FROM THE CONCEPT TO THE IMPLEMENTATION PROPOSAL: THE LINES OF DEFENSE UNDER OF THE NEW BIDDING AND CONTRACT LAW (LAW 14.133/2021)

Abstract

In the face of Law 14,133/2021, even though there is a risk of successive extensions, the required innovations are remarkable. After 30 years of coexistence with Law 8,666/1993, the legislator has brought forth a robust framework derived from topics subject to judgments, regulations, normative instructions, and even international standards. Thus, Article 169 emerges, aiming for a governance risk management practice, using the mold of internal audit provided by "The Institute of Internal Auditors – IIA," a globally recognized standard for the three lines of defense in organizations. Comparing the estimated premises to the realities of public entities, some inconsistencies are identified, which are rectified through upcoming regulations. Using deductive reasoning and bibliographic techniques, this article seeks to conceptualize and structure the regulatory demand of Article 169 of Law 14,133/2021 based on the perspectives and realities of the interested public entity. It is then concluded that, despite the need for the prior practical establishment of Risk Management Policy, Governance and Compliance Policy, and the organizational structure of the Central Internal Control Body, and despite inconsistencies in the wording of the law on the subject, regulation in the form of competency definitions is warranted, as outlined in this present work.