floor slab), foundations (R$ 400.000), electrical installations (R$ 110.000), painting (R$ 140.000) and landscaping (R$ 60.000).
a) For which components may the tender notice require certificates of technical capacity?
b) What is the largest floor-slab area that bidders may be required to document through a certificate?
c) What is the highest minimum share capital or net worth that may be required?
d) What performance guarantee amounts apply under the general rule and at the maximum justified by complexity? Is a surety bond of up to 30% with a completion clause permitted?

9) A public body signed a R$ 1.200.000 contract to renovate a building.
a) What is the highest value the contract can reach through a unilateral increase?
b) What is the lowest value it can reach through a unilateral reduction?
c) Answer (a) again, assuming the contract were for security services.
d) The contract provides for an annual adjustment based on the IPCA, which was 4,5% over the period. What is the new value, and how is the adjustment recorded?

10) On Monday, June 15, 2026, flooding destroyed part of a bridge providing access to a municipality. That same day, the municipal government awarded a contract to repair the bridge without bidding under an emergency exemption. Assume there are no public holidays during the period and that, under Art. 183 of Law 14.133, deadlines are calculated by excluding the starting day and including the final day.
a) By what date must the contracted work be completed?
b) On what date does the deadline for publishing the contract on the PNCP expire?
c) If the work is delayed, can the municipal government extend the contract or award a new emergency contract to the same company?
d) If the contract had been signed on the same day following a bidding process, what would the publication deadline have been?

11) Classify each contract as requiring competitive bidding, qualifying for an exemption from bidding, or involving a case where competition is not feasible. Give the legal basis for each:
a) a performance at the town festival by a singer acclaimed by the public, booked through the singer's exclusive agent;
b) a purchase of bread for school meals while the annual bidding process is underway;
c) a license for software sold only by its developer, as confirmed by a declaration from the developer;
d) an advertising campaign contracted to an agency famous for its creativity;
e) a purchase of uniforms after a bidding process held five months ago attracted no bidders, with the terms of the invitation to bid unchanged;
f) a municipal government's purchase of R$ 12.000 worth of pens when it has made no other office-supply purchases that year.

Answer Key

1) In a case where competition is not feasible, bidding is impossible (Art. 74): an exclusive supplier, an acclaimed artist, a technical service requiring recognized expertise, accreditation, or a property whose location is essential. Under a bidding exemption, competition would be possible, but the law permits a contract without bidding (Art. 75): a low-value purchase, an emergency or disaster, a bidding process that attracted no bidders or failed less than one year ago, perishable goods needed while bidding is underway, or a program contract.

2) Public works (building a school), services (cleaning a building), purchases (acquiring 300 laptops), disposal of assets (auctioning used vehicles), and leases (renting a property for an agency). Any three of these, with examples, are sufficient.

3) Examples: articles of incorporation (legal standing); a certificate of technical capacity or registration with a professional council (technical qualifications); a certificate of good standing with the FGTS, tax authorities or labor courts (tax, social and labor compliance); financial statements for the last two fiscal years or a certificate showing no bankruptcy proceedings (financial qualifications).

4) A contract letter, an expenditure commitment note, a purchase authorization and a service order (Art. 95). These may replace a formal contract in two cases: contracts exempt from bidding because of their value, and purchases delivered immediately and in full that create no future obligations, including technical support, regardless of value.

5) Because Art. 182 requires the federal executive branch to update the amounts in the law every January 1 using the IPCA-E, so inflation does not erode them. The current amounts appear in that year's decree (for 2026, Decree 12.807/2025, at planalto.gov.br) and are published on the PNCP.

6) Bid security: up to 1% of the estimated value (Art. 58, § 1º): 1% × 800.000 = R$ 8.000. Fine: from 0,5% to 30% of the contract value (Art. 156, § 3º): 0,5% × 250.000 = R$ 1.250 and 30% × 250.000 = R$ 75.000.

7) a) An executive agency has double the threshold (Art. 75, § 2º): 2 × 65.492,11 = R$ 130.984,22 for purchases.
b) What counts is the total for the fiscal year (§ 1º): 48.000 + 39.000 + 35.000 = R$ 122.000. Because 122.000 is less than 130.984,22, all three purchases were lawful.
c) 130.984,22 − 122.000 = R$ 8.984,22.
d) Under the standard threshold of R$ 65.492,11, the total after February was 48.000; after May, it was 48.000 + 39.000 = 87.000, above the threshold. The second purchase would already have amounted to unlawful contract splitting.

8) a) A major component is one worth at least 4% of the total (Art. 67, § 1º): 4% × 3.200.000 = R$ 128.000. The structure (900.000), foundations (400.000) and painting (140.000) qualify; electrical installations (110.000) and landscaping (60.000) do not.
b) The minimum quantity required may be up to 50% of the component (§ 2º): 50% × 2.400 = 1.200 m².
c) Up to 10% of the estimated value (Art. 69, § 4º): 10% × 3.200.000 = R$ 320.000.
d) As a general rule, up to 5%: 5% × 3.200.000 = R$ 160.000 (based on the initial contract value, which we assume here equals the estimated value); with justification, up to 10%: R$ 320.000 (Art. 98). The performance bond of up to 30% (Art. 99) applies only to major public works projects, those exceeding R$ 261.968.421,04 in 2026 (Art. 6º, XXII, together with Decree 12.807/2025). This project falls far below that threshold, so it does not qualify.

9) a) Renovating a building permits an increase of up to 50% (Art. 125): 1.200.000 × 1,50 = R$ 1.800.000.
b) A unilateral reduction remains capped at 25%, even for a renovation: 1.200.000 × 0,75 = R$ 900.000.
c) Security services are subject to the general 25% limit: 1.200.000 × 1,25 = R$ 1.500.000.
d) 1.200.000 × 1,045 = R$ 1.254.000. A price adjustment provided for in the contract itself is not a contract amendment: it is recorded through an administrative notation (Art. 136), without a formal amendment.

10) a) By June 15, 2027: the emergency exemption covers portions of public works that can be completed within 1 year of the emergency (Art. 75, VIII).
b) Direct award: 10 business days (Art. 94, II). Counting from the following day gives June 16, 17, 18, 19, 22, 23, 24, 25, 26 and 29. The deadline is 29/6/2026.
c) No to both: Art. 75, VIII, prohibits extending the emergency contract or awarding another contract to the company on the same grounds. The municipal government must put the remaining work out to bid, and the delay must be investigated (§ 6º).
d) Following competitive bidding, 20 business days (Art. 94, I): the first 10 run through 29/6, followed by June 30 and July 1, 2, 3, 6, 7, 8, 9, 10 and 13. The deadline would be 13/7/2026.

11) a) Competition is not feasible: an acclaimed performing artist contracted directly or through an exclusive agent (Art. 74, II).
b) Bidding exemption: bread and other perishable goods needed while bidding is underway (Art. 75, IV, e).
c) Competition is not feasible: an exclusive supplier, established by reliable documentation (Art. 74, I, and § 1º).
d) Competitive bidding: advertising and publicity services cannot be treated as cases where competition is not feasible (Art. 74, III), however famous the agency may be.
e) Bidding exemption: a bidding process attracted no bidders less than one year ago, and the terms of the invitation to bid remain unchanged (Art. 75, III).
f) Value-based bidding exemption (Art. 75, II): R$ 12.000 is below R$ 65.492,11 and, with no other purchases of the same kind during the fiscal year, the total is also below the threshold. Because the amount is less than 1/4 of the threshold (65.492,11 ÷ 4 = R$ 16.373,03), the qualification requirements may also be waived (Art. 70, III).

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