WORLD TRADE ORGANIZATION
ORGANISATION MONDIALE DU COMMERCE
ORGANIZACIÓN MUNDIAL DEL COMERCIOGPA/36
23 June 2000
(00-2562)
Committee on Government Procurement Original:  English/
anglais/
inglés
GOVERNMENT PROCUREMENT LEGISLATION
Chinese Taipei
The following communication, containing the Government Procurement Law* promulgated
on 27 May 1998, has been received from the Representative of the Separate Customs Territory of
Taiwan, Penghu, Kinmen and Matsu on 8 June 2000 with the request that it be circulated to themembers of the Committee on Government Procurement.
Comité des marchés publics
LÉGISLATION EN MATIÈRE DE MARCHÉS PUBLICS
Taipei chinois
Le Représentant du Territoire douanier distinct de Taiwan, Penghu, Kinmen et Matsu a fait
parvenir la communication ci-jointe datée du 8 juin 2000, qui contient la Loi sur les marchés publics*
promulguée le 27 mai 1998, en demandant qu'elle soit distribuée aux membres du Comité desmarchés publics.
Comité de Contratación Pública
LEGISLACIÓN SOBRE CONTRATACIÓN PÚBLICA
Taipei Chino
Se ha recibido del representante del Territorio Aduanero Distinto de Taiwán, Penghu, Kinmen
y Matsu la siguiente comunicación, de fecha 8 de junio de 2000, que contiene la Ley de ContrataciónPública
* promulgada el 27 de mayo de 1998, con la petición de que se distribuya a los miembros del
Comité de Contratación Pública.
                                                     
* In English only./En anglais seulement./En inglés solamente.GPA/36
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GOVERNMENT PROCUREMENT LAW
(Promulgated on May 27, 1998)
Chapter I
General Principles
Article 1     This Law is enacted to establish a government procurement system that has fair and open
procurement procedures, can promote the efficiency and effectiveness of government procurement
operation, and is able to ensure the quality of procurement.
Article 2
     The term "procurement" as used in this Law shall refer to 
the contracting of construction work, the
purchase or lease of property, the retention or employment of services, etc.
Article 3
     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 Law. With regard to
the matters not provided for in this Law, other relevant laws shall govern.
Article 4
     A juristic person or organization which takes a grant from an entity shall conduct a procurement in
accordance with this Law 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.
Article 5
     An entity may entrust a juristic person or organization to conduct its procurement.
     The procurement referred to in the preceding paragraph shall be governed by this Law, and the
juristic person or organization shall be supervised by the entrusting entity.
Article 6
     In conducting a procurement, an entity shall not accord differential treatment to suppliers without
due cause.
     In executing a procurement contract, the principle of protecting public interests, fairness and
reasonableness shall be observed.
     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 Law.
Article 7
     The term "construction work" referred to in this Law means the activities performed above or
underneath the ground for building, augmenting, altering, repairing, or dismantling structures andtheir respective auxiliary equipment/facilities, or reforming natural environment, including
architectural, civil, hydraulic, environmental, transportation, mechanical, electrical, and chemical
construction works, and other construction works as determined by the responsible entity.
     The term "property" referred to in this Law means any and all articles, materials, equipment,
machines, tools, and other personal property, real property, rights, and other properties as determinedby the responsible entity.
     The term "service" referred to in this Law 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.GPA/36
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     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.
Article 8
     The term "supplier" referred to in this Law means any company, industrial or commercial firm
under partnership or sole proprietorship, or any natural person,  juristic person or any other institution
or organization that may offer construction work, property or service to the entity.
Article 9
     The term "responsible entity" referred to in this Law means the Procurement and Public
Construction Commission. A Minister without Portfolio shall be assigned  concurrently as Chairman
of the Commission.
     The term "superior entity" referred to in this Law 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 Law.
Article 10
     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, developing, and approving of standard procurement contracts;
4.Collecting, publishing, and compiling statistics of government procurement
information;
5.Training of professionals enga ged in government procurement;
6.Coordinating and supervising all entities in connection with  procurement affairs, and
assessing procurement performance thereof;
7.Handling of complaints against central  government entities in connection with
procurement; and
8.Other matters related to  government procurement.
Article 11
     In order to provide reference information to the entity for drafting the budget and government
estimate, a procurement information center may be established by the responsible entity to compilecommon business information and classification of equivalent products, and to set up price database
for construction materials and equipment. Other than those that have to be kept confidential, the
information may be provided to the suppliers with or without charge.
     A procurement personnel training center may be established by the responsible entity for the
training of professional procurement personnel.
Article 12
     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 negoti ation under single tendering, contract awarding,GPA/36
Page 4
and inspection and acceptance; whereas the superior entity may, based upon the actual needs,
prescribe the conditions under which it shall authorize 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.
Article 13
     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 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.
Article 14
     An entity shall not circumvent the application of this Law by 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 value of eachdivided procurement shall be deemed as if undivided, and the rules for procurement reaching the
threshold for publication, or the rules for procurement reaching the threshold for supervision if
appropriate, shall apply.
Article 15
     Former procurement personnel and procurement supervision personnel shall be prohibited from
contacting the entity that he or she previously worked for either for his or her own sake or on a
supplier’s behalf for three years following his or her resignation for matters related to his or her
former duties within five years prior to his or her resignation.
     The procurement personnel and procurement supervision personnel shall withdraw themselves
from a procurement and all related matters thereof if they or their spouses, relatives by blood or by
marriage within three degrees, or other relatives who live with and share the property with them have
interests involved therein.
     Upon finding that the procurement personnel or procurement supervision personnel 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 the personnel for replacement.
     A supplier shall not participate in the procurement of a procuring entity in the event that the
relationship between the head of the procuring entity and the supplier itself or the responsiblepersonnel of the supplier have the situation as th at mentioned in paragraph two. This requirement may
be waived provided that enforcement of it is agai nst fair competition or public interests, and that an
approval has been obtained from the responsible entity.
     The procurement personnel and the procurement supervision personnel of an entity shall report his
or her properties status pursuant to relevant requirements of the Law Governing the Report ofProperties by Public Officials.GPA/36
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Article 16
     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.
Article 17     The participation of foreign suppliers in the procurement by each entity shall be governed by the
rules set forth in the treaties or agreements to which this nation is a party.
     Except for the situation prescribed in th e 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, productsor services from this nation by laws or regulations.
Chapter II
Invitation to Tender
Article 18
     The tendering procedures for procurement include open tendering procedures, selective tendering
procedures, and limited tendering procedures.
     The term "open tendering procedures" referred to in this Law means the procedures under which a
public notice is given to invite all interested suppliers to submit their tenders.
     The term "selective tendering procedures" referred to in this Law means the procedures under
which a public notice is given to invite all interested suppliers to submit their qualification documentsfor pre-qualification evaluation basing upon specific qualification requirements and, after such
evaluation, the qualified suppliers are invited to tender.
