WORLD TRADE GPA/12/Rev.1
9June1997
ORGANIZATION(97-2376)
Original: English Committee onGovernment Procurement
NOTIFICATION OFNATIONAL IMPLEMENTING LEGISLATION
Communication from theRepublic ofKorea
Revision
Theattached communication hasbeenreceived fromtheRepublic ofKorea inaccordance with
theCommittee Decision of4June1996 relating totheprocedures fortheNotification ofNational
Implementing Legislation (GPA/1/Add.1).GPA/12/Rev.1
Page2
THE NOTIFICATION OFNATIONAL IMPLEMENTING LEGISLATION
Contents
I. SUMMARY OFDOMESTIC REGULATIONS
1. Summary oftheARCSP
2. Summary oftheEnforcement Decree oftheARCSP
3. Summary oftheSpecial Regulation oftheEnforcement Decree oftheARCSP forSpecific
Procurement
4. Summary ofOther Regulations Related toGovernment Procurement
II. CONTACT POINTS FOR ANINQUIRY ONGOVERNMENT PROCUREMENT
III. ANSWERS TOTHE CHECKLISTSGPA/12/Rev.1
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I. SUMMARY OFDOMESTIC REGULATIONS
1. Summary oftheActRelating toContracts towhich theState isaParty
1.1 Basic LawforGovernment Procurement
TheActRelating toContracts towhich theState isaParty (ARCSP) isthebasic regulation
forgovernment procurement. Unless otherwise provided forinother laws, government procurement
isconducted under thisAct.
1.2 TheScope oftheGovernment Procurement Contract
Thescope ofgovernment procurement contracts forinternational tendering is:
- contractsforgoods,constructionworkandservicesconcludedbygovernmentalagencies
(according totheGPAandtheinternational norm based upontheGPA) which exceed
theamountdeterminedandpubliclyannouncedbytheMinisterofFinanceandEconomy.
Exceptions tointernational tendering allowed bytheGPA:
- procurement ofgoods andservices forresale oruseintheproduction ofgoods for
saleorintheprovision ofservices forsale;
- single tendering procurement including set-asides forsmall andmedium enterprises
pursuant totheprovisions oftheSmall andMedium Enterprise Products Promotion
Act;
- procurement ofagricultural, marine orlivestock products pursuant totheFoodgrain
Management Law, theLawonMarketing andPrice Stabilization ofAgricultural and
Fishery Products andtheLivestock Law.
When necessary, theheadofeachcentral agency mayprocure goods andservices through
international tendering eventhough theprocurement neednotundergo international tendering under
theGPA.
Thethreshold values forinternational tendering are:
- 151million wonexVAT forcentral government entities 'supplies andservices
procurement;
- 5,830 million wonexVAT forcentral government entities 'construction works;
- 233million won exVAT forlocal government entities 'supplies andservices
procurement;
- 17,490 million wonexVAT forlocalgovernment entities 'construction works;
- 524million wonexVAT forother entities 'supplies procurement;
- 17,490 million wonexVAT forother entities 'construction works.GPA/12/Rev.1
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1.3 ThePrinciple ofContract: Bona Fides
- Contracts shallbeconcluded through theagreement ofcontracting parties onequal
standing andshallbeimplemented onabonafidebasis.
- Allinternational tendering shallbeconducted under theprinciples ofreciprocity. The
contract officials shallnotimpose anyspecial terms orconditions upon thecitizens
ofamember country oftheGovernment Procurement Agreement orupontheproducts
orservices produced from those countries.
1.4 Decision ontheSelected Tenderer
Inacompetitive tendering, thesuccessful tenderer shallbe:
- aperson whoisdeemed fullycapable offulfilling theterms ofthecontract andoffers
thelowest bid;
- aperson whooffers themost favourable bidfortheState inconformity withthe
evaluation criteria specified inthepublic notice orthetender documentation;
- aperson whose bidconforms closest tothecriteria iftheevaluation criteria are
determined bythePresidential Decree considering thenature andscaleofcontracts.
