People's Republic of China Government Procurement Act (June 29, 2002 adopted at the 28th session of the Standing Committee of the ninth) contents chapter I General provisions chapter II Party chapter the fourth chapter on government procurement government procurement government procurement procedures Chapter fifth sixth seventh chapter questions and complaints of government procurement contract supervision and checks the eighth chapter legal liability chapter Nineth supplementary provisions chapter I General provisions article Standardize government procurement practices, and improving the efficiency of government procurement funds, safeguard the State interests and public interests, protect the lawful rights and interests of the parties in government procurement and promoting clean government, this law is enacted. Article in the People's Republic of China Government procurement within the application of this law. Government procurement in this law refers to national authorities, institutions and organizations at all levels, using financial funds within the directory for centralized procurement of procurement law or purchasing quotas of more types of goods, construction and services. Government procurement catalog and procurement quotas in accordance with the provisions of this law the permission set. Purchases in this law refers to the contract paid acquisition of goods, works and services, including purchase, rental, consignment, employment and so on. Goods in this law refers to all forms and kinds of items, including raw materials, fuel, equipment, products and so on. Works in this law refers to construction projects, including new buildings and structures, alteration, expansion, renovation, demolition, repair, etc. Services referred to in this Act, means the objects other than the Government procurement of goods and construction. Article should follow an open and transparent government procurement principles, the principle of fair competition and fair principles and the principle of good faith. Article fourth of tenders to bid on government procurement, tendering law shall be applicable. Fifth no unit or individual shall not in any way, obstruct or restrict suppliers free access to this area, the Government procurement market. Sixth government procurement should be implemented strictly in accordance with the approved budget. Article seventh combining centralized and decentralized procurement in government procurement. The scope of centralized procurement centralized procurement directory published by the people's Governments above provincial level. Belongs to the central budget for government procurement projects, the centralized procurement list designated by the State Council and published; government procurement projects of the local budget, list of the centralized procurement by provinces, autonomous regions, municipalities or their authorized agencies determined and published. Government procurement projects included in the centralized procurement directory should be centralized procurement. Eighth government procurement quotas, which belongs to the central budget for government procurement projects, determined and published by the State Council; Government procurement projects of the local budget, by provinces, autonomous regions and municipalities or their authorized agencies determined and published. Nineth government procurement should contribute to the achievement of national economic and social development policy objectives, including environmental protection, supporting less developed areas and ethnic minority regions, promote the development of small and medium enterprises. Tenth government procurement should be purchasing their goods, construction and services. However, except in the following circumstances: (a) procurement of goods, construction or services needed in China cannot access or cannot be obtained in reasonable commercial conditions, (ii) procurement for use outside of China; (c) the provisions of other laws and administrative regulations. Referred to in the preceding paragraph definition of national goods, construction and services, in accordance with the relevant provisions of the State Council. 11th article for information on government procurement in government procurement supervision and management departments should be released to the public in a timely manner on the specified media, except those involving trade secrets. 12th in government procurement activities, the procurement and related personnel and suppliers have an interest, must be avoided. Vendors consider purchasing personnel and associated personnel and other suppliers have an interest, may apply for his withdrawal. Referred to in the preceding paragraph the relevant personnel, including bid evaluation Committee members, members of the negotiating team in a competitive negotiation procurement and inquiry procurement Inquiry Panel members, and so on. 13th financial Department of the people's Governments at various levels are responsible for the supervision and administration of government procurement departments to perform their duties of supervision and administration of government procurement activities. Relevant departments of the people's Governments at all levels to perform their supervisory and management functions relating to government procurement activities. Chapter II article 14th government procurement government procurement the parties party is in government procurement activities to enjoy the rights and obligations of all kinds of subjects, including procurement, suppliers and procurement agency. 15th government procurement procurement refers to the law of State organs, institutions and organizations. 