     The term "limited tendering procedures" referred to in this Law means the procedures under which,
where no public notice is given, two or more suppliers are invited to compete or only one supplier is
invited for tendering.
Article 19
     An entity shall apply open tendering procedures to all procurement of a value reaching the
threshold for publication, except otherwise provided for in Articles 20 and 22 hereof.
Article 20
     Under any of the following circumstances, an entity may apply selective tendering procedures to a
procurement of a value reaching the threshold for publication after obtaining the approval of the
superior entity:
1.  Where there is a recurring demand;
2.  Where the review of tenders takes a long time;3.  Where the supplier’s cost for preparation of a tender is high; or4.  Where the qualification requireme nts for suppliers are complicated.
Article 21
     In order to apply the selective tendering procedures, an entity may conduct qualification evaluation
in advance and establish a permanent list of qual ified suppliers; provided, however, that the entity
shall always allow suppliers to request of qualification evaluation and periodically review and update
the permanent list of qualified suppliers.GPA/36
Page 6
     Where a supplier not on the permanent list of qualified suppliers requests to participate in a
particular procurement, the entity shall review the qualification of such supplier provided that the
review does not interfere the tendering procedures and can be completed in time. After reviewing, the
entity shall invite such supplie r to participate in the procurement provided that the supplier is
qualified.
     The permanent list of qualified suppliers adopted for the procurement in connection with recurring
demands shall contain at least six suppliers.
     In conducting selective tendering procedures, the entity shall give qualified suppliers an equal
opportunity to be invited.
Article 22
     Under any of the following circumstances, an  entity may apply limited tendering procedures to a
procurement of a value reaching the threshold for publication after obtaining the approval of thesuperior entity:
1.  Where there is no tender in response to an open or selective tender, or the tenders
submitted have been not in conformity with the requirements in the tender,provided, however, that the requirements of the initial tender are not substantiallymodified in the contract as awarded;
2.  Where the subject of a procurement is an exclusive right, a sole source product or
supply, a work of art, or a secret, which can be supplied only by a particularsupplier and no reasonable alternative or substitute exists;
3.  In so far as strictly necessary whe n, for reasons of extreme urgency brought about
by events unforeseeable by the entity, the subject of the procurement could not beobtained in time by means of open or selective tendering procedures;
4.  For additional deliveries by the original supplier which are intended either as follow-
up maintenance, or parts and compone nts replacement for existing supplies or
installations, or as extension of existing supplies, services, or installations where achange of supplier would not meet the requirements of compatibility orinterchangeability with already existing supplies, services, or installations;
5.  Where the subject of a procurement is a prototype or a subject first produced or
supplied which is developed in the course of researc h, experiment, or original
development;
6.  When additional construction work which was not included in the initial contract but
which was within the objectives of the original tender documentation has, throughunforeseeable circumstances, become ne cessary, and the entity needs to award
contracts for the additional construction work to the contractor carrying out the
construction work concerned to achieve the objectives of the initial contract sincethe separation of the additional construction work from the initial contract wouldbe difficult for technical or economic r easons and cause significant inconvenience
to the entity. However, the total value of contracts awarded for the additionalconstruction work may not exceed 50 per cen t of the amount of the main contract;
7.  For any further procurement indicated in the tender notice and tender
documentation;
8.  For property procured on a commodity market;9.  In the case of contracts for professional services, technical services or informationGPA/36
Page 7
services awarded to the winner selected publicly and objectively;
10.  In the case of contracts awarded to the winner of a design contest provided that the
contest has been initiated by a public notice and the winner selection has beenconducted publicly and objectively;
11.  In the case that a government-owned en terprise designates an area for its real
property procurement in response to the ne ed of its business provided that the real
property procured has been solicited public ly in accordance with its requirements
and criteria;
12.  Where the subjects of a procurement are supplies or services not for profit provided
by organizations of the handicapped, the aboriginal, philanthropic organizations or
prisoners; or
13.  Other circumstances as prescr ibed by the responsible entity.
     The regulations for the selection of suppliers and the formulas for the calculation of service fees
under sub-paragraphs 9 and 10, and the implementing rules under sub-paragraph 11 of the preceding
paragraph, shall be prescribed by the responsible entity.
Article 23
     The tending procedures to be applied to a procurement of a value not reaching the threshold for
publication shall be prescribed by the responsible entity at the central government level; or by the
municipal or county (city) government at the local government level. If no other procedures are to be
prescribed at the local government level, the pro cedures prescribed at the central government level
shall govern.
Article 24     An entity may, according to the needs of efficiency and quality, conduct the procurement on a
turn-key basis. However, a prior approval from the superior entity shall be obtained if the value of
procurement reaches the threshold for supervision.
     The term "turn-key" referred to in the preceding paragraph means the procurement of construction
work or property by consolidating the procurement of design, work, supply, installation, maintenancein a certain period, etc. into a contract for tendering.
     The regulations for the implementation of turn-key shall be prescribed by the responsible entity.
Article 25
     An entity may, depending on the characteristics of an individual procurement, specify in the tender
documentation to permit joint tendering by a limited number of suppliers. However, a prior approvalfrom the superior entity shall be obtained where the value of procurement reaches the threshold for
supervision.
     The term "joint tendering" referred to in the preceding paragraph means the activity of two or more
suppliers participating jointly in tendering, exec uting jointly the procurement contract after being
awarded, and assuming the joint and several liability thereunder, with a view to contracting for
construction work or to supplying property or services.
     Joint tendering shall only be permitted where it can increase the competition among suppliers or
not restrain competition without due cause.
     A joint tendering by suppliers of the same line of business shall meet the requirements set forth in
each of the sub-paragraphs of Article 14 of the Fair Trade Law.
     Suppliers participating in a joint tendering shall submit a joint tendering agreement along with the
tender.GPA/36
Page 8
     The regulations for joint tendering shall be prescribed by the responsible entity.
Article 26
     For a procurement of a value reaching the threshold for publication, the tender documentation shall
be prescribed in terms of function or performance. In the event that there are applicable international
standards or national standards, the tendering specifications shall be prescribed therewith.
     Technical specification laying down the characteristics of the products or services to be procured,
such as quality, performance, safety, dimension, symbol, terminology, packaging, marking and
labeling, or the processes and methods for their production and assessment procedures prescribed by
the entity, shall not be prepared, adopted or applied with a view to, or with the effect of, creating
unnecessary obstacles to competition.
     There shall be no requirement or reference to a particular trademark or trade name, patent, design
or type, specific source of origin, producer or supplier, unless there is no sufficiently precise orintelligible way of describing the procurement requirements and provided that words such as “or
equivalent” are included in the tender documentation.
Article 27
     For open tendering procedures or selective tendering procedures, an entity shall publish a notice of
invitation to tender or of qualification evaluation on the Government Procurement Gazette, and alsomake it available on the information network. The same shall also apply if the notice is amended.
