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Chapter Law Content

Chapter (3) Invitation to Tender, Awarding of Contract and Contract Performance
Article 20
(deleted)
Article 21
(deleted)
Article 22
The Private Entity(ies) shall not transfer, lease, dispose or create any encumbrances on the concession(s) obtained by the contract of the commissioned operation except as otherwise approved by the competent authority.
Article 23
The authority-in-charge may provide in the contract of the commissioned operation that the authority-in-charge may notify in writing the Private Entity(ies) to improve any operation defects or unsuitable operation which is short term and minor during the term of the commissioned operation within the prescribed period, and may take proper actions to settle the problems under the breach provisions in the event that the improvement above has not been made or has no effect within the prescribed period.
Article 24
The authority-in-charge shall be responsible for the supervision of the related matters with respect to the commissioned operation after the contract of the commissioned operation has been made, and may, according to the needs of the characteristics of the specific commissioned operation, establish an office for supervision over the performance of the contract in accordance with the regulations governing the adjustment of military organizations.
Article 25
Paragraph (1)
The Private Entity(ies) shall submit the financial statements, certified by certified public accountants, with respect to the commissioned operation, to the authority-in-charge prior to January 31 and July 31 of each year for record.
Paragraph (2)
The authority-in-charge may retain certified public accountants to conduct the audit at the premises of the institutions commissioned for operation or the property and facilities. The Private Entity(ies) shall be responsible for the fees incurred from the audit by the certified public accountants retained by the authority-in-charge in the event that the falsity of the financial statements submitted by the private entity(ies) has been confirmed. In the event that the rights of the authority-in-charge have been infringed, the authority-in-charge shall act in accordance with the provisions relating to breach.
Article 26
Paragraph (1)
Where the management entrusted is to replace the production or service provided by the original agency or facility contract terms such as specification, minimum quantity or workload and unit price for the first year of performance shall be specified by the authority-in-charge when the management entrustment contract is concluded. Where those contract terms are not known to the authority-in-charge, the estimated reference may be deemed as the alternative for specified contract terms after being reported to and approved by competent authority. Where the actual quantity of procurement is less than estimated quantity by no less than ten percent, authority-in-charge shall negotiate compensation with the private entity based on uberrimaefidei.
Paragraph (2)
Since the second year till the expiration date of a contract, the authority-in-charge shall consult the price index announced by Directorate-General of Budget, Accounting and Statistics, Executive Yuan to estimate the reference in further four years regarding the specifications, minimum quantity or workload, unit price of the product or service which is to be procured every following year and prescribe the standard to limit the range of variation of unit price. Where the actual sum of money paid for procurement in following years is less than the estimated by certain percentage stipulated, the authority-in-charge shall negotiate compensation with the private entity based on uberrimaefidei.
Article 27
The authority-in-charge shall prepare an emergency plan in advance for dealing with war or the Private Entity(ies) going into bankruptcy, liquidation or other situations which may endanger the continuing operation of the commissioned National Defense Technology Institutes, property or facilities. Upon the occurrence or likelihood of occurrence of any such emergency situations, the authority-in-charge shall make an assessment of the situations and gather sufficient information relating to the situations, then shall report to the approving authority, and take proper actions under the emergency plans after the approval.