Regulations for the Implementation of Price Preference by Local Suppliers Article 7

In conducting a particular procurement, an entity shall award the contract to a local supplier where a foreign supplier’s tender is the lowest bid and its bid price satisfies the principle of contract award prescribed in paragraph 1 of Article 52 of the Act, and the lowest bid price of the local supplier which meets the requirement in paragraph 3 of Article 5 exceeds that of the foreign supplier but is within the preferential amount as provided in paragraph 2 of Article 5. Where the local supplier’s bid price exceeds the preferential amount, the contract shall be awarded to the foreign supplier without further negotiation with the local supplier on the reduction of price.The bid price of the local supplier which may be awarded by preference according to the calculation set out in the preceding paragraph shall not exceed, where a government estimate is set for the procurement, the upper limit for over government estimate as provided in paragraph 2 of Article 53 of the Act; where no government estimate is set for the procurement, the amount recommended by a committee as provided in Article 54 of the Act.In any case, the award price in the preceding paragraph must not exceed the budget amount.