Regularity of the proceeding
A valid summons, the full deadline, access to the file and a reasoned decision are requirements. Formal defects void the sanction.
Public procurement · sanction proceedings
Sanctions in public procurement: how to defend against fines, debarment and unsuitability
An administrative sanction can keep a company out of the public market for up to six years and appear in registries consulted by every agency. The defense begins within 15 business days of the summons.
Straight answer: the sanctions under Law 14,133/2021 and when each applies
The law provides four sanctions: warning, for minor partial non-performance; a fine, between 0.5% and 30% of the contract value, applied alone or together with others; debarment from bidding and contracting, for up to three years, within the sanctioning entity, for conduct such as failing to sign the contract, unjustified delay and non-performance; and a declaration of unsuitability, for three to six years, valid for the whole public administration, for fraud, unlawful acts and more serious conduct. The proceeding requires a summons, 15 business days for the defense, a reasoned decision and proportionality.
This page is for companies notified in an administrative liability proceeding linked to a Brazilian tender or government contract at any level. We serve companies throughout the State of São Paulo, Brazil, with meetings at our Paulista or Tatuapé offices or by video call, and act before the São Paulo courts (TJSP), the labor courts (TRT-2, TRT-15), the federal court (TRF-3) and administrative bodies.
Lines of defense in sanction proceedings
Absence of fault
Late payments by the administration, scope changes and unforeseeable events exclude culpable non-performance and must be documented.
Proportionality
The sanction must consider gravity, damage, aggravating and mitigating factors and record. Debarment for a minor infraction is disproportionate.
Integrity program
An effective program is an express mitigating factor and may be required for rehabilitation. Implementing it during the proceeding has value.
Rehabilitation
After part of the period, with compensation of damage and compliance with conditions, the company may request rehabilitation and return to contracting.
Judicial review
Writs of mandamus and annulment actions against unlawful or disproportionate sanctions, with a request to suspend their effects.
Mistakes that worsen the situation
Not answering within the deadline
Default does not prevent the sanction and eliminates the chance to produce evidence. The 15-business-day period runs from the summons.
Admitting non-performance without context
Acknowledging the delay without explaining its cause hands the administration a ready-made ground. The defense puts each fact in context.
Ignoring the registries
The sanction is recorded in national registries consulted in every tender. Wrongful entries must be corrected.
How the defense is conducted
1. Analysis of the charge
Identifying the alleged conduct, the intended sanction and defects in the proceeding.
2. Administrative defense
Filing with documents, arguments of absence of fault and proportionality, and a request to produce evidence.
3. Appeal and judicial route
Administrative appeal and, if necessary, a writ of mandamus or annulment action with a request for suspension.
Keep all communications with the contract supervisor from the start of performance. In the defense, a documented chronology of the facts is worth more than any argument.
Frequently asked questions about sanctions in public procurement
Does debarment stop contracts already in progress?
No. The sanction prevents new tenders and contracts; current contracts continue, unless terminated for another reason.
Can the fine be taken from the contract guarantee?
Yes. The administration may deduct it from the guarantee and from payments due. If that is not enough, it collects in court.
Can partners be reached by the company's sanction?
The sanction applies to the legal entity, but the law allows extending it to companies created to evade the penalty, with the same partners. Fraudulent conduct may also lead to personal liability in other spheres.
Official references and related pages
Brazilian rules of reference for sanction proceedings. The actual procedure depends on the entity and the law under which the contract was signed.
Received a summons in a sanction proceeding?
Send the summons and the contract through the secure channel. The screening identifies the intended sanction, the deadline and the lines of defense.