Regulation on the Implementation of the Government Procurement Law of China

 2018-05-21  47


Regulation on the Implementation of the Government Procurement Law of China 


· Document Number:Order No. 658 of the State Council

· Area of Law: Treasury

· Level of Authority: Administrative Regulations

· Date issued:01-30-2015

· Effective Date:03-01-2015

· Status: Effective

· Issuing Authority: State Council

 

Order of the State Council of the People's Republic of China
(No. 658)
The Regulation on the Implementation of the Government Procurement Law of hina, as adopted at the 75th executive meeting of the State Council on December 31, 2014, is hereby issued, and shall come into force on March 1, 2015.
Premier: Li Keqiang
January 30, 2015



Regulation on the Implementation of the Government Procurement Law of China
Chapter I General Provisions
Article 1 This Regulation is developed in accordance with the Government Procurement Law of the People's Republic of China (hereinafter referred to as the “Government Procurement Law”).
Article 2 The term “fiscal funds” as mentioned in Article 2 of the Government Procurement Law means funds included under budget management.
Borrowed funds repaid with fiscal funds shall be deemed as fiscal funds.
Where a procurement organized by a state organ, public institution, group, or organization uses both fiscal funds and non-fiscal funds, the portion using fiscal funds shall be governed by the Government Procurement Law and this Regulation; where the portion using fiscal funds and the portion using non-fiscal funds cannot be partitioned, the procurement shall be governed by the Government Procurement Law and this Regulation in its entirety.
The term “services” as mentioned in Article 2 of the Government Procurement Law includes the services needed by the government and the public services provided by the government to the general public.
Article 3 The centralized procurement catalogue shall include items procured by centralized procurement institutions and items procured by departments in a centralized manner.
Items with unified technical or service standards which are commonly used by a purchaser shall be items procured by a centralized procurement institution; items which are specially needed by a department or system for business development and can be procured in a centralized manner shall be items procured by a department in a centralized manner.
Article 4 The term “centralized procurement” as mentioned in the Government Procurement Law means that a purchaser entrusts the procurement of items in the centralized procurement catalogue to a procurement agency or subjects them to the centralized procurement of a department. The term “decentralized procurement” means that a purchaser purchases by itself items that are beyond the procurement quotas and are not included in the centralized procurement catalogue or entrusts the procurement of such items to a procurement agency.
Article 5 The people's government of a province, autonomous region or municipality directly under the Central Government or any institution authorized by it may respectively determine the centralized procurement catalogues and quotas for the corresponding provincial level, the level of a districted city, and the county level in the administrative region.
Article 6 The public finance department under the State Council shall, according to the economic and social development policies of the state, develop government procurement policies jointly with relevant departments under the State Council, and, by developing the procurement demand criteria, reserving procurement quotas, offering price evaluation preferences, and giving priorities, etc., realize the objectives of saving energy, protecting the environment, and supporting the development of the underdeveloped areas, ethnic minority areas, and small and medium enterprises.
Article 7 For government procurement projects and the goods or services related to the construction of such projects, if bidding is adopted, the Bidding Law of the People's Republic of China and the regulation on the implementation thereof shall apply; if any other method is adopted, the Government Procurement Law and this Regulation shall apply.
The term “project” as mentioned in the preceding paragraph means construction projects, including the construction, reconstruction and expansion of buildings and structures, as well as relevant decoration, dismantling and repair. The term “goods related to the construction of a project” means the equipment and materials that constitute an integral part of the project and are required for realizing the basic functions of the project. The term “services related to the construction of a project” means the survey, design, supervision, and other services required for completing the project.
Government procurement projects and the goods and services related to the construction thereof shall be governed by government procurement policies.
Article 8 Information about government procurement items shall be released on a media designated by the public finance department of the people's government at or above the provincial level. If the budget amount of such items reaches the limit set by the public finance department under the State Council, the information shall be released on a media designated by the public finance department under the State Council.
Article 9 In a government procurement activity, a procurement person or relevant person that is an interested party to a supplier under any of the following circumstances shall withdraw:
(1) Having a labor relation with the supplier within the three years before participating in the procurement activity.
(2) Serving as a director or supervisor in the supplier within the three years before participating in the procurement activity.
(3) Serving as the controlling shareholder or actual controller of the supplier within the three years before participating in the procurement activity.
