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Agreement on Government Procurement
World Trade Organization
Article XV : Limited Tendering
- The provisions of Articles VII through XIV governing
open and selective tendering procedures need not apply in the following
conditions, provided that limited tendering is not used with a view
to avoiding maximum possible competition or in a manner which would
constitute a means of discrimination among suppliers of other Parties
or protection to domestic producers or suppliers:
(a) in the absence of tenders in response
to an open or selective tender, or when the tenders submitted have
been collusive, or not in conformity with the essential requirements
in the tender, or from suppliers who do not comply with the conditions
for participation provided for in accordance with this Agreement,
on condition, however, that the requirements of the initial tender
are not substantially modified in the contract as awarded;
(b) when, for works of art or for
reasons connected with protection of exclusive rights, such as patents
or copyrights, or in the absence of competition for technical reasons,
the products or services can be supplied only by a particular supplier
and no reasonable alternative or substitute exists;
(c) in so far as is strictly necessary
when, for reasons of extreme urgency brought about by events unforeseeable
by the entity, the products or services could not be obtained in time
by means of open or selective tendering procedures;
(d) for additional deliveries by the
original supplier which are intended either as parts replacement for
existing supplies, or installations, or as the extension of existing
supplies, services, or installations where a change of supplier would
compel the entity to procure equipment or services not meeting requirements
of interchangeability with already existing equipment or servicesSee
footnote 5;
(e) when an entity procures prototypes
or a first product or service which are developed at its request in
the course of, and for, a particular contract for research, experiment,
study or original development. When such contracts have been fulfilled,
subsequent procurements of products or services shall be subject to
Articles VII through XIV. See footnote
6;
(f) when additional construction services
which were not included in the initial contract but which were within
the objectives of the original tender documentation have, through
unforeseeable circumstances, become necessary to complete the construction
services described therein, and the entity needs to award contracts
for the additional construction services to the contractor carrying
out the construction services concerned since the separation of the
additional construction services from the initial contract would be
difficult for technical or economic reasons and cause significant
inconvenience to the entity. However, the total value of contracts
awarded for the additional construction services may not exceed 50
per cent of the amount of the main contract;
(g) for new construction services
consisting of the repetition of similar construction services which
conform to a basic project for which an initial contract was awarded
in accordance with Articles VII through XIV and for which the entity
has indicated in the notice of intended procurement concerning the
initial construction service, that limited tendering procedures might
be used in awarding contracts for such new construction services;
(h) for products purchased on a commodity
market;
(i) for purchases made under exceptionally
advantageous conditions which only arise in the very short term. This
provision is intended to cover unusual disposals by firms which are
not normally suppliers, or disposal of assets of businesses in liquidation
or receivership. It is not intended to cover routine purchases from
regular suppliers;
(j) in the case of contracts awarded
to the winner of a design contest provided that the contest has been
organized in a manner which is consistent with the principles of this
Agreement, notably as regards the publication, in the sense of Article
IX, of an invitation to suitably qualified suppliers, to participate
in such a contest which shall be judged by an independent jury with
a view to design contracts being awarded to the winners.
- Entities shall prepare a report in writing on
each contract awarded under the provisions of paragraph 1. Each report
shall contain the name of the procuring entity, value and kind of
goods or services procured, country of origin, and a statement of
the conditions in this Article which prevailed. This report shall
remain with the entities concerned at the disposal of the government
authorities responsible for the entity in order that it may be used
if required under the procedures of Articles XVIII, XIX, XX and XXII.
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