Regulation on Government Procurement of Shenzhen Special Economic Zone

· Document Number：Announcement No. 67 of the Standing Committee of the Fifth People’s Congress of Shenzhen City

· Area of Law： Treasury

· Level of Authority： Regulations of Special Economic Zones

· Date issued：02-21-2012

· Status： Effective

· Issuing Authority： Guangdong Province

Announcement of the Standing Committee of the Fifth People's Congress of Shenzhen City
(No. 67)
The Regulation on Government Procurement of Shenzhen Special Economic Zone, as amended and adopted at the 12th Session of the Standing Committee of the Fifth People's Congress of Shenzhen City on December 27, 2011, is hereby issued and shall come into force on March 1, 2012.
February 21, 2012
Regulation on Government Procurement of Shenzhen Special Economic Zone 
(Adopted at the 27th Session of the Standing Committee of the Second People's Congress of Shenzhen City on October 27, 1998, and amended at the 12th Session of the Standing Committee of the Fifth People's Congress of Shenzhen City on December 27, 2011)
Chapter I General Provisions
Article 1 In order to regulate government procurement activities, enhance government procurement efficiency and benefits, promote fair trading, promote the building of an honest and clean government, and protect the legitimate rights and interests of government procurement parties, this Regulation is formulated in accordance with the basic principles of the relevant laws and administrative regulations.
Article 2 This Regulation shall apply to the procurement of goods, projects or services with fiscal funds by state organs, public institutions and social organizations (hereinafter “purchaser”). The procurement thereof by enterprises with fiscal funds shall abide by other relevant laws and regulations.
The bidding and tendering for construction projects included in the scope of bidding and tendering management for construction projects shall be governed by the provisions of the relevant laws and regulations; and this Regulation shall apply if there is no governing provision in relevant laws and regulations.
Article 3 Government procurement shall observe the principles of openness and impartiality, fair competition, economy and efficiency, honesty and trustworthiness, and cost-effectiveness.
Article 4 The public finance departments of municipal and district governments shall be the departments in charge of government procurement (hereinafter referred to as the “competent department”) and be responsible for the supervision and administration of government procurement activities.
The departments of supervision, auditing and market supervision and other relevant departments shall administer and supervise government procurement in accordance with their duties.
The centralized procurement institutions of municipal and district governments shall be responsible for organizing the implementation of centralized procurement affairs and other relevant work.
Article 5 Municipal and district governments shall probe into innovation of the government procurement system, bring into play the role of centralized procurement institutions of governments, and support the development of procurement intermediaries.
Article 6 Government procurement shall be subject to planned management. No purchaser shall conduct procurement beyond the government procurement plan, and no centralized procurement institution of the government or procurement intermediary shall accept government procurement beyond the government procurement plan.
The competent municipal department shall formulate standards for government procurement jointly with the relevant departments, and issue and implement the standards with the approval of the municipal government. Government procurement shall not be conducted beyond the standards.
Article 7 Government procurement will primarily conduct centralized procurement, supplemented by voluntary procurement. Where centralized procurement is conducted, procurement shall be included in the centralized procurement platform of the government.
The term “centralized procurement” as mentioned in this Regulation means procurement for the projects included in the centralized procurement catalogue, as well as the projects not included in the centralized procurement catalogue and above the centralized procurement quota.
Centralized procurement institutions of governments shall be responsible for organizing the implementation of projects included in the centralized procurement catalogue.
As for projects which are not included in the centralized procurement catalogue or which are above the centralized procurement quota, the purchaser shall, as required, entrust a procurement intermediary to conduct procurement, but the confidential, emergency and major procurement projects shall be conducted by a centralized procurement institution of the government. The purchasers determined by the competent municipal department as qualified for organizing procurement may organize procurement on their own through the government's centralized procurement platform.
For government procurement projects not included in the centralized procurement catalogue or below the centralized procurement quota, the purchasers shall conduct procurement on their own with reference to the provisions of this Regulation.