(4) Having a spousal relationship, lineal consanguinity, collateral consanguinity within three generations, or close affinity relationship with the legal representative of the supplier.
(5) Having any other relationship with the supplier which may jeopardize the impartiality of the government procurement activity.
If believing that a procurement person or relevant person is an interested party to any other supplier, a supplier may apply in writing to the purchaser or procurement agency for withdrawal, but shall give reasons. The purchaser or procurement agency shall inquire of the person against who the withdrawal application is made in a timely manner, and the person shall withdraw if being an interested party.
Article 10 The state shall apply unified construction standards for electronic trading platforms for government procurement and promote the utilization of information networks for carrying out government procurement activities in electronic manners.
Chapter II Parties Concerned in Government Procurement
Article 11 Purchasers shall protect national interests and public interests in government procurement activities, be impartial and integrated, keep good faith, comply with the government procurement policies, establish internal management rules for government procurement, be frugal, and scientifically and reasonably determine procurement demands.
Purchasers shall not ask for or accept gifts, kickbacks, or other commodities or services irrelevant to procurement activities from suppliers.
Article 12 The term “procurement agency” as mentioned in the Government Procurement Law refers to centralized procurement institutions and procurement agencies other than centralized procurement institutions.
Centralized procurement institutions are non-profit incorporated public institutions legally formed by the people's governments at or above the level of a districted city and executive agencies of centralized procurement programs. Centralized procurement institutions shall make executive plans for centralized procurement programs on the entrustment of purchasers, determine procurement procedures, and organize government procurement activities, and shall not sub-entrust centralized procurement programs. Procurement agencies other than centralized procurement institutions shall be social intermediary institutions engaging in procurement services.
Article 13 Procurement agencies shall establish sound internal regulatory rules for government procurement and have the evaluation conditions and facilities required for government procurement services.
Procurement agencies shall improve their professional service levels in determining procurement demands, preparing bidding documents, negotiation documents and inquiry notices, drafting contracts, and optimizing the procurement procedures, organize purchasers to enter into government procurement contracts with bid-winning suppliers or suppliers selected for the transactions within the prescribed time on the basis of the entrustment of purchasers, and assist purchasers in checking and accepting procurement programs in a timely manner.
Article 14 Procurement agencies shall not get government procurement agency business by illicit means or maliciously collude with purchasers or suppliers to manipulate government procurement activities.
The employees of procurement agencies shall not accept the treats, travels and entertainment activities organized by purchasers or suppliers, shall not accept gifts, cash and negotiable securities, and shall not apply to purchasers or suppliers for reimbursement of expenses that should be paid by them.
Article 15 Purchasers and procurement agencies shall prepare procurement documents according to the government procurement policies, budgets, and demands.
Procurement demands shall comply with laws, regulations, and the technical, service, safety, and other requirements as set out in government procurement policies. For a public service provided by the government to the general public, public opinions shall be solicited regarding the procurement demand. Unless the detailed specifications or specific requirements cannot be determined because of technical complexity or special nature, the procurement demand shall be integrated and specific. If necessary, the opinions of relevant suppliers and experts shall be solicited regarding the procurement demand.
Article 16 The agency agreement as mentioned in Article 20 of the Government Procurement Law shall specify the scope, authority, term, and other specific matters of the procurement agency.
The purchaser and the procurement agency shall fulfill their respective obligations according to the agency agreement, and the procurement agency shall not act beyond the delegated authority.
Article 17 A supplier participating in government procurement activities shall meet the conditions set out in paragraph 1, Article 22 of the Government Procurement Law and shall provide the following materials:
(1) For a legal person or any other organization, the business license and other certification documents; for a natural person, the identity certificate.
(2) A financial status report and relevant materials on the payment of taxes and social security funds as legally required.
(3) Materials proving that it has the equipment and professional technical ability required for performing the contract.
(4) A written declaration that it has no gross violation of laws in its business activities in the three years prior to participating in government procurement activities.
(5) Materials proving that it meets other conditions set out by laws and administrative regulations.
For a procurement program with any special requirements, the supplier shall provide certification materials on or justify its satisfaction of the special requirements.
Article 18 Suppliers under the charge of the same person or with a direct controlling or management relationship shall not participate in the government procurement activities under the same contract.
