Taiwan to reform disabled procurement rules after 'virtual' contract criticism

Taiwan's Ministry of Health and Welfare has pledged to reform the preferential procurement system for disabled individuals and sheltered workshops, addressing concerns that the current regulations allow for "virtual procurement." This reform aims to ensure that only successfully fulfilled contracts count towards performance evaluations, a move that could significantly impact businesses relying on these contracts.

The current system has faced criticism for allowing government agencies to count unfulfilled bids or contracts that could not be completed towards their procurement quotas. Legislator Liao Wei-hsiang pointed out that approximately 40% of the preferential procurement obligations, totaling an estimated NT$700 million to NT$1 billion, are not actually fulfilled. This loophole has drawn sharp criticism, particularly after the presidential office's discretionary funds were cut, impacting orders for sheltered workshops.

In response, the Ministry of Health and Welfare's Social and Family Affairs Administration announced it will raise the minimum ratio of actual procurement and exclude unfulfilled amounts from assessments. The ministry also plans to expand the scope of public sector needs, comprehensively review daily requirements of government agencies, and increase opportunities for actual matchmaking. Additionally, they will explore ways to increase the value of preferential procurement and consider internal disciplinary actions or substantive constraints for public agencies failing to meet actual procurement targets.

The ministry will also provide guidance to disabled individuals and sheltered workshops on labor issues through the labor bureau. Efforts will be made to enhance the interface and information flow for preferential procurement of goods and services, with earlier arrangements and notifications. The goal is to ensure a more effective and equitable system that truly supports disabled individuals and sheltered workshops.