Agreement on Government Procurement
World Trade Organization
Article II: Valuation of Contracts

1. The following provisions shall apply in determining the value of contracts. See footnote 2 for purposes of implementing this Agreement.
   
   
2. Valuation shall take into account all forms of remuneration, including any premiums, fees, commissions and interest receivable.
   
   
3. The selection of the valuation method by the entity shall not be used, nor shall any procurement requirement be divided, with the intention of avoiding the application of this Agreement.
   
   
4. If an individual requirement for a procurement results in the award of more than one contract, or in contracts being awarded in separate parts, the basis for valuation shall be either:
   
   (a) the actual value of similar recurring contracts concluded over the previous fiscal year or 12 months adjusted, where possible, for anticipated changes in quantity and value over the subsequent 12 months; or
   
   (b) the estimated value of recurring contracts in the fiscal year or 12 months subsequent to the initial contract.
   
   
5. In cases of contracts for the lease, rental or hire purchase of products or services, or in the case of contracts which do not specify a total price, the basis for valuation shall be:
   
   (a) in the case of fixed-term contracts, where their term is 12 months or less, the total contract value for their duration, or, where their term exceeds 12 months, their total value including the estimated residual value;
   
   (b) in the case of contracts for an indefinite period, the monthly instalment multiplied by 48.
   
   If there is any doubt, the second basis for valuation, namely (b), is to be used.
   
   
6. In cases where an intended procurement specifies the need for option clauses, the basis for valuation shall be the total value of the maximum permissible procurement, inclusive of optional purchases

Scope

Non-discrimination