Suppliers providing integrated design, standards development, program management, supervision, testing, or other services for a procurement program other than a single-source procurement program shall not participate in other procurement activities of the program.
Article 19 The term “record of serious violation of laws” as mentioned in item (5), paragraph 1, Article 22 of the Government Procurement Law means a criminal punishment or an administrative punishment such as an order of suspension of production or business, revocation of permit or license, or a relatively large amount of fine as imposed on a supplier for violation in business operations.
A supplier banned from participating in government procurement activities for a certain period of time for any violation in business operations in the three years before participating in government procurement activities may participate in such activities upon expiry of the said period.
Article 20 Under any of the following circumstances, a purchaser or procurement agency shall be considered to be differential or discriminatory to suppliers under unreasonable conditions:
(1) Providing different information about a same procurement project to suppliers.
(2) Setting eligibility, technical or business conditions not commensurate with the specific characteristics or actual needs of the procurement project or irrelevant to the performance of contract.
(3) Setting technical, service or other requirements in the procurement demand specially for a specific supplier or product.
(4) Setting the performance or award in a specific administrative region or industry as a scoring item or a condition for winding the bid or concluding the transaction.
(5) Adopting different eligibility examination or evaluation standards for suppliers.
(6) Limiting or designating specific patents, trademarks, brands, or suppliers.
(7) Illegally limiting the form of ownership, form of organization, or location of suppliers.
(8) Setting other unreasonable conditions to limit or preclude potential suppliers.
Article 21 A purchaser or procurement agency that conducts pre-examination of the qualifications of suppliers shall issue a pre-examination announcement on a media designated by the public finance department of the people's government at or above the county level. A purchaser or procurement agency that has conducted qualification pre-examination may not examine the qualifications of suppliers again during the evaluation phase. Suppliers that have passed the qualification pre-examination shall inform the purchaser or procurement agency if there is any change in its qualifications during the evaluation phase.
A qualification pre-examination announcement shall include the name of the purchaser and the procurement program, the procurement demand, the eligibility requirements for suppliers, and the time and location for suppliers to submit application documents for qualification pre-examination. The time for submitting application documents for qualification pre-examination shall not be less than five working days of issuance of the announcement.
Article 22 Where suppliers of identical qualification in a consortium undertake the same work based on the division of work in the consortium, the qualification grade shall be that of the supplier with the lower grade.
Parties participating in government procurement activities as a consortium shall not participate in the government procurement activities under a same contract, either separately or by forming another consortium.
Chapter III Government Procurement Methods
Article 23 To purchase goods or services above the limits set for open bidding, a purchaser may adopt a procurement method other than open bidding with the approval of the public finance department of the people's government at or above the level of a districted city, if it is under any of the circumstances mentioned in Articles 29 through 32 of the Government Procurement Law, it needs to implement government procurement policies or it is under any other special circumstance.
Article 24 Items in the centralized procurement catalogue shall be purchased in bulk in a centralized manner if appropriate for centralized procurement in bulk, except for urgent small-sum and sporadic goods or services and projects with special requirements.
Article 25 Where a government procurement project fails to undergo the bidding procedure as required by law, the competitive negotiation or single-source procurement method as mentioned in the Government Procurement Law and this Regulation shall be adopted.
Article 26 The circumstance as mentioned in item (3), Article 30 of the Government Procurement Law shall not be predictable by the purchaser or caused as a result of the purchaser's delay; the circumstance as mentioned in item (4) means that the total value cannot be determined beforehand as the purchase time and quantity of artworks, patents, know-hows, or services cannot be determined beforehand.
Article 27 The circumstance as mentioned in item (1), Article 31 of the Government Procurement Law means that the goods or services can only be procured from a certain supplier as the goods or services have used any irreplaceable patent or know-how or the public service items have special requirements.
Article 28 Where a purchaser procures goods or services of a same name or category under a same budgetary item for several times in a financial year by a method other than open bidding, if the cumulative amount exceeds the limits set for open bidding, it shall be deemed as avoiding open bidding by disaggregating the goods or services into parts, unless the budget has been adjusted or the method other than open bidding has been approved.
Chapter IV Government Procurement Procedures
Article 29 A purchaser shall prepare a government procurement implementation plan on the basis of a centralized procurement catalogue, procurement quotas, and approved departmental budget, and shall submit it to the public finance department of the people's government at the same level for recordation.
