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Chapter Law Content

Chapter 2: Operation Concession
Section 2: Bidding Rules and Procedure
Article 11
The NCC shall adopt a single round for bidding pursuant to Article 12 unless the condition stated in Article 14 sustains.
The applicant shall state its preference for winning order of the bidding subjects and provide a corresponding bidding value when submitting an application form.
The bidding value mentioned in the preceding paragraph refers to a percentage to multiply by the annual income of the Services as the calculation of charter fee that a bidder promises to remit.
The bidding value mentioned in Paragraph 2 shall not be less than 1.5% and shall be made in an increment of 0.01%. The unconditional elimination method shall be applied to any bidding value which is not in an increment of 0.01%, and any digit next to 2 decimal places out of 0.01% shall be ignored.
Any of the following shall be deemed as an invalid bid:
1. The bidding form is not affixed with the company stamp seal and the signature & seal of the person-in-charge.
2. The bidding subject is not listed in the preference list of winning order.
3. The bidding value is not clearly stated or is beyond recognition.
4. The bidding value has been tampered, or two or more values are submitted.
5. The bidding value is less than 1.5%.
6. Any bid that the NCC deems invalid.
The bidding subject without confirmation on preference for winning order will not be listed in the preference list of winning order.
Article 12
The NCC shall open all bids at the same time and determine the winning bidders.
Pursuant to Paragraph 4 of Article 10, the eligible applicant shall be granted the priority to bidding competition and bid determination. The temporary winner of the priority to bidding competition procedure shall not participate in the bidding competition of other charters.
The method for determining winning bidders:
1. The bidder that offers the highest price for a bidding subject shall be the temporary winning bidder of such bidding subject.
2. If two or more bidders offer the same price for the same bidding subject, the temporary winning bidder shall be the one that has stated the higher preference of winning order. If such method still can not determine the temporary winning bidder, then the NCC shall administer a draw to determine the winning bidder.
3. Each bidder may hold only one temporary winning bid. If one bidder holds the temporary winning bid of more than one bidding subjects, then the bidder’s preference of winning order shall determine which bid to be the temporary winning bid. The other bidding subjects shall be awarded to other bidders according to the proper order described in Paragraph 4. The proper order mentioned in Paragraph 3 shall be determined by the bidding prices; in case of the same bidding price, the preference of winning order shall be the determinant; if no winner can be determined, then the NCC shall administer a draw to determine the winning bidder.
If any of the following situations happens and is concerned with bidders’ rights, then the alternative bidding procedure shall be applied pursuant to Article 13:
1. Temporary winning bidders of multiple bidding subjects must be determined by drawing.
2. A bidder is a temporary winning bidder and one of the bidders offering the highest price at the same time, and its preference of winning order for the bidding subject with the highest bidding price is higher than the preference of winning order for the temporarily won bidding subject.
3. Other bidders complain that a bid is ended without due process of bid opening, and the NCC deems the situation has substantiated the need for the alternative bidding procedure.
The round of bidding for every charter shall be ended after the bidding price has been compared until only one temporary winning bidder remains.
Prior to comparing the preference of winning orders among bidders and determining the order of alternative bidding procedure pursuant to Article 13, the preference list of the winning order submitted by all bidders shall be re-arranged by first applying Paragraph 5 of Article 11 and eliminating invalid bids - the charter of which preference order is beyond recognition, the charter of which the preference list of winning order is not listed,, the charter of which the scope of business applied for is not listed, the charter of which the scope of business is not reported in business plan, and the charters not involved in the bidding.
Article 13
A point system shall be calculated for every bidding subject. When the bidding order is to be determined according to the total points from the lowest to the highest order and the alternative bidding procedure is followed, the following rules must be applied:
1. One point for the first preference of bidding subjects, two points for the second preference, three points for the third preference, and so on. Points for the bidding subjects that are not selected by the applicant shall be calculated by dividing the applicants’ remaining points by the number of charters not selected by the applicants.
2. The total points for every bidding subject shall be calculated by the preference list of winning order of all bidders and the rules provided in the preceding Paragraph. However, in case of bidding subjects with the same points, the NCC shall administer a draw to determine the winning applicant.