16th central procurement agency for the procurement agency. District municipalities and autonomous region under the people's Governments above the level of government procurement centralized procurement organizations need to establish a centralized procurement agency for the project. Centralized procurement organization is a non-profit public institution, according to the purchaser's principal handled procurement matters. 17th central purchasing agency for government procurement activities, shall meet the purchase price below the average market price, purchase more efficient, procurement requirements for good quality and good service. Article 18th of procurement included in the centralized directory of the procuring government procurement projects, you must entrust central purchasing agencies and procurement procurement government procurement projects not included in the list of centralized purchasing, you can purchase, or Commission central purchasing institutions, within the scope of procurement agent. Included in the centralized procurement directory belong to the General Government procurement projects, shall entrust the central purchasing agency procurement belong to this sector, the system projects with special requirements, should be introduced for centralized procurement departments belonging to the special requirements of the project, approved by the people's Governments above provincial level, you can purchase. May entrust the competent article 19th procurement departments or provincial departments concerned to evaluate qualifications of procurement agencies, within the scope of government procurement. Purchase has the right to choose their own procurement agencies, no unit or individual shall not in any way specify the procurement agency for procuring. Article 20th entrusts the purchasing agent of the procuring Agency for procurement should be by a buyer agency agreement with the procurement agency, identifying agency matters according to law, contract rights and obligations on both sides. 21st supplier is pointing to the procuring entity to provide goods, construction or services to legal persons, other organizations or individuals. 22nd article suppliers participate in government procurement activities should has following conditions: (a) has independent bear civil responsibility of capacity; (ii) has good of commercial reputation and sound of financial accounting system; (three) has perform contract by required of equipment and professional technology capacity; (four) has law paid tax and social security funds of good records; (five) participate in government procurement activities Qian three years within, in business activities in the no major illegal records; (six) legal, and administrative regulations provides of other conditions. Buyer can according to the particular requirements of the project, vendor specific conditions prescribed, but not unreasonable conditions on suppliers to discriminatory treatment or discrimination. 23rd purchase one can be asked to participate in the qualification of suppliers in government procurement-related documents and performance of, and in accordance with the provisions of this law of supplier conditions project specific requirements for suppliers and procurement, shall review the qualifications of the supplier. 24th where two or more natural persons, legal persons or other organizations may form a consortium, in its capacity as a supplier joint participation in government procurement. In complex form of government procurement, suppliers are participating in the consortium shall satisfy the conditions laid down in article 22nd of this law, and shall submit to the buyer a joint agreement, set forth the Consortium's work and obligations. Each party to the consortium shall jointly procurement contract with the procuring, on matters stipulated in the purchase contract to purchase bear joint and several liability. 25th collusion of government procurement the parties may not damage national interests, public interests and other legitimate rights and interests of the parties and not by any means exclude other vendors to compete. Supplier shall not be to the purchaser, the procurement agency, the composition of the evaluation committee personnel, competitive members of the negotiating team, members of the inquiry Panel's bribery or other improper means to make a bid or contract. Procurement agency to the purchaser shall not be bribery or other improper means to seek illegal interests. 26th government procurement government procurement chapter III in the following ways: (I) open tender; (b) the invitation to tender; (iii) competitive negotiation; (d) a single source procurement; (e) inquiries; (vi) State Government procurement supervision and management departments of other procurement methods. Public tenders shall be as the main procurement methods in government procurement. 27th article procurement people procurement goods or service should used public tender way of, its specific amounts standard, belongs to central budget of government procurement project, by State provides; belongs to place budget of government procurement project, by province, and autonomous regions, and municipalities Government provides; for special situation need used public tender yiwai of procurement way of, should in procurement activities began Qian get set district of city, and autonomous above government procurement supervision management sector of approved. 28th the procuring entity shall not should be by open tender procurement of goods or service parts or in any other way circumvent public bidding. 29th in line with one of the following goods or services, may, in accordance with the law by inviting tender procurement: (a) special, can only be purchased from a limited range of suppliers, (ii) through open tendering costs accounted for large proportions of the total value of government procurement projects. 