Article 30 A purchaser or procurement agency shall specify the budget amount for the items to be procured in the bidding documents, negotiation documents, and inquiry notices.
Article 31 The offer period of bidding documents shall not be less than five working days as of the starting date of offer.
If necessary, a purchaser or procurement agency may clarify or modify bid documents that have already been issued. If such clarification or modification may affect the preparation of bids, the purchaser or procurement agency shall, at least 15 days before the deadline for submission of bids, notify all prospective bidders that have obtained the bidding documents in writing. If there are less than 15 days left, the purchaser or procurement agency shall postpone the deadline for submission of pre-qualification documents or bids accordingly.
Article 32 A purchaser or procurement agency shall prepare bidding documents by using the model texts developed by the public finance department under the State Council.
Bidding documents shall include the business conditions and procurement demand of the items to be purchased, the eligibility requirements for bidders, the quotation requirements in making bids, the bid evaluation methods, the bid evaluation standards, and the contract to be concluded.
Article 33 Where the bidding documents require bidders to pay a deposit, the deposit shall not exceed 2% of the budgeted amount of the item to be purchased. The deposit shall be paid in such a non-cash form as check, draft, promissory notes, or a letter of guarantee issued by a financial institution or guarantee institution. Where any bidder fails to pay a as required by the bidding documents, its bid shall be invalid.
A purchaser or procurement agency shall return the deposits to the losing suppliers within five working days of issuance of a notification of award, and return to the bid-winning supplier its deposit within five working days of conclusion of a government procurement contract.
Where, in competitive negotiation or inquiry, suppliers participating in negotiation or inquiry are required to pay a deposit, it shall be governed by reference to the preceding two paragraphs.
Article 34 The lowest evaluated bid method and the comprehensive scoring method shall be adopted for the evaluation of government procurement bids.
The lowest evaluated bid method is a method of evaluating bids to determine suppliers whose bids meet all the substantive requirements of the bidding documents and whose prices are the lowest as the bid-winning candidates. The comprehensive bidding method is a method of evaluating bids to determine suppliers whose bids meet all the substantive requirements of the bidding documents and whose scores are the highest based on the quantitative indicators for evaluated factors as the bid-winning candidates.
For goods and services with unified technical or service standards, the lowest evaluated bid method shall be adopted.
When the comprehensive scoring method is adopted, the score setting in the evaluation standards shall correspond to the quantitative indicators for evaluated factors.
Any evaluation standards not specified in the bidding documents shall not be used as evaluation basis.
Article 35 Where the negotiation documents fail to completely and expressly specify the procurement demand and suppliers need to provide the final design or solution, upon the completion of negotiation, the negotiation team shall vote to recommend the designs or solutions of at least three suppliers under the principleof majority rule and ask them to submit their final bids within the prescribed time.
Article 36 An inquiry notice shall determine the terms of the government procurement contract according to the procurement demand. During the time of inquiry, the inquiry team shall not change any terms of the government procurement contract as determined in the inquiry notice.
Article 37 The term “quality matching service” as mentioned in item (5) of Article 38 and item (4) of Article 40 of the Government Procurement Law means that both the quality and the service of the products provided by suppliers are able to satisfy the substantive requirements specified in the procurement documents.
Article 38 Where some items can only be purchased from a sole supplier under item (1), Article 31 of the Government Procurement Law as it has reached the limits set for open bidding, the purchaser shall announce the information about such items and the name of the sole supplier on a media designated by the public finance department of the people's government at or above the provincial level for not less than five working days.
Article 39 Except as otherwise prescribed by the public finance department under the State Council, a purchaser or procurement agency shall randomly select evaluation experts from the government procurement evaluation expert database.
Article 40 Government procurement evaluation experts shall observe the evaluation disciplines, and shall not divulge the evaluation documents, information about the evaluation, and the trade secrets they have access to in the evaluation process.
If discovering during the process of evaluation that any supplier has such illegal act as offering bribes, providing false materials or colluding, the bid evaluation committee, the competitive negotiation team or the inquiry team shall report it to the public finance department in a timely manner.
If being illegally intervened during evaluation, government procurement evaluation experts shall report it to the public finance department or the supervisory department in a timely manner.