     The content of a notice, the number of days for publication, means of publication, and the
regulations for publication of the Government Procurement Gazette referred to in the preceding
paragraph shall be prescribed by the responsible entity.
     Procuring entities shall estimate the number of procurement to be conducted and the value of each
procurement. The budget and the estimated value of a procurement may be disclosed in the tender
notice.
Article 28
     For open tendering procedures or selective tendering procedures, an entity shall prescribe a
reasonable time-limit for submission of tenders, which shall not be less than 14 days for tenderingfrom the date of publishing a notice or of invitatio n to tender. Within the prescribed time-limit, the
notice shall also be continuously posted on the entrance of the entity.
    The time-limits for submission of tenders as referred to in the preceding paragraph and the
minimum time periods from the date of publishing a notice to receive documents for qualification
evaluation under selective tendering procedures shall be prescribed by the responsible entity.
Article 29
     Tender documentation for open tendering procedures and the documents for qualification
evaluation for selective tendering procedures shall be made publicly available for free or for sale on
site or via mail, from the date of publication through the deadline for submission of tender or the
deadline for receipt of documents. The names of  suppliers to whom the tender documentation is
provided for free, for sale, or via mail may not be recorded.
     The documentation for selective tendering procedures shall explicitly enumerate the reasons of and
the need for supplier qualification.
     The documentation referred to in paragraph one shall include all the information required for the
submission of tenders by suppliers.
Article 30
     In conducting a procurement, an entity shall provide in the tender documentation that a tenderer
shall deposit a bid bond, and that the winning tenderer shall deposit a guarantee bond or, in lieu
thereof or in addition thereto, other guarantees, except for the following circumstances:GPA/36
Page 9
1.  Where the procurement is for services, the bid bond or guarantee bond may be
waived;
2.  Where the procurement is for constructi on work or property of a value not reaching
one tenth of the threshold for publication, the bid bond or guarantee bond may bewaived; or
3.  Where there is only one supplier invite d for tendering, the bid bond may be waived.
     The bid bond and guarantee bond shall be deposited by cash, bank’s promissory note, bank’s
check, certified check, bearer’s government bond, certificate of deposit pledged to the procuring
entity, irrevocable stand-by letter of credit issued or confirmed by a bank, or bank guarantee or
insurance policy under which the bank or insurer sh ares the liability with the tenderer jointly and
severally.
     The types, amounts, and ways of deposit, refund, and termination of bid bond, guarantee bond, and
other guarantees shall be prescribed by the responsible entity.
Article 31
     After award of contract, an entity shall refund or return, without interest, the bid bond deposited by
unsuccessful tenderers. The same shall also apply if the tendering procedure is nullified.
    The entity may provide in the tender documentation that the bid bond deposited shall not be
refunded or returned to the tenderer and the refunded or returned bid bond shall be recovered if there
is any of the following circumstances:
1.  The tenderer used forged or altered documents to tender;
2.  The tenderer borrowed the name or  certificate of another to tender;
3.  The tenderer assumed the name or certificate of another to tender;
4.  The tenderer withdrew its bi d before expiration of the bid;
5.  After opening of tenders, the tenderer refu sed to be awarded or refused to execute a
contract;
6.  After being awarded, the tenderer faile d to deposit sufficient guarantee bond or to
provide other guarantees sufficiently within a prescribed time-limit;
7.  A bid bond has been served as a guarantee bond; or8.  The responsible entity found that there is a violation of laws and regulations which
affects the fairness of the procurement.
Article 32
     An entity shall prescribe in the tender documentation the causes not to return the guarantee bond
and the interest accruing thereon, or the circumstances under which the liability of a guarantor arises,
and also stipulate for the said circumstances the liability for breach of contract, the extent to which the
guarantee bond can be offset, and the liability of the guarantor.
Article 33
     The tender shall be submitted in writing and sealed, by mail or personal delivery, and at the
procurement entity or any designated place before the deadline for tendering.
     The suppliers may use electronic devices to send the tender referred to in the preceding paragraph;
provided that it is explicitly permitted in the tender documentation, and a formal written tender is
submitted subsequently before a prescribed deadline.GPA/36
Page 10
     The entity may provide in the tender documentation that a tenderer is permitted to amend or
supplement its tender before opening of tenders as long as the amendment or supplement does not
involve the essential parts of the contract.
Article 34
     In conducting a procurement, an entity shall keep confidential the content of the tender
documentation before publishing the tender notice, except for the need of conducting a public
presentation or soliciting reference data or information from suppliers.
     In conducting a procurement, an entity shall not disclose, before opening of tenders, the
government estimate, the names and number of the suppliers which have obtained the tender
documentation or submitted a tender and any other relevant information which may result in
competition restraint or unfair competition.
     The government estimate shall be kept confidential till award of contract even after opening of
tender. The government estimate shall be disclosed after award of contract except for special
circumstances. The entity may, however, basing on actual needs and prior approval of the superior
entity, disclose the government estimate in the tender documentation.
     Unless otherwise required for official use or provided for in the relevant laws and regulations, the
tenders submitted by suppliers shall be kept confidential by the entity.
Article 35
     An entity may provide in the tender documentation that a supplier is allowed to submit before
award of contract an alternative technology, t echnical methodology, materials, or equipment to
shorten construction period, save expenditure, or increase the efficiency, provided that the original
function requirement is not impaired.
Article 36
     In conducting a procurement, an entity may prescribe basic qualifications of tenderers based upon
actual needs.
     For a special or large procurement which must be performed by suppliers of substantial
experience, performance record, manpower, financial capability, equipment, etc., specificqualifications may be prescribed for tenderers.
     The qualification of and the qualification documents to be submitted by foreign suppliers may be
prescribed separately in the tender documentation based upon actual needs. A notarized or certified
Chinese translation shall be attached to the qualification document as above required.
     The scope and criteria of the basic qualifications referred to in paragraph one and the specific
qualifications and the special or large procurement referred to in paragraph two hereof shall be
prescribed by the responsible entity.
Article 37
     An entity shall not restrain competition unduly and shall only prescribe the qualifications essential
to contract performance in prescribing the qualifications referred to in the preceding Article.
     The tender submitted by a supplier whose qualification does not meet the requirements referred to
in the preceding Article shall not be accepted, unless the supplier submits in lieu a bank guarantee oran insurance policy under which the bank or insurer shares the performance and compensatory
liability with the supplier jointly and severally.
Article 38
     A political party and a supplier which is affiliated to a political party shall not participate in
tendering.GPA/36
Page 11
     The provisions of “Affiliated Enterprise” prescribed in the Company Law shall apply mutatis
mutandis  to the aforementioned supplier who is affiliated to a political party.
Article 39
     In conducting a procurement, an entity may entrust to a supplier according to this Law the project
management related to planning, design, supply, or contract performance.
     The responsible person or partner of the supplier entrusted with the project management shall not
at the same time serve as the responsible person or partner of the supplier handling the planning,
design, construction or supply.
