When finalizing a bid based on the most favorable bid, a procuring agency should consider in its evaluation prior termination or rescission of a contract and publication in the Government Procurement Gazette for reasons attributable to the supplier(Taiwan)

2017.5.16
Luke Hung

The Public Construction Commission issued the Gong-Cheng-Qi-10600147370 on May 16, 2017 (hereinafter, the “Circular”) to communicate that when finalizing a bid based on the most favorable bid, a procuring agency should consider in its evaluation prior termination or rescission of a contract and publication in the Government Procurement Gazette for reasons attributable to the supplier.

According to the Circular, when finding a supplier is subject to the circumstances under Article 101, Paragraph 1, Subparagraph 12 of the Government Procurement Law (hereinafter, the “Law”), which provides for “rescission or termination of contract for reasons attributable to the supplier,” a procuring agency shall publish the supplier in the Government Procurement Gazette in accordance with Article 102 after initiating its notification procedure. In addition, such supplier may not participate in a government tender or serve as a bid winner or a subcontractor in a government tender within one year after date of publication pursuant to Article 103, Paragraph 1, Subparagraph 2 of the Government Procurement Law.

In addition, this Circular stressed that under Article 5, Subparagraph 6 of the Rules for Evaluating the Most Favorable Bid, which stipulates: “The evaluation items and sub-items of the most favorable bid may be selected based on the following provisions: …(6) past contractual performance, such as performance records, experience, track records, legal compliance, users’ evaluation, on-time performance efficiency, performance cost control records, labor relations or man-made disasters and incidents, etc.,” a procuring agency which conducts the most favorable bid selection (evaluation) is required to include in its evaluation a supplier’s past contractual performance and access the e-Procurement Network of the Public Construction Commission to check the historical data about suppliers which have been published in the Government Procurement Gazette and with which business dealing has been rejected.