1.5 Principles ofGeneral Competition inGovernment Procurement
- Thecontract official shallconduct apublic procurement according tothecompetition
principle. However, ifnecessary, taking intoconsideration thepurpose, nature, scale,
etc.ofthecontract, hemaynominate participants orrestrict thequalification ofthe
participants.
1.6 Restrictions onTendering Participation Eligibility foranImproper Business Person
Aperson whoprevents faircompetition orproper fulfilment ofthecontract, oraperson who
isdeemed unqualified toparticipate inthetendering maybedenied participation foraspecified period.
Procedure forthisrestriction:
- Theheadofacentral agency shallprovide theperson withanopportunity tostatehis
opinion inadvance and,ifnecessary, shallheartheopinions ofotherpersons concerned.
1.7 TheInternational Contract Dispute Mediation Committee
Challenge procedure
- Those whoclaim tohavebeendisadvantaged intheimplementation oftheprovisions
onthescopeofthegovernmentprocurementcontract,eligibilityforparticipation,public
notice orthedecision onthesuccessful tenderer maymake anobjection tothecentral
agency concerned.
- Anyone dissatisfied withtheensuing measures bytheagency mayrequest areview
fromtheInternationalContractDisputeMediationCommitteeestablishedintheMinistry
ofFinance andEconomy.GPA/12/Rev.1
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Effect ofthemediation
- TheCommittee shallundertake aninvestigation andprovide mediation. Ifnoobjection
israised within fifteen daysregarding theresult ofthemediation, itshallhavethesame
effect asajudicial conciliation.
2. Summary oftheEnforcement Decree oftheActRelating toContracts towhich theState is
aParty
2.1 Principles ofContracts
- Intheconclusion ofcontracts, acontract official shallnotimpose anyspecial condition
which unreasonably restricts thecontractual benefit oftheother party, asprescribed
bytherelated provisions.
2.2 Estimated Value ofaContract andStandard Price
- Theestimated value ofacontract isacriterion fordetermining thevalue ofcontracts
forpurposes ofimplementing theGPA. Itisbased upon thebudget amount fora
procurement andcalculated according totheprovisions oftheGPA. Itshallbedisclosed
inapublic notice.
- TheStandard Price (presumed price) isameans todetermine thebestbidding price.
Itisdetermined bytheillustrative transaction price, thecostprice ortheappraised
price. Itshallnotbedisclosed inadvance.
2.3 Method ofCompetition &Qualification ofTendering
- Competition isconducted through competitive tendering inwhich therearemore than
twoeffective bidders.
- Thebidder should ownorbeleasing thefacilities required formanufacturing or
supplying thecontract object.
- When anyapproval orlicence isrequired pursuant totheprovisions ofother laws,
itshould beobtained.
2.4 Public Notice &SitePresentation
- Apublic notice onadomestic tendering willbegiven tendaysbefore thetendering
date. (Therelated provisions foraninternational tendering areprescribed bytheSpecial
Enforcement Decree.)
Inthecaseofaconstruction work tendering, thepublic notice willbegiven
seven daysbefore thesitepresentation date.
Theminimum timeperiods between thesitepresentation dateandthetendering
dateare:
• When theestimated price islessthan1billion won
10daysGPA/12/Rev.1
Page6
• When theestimated price is1billion wonormore, andlessthanthe
notified amount
20days
• When theestimated price isthenotified amount ormore
33days
(*Thenotified amount isdetermined bytheGPA.)
Details ofthepublic notice:
• Matters assigned forthetendering
• Place, dateandtimeforthetendering anditsopening
• Qualification ofabidder
• Decision method forthesuccessful tenderer, etc.
2.5 Decision Method fortheSuccessful Tenderer
- Performance ability testmethod
Inacontract above thenotified amount, asuccessful tenderer shallbeexamined with
respect totheperformance ability ofthecontract concerned intheorder ofthelowest
tenderer below thestandard price.