     The supplier entrusted with the project management and the supplier handling the planning,
design, construction or supply shall not be affiliated to each other or affiliated to the same other
enterprise.
Article 40     An entity may entrust another entity of professional capacity to conduct its procurement.
Article 41
     Where a supplier has questions about the content of the tender documentation, such questions shall
be submitted in writing to the entity before th e deadline set forth for such purpose in the tender
documentation.
     The entity shall give a written reply to the inquiring supplier before the deadline set forth for such
purpose in the tender documentation, and may publish such reply if necessary. In case that any
amendment or supplement to the content of the tender documentation must be made as a result of such
questions, the entity shall publish a notice concerning such amendment or supplement, or notify each
supplier in writing for cases of soliciting technical proposals and price proposals under selectivetendering procedures and for cases of limited tendering procedures, and may extend the time-limit for
tendering if required. The aforementioned requirements shall also apply in the event of amending or
supplementing the content of tender documentation on the entity’s own initiative.
Article 42
     For open tendering procedures or selective tendering procedures, an entity may apply multi-step
opening of tenders with respect to the qualification, technical specification, and price.
     In conducting multi-step opening of tenders, an entity shall publish a notice at the first step and
may omit publishing invitation notices at the subsequent steps.
Article 43
     An entity conducting a procurement may adopt one of the following measures and specify the
measures in the tender documentation, except otherwise prohibited by the treaties or agreements to
which this nation is a party.
1. To request from a tenderer commitments to procure goods locally produced to a certain
extent, to transfer technology, to have inward in vestment, to facilitate local export, or to take
any other similar measures, and include such commitments in evaluation, provided that theyshall not weight over one third in the evaluation; or
2. Where a foreign supplier’s tender is the lowest tender according to the principle of contract
award prescribed in Article 52, a domestic supplier may be awarded at such a price bypreference.
Article 44
 Where a foreign supplier’s tender is the lowest bid according to the principle of contract award
prescribed in Article 52, an entity conducting a particular procurement may, except otherwise
prohibited by the treaties or agreements to which this nation is a party, award by preference to a localGPA/36
Page 12
supplier which supplies property with at least 50% value added locally, or supplies construction work
or service locally, provided that the awarded pri ce shall not exceed the aforementioned lowest bid by
a certain percentage.
     The scope, percentage, and implementation rules for the preference prescribed in the preceding
paragraph shall be prescribed by the responsible entity together with the relevant competent entities,provided that no preference shall be given except for policies of employment or industrial
development, and there shall be no percentage exceeding 3% or period of preference exceeding five
years.
Chapter III
Award of Contracts
Article 45
     Unless otherwise provided for in laws or regula tions, 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 Law, an entity shall set a government estimate for a
procurement. The government estimate shall be itemized based upon the drawings, specifications, andcontract 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 proce dures, prior to the opening of tenders;
2.  In the case of selective tendering procedur es, prior to the opening of tenders for the
step next to the qualification evaluation; or
3.  In the case of limited tendering proce dures, prior to the conducting of price
negotiation with one single supplier or price comparison among two or moresuppliers.
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 awarde d to the most advantageous tender; or
3.  For small procurement.
     For procurement under sub-paragraphs one and two 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 the amount is not
set by a local government, the amount set by the central government shall govern.GPA/36
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Article 48
     In conducting a procurement pursuant to this Law, 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 tenders, except for any of the following circumstances under which tenders may not be
opened or awarded.
1.  Where the content of tender docume ntation 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 pos tponed 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 la ws and regulations as required by Article 85
hereof;
6.  Where there is an emergency;7.  Where the plan for procurement is changed or cancelled; or8.  For any other special circumstances as  determined by the responsible entity.
     Where the opening of tenders cannot be proceeded due to the lack of three or more tenders, there
shall be a second tendering and the time-limit for such tendering may be shortened to half of the time-
limit of the first tendering, provided that the shortened period shall not be less than ten days, and in
addition the requirement of three tenders of the preceding paragraph shall not apply for the second
tendering. For a procurement of a value reaching the threshold for supervision, it shall be approved bythe superior entity in advance.
Article 49
     In conducting 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 any of the circumstances specified in each sub-paragraph of paragraph oneof 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, or 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 inconsis tent with the requirements of the tender
documentation;
3.  The tenderer borrows or assumes any other’s name or certificate to  tender, or tenders
with forged documents or docume nts with unauthorized alteration;
4.  The tenderer forges documents or a lters documents without authorization in
tendering;
5.  The tenderer has any activities in breach of  laws or regulations which impairs the
fairness of the procurement; or
6.  The tenderer is prohibited from participa ting in tendering or being awarded of any
contract pursuant to paragra ph one of Article 103 hereof.
     When the circumstance referred to in the preceding paragraph 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 exceptGPA/36
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where the revocation of the award or the termination or rescission of the contract is against public
interest, and an approval has been obtained from the superior entity.
     Where the situation of not opening or not awarding a contract as referred to in paragraph one
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 lowesttender 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 fort h in the tender documentation and has 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 pr escribe in the tender documentation that
contracts may be awarded to different tenderers by different items or differentquantities, but the spirit of competition as to the lowest price or the mostadvantageous tender shall be respected.
     The preceding sub-paragraph three shall only be applied to cases where tenderers are allowed to
submit tenders for construction work, property, and services with different qualities and therefore the
preceding sub-paragraphs 1 and 2 are not suitable for application..
     Tenderers need not be notified to be present upon the award of contract; provided that 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 reque st the tenderer to reduce the price once. If the
reduced price still exceeds the government estimat e, 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 theGPA/36
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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 sub-paragraph 2 of paragraph 1 of Article 52, and
the lowest tender which meets the requirements set forth in the tender documentation exceeds thebudget 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 sub-paragraph 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 dividedby 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 comprehensiveevaluation to determine the most advantageous tende r. 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 rules 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 sub-paragraph is amended,GPA/36
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all tenderers permitted to participate shall be informed of such amendment in
writing; and
5.  Upon completion of negotiation, tendere rs referred to in the preceding sub-
paragraph 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 bond/guarantee 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, orthere is any other extraordinary situations. If such tenderer fails to submit a reasonable explanation or
a bond/guarantee 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     For procurement conducted in accordance with selective or limited tendering procedures, the
contract price shall not be higher than the lowest price the supplier offered for the same construction
work, property, or service under the same market conditions.
     A supplier shall not induce the procuring entity to sign a contract by giving others commission,
percentage, brokerage, kickback, or any other benefits.
     Where a supplier is in breach of the requirements of the two preceding paragraphs, the entity may
terminate or rescind the contract, or deduct the over-valued portion and any other benefits from thecontract amount.
     The provisions of the three preceding paragraphs shall apply mutatis mutandis  to procurement
where the tenders received are less than three.
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 proc uring entity to the responsible entity periodically.
