Questions and Answers on the Tendering of Goods and Services

Questions and Answers on the Tendering of Goods and Services

What is the tendering of goods and services?

1. The tendering of goods and services is a commercial activity whereby a purchaser of goods and services (the “inviting party”) organizes a tender to select, from among the traders participating in the tender (the “bidders”), the trader that best meets the requirements set by the inviting party, who is then selected to enter into and perform the contract (the “successful bidder”).

2. The provisions on tendering in the 2005 Commercial Law shall not apply to public procurement as regulated by law.

What forms of tendering are available?

1. The tendering of goods and services shall be conducted in one of the following two forms:
   a) Open tendering, which is a form in which the inviting party does not limit the number of bidders;
   b) Restricted tendering, which is a form in which the inviting party only invites a certain number of bidders.

2. The choice between open tendering and restricted tendering rests with the inviting party.

What tendering methods are available?

1. Tendering methods include single-envelope tendering and two-envelope tendering. The inviting party has the right to choose the tendering method and must notify the bidders in advance.

2. In the case of single-envelope tendering, the bidder shall submit a tender dossier comprising both technical and financial proposals in one envelope, and the bid opening shall be conducted once.

3. In the case of two-envelope tendering, the bidder shall submit the technical proposal and the financial proposal in two separate envelopes, submitted simultaneously, and bid opening shall be conducted twice. The technical proposal shall be opened first.

How is pre-qualification of bidders conducted?

The inviting party may organize a pre-qualification process to select bidders capable of meeting the conditions set by the inviting party.

What does the bidding dossier include?

1. The bidding dossier shall include:
   a) The invitation to tender;
   b) The requirements relating to the goods or services to be tendered;
   c) The method of evaluation, comparison, ranking, and selection of bidders;
   d) Other instructions relating to the tendering process.

2. The costs of providing the bidding dossier to bidders shall be determined by the inviting party.

What does the invitation to tender include?

1. The invitation to tender shall contain the following principal details:
   a) Name and address of the inviting party;
   b) Summary of the tender contents;
   c) Deadline, location, and procedures for receiving the bidding dossier;
   d) Deadline, location, and procedures for submitting the tender dossier;
   đ) Instructions for reviewing the bidding dossier.

2. The inviting party is responsible for publicizing the invitation widely through mass media in cases of open tendering, or for sending invitations to eligible bidders in cases of restricted tendering.

What are the instructions for bidders?

The inviting party is responsible for instructing bidders regarding bidding conditions, procedures applicable in the tendering process, and responding to bidders’ inquiries.

Who is responsible for managing tender dossiers?

The inviting party is responsible for managing the tender dossiers.

How is bid security implemented?

1. Bid security shall be implemented in the form of a deposit, escrow, or bid guarantee.

2. The inviting party may require bidders to submit a deposit, escrow, or bid guarantee upon submitting their tender dossiers. The deposit or escrow shall not exceed 3% of the estimated total value of the goods or services being tendered.

3. The inviting party shall determine the form and conditions of the deposit, escrow, or bid guarantee. In cases of deposit or escrow, the deposit or escrow shall be returned to unsuccessful bidders within seven working days from the date of public announcement of the tender results.

4. Bidders shall not be entitled to a refund of their deposit or escrow in cases where they withdraw their tender dossier after the submission deadline (the “bid closing time”), fail to sign the contract, or refuse to perform the contract upon winning the tender.

The guarantor for the bidder is obliged to provide bid security to the guaranteed bidder within the equivalent value of the deposit or escrow.

What are the provisions on confidentiality of tendering information?

1. The inviting party must ensure the confidentiality of tender dossiers.

2. Organizations and individuals involved in organizing and evaluating tenders must keep confidential all information relating to the tendering process.

How is bid opening conducted?

1. Bid opening is the act of opening tender dossiers at the predetermined time, or, if no time has been predetermined, immediately after the bid closing time.

2. Tender dossiers submitted on time must be publicly opened by the inviting party. Bidders have the right to attend the bid opening.

3. Tender dossiers submitted late shall not be accepted and must be returned unopened to the bidder.

How is the evaluation of tender dossiers conducted?

1. The inviting party shall examine the validity of the tender dossiers.

2. The inviting party may request bidders to clarify unclear contents of their tender dossiers. Such requests and clarifications must be made in writing.

What are the requirements for bid opening minutes?

1. At the bid opening, the inviting party and attending bidders must sign the bid opening minutes.

2. The bid opening minutes must include:
   a) Name of the goods or services tendered;
   b) Date, time, and place of bid opening;
   c) Name and address of the inviting party and the bidders;
   d) Bid prices of the bidders;
   đ) Modifications, supplements, and other related contents, if any.

How is the evaluation and comparison of tender dossiers carried out?

1. Tender dossiers shall be evaluated and compared according to specific criteria serving as the basis for a comprehensive evaluation. Such evaluation criteria are determined by the inviting party.

2. The criteria specified above shall be evaluated using a points system or another method predetermined prior to the bid opening.

What are the rules on amendments to tender dossiers?

1. Bidders shall not amend their tender dossiers after the bid opening.

2. During the evaluation and comparison process, the inviting party may request bidders to clarify issues related to their tender dossiers. Such requests and responses must be made in writing.

3. If the inviting party amends certain contents of the bidding dossier, it must send the amendments in writing to all bidders at least ten days prior to the deadline for submission of tender dossiers, so that bidders may supplement their dossiers accordingly.

How are bidders ranked and selected?

1. Based on the evaluation results of the tender dossiers, the inviting party must rank and select bidders in accordance with the predetermined method.

2. In cases where multiple bidders achieve the same score or evaluation result, the inviting party has the right to select the successful bidder.

(Legal basis: Articles 214–232, Commercial Law 2005)