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Title: Enforcement Rules of the Government Procurement Act CH
Category: Public Construction Commission, Executive Yuan(行政院公共工程委員會)
Chapter 2 Invitation to Tender
Article 19
For limited tendering procedures where there are only two tenders received from the two or more suppliers invited to compete, the procedures may be proceeded. Where there is only one tender received, the procedures may be altered to proceed as if only one supplier were invited.
Article 20
For selective tendering procedures where a permanent list of qualified suppliers established by an entity after conducting qualification evaluation has a duration of more than one year, further notices of qualification evaluation shall be published yearly, and the existing permanent list shall also be reviewed and corrected.
Where the duration of such list is three years or less, and it has been made clear in the notice of qualification evaluation that further notices will not be published, it shall be sufficient to publish the notice once. However, the existing permanent list shall still be reviewed and corrected yearly.
Where a supplier listed in a permanent list is found to be inconsistent with the original qualification requirements, the entity may set a time-limit for the supplier to provide an explanation. If the supplier fails to provide a reasonable explanation within the time-limit, the entity shall remove it from the list.
Article 21
For selective tendering procedures conducted for a specific procurement, an entity shall invite all qualified suppliers to tender after conducting qualification evaluation.
Where a permanent list of qualified suppliers is established pursuant to paragraph 1 of Article 21 of the Act, an entity may conduct procurements in one of the following means, provided that they are made clear in the documents for qualification evaluation. Where there is a limitation on the number of suppliers to be invited for each recurring procurement, it shall also be made clear in the documents for qualification evaluation.
1. to invite individually all of the qualified suppliers to tender;
2. to invite all of the qualified suppliers to tender by a public notice;
3. to invite qualified suppliers to tender in a sequence specified in the documents for qualification evaluation; or
4. to invite qualified suppliers to tender by drawing lots.
Article 22
In subparagraph 1 of paragraph 1 of Article 22 of the Act, the term "no tender" means no tender or qualification document is received after a public notice or an invitation to tender is given to qualified suppliers; and the term “tenders submitted have been not in conformity with the requirements in the tender” means no tender meets the evaluation criteria specified in the tender documentation, except that there is a protest or complaint in process.
The term "exclusive right" referred to in subparagraph 2 of paragraph 1 of Article 22 of the Act means intellectual property rights which have been protected by law, excluding trademark.
In subparagraph 5 of paragraph 1 of Article 22 of the Act, the term "subject of a procurement" includes construction work, property or services; the term "which is developed in the course of research, experiment or original development" means contracting with a supplier to conduct research, experiment or original development in order to acquire a prototype or a subject first produced or supplied, and it may include a limited production or supply in order to incorporate the results of field testing on quality or function, but it does not extend to quantity production or supply to establish commercial viability or to recover research and development costs.
The term "50 per cent" referred to in subparagraph 6 of paragraph 1 of Article 22 of the Act means the ratio of the cumulative value of additional contracts to the amount of the main contract.
The terms “physically or mentally disabled”, “physical or mental disabilities welfare institutions or organizations, and sheltered workshops” referred to in subparagraph 12 of paragraph 1 of Article 22 of the Act shall be subject to the requirements prescribed in the People with Disabilities Rights Protection Act. The term “aborigines” referred to in the same subparagraph shall be subject to the requirements prescribed in the Standards of Recognition for Aborigines Identification.
Article 23
For a procurement where part of it involves an exclusive right or a sole source product or supply which no reasonable alternative or substitute exists, and the estimated value of that part is not less than 50 per cent of the value of the procurement, it may be conducted by limited tendering procedures pursuant to subparagraph 2 of paragraph 1 of Article 22 of the Act, provided that separating the procurement into several parts would cause significant inconvenience to the entity and it is necessary to procure all parts as a whole.
Article 23-1
In conducting a procurement under limited tendering procedures pursuant to paragraph 1 of Article 22 of the Act, the requesting, using or procuring unit of an entity shall give a detailed account of each specific case in conformity with the requirements in each subparagraph of that paragraph, and report it to the head of the entity or the personnel authorized by the head for approval. Where it is applicable to conduct price competition under restricted tendering, such tendering shall be a preferred method to use.
In conducting a procurement under limited tendering procedures pursuant to paragraph 1 of Article 22 of the Act, an entity may publish solicitation notice on the Government Procurement Gazette or make it available on the information network of the responsible entity, unless otherwise provided for in the Act.
Article 24
The term "international standards or national standards" referred to in paragraph 1 of Article 26 of the Act shall be subject to the requirements prescribed in Article 3 of the Standards Act.
Article 25
The term "equivalent" referred to in paragraph 3 of Article 26 of the Act means a subject whose function, performance, standard or characteristic is determined by an entity as not inferior to that required or specified in the tender documentation.
Where the tender documentation permits a tenderer to offer equivalents and specifies the tenderer shall do so in its tender, the tenderer shall provide in the tender for the entity's evaluation the brand and price of the equivalents, and the function, performance, standard, characteristics or other data related thereto.