Chapter IV
Administration of Contract Performance
Article 63
     The essential requirements for various types of procurement contracts shall be prescribed by the
responsible entity by taking the international and domestic practices into consideration.GPA/36
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     In contracting for the services of planning, design, supervision, or management, the contract shall
stipulate the responsibility of the supplier in the event that erroneous planning and design,
irresponsible supervision, or poor management has caused damages to the entity.
Article 64
     It may be provided in a procurement contract that when continuous performance by the supplier
pursuant to the contract is against the public interest  due to policy change, an entity may, with the
approval of a superior entity, terminate or rescind su ch procurement contract, in part or in whole, and
compensate the supplier for any loss resulting therefrom.
Article 65
     The contractor shall perform the contact for construction work or services by itself and may not
assign the contract to others.
     The term of contract assignment referred to in the preceding paragraph means an arrangement
under which a contractor makes another supplier perform all or the major part of the contract for it.
        The preceding two paragraphs shall apply mutatis mutandis  to a contract for property not readily
available and required to be supplied through certain performance process.
Article 66
     In the event that a contractor is in breach of the requirement of paragraph 1 of the preceding
Article by assigning a construction work to another supplier, the entity may terminate the contract,
rescind the contract, or forfeit the contractor’s guarantee bond, and in addition claim for damages.
     The assignee referred to in the preceding paragraph and the contractor shall bear the liabilities for
performance and damages jointly and severally. The foregoing shall also apply to the cases of re-
assignments.
Article 67
     A contractor may subcontract the contract to other suppliers. The terms “subcontracting” means an
arrangement not constituting an assignment but purs uant to which another supplier performs a part of
the contract for the contractor.
      In the event that a subcontract has been reported to the entity for file and that the subcontracted
part has been pledged by the contractor to the subcontractor, the subcontractor will have the mortgage
right under Article 513 and the claim based on addition under Article 816 of the Code of Civil
Procedure in terms of the claim of the contractor for the contract value or compensation against the
entity.
     Under the circumstance referred to in the preceding paragraph, the subcontractor for the part
subcontracted to it shares the liabilities of warranty with the contractor jointly and severally.
Article 68     The claim of a contractor against an entity for contract value or compensation under a contract,
whether in whole or in part, may be the object of a pledge.
Article 69
     In case that an entity and a supplier cannot reach an agreement in respect of a dispute arising from
or in connection with the performance of a contract, the dispute may be referred to the ComplaintReview Board for Government Procurement for mediation. When the application for mediation hereof
is filed by the supplier, the entity shall not reject it.
     The requirements of mediation prescribed in the Code of Civil Procedure shall apply mutatis
mutandis  to the procedures and effect of the foregoing mediation conducted by the Complaint Review
Board for Government Procurement.GPA/36
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Article 70
     An entity conducting a procurement for construction work shall stipulate the responsibility of the
supplier for quality control, environment protection, as well as safety and hygiene of the work, and
shall also establish inspection procedures and standards for the major items of the construction work.
     The entity may effect an inspection by segment during the supplier's performance of the contract,
and the outcome of such inspection may be used as a basis for the acceptance.
     The two preceding paragraphs shall apply mutatis mutandis  to a contract for property or services
not readily available, and required to be performed through certain performance process.
Chapter V
Inspection and Acceptance
Article 71     An entity conducting a procurement for construction work or property shall set a time-limit for
inspection and acceptance, and may conduct partial acceptance.
     The inspection and acceptance shall be conducted by an appropriate chief inspector, which is
appointed by the head of the entity or his/her authorized personnel, and the unit taking or using the
work or property shall be informed to accompany the chief inspector for inspection and acceptance.
     Personnel of the procurement unit of an entity shall not act as a chief inspector or an inspector for
samples or materials of the procurement conducted by the unit.
     The provisions of the three preceding paragraphs shall apply mutatis mutandis  to the procurement
for services.
Article 72     In conducting the inspection and acceptance for a procurement, the records thereof shall be made
by the entity and signed jointly by the participating personnel. For any item found not in conformity
with the requirements specified in the contract , drawings and/or samples after inspection and
acceptance, the supplier shall be required, by a notice, to make improvement, remove the rejected
item, re-do the work, or recall or replace the rejected  item within a time-limit. Where the result of the
inspection and acceptance indicates that the non-conforming item is not material and the remaining
items are nonetheless usable, and the entity deems that it is necessary to use such remaining items
before the said non-conformity is corrected, a partial acceptance may be conducted for the remaining
items and the contract value may be paid partially for the accepted portion, subject to the approval by
the head of the entity or his/her authorized personnel.
     Where the result of inspection indicates any non-conformity with the contractual requirements, but
the non-conformity neither hinders the safety or use required nor decreases the general function or thefunction designated by the contract, an acceptance with price-reduction may be conducted under
conditions that the entity has determined that there is no need or it is difficult to make replacement.
Before conducting the foregoing, the entity shall re port the case to the superior entity for approval if
the value of the procurement reaches the threshold for supervision, or to the head of the entity or
his/her authorized personnel if the value of the procurement does not reach the threshold.
     The inspectors may, as they deem necessary, disassemble the covered parts of a construction work
or property for inspection or conduct analytical inspection thereof.
Article 73
     For a construction work or property which has passed the inspection and acceptance, the inspection
and supervision personnel shall sign on the certificate of settlement and acceptance.GPA/36
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     The provision of the preceding paragraph shall apply mutatis mutandis  to the inspection and
acceptance of services.
Chapter VI
Protest and Complaint
Article 74
     For any dispute between an entity and a supplier arising out of the invitation to tender, the
evaluation of tender, the award of contract, the contract performance, or the inspection and
acceptance, a protest or complaint may be filed in accordance with this chapter except for the disputes
of the nature of private law and having been resorted to arbitration, mediation, or civil procedures by
the entity or the contractor.
Article 75     A supplier may, in the period as specified below, file a protest in writing with an entity if the
supplier deems that the entity is in breach of laws or regulations or of a treaty or an agreement to
which this nation is a party (hereinafter referred to as the “Laws and Regulations”) so as to impair the
supplier's rights or interest in a procurement.
1. Where the protest is filed for the conten t of the tender documentation, one quarter of
the period for tendering starting from the da te of publication or invitation to tender
and a segment of less than one day shall be  counted as one day; provided that the
whole period shall not be less than ten days;
2. Where the protest is filed for the in terpretations, subsequent explanations,
amendments or supplements of the tender documentation, ten days from the date of
receipt of the notification from an entity or  the date of public notice given by the
entity; or
3. Where the protest is filed for the procedur es or the outcome of the procurement, ten
days from the date of receipt of the notification from an entity or the date of publicnotice given by the entity; or ten days from the date when said procedures oroutcome are known or can be known if such  procedures or outcome are not notified
or published; provided that the period shall not exceed fifteen days from the date ofthe award of contract for matters of invita tion to tender, the evaluation of tender, or
the award of contract.
