Government Procurement Law of the Peoples Republic of China

Government Procurement Law of the People's Republic of China

The "Government Procurement Law of the People's Republic of China" was adopted by the 28th meeting of the Standing Committee of the Ninth National People's Congress of the People's Republic of China on June 29, 2002, is hereby promulgated shall come into force on January 1, 2003 .

President of the People's Republic of China Jiang Zemin

June 29, 2002

Government Procurement Law of the People's Republic of China

(Adopted at the 28th meeting of the Standing Committee of the Ninth National People's Congress on June 29, 2002)

table of Contents 

Chapter One General

Chapter II Government Procurement Parties

Chapter III Government Procurement Methods

Chapter IV Government Procurement Procedure

Chapter V Government Procurement Contract

Chapter VI Questions Complaints

Chapter VII Supervision Inspection

Chapter 8 Legal Liability

Chapter 9 Supplementary Provisions

Chapter One General

Article 1 In order to regulate government procurement, improve the efficiency of the use of government procurement funds, safeguard national social public interests, protect the legitimate rights interests of government procurement parties, promote the construction of a clean government, this law is formulated.

Article 2 This law applies to government procurement within the territory of the People's Republic of China.

The term "government procurement" as used in this Law refers to the use of financial funds to purchase goods, projects, services within the centralized procurement catalog established by law above the quota standard by state agencies, institutions organizations at all levels.

The centralized government procurement catalog procurement quota standards are formulated in accordance with the powers stipulated in this law.

The term "procurement" as mentioned in this law refers to the act of obtaining goods, projects services for compensation in the form of contracts, including purchase, leasing, entrustment, employment.

The term "goods" in this law refers to various forms types of goods, including raw materials, fuels, equipment, products, etc.

The term "project" as mentioned in this Law refers to construction projects, including the new construction, reconstruction, expansion, decoration, demolition, repair of buildings structures.

The service mentioned in this law refers to other government procurement objects except goods projects.

Article 3 Government procurement shall follow the principles of openness transparency, fair competition, fairness good faith.

Article 4 The Bidding Bidding Law shall apply to the bidding for government procurement projects.

Article 5 No unit individual may use any method to obstruct restrict suppliers freely entering the government procurement market in this region industry.

Article 6 Government procurement shall be implemented strictly in accordance with the approved budget.

Article 7 Government procurement shall combine centralized procurement decentralized procurement. The scope of centralized procurement is determined by the centralized procurement catalog published by the people's government at above the provincial level.

For government procurement projects belonging to the central budget, the centralized procurement catalog shall be determined published by the State Council; for government procurement projects belonging to the local budget, the centralized procurement catalog shall be determined published by the people's government of the province, autonomous region, municipality directly under the Central Government its authorized agency.

The government procurement items included in the centralized procurement catalog shall implement centralized procurement.

Article 8 The government procurement quota standard shall be determined announced by the State Council for government procurement items in the central budget; government procurement items in the local budget shall be determined announced by the people's governments of provinces, autonomous regions, municipalities directly under the Central Government their authorized institutions.

Article 9 Government procurement shall contribute to the realization of the country’s economic social development policy goals, including protecting the environment, supporting underdeveloped areas ethnic minority areas, promoting the development of small medium-sized enterprises.

Article 10 Government procurement shall purchase domestic goods, projects services. Except in one of the following situations:

(1) The goods, projects services that need to be purchased cannot be obtained within China cannot be obtained on reasonable commercial conditions;

(2) Purchasing for use outside China;

(3) Other laws administrative regulations provide otherwise.

The definition of domestic goods, projects services mentioned in the preceding paragraph shall be implemented in accordance with the relevant regulations of the State Council.

Article 11 Information on government procurement shall be released to the public in a timely manner on the media designated by the government procurement supervision management department, except for those involving commercial secrets.

Article 12 In government procurement activities, procurement personnel related personnel have an interest relationship with suppliers, they must be avoided. If the supplier believes that the procurement personnel related personnel have an interest relationship with other suppliers, they may apply for recusal.

The relevant personnel mentioned in the preceding paragraph include the members of the bid evaluation committee in bidding procurement, the members of the negotiation team in competitive negotiation procurement, the members of the inquiry team in inquiry procurement.

Article 13 The financial departments of the people's governments at all levels are the departments responsible for the supervision management of government procurement, perform their duties of supervision management of government procurement activities in accordance with the law.

Other relevant departments of the people's governments at all levels shall perform their supervisory administrative duties related to government procurement activities in accordance with the law.

Chapter II Government Procurement Parties

Article 14 The parties to government procurement refer to various entities that enjoy rights undertake obligations in government procurement activities, including purchasers, suppliers procurement agencies.

