Skip to content
EditalMDMy area

State-owned companies may sign continuous service contracts beyond 5 years, says TCU: what it means for suppliers

In ruling 2911/2026 (Plenary), the TCU accepted a Serpro contract with a 60-month term extendable to 120 months. The cost of a new tender justified it. The State-Owned Companies Law rule and what to check in the tender.

EditalMD · Published · Reviewed

What the TCU decided

In its plenary session of 21 October 2026, the Federal Court of Accounts (TCU) reviewed a complaint against a Serpro electronic auction for continuous occupational health services. The tender set an initial 60-month term, extendable up to 120 months. The decision is ruling 2911/2026 (Plenary), rapporteur Justice Benjamin Zymler, announced by the TCU on 28 October.

The complaint argued that the term broke Law 13.303/2016, the State-Owned Companies Law. The TCU found no irregularity in the term. It upheld the complaint only in part, on a different point: the way Serpro answered bidders' clarification requests.

The 5-year rule in the State-Owned Companies Law

  • Contracts of public companies and mixed-capital companies last at most 5 years (article 71 of Law 13.303/2016).
  • There are two exceptions: projects in the company's business and investment plan, and cases where a longer term is market practice and the 5-year limit makes the deal unviable or excessively costly.
  • Open-ended contracts remain forbidden.
  • Law 14.133/2021 does not apply to state-owned companies, but the TCU used it as a market reference: it allows continuous services to be extended up to a 10-year term (article 107).

Why the longer term was accepted

For the rapporteur, "excessively costly" must be read through the company's economic logic. Relevant and avoidable transaction costs can justify a term above 5 years, as long as the company shows the numbers and the saving is not marginal.

Serpro showed that a new tender would cost about R$ 92.7 thousand, against about R$ 27.8 thousand to process an extension. The Plenary decided unanimously.

The TCU also formally warned Serpro that contradictory or ambiguous answers to bidders violate clarity, transparency and legal certainty.

What it changes for those who sell to state-owned companies

  • Tenders from state-owned companies, such as Serpro, Ebserh, Correios, NAV Brasil and state companies, may set terms above 5 years with a justification. The contract is worth more and binds the supplier for longer.
  • Read the term clause, the price adjustment clause and the risk matrix before bidding. In a contract of up to 10 years, the adjustment formula weighs more on the price.
  • If the justification for the term is not in the file, ask for clarification in writing within the tender deadline.
  • Keep the answers to clarification requests. The TCU flagged contradictory or ambiguous answers as a failure.

How to follow it on EditalMD

  • EditalMD search brings tenders from state-owned companies published on PNCP, with the legal basis (Law 13.303/2016) and the proposal deadline.
  • Create an alert with the words for the service you provide and a minimum value. New tenders arrive on the site or by e-mail.