     The entity inviting tenders shall make proper disposition and notify the protesting supplier in
writing of such disposition within 20 days from the date of receipt of the protest. In case that such
disposition involves amendment or supplement to the content of the tender documentation, the entity
shall publish a notice concerning such amendment or supplement, or notify each supplier in writingfor cases of soliciting technical proposals and price proposals under the selective tendering procedures
and for cases of limited tendering procedures, and may extend the time-limit for tendering if required.
Article 76
     Where the value of procurement reaches the threshold for publication, a supplier may file a written
complaint with the Complaint Review Board for Government Procurement ("CRBGP") as established
by the responsible entity, or the municipal or the county (city) governments, depending upon the
procurement is conducted at the level of central government or local government, within fifteen daysfrom the date of receipt of the disposition if the supplier objects to the disposition, or from the expiry
of the period specified in paragraph two of the preceding Article if the entity fails to dispose the case
within the period. A local government which does not establish a CRBGP may entrust the responsible
entity to handle the complaint.GPA/36
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Article 77
     The complaining supplier shall prepare a writ ten complaint including the following particulars and
affix its signature or seal thereon:
1.  The name, address and telephone number of  the complaining supplier and the name,
gender, birth date, and domicile or residence of the responsible person;
2.  The entity which handled the protest;3.  The facts and reasons of the complaint;4.  Evidence; and5.  Year, month, and day of the written complaint.
     The complaint can be filed by an agent on behalf of the complainant, and the agent shall submit a
power of attorney indicating the name, gender, birth date, occupation, telephone number and domicileor residence of the agent.
     The provision of Article 70 of the Code of Civil Procedure shall apply mutatis mutandis  to the
situation referred to in the preceding paragraph.
Article 78
     When filing a complaint, the supplier shall also provide a copy of the complaint to the entity. The
entity shall present its response in writing to the competent CRBGP within ten  days from the date of
receipt of such copy.
     The CRBGP shall complete its review within forty days upon receipt of the complaint, and shall
notify the supplier and the entity of its decision in writing. If necessary, the foregoing period may be
extended for another forty days for complaints aris ing out of the invitation to tender, the evaluation of
tender, or the award of contract, or for another thre e months for complaints arising out of the contract
performance or the inspection and acceptance.
Article 79
     A complaint shall not be accepted if it is filed beyond the statutory period or is not in conformity
with the statutory procedures or format. However, if the aforementioned errors can be corrected, the
complainant shall be allowed to make the correction within a specified time-limit. Failure to make the
correction within the time-limit shall render the complaint unacceptable.
Article 80
     The review of a complaint with respect to a procurement may be conducted only with files.
     The CRBGP may, ex officio or upon request, inform a complaining supplier or an entity to present
their opinions orally at a place designated by the CRBGP.
     In conducting a review, the CRBGP may entrus t government authorities, schools, associations, or
persons that have professional knowledge and experience to provide examination services, and may
also call the relevant persons for explanations or re quest the entity or the supplier to provide relevant
documents and materials.
     The CRBGP may collect from the supplier review fees, examination fees, and other necessary
expenses before conducting a review. The schedules of such fees and expenses and the methods ofpayment shall be prescribed by the responsible entity.
     The rules for the review of complaints shall be prepared by the responsible entity and be
promulgated after approval of the Executive Yuan.GPA/36
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Article 81
     A supplier may withdraw its complaint at any time before the service of a review decision. Once a
complaint is withdrawn, the complainant is barred from submitting another complaint in respect of the
same matter.
Article 82     A review decision prepared by the CRBGP shall be in writing, contain the facts and reasons, and
indicate whether the procurement was conducted by the procuring entity in a manner that is in breach
of Laws and Regulations. Where there is a breach, the CRBGP may recommend to the procuring
entity ways to proceed.
     The CRBGP may, before completion of review, notify the procuring entity to suspend the
procuring procedures, if necessary.
     The CRBGP shall take the public interest, the interest of the relevant suppliers, and other relevant
circumstances into account when making a recommendation or notification under the preceding two
paragraphs.
Article 83
     A review decision may be deemed as a decision on an administrative petition or a proposal under
mediation based on its nature, with a time-limit for appeal or objection noted in it.
     Articles 417 and 418 of the Code of Civil Procedure shall apply mutatis mutandis to the latter
situation as referred to in the preceding paragraph.
     Where a time-limit for appeal or objection referred to in paragraph one is not noted or noted
erroneously in a review decision, the time-limit shall be extended to one year.
Article 84     Where a procuring entity deems that a protest or complaint filed by a supplier is justifiable after
reviewing the causes related thereto, the procuring entity shall nullify or change the initial result or
suspend the procurement procedures, except for emergencies or public interest, or where the causes of
complaint or protest are not likely to affect the procurement.
     The procuring entity shall promptly notify the competent CRBGP of any outcome arising from the
action it takes according to the preceding paragraph in response to a complaint.
Article 85
     Where a review decision specifies that the procuring entity is in breach of Laws and Regulations,
the procuring entity shall proceed with a lawful alternative.
     Where the procuring entity does not follow the recommendation made by the CRBGP, it shall
report the case to the superior entity for approval, and the superior entity shall provide a written
explanation with reasons to the CRBGP and the supplier if the superior entity so approves.
     Where the circumstance set forth in paragraph one occurs, the supplier may request the procuring
entity to reimburse the necessary expenses incurred by the supplier for the preparation of tender and
the filing of protest and complaint.
Article 86
     In order to handle the complaints filed by suppliers for procurement at the levels of central
government and local government, CRBGPs established by the responsible entity and the municipal
and the county (city) governments at each level re spectively shall consist seven to fifteen members
selected from persons impartial and of the professional knowledge in legal or procurement affairs and
appointed by the responsible entity or the municipal or county (city) governments. Two of such
members may be high-ranking officials of the responsible entity or the municipal or county (city)governments.GPA/36
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     The CRBGP shall perform its official duties impartially. The rules governing the organization of
CRBGP shall be prepared by the responsible entity and submitted to the Executive Yuan for approval
and promulgation.
Chapter VII
Penal Provisions
Article 87
     A person who commits violence or threat, or administers drugs, or applies hypnosis with the intent
to cause a supplier not to tender or to tender contrary to its real intention, or cause the winning
tenderer to forego the award or to assign or subcontract after award shall be punished with
imprisonment for not less than one year but not more than seven years; in addition thereto, a fine of
not more than three million New Taiwan Dollars may be imposed.
     If death results from the offense specified in the preceding paragraph, the offender shall be
punished with imprisonment for life or for not less than seven years; if serious bodily injury results
therefrom, the offender shall be punished with imprisonment for not less than three years but not more
than ten years; in addition thereto, a fine of not more than three million New Taiwan Dollars may be
imposed.
     A person who commits fraud or uses any other illegal means to make the supplier unable to tender
or cause the opening of tenders to have an incorrect result shall be punished with imprisonment for
not more than five years; in addition thereto, a fine of not more than one million New Taiwan Dollars
may be imposed.