Where the tender documentation permits a tenderer to offer equivalents but does not specify that the tenderer shall do so in its tender, the winning tenderer may, before putting into use of an equivalent , provide for the entity's evaluation the brand and price of the equivalent, and the function, performance, standard, characteristics or other data related thereto.
Article 25-1
An entity shall not seek or accept, in a manner which would have the effect of precluding competition, advice from a firm that may have a commercial interest in a specific procurement.
Article 26
The budget that an entity may disclose in the tender notice pursuant to paragraph 3 of Article 27 of the Act means the budget amount available for the payment of contract value. Where an appropriation bill has not been legalized, an estimated amount required for the procurement shall apply.
The estimated value that an entity may disclose in the tender notice pursuant to paragraph 3 of Article 27 of the Act means the estimated value of contract award.
Article 27
In paragraph 1 of Article 28 of the Act, the term "date of publishing a notice" means the date of publishing the notice on the Government Procurement Gazette; the term "date of inviting suppliers to tender" means the date of issuing a notice inviting the qualified suppliers to tender.
Article 28
(deleted)
Article 28-1
The charge for tender documentation that an entity sells pursuant to paragraph 1 of Article 29 of the Act shall be limited to the costs of labor, materials, postage, etc. The same shall also apply to the deposit paid by suppliers for using the tender documentation, explanatory materials or samples provided by an entity.
Article 29
The term "in writing and sealed" referred to in paragraph 1 of Article 33 of the Act means packing the tender in an opaque envelope or container and sealing it with paste, glue, tape, staple, rope, or other similar materials.
The name and address of the tenderer shall be indicated on the envelope or container, and the tenderer shall have its own choice on the place of mailing.
The term “designated place” referred to in paragraph 1 of Article 33 of the Act shall not be confined to the post office box number of an entity as the only place of receiving tenders.
Article 30
(deleted)
Article 31
(deleted)
Article 32
The term "does not involve essential parts of the contract" referred to in paragraph 3 of Article 33 of the Act includes the following:
1. alterable or supplementable items specified in the tender documentation;
2. optional items not for tender price comparison;
3. matters for reference; and
4. other matters not affecting the constitution of a contract
Article 33
There shall be only one tender submitted by each tenderer in each procurement. Where a tenderer is found to be in breach of the foregoing requirement, the following shall apply:
1. the tender submitted by such tenderer shall not be opened when such circumstance is found before tender opening; and
2. the tender submitted by such tenderer shall not be accepted when such circumstance is found after tender opening.
Where there are two or more tenders in a procurement submitted by branch companies of the same company or by a company and its branch company, it shall be deemed as a breach of the requirement prescribed in the preceding paragraph.
Where the procurement is to be awarded to the lowest tender and the tender documentation specifies that tenderers may submit two or more proposals with the same bid price for entity’s choice, the requirement prescribed in paragraph 1 does not apply.
Article 34
Where an entity is conducting a public presentation or is soliciting reference data or information from suppliers pursuant to paragraph 1 of Article 34 of the Act, the entity shall publish a notice on the Government Procurement Gazette, or make it available on the information network of the responsible entity.
Article 35
A government estimate may not be disclosed after contract award if any of the following circumstances exists, provided that the winning tenderer shall be notified of the government estimate:
1. where the procurement is conducted pursuant to subparagraph 2 of paragraph 1 of Article 104 of the Act;
2. where it is a procurement conducted with a view to commercial resale or to using in the production of products for commercial sale, and the government estimate involves commercial secrets;
3. where it is a multiple award procurement, and there remains related pending items or quantities to be awarded, provided that the government estimate shall be disclosed after awarding of the related items or quantities; and
4. other circumstances as prescribed by the superior entity.
Article 36
For a part of the qualification requirements with which a tenderer shall meet, the tenderer may submit in lieu a subcontractor's qualification for the part to be subcontracted, provided that it has been specified in the tender documentation that the tenderer is permitted to do so.
The subcontractor and the subcontracted part prescribed in the preceding paragraph shall not be changed after contract award, unless it is necessary to do so under special circumstances and at the entity's approval. In such event, the qualification owned by the new subcontractor shall not be inferior to that of the original subcontractor.
Article 37
Where a notarized or certified Chinese translation of a qualification document is attached to a tender pursuant to paragraph 3 of Article 36 of the Act, the original document in foreign language shall prevail in case of errors found in the translation.
Article 38
A procuring entity shall prescribe in the tender documentation that a supplier is prohibited from participating in tendering, being awarded or sub-contracting, or assisting tenderers in case that any of the following circumstances occurs to the supplier:
1. where the supplier has provided planning or design services to the entity, and the procurement is resulted from such planning or design;
2. where the tender documentation has been prepared by the supplier for the entity;
3. where the supplier provides tender evaluation service to the entity for the procurement;
4. where the supplier knows, by fulfilling a contract with the entity, a certain information which is unknown to other suppliers or should be kept secret, and the supplier can benefit from winning the award by taking advantage of the information; and
5. where the supplier is a project management service provider entrusted by the entity and the procurement is related thereto.
