Tendering Procedures for Taiwan’s Government Procurement Act
● Public Review of Tender Documentation
According to Taiwan’s Government Procurement Act, the documentation for a Request For Quotation (RFQ), or Invitation To Bid (ITB), shall be posted for public review in an office designated by the client. The ITB, which includes the notice of tender, specifications, design drawings, bill of quantity and draft contract, can also be downloaded in Chinese from the PCC’s government procurement web site. This mechanism for public review allows an opportunity for feedback from any concerned entities regarding modifications or clarifications of the specific terms and conditions, included or omitted, and other aspects of the contents of the ITB. The objective is to allow for comment and modifications deemed appropriate by the client in order to avoid any unnecessary disputes at a later date.
● Open Tender
The tender is formally announced. The tender period is to last at least 14 days, according to the GPA. The procurement entity can determine which bidding conditions meet their needs for local or foreign supply of products and/or services.
● Selective Tender
For complicated or difficult procurements, the client can opt to use the selective bid method to pre-qualify at least three prospective bidders in the first round. Only those firms that pass the first round are qualified to proceed. If less than three bidders participate in the first round of an international open bid, the procurement entity must cancel the bid and re-tender. When re-tendering, the period for bid acceptance is at least 10 days. The number of bidders is not regulated and can be less than three.
● Limited Tender
If there is no bidder, the client can use the limited bid method. In this case, the client does not have to announce the tender to the public and can negotiate directly with one or two suppliers to fulfill the procurement.
● Lowest Bid
Awarding tenders to the lowest bidder. It is the most commonly used practice.
● Most Advantageous Bid
To procure engineering services and turn-key contractors, tenders are increasingly being awarded to the firm presenting the “most advantageous” bid. In this scenario, an evaluation committee is organized. The committee will then set the evaluation criteria. Qualified bidders must provide a proposal detailing how they plan to execute the project and will usually be invited to make a presentation. The committee scores and ranks every bidder in order to determine which will be awarded the contract.