Reducing Ineligible Contractor Disputes in Government Procurement: A Lesson from Taiwan

摘要

Taiwan's Government Procurement Act (GPA) was passed in 1998 to exploit advantages from unifying public procurement processes. The act provided for the establishment of channels for objections and complaints, allowing for officials to rapidly deal with controversies, supervise procurement departments, and expose defects in existing procurement procedures. The GPA enhances the efficiency of public purchasing while reducing corruption, raising governmental procurement processes to the international standards. However, the launch of the GPA has been followed by numerous disputes which have reduced the efficiency of public procurement. This study investigated the appeals of ineligible contractors, finding that such appeals are successful in 64% of cases, which implies a systemic failure to achieve justice in the execution of the GPA. Procurement efficiency can be improved if disputes caused incorrect action on the part of government agencies could be avoided. This research uses a case study approach and statistical methods to analyze appeals from ineligible contractors accused of violating the GPA. Comments from the appeal committee are reviewed to develop strategies to reduce disputes regarding contractor ineligibility. A case study is presented to demonstrate the applicability of the proposed method. Application results show that the developed strategies could help both the procuring agency and contractor avoid procurement disputes. Suggestions for future revisions of the procurement act are provided.