- Decision method inadomestic tendering
Asuccessful tenderer isabidder withthelowest price below thestandard price,
provided thatthebidding price isnotlessthantheamount of90/100 ofthestandard
price.
Inthetender forpurchasing goods, thesuccessful tenderer isthelowest price bidder
regardless oftheproviso above.
2.6 Single Tendering
Following arethecases inwhich asingle tendering canbeapplied:
- inthecaseofasituation where anActofGodornational security isconcerned;
- inthecaseofacontract withthecurrent construction company toensure future
identification oftheconstruction contractor responsible foranypossible defects;
- inthecaseofacontract toprocure goods related topatents orinthecasewhere the
supplier isonlyoneperson;
- inthecaseofawork whose estimated price isunder 50million won, orgoods and
services whose estimated prices areunder 20million won;
- inthecaseofgoods thataresetaside forsmall business;
- inthecaseofgoods thatarerelated toprovisions oftheSocial Welfare Business Act;
- inthecaseofnobidder, evenafteratendering renotification, etc.
2.7 Restrictions onTendering Participation foranImproper Business Person
Restrictions maybeimposed foraspecific period on:
- aperson whohasconstructed structures defectively ordesigned them inadequately;GPA/12/Rev.1
Page7
- aperson whohascaused danger ordamage tothepublic duetothelackofsafety
measures; or
- aperson whohasgiven abribe inatendering procedure, etc.
3. Summary oftheSpecial Regulation oftheEnforcement Decree oftheARCSP foraSpecific
Government Procurement (Special Enforcement Decree)
3.1 Scope oftheSpecial Enforcement Decree
TheSpecial Enforcement Decree willbeapplied toallinternational tendering prescribed by
theGPA andother provisions.
Foraninternational tendering which isnotcovered bytheGPA, there isnoobligation for
observing theprovisions oftheGPA. However, provisions oftheSpecial Enforcement Decree shall
beapplied correspondingly.
3.2 Principles ofContracts foraSpecific Procurement
- Faircompetition andnon-discrimination principles shallbeobserved inallinternational
tendering.
- Anyprocurement requirement shallnotbedivided withtheintention ofavoiding the
application ofGPA.
- Entities shall notimpose offsets onsuppliers from other GPA members inan
international tendering.
3.3 Tendering Procedure
There arethree types oftendering intheinternational tendering procedure: opentendering,
selective tendering andlimited tendering (single tendering).
3.4 Language inanInternational Tendering
- Thebasiclanguage isKorean. When necessary, however, foreign languages including
WTO official languages canbeused.
- Inapublic notice, mainitems foratendering shallbewritten inoneoftheWTO official
languages.
3.5 Qualification ofSuppliers inOpen Tendering andaSupplier 'sList
- Qualifications forabidder, suchascontract performance record, technical performance
ability, financial capacity, etc.,canbeprovided toconfirm asupplier 'sability tofulfil
acontract.
- Tosimplify thequalification procedures, entities canavailthemselves ofapermanent
supplier 'slist.GPA/12/Rev.1
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3.6 Public Notice onIntended Procurement andDecision ontheSuccessful Tenderer
- Time limits foratendering shallnotbelessthan40daysfromthedateofthepublic
notice.
- Thepublicnoticeshallcontaindetailsrelatedtothetenderingaccordingtotheprovisions
oftheGPA.
- Information onthecontract award shallbepublished nolaterthan72daysafterthe
award ofeachcontract.
3.7 Challenge Procedures &theInternational Contract Dispute Mediation Committee
- Suppliers canbring alleged breaches oftheGPA before theprocurement entities or
theInternational Contract Dispute Mediation Committee.
- TheCommittee hasbeen established intheMinistry ofFinance andEconomy to
investigate andmediate requests forreview bysuppliers.
- Thechairman oftheCommittee istheViceMinister ofFinance andEconomy. The
Committee has15members whoareprofessors, barristers, officials, etc.
- TheCommittee canorder interim measures which include suspension oftendering
procedures, etc.