30th article meet following case one of of goods or service, can in accordance with this method used competitive negotiations way procurement: (a) tender Hou no suppliers bid or no qualified standard of or again tender failed to established of; (ii) technology complex or nature special, cannot determine detailed specifications or specific requirements of; (three) used tender by needed time cannot meet user emergency need of; (four) cannot prior calculation out price total of. 31st in line with one of the following goods or services, may, in accordance with this law, the use of single source procurement: (a) can only be purchased from a sole supplier; (B) unforeseen emergencies have taken place cannot be purchased from another vendor, and (c) must ensure that the original purchase items or services supporting the requirement for consistency, need to continue to purchase from a vendor, and purchase 10% of the total amount does not exceed the original contract value. Article 32nd procurement specifications, standards and spot are plentiful and the price range of small government procurement projects, in accordance with this law inquiry procurement. The fourth chapter 33rd in the procurement process of the Government departments responsible for the preparation of departmental budgetary responsibilities of the departments in the preparation of the next fiscal year budget, should be listed in government procurement projects and budget for that financial year, the financial sector summary. Approval of departmental budgets, according to competence and procedures for budget management. 34th project invite tenders procurement of goods or services, the procuring entity should be consistent with the corresponding qualified suppliers, select three or more suppliers through random, and issue the invitations to bid. 35th project bidding procurement of goods and services, from the date of tender documents issued to the bidder submitting the tender closing date, shall be not less than 20th. 36th article in tender procurement in the, appeared following case one of of, should to waste standard: (a) meet professional conditions of suppliers or on tender file for real response of suppliers insufficient three home of; (ii) appeared effect procurement just of illegal, and violations behavior of; (three) bid people of quotes are over has procurement budget, procurement people cannot paid of; (four) for major changes, procurement task canceled of. After the annulment, the procuring entity shall notify all bidders void by reason. 37th after an annulment, in addition to procurement task cancellation cases, should reorganize the tenders; other procurement need to be taken, shall be established in advance of the procurement activities receive district municipality, autonomous government procurement supervision and management departments at or above the relevant government departments for approval. Article 38th of competitive negotiation procurement shall follow the following procedures: (a) set up a negotiating group. Negotiating team by the purchaser's representative and experts were composed of three or more, experts of which shall not be less than the number of total members of the two-thirds. (B) the development of negotiation documents. Negotiating document should make it clear negotiations, negotiations, draft contract provisions as well as the evaluation criteria of a deal and other matters. (C) determine the list invited vendors involved in the negotiations. Negotiating teams from the suppliers comply with appropriate qualifications identified in the list of at least three suppliers participated in the negotiations, and providing negotiating document. (D) negotiations. All members of the negotiating team and a single supplier negotiations, respectively. In the negotiations, either party to the negotiations shall not be disclosed and negotiations for other suppliers of technical data, prices and other information. Negotiating document of substantive changes, the negotiating team shall be notified in writing to all the suppliers involved in the negotiations. (E) determine the transaction vendor. Following completion of negotiations, the negotiating team shall request all suppliers involved in the negotiations carried out within the specified time last quote, purchase from negotiations among candidates on the basis of the deal made by the Panel in accordance with procurement requirements, quality and the principle of equal and the lowest turnover of service suppliers, and will inform all unsold suppliers involved in the negotiations. 39th article of single source procurement, the procuring entity and suppliers should follow the principles of the provisions of this law, ensure project quality and reasonable price agreed between the parties on the basis of procurement. Article 40th inquiry procurement shall follow the following procedures: (a) set up an inquiry group. Inquiry by the procuring entity of the group representatives and experts were composed of three or more, experts of which shall not be less than the number of total members of the two-thirds. Inquiry Panel will be expected to purchase the project's price structure and evaluation of possibility of regulating matters such as standards. (B) determine the inquiry list of suppliers. According to the requirements of the inquiry group, from the suppliers comply with appropriate qualifications identified in the list of at least three suppliers, and to issue a notice of inquiry to make its offer. (C) inquiry. Inquiry Panel's request was a quote by quote vendors must not change prices. (D) determine the transaction vendor. According to meet the procurement requirements of the procuring, quality and the principle of equal and the lowest turnover of service suppliers, and will inform all unsold by inquiry of the supplier. 