From July lst, 2007, BOT has served government agencies and government-owned enterprises in the respect of domestic and overseas purchases. Both have to be done in accordance with the provisions of Government Procurement Law. Under this Law the tendering procedures for procurement include open tendering procedures, selective tendering procedures, and limited tendering procedures.
The term “open tendering procedures” means the procedures under which a public notice is given to invite all interested suppliers to submit their tenders.
The term “selective tendering procedures” means the procedures under which public notice is given to invite all interested suppliers to submit their qualification documents for pre-qualification evaluation basing upon specific qualification requirements and, after such evaluation, the qualified suppliers are invited to tender.
The term “limited tendering procedures” 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.
BOT's overseas procurement covers a wide variety of merchandise. The major items include the turn-key plants, power generation equipment, harbor facilities, telecommunications equipment and systems, trucks and cars, mineral and agricultural products, fisheries, and animal husbandry.
The operating procedure is generally taken as official and typical and is briefly described as follows:
(1). Preparation of Invitation Documentation
Upon receipt of a procurement authorization from a government agency or enterprise (the end-user), BOT will first review the end-user’s specifications with special terms and conditions to ensure the suitability for a tender from the points of view of government regulations and international commercial practice.
(2). Public Notice of an Invitation to Tender
For open tendering procedures or selective tendering procedures, BOT will publish a notice of invitation to tender or of qualification evaluation on the GOVERNMENT PROCUREMENT GAZETTE. The time-limits for submission of tenders from the date of publishing a notice to receiving documents very with the value and contents of the procurement normally, a period of 14 to 40 days is allowed. For a tender with complicated specifications, 60 days will be allowed.
(3). Submission of Tenders
All prospective tenders are each required to use BOT Invitation, Tender and Contract form that is available at cost at BOT’s office in Taipei. Prices shall be quoted in U.S. dollars and/or some other foreign currency or currencies specified in Invitation. The tender shall be submitted to BOT before the deadline for tendering. Any tender that reaches BOT after the deadline will not be considered.
(4). Requirement for a Bid Bond
Unless otherwise specified, a bid bond in a sum of not less than five percent of the total tender price is required. The bid bond shall be deposited by cash, bank’s promissory note, bank’s check, certified check, bearer’s government bond of ROC, a certified 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 shares the liability with the tender jointly and severally. The bond must reach BOT before the tendering deadline. In case that a stand-by letter of credit is used, it must be issued or confirmed by a foreign exchange bank in Taiwan, R.O.C and also in compliance with the specimen attached to the Instructions for Tendering.
Bid bonds provided by unsuccessful tenderers will be released without interest after announcement of the award of a contract or contracts, but that provided by the winning tenderer after acceptance of performance bond by BOT.
(5). Tender Opening & Tender Evaluation
The end-user shall set a government estimate before the opening of the tenders. BOT's purchasing official will publicly open all the tenders received and read out the essential points of each tender, such as names of the tenderer and the manufacturer, source of supply, price and shipment date, etc. Tenderers and their suppliers or manufacturers are always welcome to attend the opening of tenders. After then, the end-user will be responsible for the evaluation of specifications contained in the tenders, while BOT the terms and conditions. Tenders of simple contents may be evaluated on the spot and then a contract will be awarded to the winning tenderer. Sometimes clarification is sought to ensure the acceptability of the tenders before any decision is made. BOT will record all the opening processes of each tender and provide the end-user and supervision personnel with a copy of the record.
(6). Award of a Contract
For comparison of tenders, the exchange rates of different foreign currencies published by Bank of Taiwan will be adopted in calculation.
The award of a contract will, in principle, be made to the tenderer whose tender meets the requirements set forth in the tender documentation and is the lowest tenderer within the government estimate. That is to say, the lowest acceptable tenderer may not win the award if his price exceeds the government estimate, but he will usually have a chance to reduce his price to the extent equal to or lower than the government estimate, BOT will then award him a contract. If the reduced price still exceeds the government estimate, BOT 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 the value of procurement reaches the threshold for supervision and the value of the award exceeds the government estimate by more than four percent.
(7). Signing of a Contract
After the award is made, BOT will issue a Notice of Award to the winning tenderer and sign a contract in two originals. One will be retained by BOT and the other will be delivered to the winning tenderer. BOT will proved the end-user and its superior entity with a duplicate of the contract. Request for a change of specification or terms is usually discouraged unless it is found necessary and justified by all parties concerned usually upon completion of a lengthy process of evaluation and/or discussion.
(8). Requirement for a Performance Bond
Usually the contractor is required to deposit a performance bond in a sum of not less than five percent of the total contract price within eighteen calendar days after the date of BOT's Notice of Award.
The performance bond shall also be posted in one of the forms enumerated for the bid bond except that the validity and contents of the stand-by L/C are somewhat modified to meet the requirements of contract. As a rule, the performance bond will be released 6 months after the last shipment date indicated in the contract. In some cases, the performance bond will not be released until the goods delivered and the service rendered have successfully passed the end-user's final acceptance. Such a special requirement, if any, is always made known to all tenderers before they participate in the tender.
(9). Opening of a Letter of Credit (L/C)
Generally speaking, payment for contractual supplies is made to the contractor or his designated party by an irrevocable at sight letter of credit.
Upon receipt of an acceptable performance bond, BOT will, on behalf of the end-user, apply for an irrevocable L/C in favor of the beneficiary designated by the contractor. If a confirmed L/C is required, the contractor or the L/C beneficiary will have to pay the confirmation charge. The contractor is recommended to comply with the terms and conditions stipulated in the L/C so that payment can be effected without problem.
(10). Disposal of Documents and Lodging of a Claim
The L/C beneficiary shall provide BOT with documents in two ways: one by airmail directly and the other through banking channels; BOT will review them upon receipt.
If those received from the L/C opening bank are acceptable, BOT will send them to the end-user for taking delivery of the contractual supplies. If there is any discrepancy found among the documents, BOT will make judgment to accept or reject it. In some cases, BOT will have to consult with the end-user for their comments on special discrepancy or discrepancies before making judgment.
If any defect, damage, shortage, or non-conformity with the contractual specifications is found upon receiving the goods, the end-user will notify BOT to lodge a claim against the party concerned. The contractor under claim is urged to entertain BOT’s claim by repair, replacement or compensation as soon as possible unless his reason for immunity is justified and accepted.
If you wish to start or develop your business with ROC government agencies and enterprises through BOT, you are suggested to designate a reliable agent or representative in Taiwan, ROC to watch for tender opportunities and keep you informed of the tendering procedures. You may seek for a reliable agent or representative in Taipei to take care of your interest in BOT procurement activities by asking for advice from:
The Importers & Exporters Association of Taipei
350 Sung-Kiang Road
Taipei 104, Taiwan R.O.C.
Attn: Business Section
Tel: 886-2-25421977 or 886-2-25813521
Telefax:886-2-2536-3328 or 886-2-25423704
China External Trade Development Council
Taipei 105, Taiwan R.O.C.
Should you have any questions about overseas procurements handled by BOT, please feel free to contact:
Bank of Taiwan
Department of Procurement
45, Wu-Chang St. Sec. 1,
Taipei 100, Taiwan R.O.C.
Attn: Planning Section
Telefax: 886-2-2382-2010 or 886-2-2312-1277
BOT Procurement Department will be pleased to answer your questions promptly and in a way to your satisfaction.