- Mediation bytheCommittee canbeprovided forthecorrection ofbreaches
oftheGPA orforthecompensation oflosses ordamages suffered.
- Themediation hasthesameeffect asajudicial conciliation when thereisnoobjection.
3.8 Implementing International Business Practices
When necessary, inlightofthenature ofinternational trade, international business practices
canbeusedforcurrency, deposits ofcontract payments, inspection, adjustment forinflation, etc.
4. Summary ofOther Regulations Related toGovernment Procurement
4.1 TheActonGovernment Procurement Business (AGPB)
Character oftheAGPB
- TheAGPB contains provisions forthecentral government procurement system
implemented bytheOffice ofSupply oftheRepublic ofKorea (OSROK).
Coverage oftheAGPB
- Theprocurement byState andlocal government entities ofgoods worth more than
50millionwonandconstructionworksworthmorethan2billionwonshallbeconducted
through OSROK.
- Government invested institutions, ifnecessary, cancommit theprocurement business
totheOSROK.GPA/12/Rev.1
Page9
Centralization ofgovernment procurement
- Basically, eachgovernment authority isresponsible forprocuring goods, services and
constructionservicesforitsownuse.However,goodsandworksofwhichtheestimated
value exceeds agiven threshold value should beprocured andsupplied through the
Office ofSupply oftheRepublic ofKorea onbehalf oftheother end-user institution
(end-user).
- End-users areclassified intotwocategories: obligatory andvoluntary. Theformer
consists ofcentral andlocalgovernment agencies, which arerequired topurchase their
needed goods andworks above agiven threshold value through OSROK. Thelatter
consistsofgovernment-fundedorgovernment-sponsoredagencies,whichhavetheoption
toprocure goods, services andworks ontheirownorthrough OSROK.
- Even obligatory end-users, however, areallowed topurchase goods andconclude
construction contracts forthemselves incases ofurgent procurement needs, small
purchasesbelowagiventhresholdvalueorprocurementfornationaldefenceorsecurity.
OSROK procurement procedures
- Each central andlocal government agency willforecast itsneeds forsupplies and
construction services during thecourse ofayear, determine thepurchase request plan
withthepreparation ofbudgeted funds, andsubmit ittoOSROK before thebeginning
ofthenextfiscal year.
- Upon receipt ofthepurchase request plans from theend-users, OSROK shalldraw
upacomprehensive Acquisition Program considering theend-user 'sprocurement plan
forthecoming yearaswellastheprocurement leveloftheprevious year. OSROK
willthenprocure andsupply inacost-effective andtimely manner.
4.2 Local Financing Act
Character
- Thelocalgovernment procurement system isprescribed bytheLocal Financing Act
anditsPresidential Decree, etc.
- Theprovisions oftheActanditsPresidential Decree regulate specialties forlocal
government procurement. However, themaincontents oftheseprovisions arequoted
fromtheARCSP. Therefore, localgovernment entities operate under thesame basic
procurement system asthecentral government.
Main differences inprovisions from theARCSP
- Incaseoflocalgovernment procurement foraconstruction work lessthan500million
won,aregional restriction canbeimposed asaprecondition forthebid.Forexample,
according totheprovisions oftheLocal Finance ActoritsEnforcement Decree, entities
canrestrictparticipants'eligibilitytopersonsdoingbusinesswithinitsjurisdictionwhen
theestimated price islessthan5billion won.GPA/12/Rev.1
Page10
According totheprovisions bytheARCSP anditsEnforcement Decree, etc.,the
restriction canbeimposed onlyonthose construction works worth lessthan3billion
won.
4.3 TheGovernment-Invested Enterprise Management Law(GIEML)
- Procurement business bygovernment-invested institutions isprescribed bythe
Government-Invested Enterprise Management LawandAdministrative Regulations
bytheMinistry ofFinance &Economy.
- Thedifference between GIEML andARCSP isthatthescope ofentities covered by
eachlawisdifferent andGIEML hasaspecial provision regarding single tendering.
