This Regulation is prescribed pursuant to paragraph 2 of Article 93 of
the Government Procurement Act (hereinafter referred to as the “Act”).
The term “property or services that are commonly needed by entities”
referred to in paragraph 1 of Article 93 of the Act means property or
services which are commonly required by two or more entities.
The term “inter-entity supply contract (hereinafter referred to as the
“Contract”)” referred to in paragraph 1 of Article 93 of the Act means
that an entity, on behalf of two or more entities, signs a contract with a
supplier for property or services that are commonly needed by entities,
so that the entity and other entities to which the Contract applies can
utilize the Contract to conduct procurements.
The term “contracting entity” referred to in this Regulation means the
entity that signs the Contract with a supplier.
The term “entities to which the Contract applies” referred to in this
Regulation means entities listed in the Contract which may place their
orders in accordance with the Contract.
In conducting a procurement of the Contract, an entity shall undertake
a survey of the demand in advance, unless otherwise there exists any
precedent or the demand can reasonably be evaluated.
When preparing the tender documentation of the Contract, unless
otherwise provided for in laws or regulations, an entity shall specify
the following, if applicable.
1. the name of the subject of tendering, technical specifications,
areas of supply, estimated total quantity or total value of procurement,
maximum unit price of tendering of each subject, minimum quantity
or value for each order of each subject, maximum quantity or value
for each order of each subject, terms and conditions of quotation,
procedures for notifying the winning tenderer, time-limit for
performance of each order, packaging, inspection and
acceptance, guarantee, dispute settlement, or other
2.each area where price and the time-limit for performance of
order may be different;
3.available time perid for placing order of the Contract, and order
notifications to the supplier prior to the expiration or termination of the
time period shall be valid;
4.where promotional or special discount activities offered to the general
public during the available time period for placing orders of the Contract
result in more favorable prices or conditions than those provided in the
Contract, such favorable prices or conditions shall also be applicable to
the entities to which the Contract applies;
5.the applicable entities;
6.entities other than the applicable entities (hereinafter referred to as the
“other entities”) may, upon agreement of the supplier, make use of the
Contract to conduct procurements, the cap amount of the cumulative
value of orders;
7.the procedures and conditions for changing the Contract;
8.the conditions for rescinding or terminating the Contract;
9.information regarding the names, addresses, telephone numbers, fax
numbers and contact persons (or units), etc. of the contracting entity
and the suppliers;
10.an indication that the Contract is an “inter-entity supply contract ”;
11.other requisite matters.
Where the entity specify the maximum unit price of tendering of each
subject in the tender documentation pursuant to subparagraph 1 of the
preceding paragraph, the entity shall also specify that the tender is
prohibited from being awarded of the subject if the unit price of
tendering exceeds the maximum unit price of the subject
The applicable entities referred to in subparagraph 5 of paragraph 2 of
the preceding Article may be one of the following:
1.all participating entities, where two or more entities agree that one of
such entities signs the Contract on behalf of the others;
2.the entity and its subordinate entities, and those specified in the
Contract, where the contracting entity is designated by the entity, and
the entity is a ministry, commission, central bank, department, bureau,
administration, etc. at the central government level, or a municipal or
county(city) government; or
3.central government entities, where the contracting entity is designated
by the responsible entity of the Act.
The applicable entities may use the Contract for procurement,
provided that the cap amount of quantity or value of the Contract has
not been reached; the quantity or value of each order shall not exeed
the maximum quantity or value for each order of the subject prescribed
in the Contract.
Where an entity places an order according to the Contract, and there is
a need to add any item other than those of the Contract, the additional
item shall be related to the subject of order, and the procurement value
of which shall not exceed one tenth of the threshold for publication and
the amount of the subject of order.
Where the subject of the Contract may be provided by two or more
suppliers, the entity shall, in principle, select the supplier which meets
the most with its requirements, unless otherwise specified in the
For conducting a procurement of a value reaching the threshold for
supervision, the entity shall not use the Contract to order, except it is
approved by its superior entity.
Where other entities use the Contract upon agreement of the supplier,
the preceding four paragraphs shall also apply.
The Contract shall be published on the website of the responsible entity.
The procurement procedures for applicable entities to use the Contract
shall be stated explicitly in the Contract by the contracting entity in one
of the following manner:
1.to conduct the procurement through the contracting entity;
2.to deal directly with the supplier; or
3.to follow other procedure requirements as prescribed in the Contract.
When conducting the inspection, acceptance and payment, the
applicable entity may, in principle, deal directly with the supplier.
The Contract shall state explicitly that the contracting entity may
negotiate with the supplier for amending the Contract if the supplier,
during the available time period for placing orders of the Contract,
offers any person the subject of the Contract by more favorable price
or condition. Where the supplier refuses to lower the price without
reasonable cause, the contracting entity may terminate the Contract.
When a contracting entity discovers that the market price declines
significantly during the available time period for placing orders of the
Contract, the entity shall check the price of the subject provided by the
suppliers and take action pursuant to the preceding paragraph.
Where an applicable entity discovers that the contract price is higher
than the market price, the entity shall not make use of the Contract to
conduct procurement and shall notify the contracting entity.
Other entities shall, prior to using the Contract to conduct procurement,
undertake a survey of market price of the subject that meets its
requirement in general market. If the results of survey reveal that the
price of the subject in the Contract is higher than the market price, the
entity shall not use the Contract to conduct procurement.
Where conducting a procurement in accordance with the Contract, an
entity may, under various range of quantity or value prescribed in the
Contract, take into account the quantity or value of the order, or the
terms and conditions otherwise specified in the Contract to request the
supplier to offer a more favorable price or terms and conditions.
The Contract shall state explicitly that the contracting entity may
terminate the Contract and claim for damages if the supplier accords
differential treatment to the applicable entities without due cause, or
fails to supply goods or services to the applicable entities due to
causes attributable to the supplier.
The maximum term for entities to use the Contract for procurement
specified in the Contract shall, including its further extension, be two
The contracting entity shall control the total order value of the Contract,
which shall not exceed the published budget of procurement from the
Collection and compilation of statistical information and the notification
pursuant to Article 101 of the Act pertaining to the Contract shall, in
principle, be solely handled by the contracting entity.
For any dispute in relation to the contract performance, the dispute
shall be handled by the entity that is in dispute with the supplier.
The contracting entity may charge the ordering entities or the
supplier necessary fees for handling the Contract.
The calculation of fees referred to in the preceding paragraph shall be
specified in the tender documentation; the fees shall, in principle, not
exceed one percent of the order value and shall be calculated differently
depending on the value or amount of order.
This Regulation shall take effect on the date of promulgation.