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Development of China’s Government Procurement

Development of China’s Government Procurement. ZHANG HANG Treasury Department Ministry of Finance, China July, 2009. China’s Government Procurement System Basic government procurement procedure Achievements on China’s government procurement reform

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Development of China’s Government Procurement

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  1. Development of China’s Government Procurement ZHANG HANG Treasury Department Ministry of Finance, China July, 2009

  2. China’s Government Procurement System Basic government procurement procedure Achievements on China’s government procurement reform Efforts on building an opened government procurement system Next step

  3. China’s Government Procurement System • The Government Procurement Law of the People’s Republic of China • entered into force on January 1, 2003 • Scope • other laws, regulations, decrees, administrative rulings, decisions

  4. China’s Government Procurement System • Budget Law of the People’s Republic of China • Contract Law of the People’s Republic of China • Tendering and Bidding Law of the People’s Republic of China • Circular of the General Office of the State Council on Distributing the Opinions on the Division of Functions of the Relevant Departments under the State Council in Administrative Supervision over Tendering and Bidding Activities • Catalogue of Items subject to Government Procurement

  5. China’s Government Procurement System • Administrative Measures on Tendering and Bidding for Government Procurement of Goods and Services • Administrative Measures on Release of Government Procurement Information • Measures on Handling Complaints of Government Procurement Suppliers • Measures on Qualification Accreditation of Government Procurement Agencies

  6. China’s Government Procurement System • Implementation Opinions on Procuring Energy-Saving Products • Implementation Opinions on Procuring Environmental Labeling Products • Administrative Measures on Budget Management in Government Procurement of Innovative Products • Measures on Evaluation of Innovative Products in Government Procurement • Administrative Measures on the Management of Government Procurement Contracts for Innovative Products • Administrative Measures on Government Procurement of Imported Products • Administrative Measures on the Priority Purchase and Order of Innovative Products by the Government

  7. China’s Government Procurement System • the legitimate procurement supervisory and administrative departments • centralized and decentralized procurement • centralized procurement catalog

  8. Basic government procurement procedure examination and reception the performance of the procurement contract Prepare and submit the government procurement budget and plans Determine the procurement method Organize the procurement activities apply for Payment

  9. procuring entities entrust the ICGPs or procuring intermediaries to carry out the procuring activities, or conduct by the procuring entities themselves formulate tender solicitation documents release of GP Information on the designated media by MOF the duration from the time of issuing the tender solicitation documents to the deadline for submitting the bidder documents should not be less than 20 days Put the tender solicitation documents on sale experts should be draw out not earlier than the day before bid opening draw out experts from experts’ pool established by Financial Departments Bid opening The number of the bidders evaluation committee, which consist of delegate of procuring entity, technologist and economic experts, should contain more than 5 persons and be odd number. Bid proposal evaluation The procuring entity should determine the successful supplier within 5 days after the reception of bid evaluation report Determine the successful supplier Publish the final results for the procurement on the designated media The procuring entity or procuring intermediary should enter into a GP contract with the successful supplier within 30 days after notification of award enter into a government procurement contract examination and reception the performance of the procurement contract Apply for payment Example of open tendering procedure

  10. Achievements on China’s government procurement reform • Formulate the frame of government procurement system • Improve the transparency of government procurement activities • Perfect the mechanism increasingly • Enhance the procuring regulatory level • Fully exert the policy function of government procurement

  11. Achievements on China’s government procurement reform

  12. Achievements on China’s government procurement reform Open tendering: the major method of government procurement

  13. Efforts on building an opened government procurement system • commitment on the accession to GPA • submit application and initial offer on 28th, Dec. 2007 • integrate into GPA family with a active attitude

  14. Next step • strengthen the legal construction of government procurement • intensify supervisory and operation of centralized procurement • enhance the dynamic monitoring system of government procurement • strengthen the exertion on policy functions on government procurement • ensure all policies are implemented fully and effectively • enhance the quality and efficiency of government procurement through eGP

  15. Thanks!

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