Article 41 Members of the bid evaluation committee, the competitive negotiation team or the inquiry team shall, under the principles of objectivity, impartiality, and prudence, conduct independent evaluations according to the evaluation procedures, methods and standards specified in the procurement documents. Where the procurement documents violate any relevant compulsory provisions of the state, the bid evaluation committee, the competitive negotiation team or the inquiry team shall suspend the evaluation and explain the situation to the purchaser or procurement agency.
Members of the bid evaluation committee, the competitive negotiation team or the inquiry team shall sign on the evaluation report to assume legal responsibility for their own evaluation opinions. Those with any objection about the evaluation report shall give their dissent on the evaluation report and explain the reasons, or it shall be deemed that they have agreed to the evaluation report.
Article 42 A purchaser or procurement agency shall not make any inclinable or misleading explanation to the evaluation experts of the bid evaluation committee, the competitive negotiation team or the inquiry team.
Article 43 A procurement agency shall deliver an evaluation report to the purchaser within two working days of completion of evaluation. The purchaser shall, within five working days of receipt of the evaluation report, determine the bid-winning supplier or supplier in order among the candidates recommended in the evaluation report.
A purchaser or procurement agency shall, within two working days of determination of the bid-winning supplier or supplier selected for the transaction, issue a notification of award or conclusion of transaction, announce the bidding or transaction result on a media designated by the public finance department of the people's government at or above the provincial level, and announce the bidding documents, the competitive negotiation documents and the inquiry notice along with the result.
The announcement of the bidding or transaction result shall include the name, address and contact information of the purchaser or procurement agency, the name and number of the item to be procured, the name and address of the bid-winning supplier or supplier selected for the transaction, the amount involved in the winning bid or concluded transaction, the name, specifications, quantity, unit price and service requirements of the principal object in the winning bid or concluded transaction, and the list of evaluation experts.
Article 44 Unless it is otherwise prescribed by the public finance department under the State Council, no purchaser or procurement agency may organize a re-evaluation under any pretext. To organize a re-evaluation according to the provisions of the public finance department under the State Council, a purchaser or procurement agency shall report it to the public finance department of the people's government at the same level in writing.
A purchaser or procurement agency shall not alter the evaluation result by testing samples or inspecting suppliers.
Article 45 A purchaser or procurement agency shall arrange for an acceptance check of the performance of contracts by suppliers according to the technical, service, and safety standards specified in the government procurement contract and issue an acceptance letter which shall include the performance of contracts regarding each technical, service, and safety standards.
For a public service provided by the government to the general public, the service recipients shall be invited to participate in the acceptance check and issue opinions, and the check result shall be announced to the public.
Article 46 The procurement documents as mentioned in Article 42 of the Government Procurement Law may be retained in the form of electronic files.
Chapter V Government Procurement Contract
Article 47 The public finance department under the State Council shall develop a model text of the government procurement contract jointly with relevant departments under the State Council.
Article 48 Where the procurement documents require the bid-winning supplier or supplier selected for the transaction to pay a performance bond, the performance bond shall be paid in such a non-cash form as check, draft, promissory notes, or a letter of guarantee issued by a financial institution or guarantee institution, and the amount shall not exceed 10% of the amount of the government procurement contract.
Article 49 Where the bid-winning supplier or supplier selected for the transaction refuses to enter into a contract with the purchaser, the purchaser may determine the candidate ranking next as the bid-winning supplier or supplier selected for the transaction according to the order of candidates recommended in the evaluation report, and may also conduct the government procurement activity anew.
Article 50 A purchaser shall, within two working days after entering into a government procurement contract, publish it on a media designated by the public finance department of the people's government at or above the provincial level, except for contents involving state secrets or trade secrets.
Article 51 A purchaser shall pay procurement funds to the bid-winning supplier or supplier selected for the transaction in a timely manner according to the government procurement contract.
The procedures for payment of government procurement funds shall be governed by relevant state provisions on the payment of fiscal funds.
Chapter VI Queries and Complaints
Article 52 A purchaser or procurement agency shall reply to the queries raised by suppliers according to law within three working days.
Where a query raised by a supplier goes beyond the authority delegated by the purchaser to the procurement agency, the procurement agency shall inform the supplier to raise the query to the purchaser.
Government procurement evaluation experts shall cooperate with the purchaser or procurement agency in replying to the queries of suppliers.