41st procurement or his delegate acceptance of the purchasing agency shall organize supplier performance. Government procurement for large or complex projects, nationally recognized quality testing agencies should be invited to participate in inspection work. Acceptance of party members should sign the letter of acceptance, and bear the corresponding legal responsibility. 42nd the procuring, purchasing agent for government procurement projects procurement files should be kept for each procurement activities, shall not be forged, altered, concealed or destroyed. Purchase file record for a period of at least 15 years from the closing date of the purchase. Purchasing documents include records of procurement activities, the procurement budget, tender documents, tender documents, bid evaluation criteria, assessment reports and calibration files, contracts, certificates, questioning reply, complaint handling decisions and other relevant documents and information. Procurement activities records at least should including following content: (a) procurement project category, and name; (ii) procurement project budget, and funds constitute and contract price; (three) procurement way, used public tender yiwai of procurement way of, should contains Ming reasons; (four) invited and select suppliers of conditions and the reasons; (five) assessment standard standard and the determine bid people of reasons; (six) waste standard of reasons; (seven) used tender yiwai procurement way of corresponding records. Article 43rd fifth chapter on government procurement contracts government procurement contracts for contract law. Rights and obligations between the procuring entity and suppliers shall agree in accordance with the principle of equality, voluntariness in contract. Principal purchasing agent of the procuring Agency on behalf of its Government procurement contracts with the supplier. By the purchasing agency on behalf of the buyer signed the contract, power of attorney shall be submitted to the procuring entity, as an appendix. 44th government procurement contract should be in writing. Article 45th government procurement supervision and Management Department under the State Council shall, jointly with relevant departments of the State Council, provisions on government procurement contract must contain terms. Article 46th procurement with the bid, clinching suppliers shall bid, clinching a deal in the 30th from the date the notice is issued, in accordance with the procurement files to determine matters of government procurement contracts signed. Bid or contract notices for procurement and bid, clinching the supplier shall have the force of law. The bid, closing notices, change the bid, trading results of the procuring, or bid, contract suppliers bid, sold items, shall bear legal liability. 47th government procurement procurement within seven working days from the date of signing of the contract and copies of purchase contract shall be reported at the Government procurement supervision and management departments and related departments. 48th agreed by the buyer, bid, clinching a vendor can subcontract to perform the contract under law. Government procurement subcontract performance of the contract, bid or contract suppliers on procurement projects and subcontracting to the procuring entity responsible for subcontracting subcontracting suppliers take responsibility. 49th in fulfilling a government procurement contract, purchase one additional identical to the contract goods, construction or services, without changing the premise of other provisions of the contract, you can negotiate contracts with suppliers, but all the additional contract of procurement amount must not exceed the original contract amount of 10%. 50th government procurement the parties to a contract are not allowed to alter, suspend or terminate the contract. Government contracts continue to harm the interests of the State and social public interests, the Parties shall alter, suspend or terminate the contract. The party at fault shall be liable, both parties are at fault, respective responsibilities accordingly. The sixth chapter questions and complaints section 51st suppliers with questions about government procurement activities, can contribute to the enquiry of the procuring, the procuring entity shall make a timely reply, but the content of the replies may not involve commercial secrets. 52nd vendors consider purchasing documents, procurement processes, and the winning bidder, closing with the result that their rights are being infringed, you can know or should know their rights within seven working days from the date of the injury, questioned in writing to the purchaser. 53rd procurement shall, within seven working days after the receipt of supplier's written question responded and notified in writing to question the suppliers and other vendors, but the content of the replies may not involve commercial secrets. 54th principal purchasing agent of the procuring agency procurement, suppliers can ask or questions submitted to the procurement agency, procurement agencies shall, in accordance with this law, 51st, 53rd section on procurement who responded to the matters within the mandate. 55th challenged suppliers to procurement, the procurement agency's response unsatisfactory or procuring, purchasing agency has not replied within the time prescribed, you can reply within 15 working days after the expiry of complaints to the Government procurement supervision and management departments at the same level. 