The Direct Award is permissible regardless of the amount of the contracting, provided that the maximum authority of the contractor, through a reasoned act, adequately justifies its origin, in the following cases:
When the granting of the award or any other act issued in execution of the Public Procurement Regime has been based on false information or documentation, fraud, or in violation of legal provisions, the contracting entity shall declare the act null and void.
In addition, individuals could be sanctioned with a fine of 300 Tax Units and the prohibition to enter into contracts with the state for up to four years.