The competent municipal department shall, in light of the procurement budget, scale and other factors, formulate the municipal centralized procurement catalogue and centralized procurement quota each year, and issue and implement the catalogue and quota with the approval of the municipal government. The competent department of each district shall formulate the district's centralized procurement catalogue and centralized procurement quota in accordance with the provisions of this Regulation, and issue and implement the catalogue and quota with the approval of the district government.
Article 8 The competent municipal department shall, in consideration of the economic and social development objectives of the state and this city, formulate the measures for preferential procurement or compulsory procurement jointly with the relevant departments, support environmental protection, energy conservation and emission reduction, low carbon economy and circular economy products, and promote the transformation and upgrade of economic structure and the development of small and medium-sized enterprises.
The term “compulsory procurement” as mentioned in the preceding paragraph means that purchasers, centralized procurement institutions of governments and procurement intermediaries shall procure goods or services within the conditions and scope prescribed by the government.
Purchasers, centralized procurement institutions of governments and procurement intermediaries shall strictly implement preferential procurement measures or compulsory procurement measures.
Article 9 Government procurement shall adopt Internet informational technologies. This city shall establish and improve a uniform electronic government procurement management trading platform, and popularize electronic government procurement.
Article 10 Professional and vocational management rules for government procurement employees shall be carried out. The competent municipal department shall provide training for and examine government procurement employees in accordance with the standards for government procurement practicing qualifications prescribed by the state.
Chapter II Government Procurement Parties
Article 11 The term “government procurement parties” means various subjects that enjoy rights and undertake obligations in government procurement activities, including procurement parties, centralized procurement institutions of governments, procurement intermediaries, suppliers and review experts.
Article 12 A purchaser shall perform the following duties:
1. implement the executive chief or legal representative responsibility system, and establish and improve the entity's government procurement management rules and workflow;
2. prepare the entity's government procurement plan based on the budget and implement such plan;
3. put forward government procurement requirements and confirm procurement documents;
4. determine the bid winner or successful supplier under prescribed procedures;
5. conclude government procurement contracts and fulfill the acceptance verification, settlement, payment and other obligations prescribed by the contract;
6. be responsible for the entity's government procurement information statistics and archives management;
7. be responsible for giving replies to inquiries and queries on the entity's government procurement projects, and assist the competent department in handling complaints; and
8. other duties prescribed by laws, regulations and the municipal government.
Article 13 The centralized procurement institution of the municipal government shall perform the following duties:
1. carry out the laws and regulations on government procurement and relevant provisions, participate in the formulation of the relevant provisions on government procurement, and establish sound operating procedures for centralized procurement;
2. organize procurement for the projects included in the centralized procurement catalogue and participate in the acceptance verification of such projects;
3. organize the implementation of confidential, emergency and major procurement projects as required and participate in the acceptance verification of such projects;
4. provide venues, network, information and consulting services for the government's centralized procurement platform;
5. appraise the benefits of the procurement projects included in the government's centralized procurement platform;
6. conduct track management of the review process and review quality of review experts;
7. be responsible for accepting and coordinating replies to the inquiries and queries on government procurement projects, and assist the competent department in handling complaints;
8. establish a government procurement database, and conduct market investigation and price analysis; and
9. other duties prescribed by laws, regulations and the municipal government.
With the entrustment of the competent department, the centralized procurement institution of the municipal government shall establish and manage the uniform centralized government procurement platform of the entire city, file the contracts on government procurement projects, establish and manage the supplier database, and manage the suppliers' contractual fulfillment.
The term “centralized procurement institution of the municipal government” as mentioned in this Regulation means the special organ that is established by the municipal government, organizes procurement for the projects included in the centralized procurement catalogue and provides services for government procurement activities.
The duties of centralized procurement institutions of district governments shall be otherwise prescribed by the detailed rules for the implementation of this Regulation.
