The PCC Pre-announced the Draft Amendments to the Government Procurement Act Concerning the Threshold Amount for Publication and the Threshold Amount for Small Procurements

October 2022

Luke Hung and Sally Yang

The threshold amount for supervision, the threshold amount for publication, and the threshold amount for small procurement of a central government agency as prescribed by the Public Construction Commission (hereinafter, the “PCC”) via the Gong-Cheng-Qi-8804490 Circular of April 2, 1999 pursuant to the authorization under Article 12, Paragraph 3, Article 13, Paragraph 3, and Article 47, Paragraph 3 of the Government Procurement Act (hereinafter, the “Act”) have not been adjusted for over 20 years to date.

In view of the fluctuations of consumer prices in Taiwan, in reference to international standards, and in light of procurement efficiency, the PCC promulgated the draft Amendments to the Threshold Amount for Supervision, Threshold Amount for Publication, and the Threshold Amount for Small Procurement of Central Government Agencies under the Government Procurement Act (hereinafter, the “Draft”) on August 22, 2022.  Any opinion on the Draft may be submitted to the PCC by October 21, 2022.

The Draft is summarized as follows:

1. The threshold amount for supervision: this remains unchanged, and the threshold amount for construction and property procurement that should be supervised is NT$50 million, and the threshold amount for service procurement that should be supervised is NT$10 million.

2. The threshold amount for publication: the threshold amount of a construction, property, or service procurement that shall be announced is increased from NT$1 million to NT$1.5 million.

3. The threshold amount for small procurement: the threshold amount for a small procurement by a central government agency is increased from NT$100,000 to NT$150,000.

Since the consumer price level has changed significantly in recent years, whether a procurement project is valued above or below the threshold amount for publication will depend on whether the relevant project can be handled by a limited tendering procedure or by contacting the supplier directly.  If the Draft is adopted, this will streamline the current government procurement process and improve the handling efficiency of procurement to a certain extent.

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