Sorocaba City Council Contract for Ignored Service Deemed Irregular by State Audit Court
The State Audit Court of São Paulo (TCE-SP) has ruled a contract worth over R$ 800,000 signed by the Sorocaba City Council (SP) as irregular. The contract was for the rental of a resident relationship management system from the company Backsite Serviços Online. The council plans to appeal the decision.
The TCE-SP found the electronic bidding process, the contract itself, and its first addendum, signed in November 2025, to be irregular. This issue came to light in March when a survey revealed that the R$ 800,000 system was largely unused by the majority of Sorocaba council members, with only the president reporting usage. The audit was initiated following a complaint by council member Raul Marcelo (Psol) regarding irregularities in the bidding and system usage.
The audit identified several flaws, including requirements that compromised competition, the disqualification of the lowest bidder without due diligence, an excessive range in reference budgets, and the absence of the contract in the council's annual procurement plan. The court also invalidated a contract extension signed in November 2025, which added 12 months to the original term, noting it altered the provisional nature of the agreement. Discrepancies were also found in reported license reductions and documentation for system utilization. The Sorocaba City Council stated it was notified of the decision and will appeal within the legal timeframe. Backsite Serviços Online did not respond to requests for comment.
This situation highlights potential governance failures in public procurement, where the stated purpose of a significant expenditure appears misaligned with actual utilization. The TCE-SP's findings suggest procedural irregularities in the bidding process that may have predetermined the outcome, rather than fostering genuine competition. The subsequent contract extension, despite low usage, raises questions about the council's oversight and the necessity of the service. Moving forward, enhanced transparency in procurement, robust independent verification of service delivery, and clear justification for contract renewals are crucial to ensure public funds are allocated efficiently and effectively, particularly in an era demanding greater accountability in public administration.
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