Article 14 A procurement intermediary shall perform the following duties:
1. conduct procurement in accordance with the relevant provisions of this Regulation and the stipulations of the entrustment agency contract;
2. evaluate the review quality of review experts;
3. submit materials relating to government procurement projects to the centralized procurement institution of the government;
4. give replies to the inquiries and queries on government procurement projects, and assist the competent department in handling complaints; and
5. other duties prescribed by laws and regulations.
The term “procurement intermediary” as mentioned in the preceding paragraph means an institution that obtains the government procurement agency qualification pursuant to law, has undergone industrial and commercial registration formalities in this city, is legally determined by public bidding or any other form of procurement, and acts as an agency for government procurement projects in accordance with this Regulation.
Article 15 A supplier that participates in government procurement shall enjoy the following rights:
1. obtain government procurement information;
2. participate fairly in government procurement competition;
3. raise inquiries and queries and file complaints; and
4. other rights prescribed by laws and regulations.
Article 16 A supplier that participates in government procurement shall fulfill the following obligations:
1. faithfully provide the relevant materials on procurement;
2. conclude and strictly implement procurement contracts as required;
3. assist in the acceptance verification of procurement projects;
4. accept the investigation and acquisition of evidence on the relevant queries and complaints;
5. fulfill social responsibilities and accept the supervision and administration of the relevant departments; and
6. other obligations prescribed by laws and regulations.
Article 17 A review expert that participates in government procurement shall perform the following duties:
1. abide by review work discipline, and provide independent, objective and fair review opinions;
2. report violations of the law in a timely manner;
3. give replies to the inquiries or queries on the relevant review work; and
4. other duties prescribed by laws and regulations.
Article 18 Where, in government procurement activities, any procurement party or the relevant person thereof is an interested party to a procurement project, which may affect the fairness and impartiality of government procurement, such party or person shall withdraw.
Where a person believes that any other procurement party is an interested party to the supplier, such person may apply to the competent department for the withdrawal of the said party.
Chapter III Forms of Government Procurement
Article 19 Open bidding, competitive negotiation, single-source procurement, competitive bidding, procurement based on previous bids and other forms of procurement prescribed by laws and regulations shall be taken as the forms of government procurement.
Open bidding shall be taken as the main form of government procurement, and specific standards shall be formulated by the competent municipal department and then reported to the municipal government for approval and implementation. To conduct procurement for a project for which open bidding is required, but the method of non-open bidding is used instead, the approval of the competent department at the same level shall be obtained. Where procurement by non-open bidding is adopted in accordance with the provisions of item (3), paragraph 1 of Article 20 and items (3) and (4), paragraph 1 of Article 21 of this Regulation, the form may be approved only if no objection is raised upon public announcement.
The application procedures and specific measures for procurement by non-open bidding shall be otherwise prescribed by the detailed rules for the implementation of this Regulation.
Article 20 For a government procurement project falling under any of the following circumstances, the procurement may adopt competitive negotiation:
1. emergency response projects or emergency rescue and disaster relief projects determined by the government for which the procurement can only be conducted from limited suppliers within a specific scope;
2. confidential projects determined by organs for the protection of state secrets for which the procurement can only be conducted from limited suppliers within a specific scope; or
3. other complicated, special and unique projects for which the procurement can only be conducted from limited suppliers within a specific scope.
The term “procurement by competitive negotiation” as mentioned in the preceding paragraph means the form of procurement under which the purchaser and review experts form a negotiation team pursuant to law, select two or more suppliers from the list of suppliers satisfying the corresponding qualifications, and determine the successful supplier through negotiation.
Article 21 For a government procurement project falling under any of the following circumstances, the procurement may adopt the form of single source procurement:
1. emergency response projects or emergency rescue and disaster relief projects determined by the government for which the procurement can only be conducted from a sole supplier;
2. confidential projects determined by organs for the protection of state secrets for which the procurement can only be conducted from a sole supplier;
3. for the purpose of guaranteeing consistency with the original government procurement projects or the requirements for supporting services, the projects need to procure goods from the original supplier; or
4. other complicated, special and unique projects for which the procurement can only be conducted from a sole supplier.
