This Act is enacted to establish a government procurement system that has fair and open procurement procedures, promotes the efficiency and effectiveness of government procurement operation, and ensures the quality of procurement.

The term "procurement" as used in this Act shall refer to the contracting of construction work, the purchase or lease of property, the retention or employment of services, etc.

Procurement conducted by any government agency, public school or government-owned enterprise (hereinafter referred to as the "entity") shall be governed by the provisions of this Act. With regard to the matters not provided for in this Act, other relevant laws shall govern.

A juridical person or organization which takes a grant from an entity shall conduct a procurement in accordance with this Act and be under supervision by the entity provided that the amount of the grant is not less than half of the procurement value and also reaches the threshold for publication.
The preceding paragraph is not applicable to the procurement for art or cultural purposes, but the procurement shall be supervised by the entity that provides the grant; and the regulations governing the implementation principles, applicable scope, and supervision and management shall be prescribed by the Ministry of Culture.

An entity may entrust a juridical person or organization to conduct its procurement.
The procurement referred to in the preceding paragraph shall be governed by this Act, and the juridical person or organization shall be supervised by the entrusting entity.

In conducting any procurement, an entity shall observe the principle of protecting public interests, fairness and reasonableness, and shall not accord differential treatment to suppliers without due cause.
The procurement personnel may base on the consideration of public interest, procurement efficiency or professional judgment to make an appropriate procurement decision, to the extent not contrary to the provisions of this Act.
Judicial, control or other entities may request the responsible entity to provide assistance, examination service, or professional opinions when conducting investigation, indictment, trial, impeachment, censure, etc. against a procuring entity or personnel.

The term "construction work" referred to in this Act means the activities performed above or underneath the ground for building, augmenting, altering, repairing, or dismantling structures and their respective auxiliary equipment/facilities, or reforming natural environment, including architectural, civil, hydraulic, environmental, transportation, mechanical, electrical, and chemical construction works and others as determined by the responsible entity.
The term "property" referred to in this Act means any and all articles (raw and fresh agricultural or fishery products excepted), materials, equipment, machines, tools, and other personal property, real property, rights, and other properties as determined by the responsible entity.
The term "service" referred to in this Act means professional services, technical services, information services, research and development, business operation management, maintenance and repair, training, labor and other services as determined by the responsible entity.
Where the content of a procurement involves construction work, property and service, or any two of them, and it is difficult to categorize the content of the procurement as construction work, property, or service, the one which takes the highest percentage of the budget of procurement shall govern.

The term "supplier" referred to in this Act means any company, industrial or commercial firm under partnership or sole proprietorship, or any natural person, juridical person, institution or organization that may offer construction work, property or service to the entity.

The term "responsible entity" referred to in this Act means the Procurement and Public Construction Commission. A Minister without Portfolio shall be assigned concurrently as Chairperson of the Commission.
The term "superior entity" referred to in this Act means the entity at a level immediately above the procuring entity. If there is no such superior entity, then the procuring entity shall perform the functional duties of the superior entity as provided for in this Act.

The responsible entity shall be in charge of the following matters with respect to government procurement:
1. researching and formulating government procurement policies and system, and promoting and advocating government procurement policies and regulations;
2. researching, formulating, amending, and interpreting government procurement laws and regulations;
3. reviewing and approving standard procurement contracts;
4. collecting, publishing, and compiling statistics of government procurement information;
5. training government procurement professionals;
6. coordinating and supervising all entities in connection with procurement affairs, and assessing procurement performance thereof;
7. handling complaints against central government entities in connection with procurement; and
8. other matters related to government procurement.

In order to provide reference information to the entity for drafting the budget and government estimate, a procurement information center shall be established by the responsible entity to compile common business information and classification of equivalent products, and to set up price database for construction works. Other than those that have to be kept confidential, the information shall be provided free of charge for the suppliers.
Where the budget of a construction procurement reaching a certain amount, the unit prices of construction items offered by the winning tenderer shall be transmitted to the price database referred to in the preceding paragraph after award of contract.
The regulations covering the certain amount, the data, format, and means of transmission, as well as other matters related thereto of the preceding paragraph, shall be prescribed by the responsible entity.
Where there is any property and service item that is necessary to set up a price database, the preceding two paragraphs shall apply mutatis mutandis.

