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Discuss the threshold for publication of the Government Procurement Act to promote efficiency of government procurement

The threshold for publication of the Government Procurement Act (hereinafter referred to as “the Act”) is NT$1 million, but it has not been adjusted since the Act was implemented in 1999. To improve the procurement efficiency and respond to the demands from different sectors, the Public Construction Commission (hereinafter referred to as “PCC”) is currently discussing whether to increase the amount or not.

Considering the legislative purpose of procurement openness and efficiency, the Act stipulates loose to strict procurement procedures for different procurement thresholds. The procurement of a value reaching the threshold for publication should be conducted via open notice in principle; as for the procurement of a value not reaching the threshold for publication, offers or proposals in writing obtained openly may be applied.

The PCC said that since the Act was implemented in May 1999, the price index has accumulated a considerable increase. For example, the construction price index (CCI) has increased by about 99%, and the consumer price index (CPI) has increased by about 26%. At the same time, the Index of Average Regular Earnings has grown by about 31%. Therefore, the threshold for publication shall be reviewed and adjusted in a timely manner in accordance with the changes of time and situation.

After considering the changes in the price index, the preliminary discussion is to increase the threshold for publication to NT$1.5 million, the PCC said. The plan is now announced to collect public opinions and will be implemented after fulfilling the legal process.