However, themain contents ofthese provisions arequoted from theActRelating to
Contracts towhich theStateisaParty. Therefore, government-invested entities operate
under thesame basic procurement system asthecentral government.
II. CONTACT POINTS FOR ANINQUIRY ONGOVERNMENT PROCUREMENT
TheActRelating toContracts towhich theState isaParty
Ministry ofFinance andEconomy
Government Accounting Policy Division
Telephone: +8225005391
Telefax: +8225039291
TheLocal Financing Act
Ministry ofHome Affairs
Local Financing andEconomy Division
Telephone: +8225005391
Telefax: +8225039291
TheGovernment-Invested Enterprise Management Law
Ministry ofFinance andEconomy
Government Loan andEnterprise Management Division
Telephone: +8225005391
Telefax: +8225039291
TheActonGovernment Procurement Business
Office ofSupply
Administration andManagement Division
Telephone: +8225335979
Telefax: +8225969548GPA/12/Rev.1
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III. ANSWERS TOTHE CHECKLISTS
I. GENERAL ELEMENTS
1. Hastheagreement beentransposed intonational lawand/or doesitapply directly?
Ithasbeentransposed intodomestic lawsandregulations suchastheActRelating toContracts
towhich theState isaParty ("ARCSP"), theLocal Financing ActandtheGovernment-Invested
Enterprise Management Law.
TheActRelating toContracts towhich theStateisaParty ("ARCSP") isthebasic regulation
onprocurement bycentral government institutions. Itprescribes details concerning contracts towhich
thestateisaparty, including procurement proceedings andcontract administration. Itcontains details
related togovernment procurement contracts through international competitive bidding. Itprescribes
provisions related toNational Treatment, Non-discrimination, andtheTransparency ofGovernment
Procurement.
TheEnforcement Decree oftheARCSP provides details delegated bytheARCSP andthose
necessary fortheimplementation ofdomestic tendering.
TheSpecialEnforcementDecreeoftheARCSPforaSpecificGovernmentProcurementprovides
details delegated bytheARCSP andthose necessary fortheimplementation ofinternational tendering.
2. Inthecasethatentities below thefederal orcentral state level arecovered: arethese
categories ofentities autonomous from federal orcentral state level government inthe
implementation oftheAgreement?
Entities below thefederal orcentral statelevel havetheirownprocurement system suchas
theLocal Financing Act. However, thisActgenerally follows theprovisions oftheARCSP.
3. InthecasethatAnnex 3entities arecovered: arethese categories ofentities autonomous
intheimplementation oftheAgreement ordotheyapply thelegislation provided bythe
federal/central orsub-central level?
Procurement byother entities suchasgovernment-invested enterprises iscontrolled bythe
Government-Invested Enterprise Management Law. ThisLawalsogenerally follows theprovisions
oftheARCSP.
4. Which main differences (ifany)existbetween theimplementing lawsatthefederal orcentral
level, thesub-central levelandforAnnex 3entities?
There arenosignificant differences buttherearesome exceptions suchasregional restrictions
andconditions forsingle tendering. Local governments canrestrict participants 'eligibility topersons
doing business within theirjurisdictions, when theestimated price ofthework islessthan5billion
won. Therestriction canbeimposed onconstruction works worth lessthan3billion wonbythecentral
government.
5. Towhat extent isinformation technology usedintheprocess ofgovernment procurement?
Wearerunning adatabase system offering information ontendering opportunities.GPA/12/Rev.1
Page12
II. SPECIFIC ELEMENTS
6. Identify thespecific provisions inyourlegislation which reflect thenational treatment and
non-discrimination commitments ofArticle IIIoftheAgreement.
ARCSP Article 5ofitsSpecial Enforcement Decree (SED) Article 4
7. Article IX:2oftheAgreement foresees thattheinvitation toparticipate maytaketheform
ofanotice ofproposed procurement. Ifyourimplementing legislation provides forthis
opportunity, givedetails.