     A person who causes the supplier not to tender or not to proceed with price competition by means
of contract, agreement or other forms of meeting of minds, with the intent to adversely affect the price
of award or to gain illegal benefits, shall be punished with imprisonment for not less than six months
but not more than five years; in addition thereto, a fine of not more than one million New Taiwan
Dollars may be imposed.
     An attempt to commit an offense specified in paragraphs one, three or four is punishable.Article 88
     The personnel of a supplier who is entrusted by an entity to conduct planning, design, project
management, or procurement but imposes improper restrictions as to the tendering requirements of
technologies, technical methodology, materials, or equipment with the intent to gain personal illegal
benefits, and thereby obtains benefits, shall be punished with imprisonment for not less than one year
but not more than seven years; in addition thereto, a fine of not more than three million New Taiwan
Dollars may be imposed. In addition, the foregoing personnel who imposes improper restrictions as tothe qualifications of tenderers with the intent to gain personal illegal benefits and thereby obtains
benefits, shall be subject to the same punishment.
     An attempt to commit an offense specified in the preceding paragraph is punishable.
Article 89
     The personnel of a supplier who is entrusted by an entity to conduct planning, design, project
management, or procurement but discloses or delivers confidential documents, drawings, information,
things, or any other data related to the procurement with the intent to gain personal illegal benefits,
and thereby obtains benefits, shall be punished with imprisonment for not more than five years or
detention; in lieu thereof or in addition thereto, a fine of not more than one million New Taiwan
Dollars may be imposed.
     An attempt to commit an offense specified in the preceding paragraph is punishable.GPA/36
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Article 90
     A person who commits violence or threat with th e intent to cause the personnel of an entity who is
engaged in planning, design, handling, or supervisi on of a procurement, or the personnel of a supplier
who is entrusted by an entity either to provide services of planning, design, or project management of
a procurement or to conduct its procurement, not to decide on matters with respect to the procurementor to decide on such matters contrary to his/her own mind, shall be punished with imprisonment for
not less than one year but not more than seven years; in addition thereto, a fine of not more than three
million New Taiwan Dollars may be imposed.
     If death results from the offense specified in the preceding paragraph, the offender shall be
punished with imprisonment for life or for not less than seven years; if serious bodily injury results
therefrom, the offender shall be punished with imprisonment for not less than three years but not more
than ten years; in addition thereto, a fine of not more than three million New Taiwan Dollars may beimposed.
     An attempt to commit an offense specified in paragraph one is punishable.
Article 91
     A person who commits violence or threat with th e intent to cause the personnel of an entity who is
engaged in planning, design, handling, or supervisi on of a procurement, or the personnel of a supplier
who is entrusted by an entity either to provide services of planning, design, or project management of
a procurement or to conduct its procurement,  disclose or deliver the confidential documents,
drawings, information, things, or any other data re lated to the procurement, shall be punished with
imprisonment for not more than five years; in addi tion thereto, a fine of not more than one million
New Taiwan Dollars may be imposed.
     If death results from the offense specified in the preceding paragraph, the offender shall be
punished with imprisonment for life or for not less than seven years; if serious bodily injury results
therefrom, the offender shall be punished with imprisonment for not less than three years but not more
than ten years; in addition thereto, a fine of not more than three million New Taiwan Dollars may be
imposed respectively.
     An attempt to commit an offense specified in paragraph one is punishable.
Article 92
     Where a representative, agent, employee, or any other staff of a supplier who, in performing
his/her duty, commits an offense specified in this Law, the wrongdoer shall be subject to the
punishment prescribed in the relevant Articles; in addition thereto, the supplier shall also be subject to
the fine prescribed therein.
Chapter VIII
Supplemental Provisions
Article 93
     An entity may execute an inter-entity supply contract with a supplier for the supply of property or
services that are commonly needed by entities.
Article 94
     An entity conducting an evaluation shall establish an evaluation committee in which there shall be
five to seventeen members and at least one third of the members shall be experts and scholars. A
recommended roster of experts and scholars shall be prepared jointly by the responsible entity, the
Ministry of Education, the Ministry of Examination, and other relevant entities.
     The rules governing the organization of and the rules for review by the evaluation committee shall
be prescribed by the responsible entity.GPA/36
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Article 95
     It is preferred for an entity to conduct its procurement by professional procurement personnel. The
rules for the above shall be prescribed jointly by the Executive Yuan and the Examination Yuan.
Article 96     An entity may provide in the tender documentation that preference shall be given to a product
which has been permitted to use a label of environment protection approved by the government, and
in addition has the same or similar functions. The said preference may include a price preference of
not exceeding ten percent. Such preference shall also be given where a product or its raw material is
manufactured, used, and disposed in line with the requirements of recycling materials, retrievableness,
low pollution, or energy-saving.
     The preceding paragraph shall apply mutatis mutandis  to other products which either increase
social benefits or reduce social costs, and have the same or similar functions required.
     The categories and coverage of products referred to in the two preceding paragraphs and the
implementing rules thereof shall be jointly prescrib ed by the responsible entity, the Environmental
Protection Administration of the Executive Yuan, and other competent entities.
Article 97     The responsible entity may take into account the requirements of the relevant laws and regulations
to adopt measures assisting small and medium enterprises in contracting or subcontracting to the
extent not less than certain percentage of government procurement in value.
Article 98
     A winning tenderer who hires more than 100 employees locally shall employs the handicapped or
the aborigines to a minimum of two percent of the total number of employees during the term of
contract performance; otherwise, shall pay a fee in substitute.
Article 99
     Unless otherwise provided for by other laws, the provisions of this Law shall apply to the
procedures under which an entity selects an investor to construct or operate a project approved by thecompetent authority to be open for private inve stment, provided that the project is one in
transportation, energy, environment protection, tourism, etc., and planned or approved by the
government.
Article 100
     The responsible entity, the superior entity, and the accounting entity may supervise an entity at any
time concerning the progress of procurement, inventory, or service conditions of the subject procured,
and may also demand the entity to submit a report.
     An entity may transfer its surplus property which is still usable to other government agencies or
public schools without charge.
