Regulations of the Operation and Management of National Defense Technology Institutions by Private Entities Article 26

Paragraph (1)Where the management entrusted is to replace the production or service provided by the original agency or facility contract terms such as specification, minimum quantity or workload and unit price for the first year of performance shall be specified by the authority-in-charge when the management entrustment contract is concluded. Where those contract terms are not known to the authority-in-charge, the estimated reference may be deemed as the alternative for specified contract terms after being reported to and approved by competent authority. Where the actual quantity of procurement is less than estimated quantity by no less than ten percent, authority-in-charge shall negotiate compensation with the private entity based on uberrimaefidei.Paragraph (2)Since the second year till the expiration date of a contract, the authority-in-charge shall consult the price index announced by Directorate-General of Budget, Accounting and Statistics, Executive Yuan to estimate the reference in further four years regarding the specifications, minimum quantity or workload, unit price of the product or service which is to be procured every following year and prescribe the standard to limit the range of variation of unit price. Where the actual sum of money paid for procurement in following years is less than the estimated by certain percentage stipulated, the authority-in-charge shall negotiate compensation with the private entity based on uberrimaefidei.