The term “single-source procurement” as mentioned in the preceding paragraph means the form of procurement under which the purchaser and the centralized procurement institution of the government or procurement intermediary form a negotiation team pursuant to law, and consult with the sole supplier and determine the successful supplier.
Article 22 For a government procurement project falling under any of the following circumstances, the procurement may not adopt the form of competitive negotiation or a single source procurement:
1. market resources are adequate and competition is sufficient;
2. the procurement project subject to open bidding is delayed due to the fault of the purchaser;
3. any objection is raised during public announcement and the objection is tenable regarding a procurement project for which competitive bidding or single-source procurement is adopted; or
4. any other circumstance prescribed by laws and regulations.
Article 23 For a government procurement project falling under any of the following circumstances, the procurement may adopt the form of competitive bidding:
1. it is a general project with uniform standards;
2. market resources are adequate and competition is sufficient; or
3. the lowest price review method is adopted.
The term “procurement by competitive bidding” as mentioned in the preceding paragraph means the form of procurement under which information is released to the public, the suppliers conduct competitive bidding, and the successful supplier is determined under the principle that the lowest price wins the bid.
Article 24 For a government procurement project satisfying the following conditions, the procurement may be conducted on the basis of previous bids:
1. the circumstances are urgent;
2. the procurement demand is consistent with the project subject to procurement based on previous bids;
3. the contract on the project subject to procurement based on previous bids is concluded within one year before the date of issuance of the announcement on procurement based on previous bids, and the market price has had no major fluctuation; and
4. the cost for open bidding is relatively high.
The term “procurement based on previous bids” as mentioned in the preceding paragraph means the form of procurement under which the purchaser determines the successful supplier for the purpose of satisfying urgent demand and on the basis of the previous bid database established and managed by the centralized procurement institution of the municipal government.
Article 25 A government procurement project satisfying the following requirements and for which open bidding has been completed pursuant to law may be included in the previous bid database:
1. the state, Guangdong Province or the centralized procurement institution of the municipal government of Shenzhen organizes the implementation of procurement activities;
2. the market price of the procurement object is relatively stable, and the winning bid price is not higher than the average market price;
3. the procurement project satisfies the national requirements and standards for safety, quality, energy conservation and environmental protection; and
4. the technical parameters of goods projects are specific, or service projects are clear in content.
The purchaser shall select the project subject to procurement based on previous bids from the previous bid database.
The centralized procurement institution of the municipal government shall be responsible for the construction, maintenance and management of the previous bid database, and make it public to the purchaser and competent department.
Chapter IV Government Procurement Procedures
Article 26 A purchaser shall, in accordance with the government procurement plan and the relevant provisions of this Regulation, put forward a procurement application to the centralized procurement institution of the government or the procurement intermediary (hereinafter referred to as the “bid invitation institution”) and specify the procurement demand. The procurement demand shall satisfy the compulsory standards of the state, province or municipality, the technical specifications on government procurement, and shall not exceed the allocation standards.
The specific procedures and content of procurement application shall be otherwise prescribed by the detailed rules for the implementation of this Regulation.
The bid invitation institution shall examine government procurement project application materials within three working days of receiving such materials, and make a written decision on whether or not to accept the project.
The bid invitation institution shall not entrust the accepted government procurement project, and shall complete the compilation of procurement documents within ten working days in accordance with the features of the procurement project and procurement demand.
The purchaser shall confirm or raise an objection to the procurement documents within three working days; and if the purchaser fails to confirm the documents or raise an objection within the prescribed time limit, it shall be deemed that the purchaser has confirmed the documents. Where the purchaser raises an objection, the competent department shall handle the objection within five working days.
The purchaser shall not amend the procurement documents after they are confirmed.