In conducting a large procurement of construction, an entity shall, based upon the characteristics of the procurement and actual needs, establish a working and evaluation group to assist in reviewing the needs, expenditure, and strategies of procurement, tender documentations, etc., and provide consultations on matters related to the procurement.
Except for the procurement referred to in the preceding paragraph, where it is necessary to establish a working and evaluation group at an entity’s discretion basing upon the characteristics of the procurement and actual needs, the preceding paragraph shall apply mutatis mutandis to the procurement.
The regulations on organization, tasks, evaluation, and the related matters for the working and evaluation group referred to in the preceding two paragraphs, shall be prescribed by the responsible entity.

For a procurement of a value reaching the threshold for supervision, the entity shall, within a prescribed time-limit, submit relevant documents to its superior entity and request the same to send representative(s) to monitor proceedings conducted by the entity including tender opening, price competition under restricted tendering, price negotiation under single tendering, contract awarding, and inspection and acceptance; nevertheless, the superior entity may, based upon the actual needs, prescribe the authorization conditions under which it allows the entity to proceed without its monitoring.
For a procurement of a value not reaching the threshold for supervision, but the value of contract as awarded or as amended subsequently equals to or exceeds the threshold, the entity shall supplement relevant documents to its superior entity for filing.
The threshold for supervision shall be prescribed by the responsible entity.

For a procurement of a value reaching the threshold for publication, proceedings conducted by the entity including tender opening, price competition under restricted tendering, price negotiation under single tendering, contract awarding, and inspection and acceptance shall, except for special circumstances, be monitored by its comptroller (accounting) and other relevant units.
Measures of supervising a procurement of a value not reaching the threshold for publication shall be prescribed by either the responsible entity or the municipal or county (city) governments, depending upon whether the procurement is conducted by a central government or a local government. If no other applicable measures are to be prescribed, the provision of the preceding paragraph shall be followed.
The threshold for publication, which shall be less than the threshold for supervision, shall be prescribed by the responsible entity by taking the international standards into account.
The regulations for monitoring referred to in paragraph 1 shall be prescribed jointly by the responsible entity and the Directorate-General of Budget, Accounting and Statistics of the Executive Yuan.

An entity shall not circumvent this Act by artificially dividing any procurement requirement of a value reaching the threshold for publication. Where there is a need to divide a procurement requirement, and such division is approved by the superior entity, the total value of each divided procurement shall apply to each divided one as if undivided, and the regulations for procurement reaching the threshold for publication, or the regulations for procurement reaching the threshold for supervision shall apply as the case may be.

Former procurement personnel and procurement supervision personnel shall be prohibited from contacting the entity that they previously worked for either for their own sake or on a supplier’s behalf for three years following their resignation for matters related to their former duties within five years prior to their resignation.
The personnel of a procuring entity shall withdraw themselves from a procurement and all related matters thereof if they or their spouses, relatives by blood or by marriage within two degrees, or family members living together with them have interests involved therein.
Upon finding that the personnel referred to in the preceding paragraph failed to withdraw themselves for any cause of withdrawal provided for in the preceding paragraph, the head of the entity shall order such personnel to withdraw and reappoint another personnel for replacement.

Entreating or lobbying is preferred to be in writing or to be recorded.
The anti-corruption office may inspect the said writings or records.
Entreating or lobbying received shall not be used as reference in the evaluation of tenders.

The participation of foreign suppliers in the procurement by each entity shall be governed by the requirements set forth in the treaties or agreements to which this nation is a party.
Except for the situation prescribed in the preceding paragraph, the regulations governing the participation of foreign suppliers in the procurement by each entity shall be prescribed by the responsible entity.
The responsible entity may restrict or ban suppliers, products or services from a country to participate in the procurement where the country imposes restriction or ban on the suppliers, products or services from this nation by laws or regulations.
Where an entity conducts a procurement concerning national security, and it is necessary to set restrictions on the qualifications for the domestic or foreign suppliers, the restrictions and the matters related to review shall be prescribed by the responsible entity in consultation with relevant competent entities.