56th government procurement supervisory and administrative departments shall, within the 30 working days after receiving the complaint, processing decision on complaint and notify the complainant in writing and complaint-related parties. 57th government procurement supervision and management departments in dealing with complaints during the may case a written notice suspend the procurement activities of the procuring, but suspended the time shall not exceed 30th. Article 58th of government procurement supervision and Management Department of the complainant's complaint is dissatisfied with a decision or fails to deal with government procurement supervision and management departments, people's Court may apply for administrative reconsideration or bring an administrative action. The seventh chapter article 59th of supervision and inspection supervision and management departments should strengthen the Government procurement government procurement activities and institutions for centralized procurement of supervision and inspection. Supervision and inspection of the main elements are: (a) regarding government procurement laws, administrative regulations and rules implementation; (b) the procurement, procurement methods and procedures of implementation; (c) vocational and professional skills of procurement staff. 60th Government procurement supervision and Administration Department shall not set centralized purchasing agencies, shall not participate in the procurement activities of the Government procurement projects. Procurement agencies and no relationship of subordination to the executive authorities, or other interests. 61st institution shall establish an internal supervision and management system for centralized procurement. The decision-making and implementation procedures of procurement activities should be clear and mutual supervision and mutual restraint. Procurement personnel in charge with the charge procurement contract review and approval rights and responsibilities should be clear, and separated from each other. 62nd central purchasing agency procurement staff should have professional quality and professional skills, in line with the provisions of the administration of government procurement supervision of professional posts requested. Centralized purchasing agencies should strengthen the education and training of its staff; the procurement staff in the professional level of regular assessment, work performance and work ethic. Procurement officers failed to pass the examination, shall not continue to serve. 63rd government procurement procurement criteria shall be made public. Procurement method provided in this law, upon completion of the procurement activities of the procuring, procurement outcomes should be made public. 64th purchases must be in accordance with the provisions of this law, procurement methods and procedures for procurement. No unit or individual shall not violate the provisions of this law, require sourcing or procurement staff to its designated vendors to purchase. 65th government procurement supervision and management departments should check on the procurement activities of the Government procurement projects, government procurement the Parties shall faithfully reflect the situation, providing related materials. 66th government procurement supervision and management departments should be the central procurement agency and procurement price effects, save money, quality of service, credit status, there is no violation on such matters as assessment and publicize evaluation results on a regular basis. 67th in accordance with laws, administrative regulations on government procurement has administrative oversight responsibilities of the Government departments concerned, shall, in accordance with its responsibilities, strengthen oversight of government procurement activities. 68th audit institutions shall audit the Government procurement. Government procurement supervision and Management Department, activities related to government procurement government procurement the Parties shall be subject to auditing by the auditing departments. 69th supervisory organs should strengthen their participation in government procurement activities of the State organs of other personnel appointed by State administrative organs, Government functionaries, and implementation monitoring. 70th no units and individuals in violation of the Government procurement activities, the right to complaint or report, relevant departments and agencies shall, in accordance with their respective duties in time. Eighth chapter legal responsibility 71st article procurement people, and procurement agent institutions has following case one of of, ordered deadline corrected, give warning, can and at fine, on directly is responsible for of competent personnel and other directly responsibility personnel, by its administrative competent sector or about organ give disposition, and to informed: (a) should used public tender way and unauthorized used other way procurement of; (ii) unauthorized improve procurement standard of; (three) delegate not has Government procurement business agent qualification of institutions handle procurement Affairs of; (D) to unreasonable conditions on suppliers impose differential treatment or the discriminatory treatment, and (v) in the bidding process for consultation or negotiation with bidders; (vi) after the issue of notice of bid, clinching no procurement contract with the bid or contract suppliers, (VII) denial of relevant departments shall exercise supervision over and inspection. 