Where there is no conflict of interest or concern of unfair competition, circumstances referred to in subparagraphs 1 and 2 of the preceding paragraph may not be applicable to the subsequent procurements after approval of the entity.
Article 39
The provisions of paragraph 1 of the preceding Article may not be applicable under any of the following circumstances:
1. where the planning or design service provider is a sole source manufacturer or supplier for the subject of a subsequent procurement, and no reasonable alternative or substitute exists;
2. where the supplier has developed a new product for an entity and prepares the tender documentation accordingly for the entity ;
3. where the tender documentation is prepared separately for different major parts by two or more suppliers for the entity; or
4. other circumstances as prescribed by the responsible entity.
Article 40
(deleted)
Article 41
(deleted)
Article 42
Where an entity entrusts another entity of professional capacity to conduct its procurement pursuant to Article 40 of the Act, it shall be conducted in accordance with the following principles:
1. the superior entity of the procurement shall be the superior entity of the entrusting entity, except that the said superior entity may entrust its official duties to the superior entity of the entrusted entity;
2. the comptroller (accounting) and other relevant units shall be the units of the entrusting entity, except that the entrusting entity may entrust similar units in the entrusted entity to perform the duties;
3. the procuring entity shall be the entrusted entity, unless otherwise specified in the tender documentation;
4. where the entrusting entity and the entrusted entity are at different levels of government, the level of the entrusting entity is to determine whether it is a procurement of the central government or local government; and
5. the entrusting entity may entrust the entrusted entity to perform its official duties or conduct matters of responsibility.
The preceding paragraph shall apply mutatis mutandis to a procurement conducted by a juridical person or organization which is entrusted by an entity pursuant to Article 5 of the Act.
Article 43
The period set forth in the tender documentation for suppliers to raise questions shall be at least one quarter of the period for tendering, and a segment of less than one day shall be counted as one day. For a qualification evaluation of selective tendering procedures, the same shall also apply to the period from the date of publication through the deadline for receipt of documents.
An entity may reject the questions raised by suppliers beyond the period set forth in the tender documentation, and shall notify it to the supplier in writing.
The number of days counted from the date following the date of the entity's last reply through the deadline for submission of tenders or the deadline for receipt of qualification evaluation documents shall be at least a quarter of the original time-limit for tendering, and a segment of less than one day shall be counted as one day. Where the aforementioned number of days is insufficient, the entity shall make up for the lacking days by extending the time-limit for tendering.
Article 44
Where an entity adopts multi-step opening of tenders pursuant to paragraph 1 of Article 42 of the Act, it may prescribe that tenders of the qualification, specification, and price be submitted and opened in steps, or be submitted in one step but opened in steps, except that qualification documents shall only be submitted in one step under the selective tendering procedures.
The sequence of tender opening under a step by step procedure referred to in the preceding paragraph may be in the sequence of qualification, specification, and price, of which the qualification and specification can be combined into one step, so do the specification and price.
Where a tenderer fails to pass the tender evaluation in a prior step of multi-step tendering, it shall not be permitted to tender in the next step. Where a tenderer fails to pass tender evaluation in a prior step of multi-step opening of tenders under one step tendering, the rest of the tenders submitted by the tenderer shall be returned unopened.
Where there are three or more qualified suppliers submitting their tenders in the first phase of multi-step tendering pursuant to the requirements prescribed in paragraph 1 of Article 48 of the Act, the threshold of three tenders may be inapplicable for the subsequent steps of tender opening.
In the event of multi-step opening of tenders under one step tendering, suppliers shall have each tender sealed separately for each step of tender opening.
Article 45
Where specific weights for the commitments to be evaluated are specified pursuant to subparagraph 1 of Article 43 of the Act, they shall meet one of the following circumstances:
1. where the weights are calculated in value, the weight of the sub-total price of the commitments prescribed in the tender documentation to the total tender price shall not exceed one third; or
2. where the weights are calculated in score, the weight of the sub-total score of the commitments prescribed in the tender documentation to the total perfect score shall not exceed one third.
Article 46
Where an entity decides to award to a domestic tenderer by preference pursuant to subparagraph 2 of Article 43 of the Act, it shall, in the priority of tender price and one tenderer each time, request from the domestic tenderer whose tender price is the lowest one among all domestic tenderers to reduce its tender price once, and award the contract to the one who first reduces its tender price to the foreign supplier's tender price or less.
Where there are two or more domestic tenderers referred to in the preceding paragraph offering the same tender price, they shall simultaneously be requested to reduce their tender price once, and an award shall be made to the one whose tender price is the lower one and is not higher than the foreign supplier's tender price.
Article 47
The provisions in subparagraph 2 of Article 43 and Article 44 of the Act shall not be applied to a procurement simultaneously.