# 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 · 2026-11-02T11:44:04Z · 2026-11-02T11:44:04Z

## 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.

- [TCU, Sessions column: TCU accepts contract terms above five years for continuous services of state-owned companies (28 Oct 2026)](https://portal.tcu.gov.br/imprensa/noticias/secao-das-sessoes)
- [Law 13.303/2016 (State-Owned Companies Law), article 71 (Planalto)](https://www.planalto.gov.br/ccivil_03/_ato2015-2018/2016/lei/l13303.htm)
- [Law 14.133/2021, article 107 (Planalto)](https://www.planalto.gov.br/ccivil_03/_ato2019-2022/2021/lei/l14133.htm)

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[State-owned companies may sign continuous service contracts beyond 5 years, says TCU: what it means for suppliers](https://editalmd.com/en/noticias/estatais-servico-continuo-mais-de-5-anos-tcu-acordao-2911-2026)