Article 53 The term “the day when it should know that its rights and interests have been damaged” as mentioned in Article 52 of the Government Procurement Law means:
(1) For a query about a procurement document open to query, it shall be the date of receipt of the procurement documents or the date of expiry of the announcement period of procurement documents.
(2) For a query about the procurement process, it shall be the date when the relevant link of the procurement process is completed.
(3) For a query about the bidding or transaction result, it shall be the date of expiry of the announcement period of the bidding or transaction result.
Article 54 Where the queried matter may affect the bidding or transaction result, the purchaser shall suspend the conclusion of contract or, if the contract has been concluded, suspend the performance thereof.
Article 55 To raise a query or complaint, a supplier shall have a specific request and necessary evidentiary materials. A supplier may only lodge complaints about the matters that have been queried.
Article 56 The public finance department shall handle the matters being complained about by documentary examination, and may collect evidence upon investigation or organize cross-examinations when necessary.
When the public finance department conducts an investigation to collect evidence according to law, the complainant and the parties involved in the matter being complained about shall truthfully provide relevant information and submit relevant evidence.
Article 57 Where a complainant makes a complaint by fabricated facts, providing false materials or obtaining evidentiary materials by illegal means, the public finance department shall reject the complaint.
Where, after the public finance department accepts a complaint, the complainant applies for withdrawing the complaint in writing, the public finance department shall terminate the complaint handling procedure.
Article 58 The time for inspection, testing, identification, expert evaluation, or supplement or correction of materials by the complaint as required by the public finance department in handling a complaint shall not be included in the time limit for handling the complaint.
A decision made by the public finance department regarding a matter being complained about shall be announced on a media designated by the public finance department of the people's government at or above the provincial level.
Chapter VII Supervision and Inspection
Article 59 The term “standards for government procurement items” as mentioned in Article 63 of the Government Procurement Law means the fund budget standards, asset allocation standards, technical standards, service standards, and other standards on which government procurement is based.
Article 60 In addition to the evaluated matters mentioned in Article 66 of the Government Procurement Law, the matters to be evaluated by the public finance department about a centralized procurement institution shall also include:
(1) implementation of government procurement policies;
(2) quality of the formulated procurement documents;
(3) implementation of procurement methods and procedures;
(4) reply to queries;
(5) development and implementation of the internal supervision and management rules; and
(6) other matters as prescribed by the public finance department of the people's government at or above the provincial level.
The public finance department shall develop an evaluation plan to evaluate the performance of centralized procurement institutions on a regular basis. Any significant information in the evaluation results shall be reported to the people's government at the same level.
Article 61 If discovering that a procurement agency has any violation of laws, a purchaser shall order it to make correction. If the procurement agency refuses to make correction, the purchaser shall report it to the public finance department of the people's government at the same level, and the public finance department shall handle it according to law.
Where a procurement agency discovers that a purchaser's procurement demand is differential or discriminatory to suppliers under unreasonable conditions or contains any other content in violation of any law, regulation or government procurement policy, or discovers that the purchaser has any other legal violation, it shall suggest the purchaser make a correction. If the purchaser refuses to make a correction, the procurement agency shall report it to the public finance department of the people's government at the same level, and the public finance department shall handle it according to law.
Article 62 The public finance departments of the people's governments at and above the provincial level shall conduct dynamic management of their government procurement evaluation expert databases. The specific management measures shall be developed by the public finance department under the State Council.
A purchaser or procurement agency shall keep records of the performance of duties by evaluation experts in government procurement activities and report the relevant information to the public finance department in a timely manner.
Article 63 The public finance departments and other relevant departments of the people's governments at all levels shall strengthen the supervision and administration of suppliers, procurement agencies, and evaluation experts that participate in government procurement activities, keep records of their misconduct, and include them in the unified credit information platform.
Article 64 The public finance departments of the people's governments at all levels shall, in overseeing and inspecting government procurement activities, be entitled to consult and copy relevant documents and materials, and the entities and individuals concerned shall be cooperative.
Article 65 Audit organs, supervisory organs, and other relevant departments shall oversee government procurement activities according to law and inform public finance departments of the illegal acts of the parties involved in such activities.
Chapter VIII Legal Responsibility
Article 66 The amount of fine as mentioned in Article 71 of the Government Procurement Law shall be not more than 100,000 yuan.
