7. Exemptions to Competitive Bidding
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7. Exemptions to Competitive Bidding Start Comparison
a. Are there any exemptions to competitive bidding, i.e. under what conditions is a direct award/single sourcing permissible?

Except as otherwise stated in Section 3(a) or where otherwise prohibited by the treaties or agreements to which Taiwan is a party, Articles 43 and 44 of the GPL stipulate the exemptions to competitive bidding by specifying the provisions which are preferable to domestic bidders or suppliers.

According to Article 43 of the GPL, the procurement entity conducting procurement may specify one of the following measures in the tender documentation:

  • to request from a tenderer commitments to purchase goods locally produced to a certain extent, transfer technology, have inward investment, facilitate local exports, or take any other similar measures, and include such commitments in the evaluation, provided that they do not make up more than one-third of the evaluation
  • 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 this price by preference.

Pursuant to Article 44 of the GPL, 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 where otherwise prohibited by the treaties or agreements to which the nation is a party, award by preference to a local supplier which supplies items with at least 50% of its value added locally, or supplies construction work or services locally, provided that the awarded price does not exceed the aforementioned lowest bid by a certain percentage. No preference should be given except when the preference meets the policies for employment or industrial development, and there should be no percentage exceeding 3% or a period of preference exceeding five years.

b. What are the consequences for violation of the competitive bidding requirement?

Violators of the competitive bidding may face possible criminal liability under Articles 87, 88, 90 and 91 of the GPL. The highest punishment could include up to years of imprisonment depending on the offenses which the violators committed.