At the beginning of 2025, Decree No. 12.304/2024 entered into force, establishing the parameters and criteria for the assessment of integrity programs within the scope of public procurement.

This Decree addresses regulatory gaps left by the Public Procurement and Administrative Contracts Law (Law No. 14.133/2021), which had merely identified three situations in which integrity programs may be required: as a tie-breaking criterion in competitive bidding, in high-value procurements, and for the rehabilitation of penalized companies.

• Tie-Breaking criterion

A company’s statement that it has implemented an integrity program may be used as one of the criteria to break a tie between two or more bids in a procurement procedure. According to the Decree, evidence of the program’s existence must be provided by the bidder at the time of bid submission.

• High-Value Contracts (construction works, services, and supplies)

In high-value contracts—defined as those exceeding R$250,902,323.87— the awarded company must demonstrate the effective implementation of an integrity program within six months of the contract’s execution or the execution of an amendment reaching that amount.

• Rehabilitation of Companies

Rehabilitation allows sanctioned companies to regain eligibility to participate in public tenders. Entities found liable for submitting false declarations or documentation, or for committing harmful acts to the Public Administration under the Anti-Corruption Law (Law No. 12.846/2013), must implement integrity programs as a condition for rehabilitation, in addition to fulfilling other legal requirements.

The Decree requires that evidence of such a program be presented at the time of the rehabilitation request.

• Role of the Office of the Comptroller General (CGU)

The Office of the Comptroller General (CGU) is the authority responsible for evaluating whether corporate integrity programs comply with the standards set forth in the Decree. If irregularities are found in the documentation submitted, the CGU may initiate liability proceedings and impose sanctions, including warnings; fines ranging from 1% to 5% of the bid or contract value; suspension from bidding or contracting; or a declaration of ineligibility.

These responsibilities may be delegated to other public bodies and entities for application in their own procurement and contracting procedures.

To ensure uniformity and legal certainty in the evaluation process, the Minister of State for the CGU is expected to issue a normative act establishing the methodology and minimum criteria for classifying an integrity program as implemented, developed, or enhanced.

• Integrity Programs and the ESG Agenda

The Decree breaks new ground by incorporating principles and objectives of the Environmental, Social and Governance (ESG) agenda, requiring that integrity programs include initiatives for the protection of human and labour rights; the promotion of transparency; and the pursuit of social and environmental responsibility.

Companies seeking to engage in contracts with the Public Administration—particularly in high-value sectors—should be mindful of the need to implement (or review) robust integrity programs that go beyond anti-corruption compliance, encompassing policies for mitigating social, environmental, and governance risks.

The Public Law, Regulatory, and Infrastructure team is available to further guidance and support on this matter.