The amount of fine as mentioned in Article 72 of the Government Procurement Law shall be not less than 50,000 yuan but not more than 250,000 yuan.
Article 67 Where a purchaser is under any of the following circumstances, the public finance department shall order it to make a correction within a certain time limit, give it a warning, take disciplinary actions against the directly liable person in charge and other directly liable persons, and circulate a notice thereon:
(1) Failing to make a government procurement implementation plan or submit it to the public finance department of the people's government at the same level for recordation as required.
(2) Avoiding open bidding by disaggregating items for which open bidding should be adopted into parts or any other means.
(3) Failing to determine the bid-winning supplier or supplier for the transaction from the candidates recommended by the bid evaluation committee, competitive negotiation team or inquiry team as required.
(4) Failing to enter into a government procurement contract on the basis of the matters specified in the procurement documents.
(5) During the performance of the government procurement contract, adding the same goods, projects or services as the subject matter of the contract, the amount of which exceeds 10% of the purchase amount of the original contract.
(6) Altering, suspending or terminating the government procurement contract without approval.
(7) Failing to announce the government procurement contract as required.
(8) Failing to submit a duplicate of the government procurement contract to the public finance department and other relevant departments of the people's government at the same level for recordation.
Article 68 Under any of the following circumstances, a purchaser or procurement agency shall be subject to legal responsibility under Article 71 or 78 of the Government Procurement Law:
(1) Failing to engage in procurement by ways prescribed by the Government Procurement Law and this Regulation.
(2) Failing to release information about government procurement items on a designated media according to law.
(3) Failing to implement government procurement policies as required.
(4) Violating Article 15 of this Regulation and making it impossible to organize inspections of suppliers' performance of contracts or causing losses to state property.
(5) Failing to randomly select evaluation experts from the government procurement evaluation expert database according to law.
(6) Illegally intervening in procurement evaluation activities.
(7) Failing to correspond score setting to the quantitative indicators of evaluation factors when the comprehensive scoring method is adopted.
(8) Failing to handle the inquiries and questions of suppliers within the prescribed time.
(9) Altering the evaluation result by ways such as testing samples or inspecting suppliers.
(10) Failing to organize acceptance checks of suppliers' performance of contracts as required.
Article 69 Where a centralized procurement institution falls under any of the following circumstances, the public finance department shall order it to make a correction within a certain time limit, give it a warning, confiscate the illegal gains, if any, take disciplinary actions against the directly liable person in charge and other directly liable persons according to the law, and circulate a notice thereon:
(1) Failing to establish sound internal supervision and management rules and failing to separate positions or persons that should be separately arranged.
(2) Commissioning the procurement of centralized procurement items to other procurement agencies.
(3) Engaging in profit-making activities.
Article 70 Where a procurement person who is an interested party to a supplier fails to withdraw as required by law, the public finance department shall give him a warning and impose a fine of not less than 2,000 yuan but not more than 20,000 yuan.
Article 71 Where any of the violations mentioned in Articles 71 and 72 of the Government Procurement Law has affected or may affect the bidding or transaction result, it shall be handled as follows:
(1) If the bid-winning supplier or supplier for the transaction has not been determined yet, terminating the government procurement activity and conducting a new one.
(2) If the bid-winning supplier or supplier for the transaction has been determined but no government procurement contract has been concluded yet, the bidding or transaction result shall be invalidated and a new bid-winning supplier or supplier shall be selected from the qualified candidates; if there is no qualified candidateavailable, a new government procurement activity shall be conducted.
(3) If a government procurement contract has been concluded but not been performed yet, the contract shall be canceled, and a new bid-winning or supplier shall be selected from the qualified bid-winning or dealing candidates; if there is no qualified bid-winning or candidate supplier available, a new government procurement activity shall be conducted.
(4) If the government procurement contract has been performed and losses have been caused to the purchaser or supplier, the liable party shall assume compensatory liability.
Where a party involved in government procurement has any other violation of the Government Procurement Law or this Regulation, which still affects or may affect the bidding or transaction result after correction, or the results the bid winning or transaction result is invalidated according to the law, the preceding paragraph shall apply.
Article 72 Under any of the following circumstances, a supplier shall be subject to legal responsibility under paragraph 1, Article 77 of the Government Procurement Law:
(1) Offering bribes or other illicit benefits to the bid evaluation committee, competitive negotiation team or inquiry team.
