Nov 28,2007
Chapter Ⅳ Government Procurement Proceedings
Article 33 When the department in charge of departmental budgeting drafts the budget for the next fiscal year, the items to be procured and the funds required shall be included in the budget and submitted to the financial department at the same level for compilation. The departmental budget shall be subject to examination and approval conducted and granted within the limits of powers of budgetary administration and in accordance with budgetary administration procedures.
Article 34 Where invited bidding is adopted for the procurement of goods or services, the procuring entity shall randomly choose three or more suppliers from among those that meet the qualifications required, and send invitation documents to them.
Article 35 Where public invitation is adopted for the procurement of goods or services, the period of time beginning from the date of issuance of the bid invitation documents to the deadline for submission of the bid documents by bidders shall be not less than 20 days.
Article 36 When one of the following circumstances arises in procurement through bid invitation, the bid proceeding shall be annulled:
(1)where there are less than three suppliers that meet the professional qualifications required or that have made substantive response to the bid invitation documents;
(2)where violations of laws or regulations occur to the detriment of impartial procurement;
(3)where all the prices offered by the bidders exceed the budget for procurement so that the procuring entity can not afford them; or
(4)where the procurement project is cancelled due to major changes in circumstances.
Once the bid proceeding is annulled, the procuring entity shall inform all the bidders of the reasons for the annulment.
Article 37 After annulment, the bid proceedings shall be rearranged unless the procurement project is cancelled. Where it is necessary to adopt other methods of procurement, the matter shall, before procurement starts, be subject to approval by the department for supervision over procurement under the people's government at or above the level of a city divided into districts or of an autonomous prefecture, or by a relevant government department.
Article 38 Where competitive negotiation is adopted for procurement, the following procedure shall be followed:
(1)Setting up of a negotiation team. The team shall be composed of three or more representatives of the procuring entity and experts shall be not less than two-thirds of the total.
(2)Drafting of documents for negotiation. In the documents shall be clearly stated the negotiation procedure and contents, the terms of a draft contract and the criteria for evaluating a deal concluded.
(3)Deciding on the name list of the suppliers to be invited to participate in the negotiation. The negotiation team shall choose not less than three suppliers from among all the qualified suppliers in the name list to participate in negotiation and provide them with the documents for negotiation.
(4)Negotiating. All members of the negotiation team together negotiate with the suppliers individually. In the course of negotiation, neither side may disclose other suppliers' technical data, prices or other information related to the negotiation. Where there are any substantive changes
made in the documents for negotiation, the negotiation team shall inform, in writing, all the suppliers participating in the negotiation of the changes.
(5)Deciding on the successful supplier. Once the negotiation is concluded, the negotiation team shall request all the suppliers participating in the negotiation to quote their final offering prices within a specified time limit. The procuring entity shall decide on the successful supplier from among the candidates recommended by the negotiation team on the principle that the supplier meets the need of procurement and that the price it quotes is the lowest among the prices quoted for goods of equal quality and for equal services, and it shall inform all the unsuccessful suppliers that participate in the negotiation of the result.
Article 39 Where the single-source procurement is adopted, the procuring entity and suppliers shall follow the principles provided for by this Law in carrying out the procurement on the basis of guaranteed quality and the reasonable price agreed by both sides.
Article 40 Where inquiry about quotations is adopted, the following procedure shall be followed:
(1)Setting up of a quotation inquiry team. The team shall be composed of three or more representatives of the procuring entity and experts in the relevant fields, the number shall be odd, and the number of the experts shall be not less than two-thirds of the total. The team shall specify the composition of price for the items to be procured and the criteria for evaluating a deal concluded.
(2)Deciding on the name list of the suppliers to be inquired of about quotations. The quotations inquiry team shall, on the basis of the procurement need, choose not less than three suppliers from among all the qualified suppliers in the name list and send to each of them a quotations inquiry notice to solicit their quotations.
(3)Inquiry about quotations. The quotations inquiry team shall request the suppliers to be inquired of about quotations, to quote their prices just for once, which are not to be changed.
(4)Determining the successful supplier. The procuring entity shall determine the successful supplier on the principle that the supplier meets the need of procurement and the price it quotes is the lowest among the prices quoted for goods of equal quality and equal services, and it shall inform all the unsuccessful suppliers that are inquired of about quotations of the result.
Article 41 The procuring entity or the entrusted procuring agency shall, before acceptance, make arrangements for inspection of the fulfillment of the procurement contract on the part of the supplier. For large and complex procurement items, it shall invite quality-testing institutions confirmed by the State to participate in the inspection. Members of the inspecting side shall sign their names on the inspection report and shall bear corresponding legal responsibilities.
Article 42 The procuring entity or the procuring agency shall properly keep all the procurement documents relating to the procurement of each item, and it may not fabricate, forge, conceal or destroy such documents. The period of time for preservation of procurement documents shall be not less than 15 years starting from date the procurement is completed.
The procurement documents include the records of procurement, procurement budget, bid invitation documents, bid documents, criteria for bid evaluation, evaluation report, documents relating to decision on the awarding of a bid ,contract text, inspection-acceptance certificates, replies to queries, decisions on complaints handled and other related documents and data.
The records of procurement shall, at least, include the following:
(1)the types and names of the items to be procured;
(2)the budget for procurement items, composition of funds and price fixed by contract;
(3)the procur
ement method; where a method other than public invitation is adopted, the reasons shall be stated clearly;
(4)qualification requirements and reasons for inviting or selecting suppliers;
(5)criteria for bid evaluation and reasons for deciding on the winner of the bid;
(6)reasons for canceling the bid proceeding; and
(7)the records relating to adoption of the procurement method other than bid invitation.
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