Article 101
     Where a procuring entity finds that a supplier has any of the following circumstances, the entity
shall notify the supplier the facts and reasons related thereto, and indicate with a note in thenotification that it will be published on the Government Procurement Gazette if the supplier does not
file a protest:
1. Where the supplier allows any others to borrow its name or certificate to participate
in a tender;
2. Where the supplier assumes any other’s name or certificate to tender, or tenders with
forged documents or documents  with unauthorized alteration;GPA/36
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3. Where the supplier has substantially reduced  the work or materials without obtaining
a prior approval;
4. Where the supplier has been proved to  forge or alter without authorization
documents related to tendering, c ontracting, or contract performance;
5. Where the supplier participates in tende ring during the period when its business
operation has been suspended by a disciplinary action;
6. Where the supplier has committed any of the offenses prescribed in Articles 87 to 92
hereof, and has been sentenced without pr obation by a court of the first instance;
7. Where the supplier refuses to execute or perform a contract without due cause after
award;
8. Where a contract is rescinded or terminat ed for causes attributable to the supplier;
9. Where an inspection indicates any non-conf ormity with the contractual requirements,
and the supplier fails to file a protest or complaint, or bring an action or takemeasures according to the relevant requirements within a time-limit specified innotice;
10. Where the supplier is in breach of the requirement of Article  65 by assigning a
contract to others;
11.Where the time-limit for contract performan ce is seriously delayed due to causes
attributable to the supplier;
12.Where the supplier is under the proce dure of reorganization or bankruptcy; or
13.Where the supplier seriously discriminat es women, aborigines, or personnel of
disadvantaged groups.
Article 102
     A supplier who deems that the notification made by an entity according to the preceding Article is
in breach of this Law or untrue may file a written protest to the entity with in twenty days upon receipt
of the notification.
     The supplier may file a written complaint with the competent CRBGP within fifteen days from the
date of receipt of the disposition of the protest referred to in the preceding paragraph if the supplier
objects to the disposition, or from the expiry of a period of twenty days starting from the date the
entity receives the protest if the entity fails to dispose the case within such period, no matter whether
the procurement is of a value reaching the threshold for publication or not.
     Where an entity has notified a supplier pursuant to the preceding Article and the supplier does not
file a protest or complaint within the prescribed time-limit, or the complaint filed is not accepted, or
the review decision indicates that the notification is not in breach of this Laws or untrue, the entity
shall immediately publish the name of the supplier  and the relevant circumstance on the Government
Procurement Gazette.
     The provisions prescribed in Chapter VI hereof shall apply mutatis mutandis  to the handling of
protests and complaints provided for in paragraphs one and two.
Article 103
     A procuring entity shall provide in a tender documentation that a supplier whose name has been
published on the Government Procurement Gazette pursuant to paragraph three of the preceding
Article is prohibited from participating in tendering, or being awarded or sub-contracted within thefollowing periods:GPA/36
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1. Three years from the date of publica tion arising from circumstances of sub-
paragraphs 1 to 5 of Article 101 hereof, or a sentence of imprisonment under sub-
paragraph 6 of the same Article; provi ded that under the circumstance of sub-
paragraph 6 of Article 101, the period shall be suspended where there is a final and
irrevocable “not guilty” verdict; or
2. One year from the date of publication ar ising from circumstances of sub-paragraphs
7 to 13 of Article 101 here of; or imposition of deten tion, fine, or probation under
sub-paragraph 6 of the same  Article; provided that the period shall be suspended
where the supplier has been completed its reorganization procedure.
     Where there is a special need for an enti ty to conduct a procurement without following the
requirement of the preceding paragraph, the entity may do so with an approval from its superior
entity.
Article 104
     Procurement conducted by military entities shall follow the provisions of this Law except where
procurement is for weapons, ammunition, war supplies, or related to national security or national
defense and has one of the following situations:
1. Where this nation is confronted with a war, in mobilization for a war, or in a war,
this Law may not apply;
2. Where the procurement is a confidential or strictly confidential one, Articles 27, 45
and 61 hereof may not apply;
3. Where there is an emergency which may jeopardize an important military mission,
Articles 26, 28, and 36 may not apply; or
4. Where there is only one supplier invited fo r tendering, the first sentence of paragraph
3 of Articles 26 may not apply.
     The coverage of procurement referred to in the preceding paragraph and the implementation rules
thereof shall be prescribed jointly by the responsib le entity and the Ministry of National Defense, and
be sent to the Legislative Yuan for reviewing.
Article 105
     The provisions of invitation to tender and award of contracts of this Law may not apply to the
following procurement:
1. Where the procurement is an emergent on e in response to wars, natural disasters,
epidemics, or economic or  financial crises confronted by this nation;
2. Where the procurement is an emergent one in response to imminent danger to the
life, body, health, or property of the people;
3. Where the procurement is an acquis ition of property or service between
governmental entities and approved by an immediate superior entity; or
4. Where the procurement from an interna tional organization, a foreign government, or
any of their authorized institutions is conducted in accordance with a treaty oragreement to which this nation is a party and which has specific provisions for the
invitation to tender a nd award of contracts.
     Where it is necessary to prescribe implementin g rules for procurement referred to in the preceding
paragraph, the rules shall be prescribed by the responsible entity.
Article 106GPA/36
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     Except otherwise prohibited by the treaties or agreements to which this nation is a party, a
procurement conducted by an entity stationed abroad either for itself or as agent may be exempt from
the provisions of the following sub-paragraphs in response to local circumstances or the constraint of
local practices, provided that the ways to handle  the matters referred to in the following sub-
paragraphs 2 through 4 shall be specified in the tender documentation.
1. The publication on the Government Proc urement Gazette under Article 27 hereof;
2. The bid bond and guarantee bond under Article 30 hereof;3. The granting of priority in price reduc tion, and price reduction and comparison under
paragraph one of Article 53 and Article 54 hereof; and
4. The protest and complaint set forth in Chapter VI hereof.
     Where a procurement referred to in the preceding paragraph is of a value reaching the threshold for
supervision, a report explaining the reasons shall be submitted to the superior entity together with
relevant documents for file afterwards.
Article 107
     An entity shall, in addition to the documents kept pursuant to the requirements of the Accounting
Law or other laws, keep a copy of the procurement documents at a place designated by the
responsible entity.
Article 108
     The central, municipal, and county (city) governments shall each establish procurement control
unit(s) to monitor and supervise procurement affairs.
     The rules governing the organization as well as the rules of operation of the control unit referred to
in the preceding paragraph shall be prescribed by the responsible entity, and submitted to theExecutive Yuan for approval and promulgation.
Article 109
     For procurement conducted by an entity, an auditing entity may audit it at any time.
Article 110
     The Controller of the Directorate-General of Budget, Accounting and Statistics, the Controller of
the Ministry of Audit, or the Prosecutor of the Ministry of Justice may bring an action, join the parties
of an action, or appeal on behalf of an entity for a procurement case.
Article 111
     An entity shall report annually to the responsible entity the service condition and the efficiency
analysis of a subject procured in a large procurement during the service period, and the responsibleentity may send its personnel to inspect for verification.
     The responsible entity shall have an annual efficiency analysis for the important procurement that
have been done, and the outcomes shall be published on the Government Procurement Gazette except
those shall be confidential.
Article 112     The responsible entity shall prescribe ethics codes for the procurement personnel.
Article 113
     The implementation rules of this Law shall be prescribed by the responsible entity.
Article 114
     This Law shall take effect one year after promulgation.GPA/36
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Note: In case of discrepancies between the Chinese version and this English version, the Chinese
version shall prevail.
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