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Chapter Law Content

Title: Government Procurement Act CH
Category: Public Construction Commission, Executive Yuan(行政院公共工程委員會)
Chapter III Award of Contracts
Article 45
Unless otherwise provided for in laws or regulations, an entity shall open tenders in public at the time and place specified in the tender documentation for an open tendering procedure or selective tendering procedure.
Article 46
Unless otherwise provided for in this Act, an entity shall set a government estimate for a procurement. The government estimate shall be itemized based upon the drawings, specifications, and contract requirements by taking into account the costs, market prices, and past award records of government entities, and be approved by the head of the entity or the personnel authorized by the head.
The time for setting the government estimate referred to in the preceding paragraph shall be determined according to the following:
1. in the case of open tendering procedures, prior to the opening of tenders.
2. in the case of selective tendering procedures, prior to the opening of tenders for the step next to the qualification evaluation.
3. in the case of limited tendering procedures, prior to the conducting of price negotiation with one single supplier or price comparison among two or more suppliers.
Article 47
Under the following circumstances, an entity may conduct a procurement without setting a government estimate; provided, however, that the reasons of not setting a government estimate and the terms and principles of awarding the contract shall both be provided in the tender documentation:
1. where there are actual difficulties in setting a government estimate for the procurement;
2. where the contract is to be awarded to the most advantageous tender; or
3. for small procurement.
For procurement under subparagraphs 1 and 2 of the preceding paragraph, a tenderer may be required to enumerate in its tender the content of its price offer in details.
The amount of small procurement shall be set, at the central government level, by the responsible entity, and at the local government level, by the municipal or county (city) governments; provided that the said amount shall not exceed one tenth of the threshold for publication. Where a local government does not set the amount, the amount set by the central government shall govern.
Article 48
In conducting a procurement pursuant to this Act, an entity shall open the tenders and award the contract in accordance with the timeframe set forth in the tender documentation where there are three or more qualified suppliers submitting their tenders, except for any of the following circumstances under which tenders may not be opened or awarded:
1. where the content of tender documentation is amended or supplemented;
2. where illegal or improper activities that may impair the fairness of the procurement are found;
3. where the opening of tenders is postponed according to Article 82 hereof;
4. where the procurement procedure is suspended according to Article 84 hereof;
5. where the entity corrects its breach of laws and regulations as required by Article 85 hereof;
6. where there is an emergency;
7. where the plan for procurement is changed or cancelled; or
8. for any other special circumstances as determined by the responsible entity.
Where the opening of tenders cannot be proceeded due to less than three tenders, a second tendering shall be arranged and the time-limit for such tendering may be shortened, and the three tenders requirement as provided in the preceding paragraph shall not apply for the second tendering.
Article 49
For a procurement of a value not reaching the threshold for publication but is not less than one tenth of the threshold, offers or proposals in writing shall be obtained openly from at least three suppliers, except for the circumstances specified in each subparagraph of paragraph 1 of Article 22.
Article 50
In case that any of the following circumstances occurs to a tenderer, an entity shall not open the tender of such tenderer when such circumstance is found before tender opening, nor shall award the contract to such tenderer when such circumstance is found after tender opening:
1. The tendering does not comply with the requirements of the tender documentation;
2. The content of the tender is inconsistent with the requirements of the tender documentation;
3. The tenderer borrows or assumes any other’s name or certificate to tender;
4. The tenderer uses untrue documents to tender;
5. The contents of the tender documents submitted by different tenderers show a substantial and unusual connection;
6. The tenderer is prohibited from participating in tendering or being awarded of any contract pursuant to paragraph1 of Article 103 hereof; or
7. The tenderer is engaged in any other activities in breach of laws or regulations which impair the fairness of the procurement.
When any of the circumstances referred to in paragraph 1 occurs to the winning tenderer before the award of contract but is found after award or signing of the contract, the entity shall revoke the award, terminate or rescind the contract, and may claim for damages against such tenderer except where the revocation of the award or the termination or rescission of the contract is against public interests, and is approved by the superior entity.
Where the situation of not opening or not awarding a contract as referred to in paragraph 1 causes the procurement procedures unable to continue, the entity may declare that the procurement is nullified.
Article 51
An entity shall review the tenders submitted in accordance with the requirements set forth in the tender documentation. In case of any ambiguity as to its content, the entity may request the tenderer to clarify.
The entity shall notify each tenderer of the outcome of the review referred to in the preceding paragraph and provide reasons for disqualified tenderers.
Article 52
The award of contract conducted by an entity shall follow one of the following principles and the principle adopted shall be specified in the tender documentation:
1. where a government estimate is set for the procurement, a tenderer whose tender meets the requirements set forth in the tender documentation and is the lowest tender within the government estimate shall be awarded;
2. where no government estimate is set for the procurement, a tenderer whose tender not only meets the requirements set forth in the tender documentation with a reasonable price, but also is the lowest tender within the budget amount shall be the winning tenderer;
3. the tenderer whose tender meets the requirements set forth in the tender documentation and is the most advantageous one shall be the winning tenderer; or
4. to adopt multiple award. An entity may prescribe in the tender documentation that contracts may be awarded to different tenderers by different items or different quantities, but the spirit of competition as to the lowest price or the most advantageous tender shall be respected.
Where the value of a procurement reaching the threshold for publication, and the subject of procurement is professional service, technical service, information service, social welfare services, or cultural and creative services, the award procedures of the most advantageous tender without setting a government estimate shall be applied in principle.
