Every public agency is covered either by Law 8.666/93 or by Law 13.303/16. The first law covers all public agencies except for the state controlled companies, governed by Law 13.303/2016.

Except for some specific hypothesis, the public procurement legislation is not applicable to private entities, please note, however that mixed-capital companies (even those who direct perform activities in the private markets) in which the state detains the majority of the voting capital is considered a state controlled company and subject to Law 13,303/16.

As mentioned above, public procurement legislation (or its principles) may end up being applicable for private parties in specific cases. As an example, public procurement principles should be observed by entities of the third sector, such as non-governmental and nonprofit organizations, when managing public resources. Also, private companies when acting as covenants of the public administration (also managing public funds) should observe public procurement principles.

Contracts executed between public bodies (e.g. a public company providing services or supplying goods for another public entity) are, as a rule, exempted of a public procurement procedure (according to Article 24 of Law 8,666/93) but not from public procurement law itself. This means that a public entity may directly engage other public body fin relation to certain activities.

Every contract entered into with the public administration (administrative contracts).

The Public Procurement legislation details the rules for any changes to existing public contracts.

Extensions do not necessarily require a new public procurement procedure, as long as the total term of the administrative contract is limited to the term of the respective budget of the regulated entities, except for:

• Contracts for continued services can be extended up to a maximum of 60 months (5 years), after which a new public procurement procedure must be carried out to contract the company that will continue such services.
• The contracts for equipment leasing and software use are limited to a maximum of 48 months.
• Contracts that involve national security, the purchase of standard material for the Brazilian Armed Forces and national defense can be effective for up to 120 months.
• Certain contracts (for R&D) under Innovation Law (Law 10.973/04) can also be effective for up to 120 months. 

Amendments and changes of scope, do not necessarily require a new public procurement procedure as long as the scope increases or suppressions are limited to 25% of the initial contract, or up to 50%, if the contract is related to reform of a building or equipment.

Law 8,666/93, regulated by Decree 7,892/13 provides that a framework agreement shall not exceed twelve months (one year), including possible extensions. The framework agreement is terminated at the earliest of its term or the provision of the totality of the object registered therein.

According to article 2 of the abovementioned Decree, the following types of public entities can use the framework agreement:

1. Management Entity - Entity responsible for the price registration and management of the framework agreement.
2. Participating Entity - Entity that participates in the initial procedures of the price registration and also integrates the framework agreement.
3. Non-participating entity (hitchhiking) - Entity that uses the framework agreement signed by other entities in order to procure the same object from the same provider.

In order for the Non-participating entity to "hitchhike" on the framework agreement, during its term, it is necessary to follow requirements, such as: (a) demonstration of the economic advantage of using the framework agreement instead of conducting a new public tender procedure; (b) the consent of the managing body; (c) agreement of the supplier; (d) the need to comply with quantitative limits to be contracted through the framework agreements.

Furthermore, the legislation allows multiple-suppliers - list of bidders who have agreed to the list of goods or services at prices with the same prices presented by the successful bidder, following the correspondent classification of the bid. The presentation of these new proposals will not affect the outcome of the bid classification.

The existence of registered prices does not oblige the administration to contract, making it possible the launch of a specific tender for the intended acquisition, with preference being given to the supplier registered through a framework agreement. In this sense, the supplier should respect the conditions of the request for proposal/framework agreement.

On December, 2004, Law 11,079/04, was enacted, regulating Public and Private Partnerships ("PPPs").

The PPP regime for transferring the execution of public services to the private sector applies and may be used by all entities of the direct public administration, and by the special funds, governmental agencies, foundations, public companies and other entities controlled by the Federal Government, States and Municipalities.

Besides the common concession of public services, as provided in the next chapter (Concession of Public Services Law - No. 8,987/95), two other modalities of public services concession were created for PPPs: the sponsored concession ("Concessão Patrocinada") and the administrative concession ("Concessão Administrativa"). Sponsored concession is the concession of public services and public works in which the remuneration of the private partner involves, besides the tariffs paid by the users, additional remuneration provided by the public partner. Administrative concession is the service agreement in which the Public Administration is the direct or indirect user (e.g., building, operation and management of public buildings), even if it involves the execution of works or the supply and installation of goods.

Law 11,079/2004 allows (i) variable remuneration of the private party, based on the performance indexes and (ii) the payment of the private partner during the construction period anticipating the compensation of the private partner for the works. It also establishes limits for contracting Public and Private Partnerships, setting forth it may not execute contracts:

1. involving less than R$ 20 million;
2. with a final term of less than five (5) years; or
3. with the sole purpose of manpower supply, supply and installation of equipment, or execution of public works or construction.

The administrative contracts regulated by the PPP Law shall have terms compatible to the amortization of the investments performed by the private partner – never less than five (5) and more than thirty-five (35) years, including a possible extension. For the execution of these contracts, the creation of a Specific Purpose Company will be demanded, with the exclusive scope of implementing and managing the PPP projects.

Law 8,987/95 ("Concessions Law") is the specific legislation on concession matters. For purposes of the Concession Law, these definitions apply (according to its Article 2):

1. Public Service Concession. Delegation for the rendering of services, made by the granting authority (the relevant public entity), by means of a competitive tender process, to the legal entity or consortium of companies that demonstrates capacity for performance thereunder, on its own account, and for a definite period;
2. Public Service Concession Preceded by Execution of Public Work. The total or partial construction, maintenance, remodeling, extension or improvement of any works of public interest, delegated by the granting authority, by means of a competitive tender process, to the legal entity or consortium of companies that demonstrates the capacity for execution thereof, on its own account, in such a way that the investment of the concessionaire is remunerated and amortized by means of the exploration of the service or work for a definite period;
3. Public Service Permission. The delegation (on a temporary and revocable basis), by means of a competitive tender process, of the rendering of public service, made by the granting authority to the individual or legal entity that demonstrates the capacity for performance thereof on its own account.

Every concession of public service is subject to a public tender procedure, according to specific law and with observance of the public law principles. The award criteria may be: (a) lowest tariff value; (b) highest offer, in cases of payment to the granting authority for the grant of the concession; (c) the combination of the criteria referred to in the items "a" and "b"; (d) best technical offer, with price settled in the request for proposal; (e) the combination of lowest tariff value and best technical offer; (f) combination of highest offer for the grant of the concession and best technical offer; or (g) best payment offer for the grant after qualification of technical offer.

Yes, Law 8,666/93 itself provides those who violate its provisions are subject to administrative and criminal penalties according to the nature of the violation, which includes bid rigging. Law 8,429/92 provides for penalties to be applied to public personnel who practice improbity acts.

Also, bid rigging or other conducts that violate competition standards are subject to criminal penalties provided for in Law 8,137/90.