Theprovisions forapublic notice reflect theprovisions oftheGPA. These arealmost the
same astheprovisions oftheGPA. Basically public notice foropenorselective tenderings should
begiven nolessthan40daysbefore thetender date. Insome cases, foraselective tendering, the
time-limit foratender isextended tomore than65days.
Apublic notice shallcontain every itemprescribed bytheGPA suchastheplace, dateand
timefortendering anditsopening, qualification ofthebidder, contact points, etc.(SED Art.11,12).
8. Article IX:3oftheAgreement foresees thatentities atthesub-central levelaswellasAnnex 3
entities mayuseanotice ofplanned procurement oranotice regarding aqualification system
asaninvitation toparticipate. Ifyourimplementing legislation provides forthisopportunity,
givedetails.
Anotice ofplanned procurement canbeusedbyanyentity according toArticle IX:3ofthe
GPA (SED Art.13). Theentities maynotify inthegazette theplanforprocurement ofgoods,
construction works andservices tobesupplied under specific procurement contracts during eachfiscal
year. Thenotice onprocurement plans shallcontain thestatements setforth intherelated provision
oftheGPA.
9. Inthecaseofselective tendering procedures: towhat extent areentities allowed touse
permanent listsofsuppliers oristhere arequirement forlistsofsuppliers tobeselected
onacontract-by-contract basis?
Ifnecessary, entities canusethepermanent listsofsuppliers. Qualification ofsuppliers can
bedetermined byentities, taking intoconsideration construction capacity, skills ormanagement status
(SED Art.10).
Itisnotnecessary foracontract official tochange therequirements forthesupplier 'sliston
acontract-by-contract basis. Itisthesame asthecurrent classification system forsuppliers. The
requirements forthesupplier 'slistarefixed.
10. Article XIVoftheAgreement allows fornegotiation under certain conditions. Areentities
allowed toproceed tonegotiations? Ifso,which categories andwhat aretheconditions
imposed?
Negotiations areallowed during thetendering procedure. Ifnecessary, taking intoconsideration
thenature ofthecontract, urgency andnational security, theheadofeachcentral agency oritspublic
officials mayenter intoacontract afterreceiving proposals from bidders andnegotiating technical
specifications, quality, etc.GPA/12/Rev.1
Page13
11. Article XIcontains thetime-limits fortendering anddelivery. Time-limits shall normally
be"notlessthanXdays". Does thedomestic legislation reflect thevarious minimum time-
limits assetoutintheAgreement? Ifnot,giveinformation onanylonger time-limits which
havebeenestablished.
Thetime-limits fortendering shallbemore than40daysafterapublic notice. According to
theprovisions oftheGPA, some exceptions areprescribed asbelow.
Inthecaseofanemergency notice: more than10daysafterapublic notice.
Inthecaseofaplanned procurement notice: more than24daysafterapublic notice.
12. Towhatextent doestheimplementing legislation allow entities, inpursuance ofArticle XII:1,
topermit tenders tobesubmitted inseveral languages (oneofwhich hastobealanguage
oftheWTO)? Towhat extent doentities usethisflexibility?
Thebasiclanguage isKorean inthetendering procedures. When necessary, however, foreign
languages, including WTO official languages, canbeused(SED Art.8).
III. CHALLENGE PROCEDURES -ARTICLE XX
13. Paragraph 3ofArticle XXrequires eachParty toprovide itschallenge procedures inwriting
andmake them generally available. Please provide thisinformation.
Anyone whoclaims tohavebeendisadvantaged duetobreaches oftheGPA byanentity 's
measuresinthecourseofinternationaltenderingmaymakeanobjectionandseekrevocationorcorrection
ofsuchactsfrom theInternational Contract Dispute Mediation Committee.
14. Totheextent thatthisinformation doesnotfullyrespond tothefollowing points, please
provide thesupplementary information necessary todoso.