Tenderers need not be notified to be present upon the award of contract, whereas they shall be notified of the outcome.
Article 53
Where the lowest tender which meets the requirements set forth in the tender documentation exceeds the government estimate, the entity may request the tenderer to reduce the price once. If the reduced price still exceeds the government estimate, the entity may request all tenderers whose tenders meet the requirements set forth in the tender documentation to reduce their prices and then make a comparison. Such price reduction and comparison shall not be more than three times.
If, after following the procedure set forth in the preceding paragraph, the lowest tender still exceeds the government estimate but not over the budget amount, and the entity needs to award the contract for emergency, then the award of contract shall be approved by the person who has approved the government estimate or the authorized personnel of such person, and the value of the winning award shall not exceed the government estimate by more than eight percent provided however that the award of contract shall in addition be approved by the superior entity in advance for cases where the value of procurement reaches the threshold for supervision and the value of the award exceeds the government estimate by more than four percent.
Article 54
Where an award is conducted in accordance with subparagraph 2 of paragraph 1 of Article 52, and the lowest tender which meets the requirements set forth in the tender documentation exceeds the budget amount or an amount recommended by a committee, the entity may request the tenderer to reduce the price once. If the reduced price still exceeds such amount, the entity may request all tenderers whose tenders meet the requirements set forth in the tender documentation to reduce their prices and then make a comparison. Such price reduction and comparison may be limited to certain times which shall not be more than three times. If, after following the procedure set forth in the foregoing, the lowest tender still exceeds either of the said amounts, the tendering procedure shall be nullified.
Article 55
Where an entity plans to award a contract to the lowest tender but cannot award the contract according to the preceding two Articles, the entity may alternatively award the contract through negotiation, provided that such negotiation has been approved by the superior entity and announced in advance in the notice of invitation and the tender documentation.
Article 56
Where an award is conducted in accordance with subparagraph 3 of paragraph 1 of Article 52, the evaluation criteria set forth in the tender documentation shall be used to determine the most advantageous tender by comprehensively evaluating the technology, quality, function, commercial terms, or price of the tenders with ranking or score. The price offered or the quotient of price divided by the score resulted from comprehensive evaluation may be used as a sole item for evaluation or the criteria for award of contract. Other items not listed for evaluation shall not be used as a reference for the evaluation. The most advantageous tender shall be determined by the head of the procuring entity or the concurrence of the majority of the evaluation committee. If the most advantageous tender is unable to be determined, negotiations may be conducted, and then make another comprehensive evaluation to determine the most advantageous tender. A determination thereof shall be accompanied with reasons. Such comprehensive evaluation shall not be more than three times.
If, after following the procedure set forth in the preceding paragraph, the most advantageous tender still can not be determined, the tendering procedure shall be nullified.
Before conducting a tendering procedure that the award of contract is made to the most advantageous tender, the entity shall report to the superior entity and obtain its prior approval.
The evaluation regulations for determining the most advantageous tender shall be prescribed by the responsible entity.
Article 57
Where negotiations are adopted according to the provisions of the preceding two Articles, the entity shall conduct the process in accordance with the following principles:
1. The procedures and contents of tender opening, tenders, and tender evaluation shall be kept confidential.
2. No tenderers meeting the requirements set forth in the tender documentation shall be discriminated during the negotiations. If necessary, video or audio recordings shall be used for evidence purpose.
3. Only the content of those items that are specified as negotiable in the tender documentation may be subject to negotiation.
4. Where the negotiable items referred to in the preceding subparagraph is amended, all tenderers permitted to participate shall be informed of such amendment in writing.
5. Upon completion of negotiation, tenderers referred to in the preceding subparagraph shall be given an opportunity to modify their tenders and re-submit their tenders within a time-limit according to the negotiation.
Article 58
Where a contract is to be awarded to the lowest tender, an entity may set a time-limit for the tenderer offering the lowest tender to provide an explanation or a security if the total or a part of the offered price is so low that it evidently appears to be unreasonable, and the quality of performance is likely to be impaired or the contract is not likely to be performed in good faith, or there is any other extraordinary situations. If such tenderer fails to submit a reasonable explanation or a security before the deadline set forth by the entity, the contract may not be awarded to the tenderer, and the tenderer offering the second lowest tender shall then be deemed as the tenderer offering the lowest tender.
Article 59
A supplier shall not facilitate the agreement of a contract by giving others commission, percentage, brokerage, kickback, or any other improper benefits.
Where a supplier is in breach of the requirements of the preceding paragraph, the entity may terminate or rescind the contract, and deduct two times improper benefits from the contract amount. In the event of failure to deduct from the contract amount, the entity shall notify the supplier to pay it within a time-limit.
Article 60
Where an entity notifies a supplier to explain, reduce price, engage in price competition, negotiate, modify the content of the original tender, or re-submit a new price offer in accordance with Articles 51, 53, 54 or 57 hereof, and the supplier fails to respond within a time-limit set forth in the notification, then such supplier is deemed waiving its rights.
Article 61
Except for extraordinary circumstances, an entity shall publish the outcome of an award on the Government Procurement Gazette and notify all tenderers in writing within a specific period of time after award of contact provided that the procurement is of a value reaching the threshold for publication. The foregoing shall also apply if the contract cannot be awarded.
Article 62
The award data shall be provided by the procuring entity to the responsible entity periodically.