72nd article procurement people, and procurement agent institutions and staff has following case one of, constitute crime of, law held criminal; is not constitute crime of, sentenced fine, has illegal proceeds of, and at confiscated illegal proceeds, belongs to state staff of, law give administrative sanctions: (a) and suppliers or procurement agent institutions malicious collusion of; (ii) in procurement process in the accept bribery or gets other not due interests of; (three) in about sector law implementation of supervision check in the provides false situation of And (iv) leaked before the opening bid. 73rd article has Qian two article violations one of effect bid, and sold results or may effect bid, and sold results of, by following situation respectively processing: (a) not determine bid, and sold suppliers of, terminated procurement activities; (ii) bid, and sold suppliers has determine but procurement contract yet perform of, revoked contract, from qualified of bid, and sold candidates in the separately determine bid, and sold suppliers; (three) procurement contract has perform of, to procurement people, and suppliers caused loss of, by responsibility people bear compensation responsibility. 74th the procuring entity should be centralized procurement government procurement projects, does not entrust central purchasing institutions of centralized procurement, procurement by the Government supervisory and administrative departments shall order rectification refused to correct, stop by budget to pay money, by the superior administrative departments or the competent authority directly responsible shall be given the charge and the other persons punished. 75th purchaser fails to announce government procurement procurement standards and procurement results, correction personnel shall be directly in charge of disciplinary action. 76th procurement, procurement agency violates the provisions of this law hiding and destruction shall be kept of procurement documents or forged or altered files and procurement by the Government regulatory agency imposed fines of less than 20,000 yuan and 100,000 yuan, directly responsible to the charge and other direct liable persons shall be given disciplinary actions constitute a crime, criminal responsibility shall be investigated according to law. 77th article suppliers has following case one of of, sentenced procurement amount 5 per thousand above 10 per thousand following of fine, included bad behavior records list, in 1-3 years within ban participate in government procurement activities, has illegal proceeds of, and at confiscated illegal proceeds, plot serious of, by business administration organ revoked license; constitute crime of, law held criminal: (a) provides false material seek bid, and sold of; (ii) take not due means denigrated, and exclusion other suppliers of; (C) procurement, suppliers or other procurement agency collusion; (d) to purchase, purchasing agency bribes or other improper interests; (v) in the bidding process of negotiation with the purchaser, (vi) refuse to related departments supervise and inspect or provide false information. Suppliers have the preceding paragraph (a) to (e) circumstances, bid or contract is not valid. 78th procurement agency in the Agency of wrongdoing in government procurement, and fined in accordance with the relevant legal provisions, it may cancel the qualification it related business, constitute a crime, criminal responsibility shall be investigated according to law. 79th this law when the parties in government procurement article 71st, 72nd, 77th violations, one of the losses caused to others and should bear civil liability in accordance with the relevant provisions of civil law. 80th government procurement supervision and management of the staff in the supervision and inspection in violation of the provisions of this law abuse, neglect, or engages, shall be given administrative sanctions constitutes a crime, criminal responsibility shall be investigated according to law. 81st government procurement supervision and Management Department of the vendor fails to deal with the complaint, giving managers directly responsible and other persons directly responsible for administrative action. 82nd centralized procurement government procurement supervision and management departments of institutional performance assessment, falsely, of concealing the facts, or make regular assessment and publication of examination results shall be corrected by their superior or the supervision authority of its head of communications, and personnel directly responsible shall be given administrative sanctions. Centralized purchasing agencies in government procurement supervision and management departments to appraise, false results of concealing facts, punishable by fines of less than 20,000 yuan and 200,000 yuan, and be informed about serious, cancel the procurement agent qualification. 83rd article of any units or individuals deny or restrict suppliers or Government procurement markets of the industry in the region, a rectification; refuses, by the units and individuals higher administrative authorities or the competent authority responsible for the unit or individual sanctions. Nineth chapter supplementary articles article 84th international organization and Government procurement foreign government loans, lenders, financing reached an agreement with China on the procurement provisions of specific conditions, can apply its provisions, without prejudice to national interests and public interests. 85th because of severe natural disasters and other force majeure events implemented by emergency procurement and procurement involving national security and secret, this law is not applicable. 86th military procurement legislation enacted separately by the Central Military Commission. Specific steps and approaches to implementation of the 87th article of the law formulated by the State Council. 88th article this law shall enter into force on January 1, 2003.