Article 15 Procurers refer to state agencies, institutions, organizations that conduct government procurement in accordance with the law.

Article 16 The centralized procurement agency is a procurement agency. The people's governments of cities divided into districts, autonomous prefectures above shall establish centralized procurement agencies in accordance with the needs of the government procurement projects at the corresponding level to organize centralized procurement.

The centralized procurement agency is a non-profit enterprise legal person handles procurement matters according to the entrustment of the purchaser.

Article 17 When a centralized procurement organization conducts government procurement activities, it shall meet the requirements that the procurement price is lower than the market average price, procurement efficiency is higher, procurement quality is good, service is good.

Article 18 Procurement of government procurement items included in the centralized procurement catalog must be entrusted to the centralized procurement agency for procurement by the purchaser; government procurement items that are included in the centralized procurement catalog may be purchased on their own they can be entrusted to the centralized procurement agency within the scope of entrustment Purchase agent.

If included in the centralized procurement catalog as a general government procurement project, the centralized procurement agency shall be entrusted to purchase as an agent; the project that belongs to the department the system has special requirements shall be subject to departmental centralized procurement; the project that belongs to the unit with special requirements shall be approved by the provincial level Approved by the above-mentioned people's government, it can purchase by itself.

Article 19 The purchaser may entrust a procurement agency certified by the relevant department of the State Council the relevant department of the provincial people's government to handle government procurement matters within the entrusted scope.

The purchaser has the right to choose a purchase agency by himself, no unit individual may designate a purchase agency for the purchaser in any way.

Article 20 a purchaser entrusts a procurement agency to handle procurement matters in accordance with the law, the purchaser the procurement agency shall sign an agency agreement, determine the entrusted agency matters in accordance with the law, agree on the rights obligations of both parties.

Article 21 A supplier is a legal person, other organization natural person that provides goods, projects services to the purchaser.

Article 22 Suppliers shall meet the following conditions to participate in government procurement activities:

(1) the ability to independently bear civil liability;

(2) a good business reputation a sound financial accounting system;

(3) the equipment professional technical capabilities necessary to perform the contract;

(4) It has a good record of paying taxes social security funds in accordance with the law;

(5) In the three years before participating in government procurement activities, there is no record of major violations of laws in business activities;

(6) Other conditions stipulated by laws administrative regulations.

The purchaser may stipulate specific conditions of the supplier in accordance with the special requirements of the procurement project, but shall subject the supplier to differential discriminatory treatment under unreasonable conditions.

Article 23 The purchaser may require the suppliers participating in government procurement to provide relevant qualification documents performance status, review the qualifications of the suppliers in accordance with the supplier conditions the specific requirements of the procurement items stipulated in this law. .

Article 24 Two more natural persons, legal persons other organizations may form a consortium jointly participate in government procurement as a supplier.

For government procurement in the form of a consortium, all suppliers participating in the consortium shall meet the conditions stipulated in Article 22 of this law, shall submit a joint agreement to the purchaser, stating the work obligations of the parties to the consortium. The parties to the consortium shall jointly sign a procurement contract with the purchaser, bear joint several liability to the purchaser for the items agreed in the purchase contract.

Article 25 The parties to government procurement shall collude with each other to damage the national interest, social public interest the lawful rights interests of other parties; shall use any means to exclude other suppliers participating in competition.

Suppliers shall use bribes to purchasers, procurement agencies, members of the bid evaluation committee, members of the competitive negotiation team, members of the inquiry team, use other improper means to win a bid make a deal.

Procurement agencies shall seek illegal benefits by bribing the purchaser adopting other improper means.

Chapter III Government Procurement Methods

Article 26 The following methods are adopted for government procurement:

(1) Open bidding;

(2) Invitation to bid;

(3) Competitive negotiation;

(4) Single-source procurement;

(5) Inquiry;

(6) Other procurement methods recognized by the government procurement supervision management department of the State Council.

Public bidding should be the main procurement method for government procurement.

Article 27: the purchaser shall purchase goods services through public bidding, the specific amount standard shall be stipulated by the State Council for government procurement items belonging to the central budget; government procurement items belonging to the local budget shall be determined by the people of provinces, autonomous regions, municipalities directly under the Central Government. The government stipulates that if a procurement method other than public bidding needs to be used due to special circumstances, the approval of the procurement supervision management department of the people's government at above the districted city autonomous prefecture shall be obtained before the procurement activity starts.

Article 28 The purchaser shall divide the goods services that should be purchased by public bidding into parts avoid public bidding for procurement in any other way.