If all charters are in valid order, the total valid points in the applicants’ preference list of winning order shall be determined by summation pursuant to the first half of Paragraph 1 of Article 1. The applicants’ remaining points shall be the total valid points after deducting the points of the charters in valid order derived from the preference list of winning order from the total valid points.
Article 14
If the number of the qualified Applicants is 10 or more pursuant to Article 23, the bidding for the charters not released in the priority bidding procedure provided in Paragraph 2 of Article 12 shall adopt synchronized, increased, and multi-round methods. The bidding method provided in Paragraph 1 of Article 12 shall become a multi-round bidding for round one. The temporary winning bidder of the charter determined by the bidding method stated in Article 12 shall be the temporary winning bidder of round one.
Bidders who fails to submit a bidding price in round one or submits an invalid bidding price shall lose the entitlement to bidding.
A maximum of ten rounds of bidding will be administered. The bidding procedure shall end when ten rounds of bidding are completed or when no qualified bidder remains before ten rounds have been completed.
Bidders shall lose their entitlement to bidding if they give up bidding more than three times from round two to round nine.
Any of the following shall be deemed as abstaining from bidding:
1. Non-temporary winning bidders do not submit a bidding price in each round of bidding.
2. The bidder’s bidding price is deemed invalid in any round.
Starting from round two, bidders shall submit a bidding price subject to the following methods:
1. Bidders are limited to submit one bidding price each round and must submit a bidding price for one bidding subject only.
2. The bidder that offers the highest bidding price for one bidding subject shall be the temporary winning bidder; the bidding price shall be the temporary multiplier. The temporary winning bidder of every round may submit a bidding price on the same bidding subject after other bidders have submitted bidding prices and before the bid is ended in the next round of bidding, except Round Ten, but may not submit a bidding price for any other bidding subject.
3. There will be no upper limit of bidding price for all rounds of bidding, except for round ten of which the upper limit shall be 110% of temporary winning multiplier.
4. Bidders must submit a bidding price at an increment of 0.01%; any bidding price multiplier not in an increment of 0.01% shall be subject to unconditional elimination and any digit next to 2 decimal places out of 0.01% shall be ignored.
The definition of invalid bidding price complies with Paragraph 5 of Article 11.
If there are two bidders offering the highest price in rounds two to nine, the NCC shall administer a draw to determine the temporary winning bidder. If there are two bidders offering the highest price in round ten, the bidder that has won more rounds shall be the temporary winning bidder; if the bidders have the same number of winning rounds, the one that first wins as the temporary winning bidder shall be the winner. If no winner can be determined, then the NCC shall administer a draw to determine the result. From rounds two to nine, if a bidder that offers the highest bidding price but is unable to win as the temporary winning bidder due to a draw, its bidding record shall be included in Round Ten as the number of wins of temporary winning bidder.
The bidding procedure from round two:
1. The NCC shall issue a bidding price ballot for all bidders at every round, and an additional bidding subject ballot will be issued in round ten;
2. Bidders shall submit a signed bidding form that contains a bidding price and bidding value in a sealed bidding envelope to the NCC staff within the time limit for every round; an additional single-listed bidding form that contains a bidding price for round ten shall be sealed in another envelope and submitted.
3. Once the bidding price submitted, the bid will be opened at rounds two to nine. After the price bidding for round ten is completed, the single-listed bidding form shall be first opened so that the temporary winning bidder of round nine may consider raising the bid for the same subject. Round ten may not begin unless the temporary winning bidder of round nine has submitted its bidding form or decided not to raise its bid or unless the consideration time has ended.
4. When opening the bid for round ten, the bidding form from bidders other than the temporary winning bidder shall be opened first; the bidding form of the temporary winning bidder of round nine may not be opened unless the biddings from the other bidders are deemed valid. If the biddings from bidders other than the temporary winning bidders are all deemed invalid, then the bidding form of the temporary winning bidder of round nine will not be opened; the temporary winning bidder of round nine shall be the temporary winning bidder of round ten and the temporary winning bidding price of round nine shall be the temporary winning bidding price of round ten.