(i) Thetime-limit tolaunch acomplaint contained intheAgreement is"notlessthan
10days". What arethelimits indomestic legislation?
Asupplier oracontractor shallsubmit acomplaint within 15daysfromoccurrence oftheact
which isthecause oftheobjection orwithin 10daysfrom acquiring knowledge ofsuchanact.
Theheadoftherelevant procuring entity shall, within 10daysfromthereceipt ofthecomplaint,
examine andtakenecessary measures suchascorrection andgiveaprompt notice ofthedecision to
thesupplier orthecontractor submitting thecomplaint.
(ii) What body isresponsible forthechallenge procedures? Isthisa"court" oran
"impartial andindependent review body"? Ifthelatter:
Inorder toexamine andmediate therequest forareview, acommittee isestablished
intheMinistry ofFinance andEconomy.GPA/12/Rev.1
Page14
- How areitsmembers selected?
Thechairman oftheCommittee istheViceMinister ofFinance andEconomy. TheCommittee
has15members whoareprofessors andbarristers designated bytheMinister ofFinance andEconomy
andpublic officials designated bytheheads ofmajor procurement entities.
- Areitsdecisions subject tojudicial review?
Themediation hasthesame effect asajudicial conciliation when noobjection israised. If
there areanyobjections, thecasecanbesenttothecourt.
- Ifnot,howaretherequirements ofparagraph 6ofArticle XXtaken into
account?
Wemake theprovisions forthevarious challenge procedures reflect theprovisions oftheGPA,
suchasholding hearings before adecision, conducting anopenmediation process, providing decisions
inwriting, etc.
(iii) What istheapplicable lawbyreference towhich thechallenge bodywillexamine
complaints?
TheARCSP contains general provisions onthechallenge procedures. Thecasecanbesent
totherelated institutions foraspecial consultation. Intheprocess oftheCommittee 'smediation,
procedures suchasdelivery, notice, etc.shallfollow theprovisions oftheActfortheCivil Suit.
(iv) Which rapid interim measures areprovided tocorrect breaches oftheAgreement
andtopreserve commercial opportunities?
- Dothese measures include thepossibility tosuspend theprocurement
process? Onwhat conditions?
Suspensionoftenderingproceedingsorawardingofcontractsmaybegranteduntilthearbitration
(mediation) process intheCommittee iscompleted.
(v) Howdochallenge procedures provide forcorrection oftheAgreement? What types
ofcompensation forlossordamages suffered canthechallenge bodyorder?
TheCommittee canmake amediation offerincluding cancellation andcorrection ofbreaches
andcompensation forlosses ordamages. There arelimits tothecompensation. Itislimited tocosts
fortender preparation orprotest.
(vi) Giveanyavailable information onthetime-periods forthestages ofthechallenge
process, including toobtain interim measures andafinal decision.
Thesupplier orcontractor whohasanobjection tothemeasure bytheentity concerned can
request areview bytheCommittee forInternational Dispute Mediation within 15daysfrom receipt
ofthenotice ofdecision.
Interim measures bytheCommittee shallbetaken within seven daysfromthedateofreceipt
oftheopinion ofaprocurement entity.GPA/12/Rev.1
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TheCommittee, unless thereareanyotherspecific reasons, shallreview andarbitrate theappeal
filedwithin 50daysfrom thedateofitsreceipt.
Themediation shallbefinalunless bothparties (theapplicant andtheheadofacentral agency
concerned) haveanobjection toitwithin 15daysfromcompletion ofthemediation. Itshallhavethe
same effect asanout-of-court settlement.
Legal channels forcomplaints orappeals areopentoanysupplier. Appeals canberaised in
acivilsuit.
(vii) What aretheusual costs toconduct achallenge procedure? Arethere possibilities
foreseen todosofreeofcharge?
Translation, stenography, appreciation ortesting costcanbebilled totheappellant.
Ifthere isaprior arrangement between bothparties, thecostofchallenge procedures is
determined bythearrangement. Therefore, there canbenocostinsome cases.