Article 29 Goods services that meet any of the following circumstances may be purchased by invitation to bid in accordance with this Law:

(1) It is special can only be purchased a limited range of suppliers;

(2) The cost of the public bidding method accounts for an excessive proportion of the total value of the government procurement project.

Article 30 Goods services that meet one of the following circumstances may be purchased through competitive negotiation in accordance with this Law:

(1) After the bidding, there is no supplier bidding there is no qualified bidder the re-tendering fails to be established;

(2) The technology is complicated the nature is special, the detailed specifications specific requirements cannot be determined;

(3) The time required for bidding cannot meet the urgent needs of users;

(4) The total price cannot be calculated in advance.

Article 31 Goods services that meet one of the following circumstances may be purchased a single source in accordance with this law:

(1) It can only be purchased the sole supplier;

(2) It is impossible to purchase other suppliers in an unforeseen emergency situation;

(3) It is necessary to ensure the consistency of the original procurement items the requirements of supporting services, it is necessary to continue to purchase the original supplier, the total amount of additional purchase funds does exceed 10% of the original contract purchase amount.

Article 32 The procurement of goods with uniform specifications standards, sufficient spot sources of goods small price changes may be used for procurement in accordance with this law.

Chapter IV Government Procurement Procedure

Article 33 When the department responsible for preparing departmental budgets prepares departmental budgets for the next fiscal year, it shall list the government procurement projects capital budgets for that fiscal year report them to the fiscal department at the same level for summary. The approval of departmental budgets is carried out in accordance with budget management authority procedures.

Article 34 goods services are purchased by invitation to bid, the purchaser shall randomly three more suppliers the suppliers that meet the corresponding qualifications issue a bid invitation letter to them.

Article 35 goods services are purchased through bidding, there shall be no less than 20 days the date when the bidding documents are issued to the deadline for submission of bid documents by the bidder.

Article 36 In bidding procurement, if one of the following situations occurs, the bid shall be annulled:

(1) There are less than three suppliers that meet the professional requirements the suppliers that have substantively responded to the bidding documents;

(2) Violations of laws regulations that affect the fairness of procurement occur;

(3) The bidder's quotation exceeds the procurement budget the purchaser cannot pay;

(4) The procurement task is cancelled due to major changes.

After the abolished bid, the purchaser shall notify all bidders of the reason for the abolished bid.

Article 37 After the bid is abolished, except for the cancellation of the procurement task, the bidding shall be reorganized; if other methods of procurement are required, the procurement supervision management department government of the people’s government at above the districted city autonomous prefecture shall be obtained before the procurement activity starts. Approved by relevant departments.

Article 38 The following procedures shall be followed for procurement through competitive negotiation:

(1) Establish a negotiation team. The negotiation team is composed of an odd number of representatives of the purchaser relevant experts of more than three persons, the number of experts shall be less than two-thirds of the total number of members.

(2) Develop negotiation documents. Negotiation documents should clarify matters such as negotiation procedures, negotiation content, terms of the draft contract, criteria for evaluating the transaction.

(3) Determine the list of suppliers invited to participate in the negotiation. The negotiation team will determine no less than three suppliers the list of suppliers that meet the corresponding qualifications to participate in the negotiation provide them with negotiation documents.

(4) Negotiation. All members of the negotiating team will negotiate separately with a single supplier. During the negotiation, neither party to the negotiation shall disclose the technical data, prices other information of other suppliers related to the negotiation. If there are substantial changes to the negotiation documents, the negotiation team shall notify all suppliers participating in the negotiation in writing.

(5) Determine the supplier for the transaction. After the negotiation, the negotiation team shall require all suppliers participating in the negotiation to make a final quotation within the specified time. The purchaser shall determine the transaction supply according to the principle of meeting the procurement requirements, equal quality service, the lowest quotation the candidates proposed by the negotiation team. notify all unsettled suppliers participating in the negotiation of the results.

Article 39 a single source is adopted for procurement, the purchaser the supplier shall follow the principles set forth in this law, make purchases on the basis of ensuring the quality of the procurement project the reasonable price agreed by both parties.

Article 40 The following procedures shall be followed when purchasing by inquiry:

(1) Establish an inquiry group. The inquiry group is composed of an odd number of three more representatives of the purchaser relevant experts, the number of experts shall be less than two-thirds of the total number of members. The price inquiry team shall make provisions on the price composition of the procurement items the criteria for evaluating transactions.

(2) Determine the list of suppliers to be inquired about. According to the procurement requirements, the inquiry team will determine no less than three suppliers the list of suppliers that meet the corresponding qualifications, send them an inquiry notice for their quotation.

(3) Inquiry. The inquiry group requires the supplier being inquired to quote a price that cannot be changed at one time.