(2) Refusing to enter into a government procurement contract with the purchaser after winning the bid or concluding the transaction.
(3) Failing to enter into a government procurement contract according to the matters specified in the procurement documents.
(4) Subcontracting the government procurement contract.
(5) Providing counterfeit and shoddyproducts.
(6) Altering, suspending or terminating the government procurement contract without approval.
Under item (1), the bid winner or transaction result shall be invalidated. Where a supplier fails to inform the purchaser or procurement agency as required by Article 21 of this Regulation when there is any change in its qualification during the evaluation phase, a fine of 5‰ of the purchase amount shall be imposed, the supplier shall be put on the list of suppliers with misconduct records, and the bid winner or transaction result shall be invalidated.
Article 73 Where a supplier makes a compliant by fabricating facts, providing false materials or obtaining evidentiary materials by illegal means, the public finance department shall put it on the list of suppliers with misconduct records and ban it from participating in government procurement activities within one to three years.
Article 74 Any of the following circumstances shall be deemed a malicious collusion, under which the supplier shall be subject to legal responsibility under paragraph 1, Article 77 of the Government Procurement Law and the purchaser or procurement agency and the employees thereof shall be subject to legal responsibility under Article 72 of the Government Procurement Law:
(1) A supplier acquires information about other suppliers directly or indirectly from the purchaser or procurement agency and alters its bids or response documents on the basis of that information.
(2) A supplier replaces or alters its bids or response documents as incited by the purchaser or procurement agency.
(3) Suppliers negotiate among themselves on prices, technical plans or other substantive contents in bids or response documents.
(4) Suppliers belonging to a same group, association or chamber of commerce participate in government procurement activities in coordination as required by the organization.
(5) Suppliers have agreed upon a certain supplier to win the bid or conclude the transaction.
(6) Suppliers have agreed for some of them to give up participating in government procurement activities or give up the bid it has won or the transaction it has concluded.
(7) There is collusion between a supplier and the purchase or procurement agency or between different suppliers for the purpose of ensuring that a certain supplier wins the bid or concludes the transaction or precluding other suppliers.
Article 75 Where a government procurement evaluation expert fails to conduct independent evaluation according to the evaluation procedures, methods and standards specified in the procurement documents or divulges the evaluation documents or results, the public finance department shall give it a warning and impose a fine of not less than 2,000 yuan but not more than 20,000 yuan; if the bidding or transaction result has been affected, a fine of not less than 20,000 yuan but not more than 50,000 yuan shall be imposed, and the expert shall be banned from participating in government procurement evaluation activities.
Where a government procurement evaluation expert who is an interested party to a supplier fails to withdraw, a fine of not less than 20,000 yuan but not more than 50,000 yuan shall be imposed, and the expert shall be banned from participating in government procurement evaluation activities.
A government procurement evaluation expert who commits a crime by taking a bribe offered by a purchaser, procurement agency or supplier or gaining other illicit benefits shall be subject to criminal responsibility according to law; if no crime is constituted, a fine of not less than 20,000 yuan but not more than 50,000 yuan shall be imposed, and the expert shall be banned from participating in government procurement evaluation activities.
Where a government procurement evaluation expert has any of the aforesaid illegal acts, his or her evaluation opinion shall be invalidated, and no evaluation fee shall be paid. If there are any illegal gains, such gains shall be confiscated; if any losses have been caused to someone else, he or she shall assume civil responsibility.
Article 76 Where a party concerned in government procurement violates the Government Procurement Law or this Regulation and causes losses to anyone else, the party shall assume civil responsibility.
Article 77 Where the public finance department violates the Government Procurement Law or this Regulation in performing supervisory duties for government procurement activities by abusing its powers, neglecting duties or practicing favoritism, disciplinary actions shall be taken against the directly liable person in charge and other directly liable persons; if the directly liable person in charge or any other directly liable person commits a crime, he or she shall be subject to criminal responsibility.
Chapter IX Supplementary Provisions
Article 78 If necessary and with the approval of the people's governments at the provincial level, the people's governments at county level whose public finance is directly governed by the people's governments at the provincial level may exercise powers to alter the procurement methods, subject to the the approval of the people's governments at the level of a districted city as prescribed by the Government Procurement Law and this Regulation.
Article 79 This Regulation comes into force on March 1, 2015.