Article 27 For a government procurement project subject to open bidding, the bid invitation institution shall send a bid winning notice to the supplier winning the bid within 25 days of the confirmation of procurement documents; for a government procurement project subject to non-open bidding, the bid invitation institution shall send a notice to the successful supplier within 20 working days of the confirmation of procurement documents. Where such time limit needs to be extended under any particular circumstance, the time limit may be extended for ten days with the approval of the primary person in charge of the bid invitation institution.
Where open bidding is conducted once again or the procurement form is modified, the procurement period shall be re-calculated.
Article 28 Where procurement by open bidding is adopted, the following provisions shall be abided by:
1. the bid invitation institution shall publish the bid invitation announcement and bid invitation documents ten days before the deadline for bidding;
2. the supplier has the right to require the purchaser to clarify bid invitation documents five days before the deadline for bidding;
3. Where bid invitation documents need to be clarified or amended, the bid invitation institution shall notify all suppliers that have received bid invitation documents or that have responded to bid invitation three days before the deadline for bidding, and may extend the deadline for bidding;
4. Suppliers shall submit bidding documents in accordance with the requirements of bid invitation documents, and the bid invitation institution shall examine the bidders' qualifications;
5. The bid invitation institution shall form the review committee before the deadline for bidding;
6. The review committee shall review the bidding documents and issue written review reports or determine the supplier winning the bid upon the authorization of the purchaser;
7. The purchaser shall, under the principle of separating bid evaluation from determination, determine the supplier winning the bid from the candidate suppliers recommended by the review committee, or confirm the supplier winning the bid as determined by the review committee upon authorization; and
8. The bid invitation institution shall publish the bid winning result for not less than three days.
Where open bidding fails for the reason that there are less than three suppliers that make effective bidding, open bidding shall be re-organized, or procurement shall be conducted in the form of non-open bidding with the approval of the competent department, except for the termination of procurement.
Article 29 Where procurement by competitive negotiation is adopted, the following provisions shall be abided by:
1. the negotiation supplier shall be determined in accordance with the provisions of this Regulation;
2. the bid invitation institution shall send negotiation documents to the negotiation supplier five days before the commencement of negotiation. The negotiation supplier shall submit reply documents before the commencement date of negotiation as prescribed in the negotiation documents;
3. the bid invitation institution shall organize the purchaser and review experts to form the negotiation team, which shall include three persons at a minimum;
4. the negotiation team shall issue the negotiation report or determine the successful supplier upon the authorization of the purchaser;
5. the purchaser shall determine the successful supplier in accordance with the review opinions of the negotiation team on the negotiation suppliers, or confirm the successful supplier determined by the negotiation team upon the authorization of the purchaser; and
6. the bid invitation institution shall announce the negotiation result for three days at a minimum.
Article 30 Where single-source procurement is adopted, procurement shall be conducted under the procedures prescribed in Article 29 of this Regulation.
Article 31 Where procurement by competitive bidding is adopted, the following provisions shall be abided by:
1. the bid invitation institution shall publish procurement documents three days before the commencement of competitive bidding, and specify rules for competitive bidding;
2. the suppliers satisfying the conditions for competitive bidding shall offer a quotation in accordance with the requirements of competitive bidding documents; and
3. the supplier that makes the lowest quotation within the term of validity for competitive bidding shall be the successful supplier.
Article 32 Where procurement based on previous bids is adopted, the following provisions shall be abided by:
1. the centralized procurement institution of the government shall issue the announcement of procurement based on previous bids and bid invitation documents on the projects subject to procurement based on previous bids for a period of five working days at a minimum;
2. Where no objection is raised after announcement, the purchaser may directly conclude the government procurement contract with the supplier of the project subject to procurement based on previous bids in accordance with the substantial clauses of the procurement contract on the project subject to procurement based on previous bids; and
3. Where there is any objection during the announcement and the objection is tenable, the centralized procurement institution of the government shall notify the purchaser in writing to conduct procurement in any other form of procurement prescribed by this Regulation.
Article 33 Pre-selection procurement rules shall be implemented for government procurement. The administrative measures for pre-selection procurement shall be otherwise formulated by the detailed rules for the implementation of this Regulation.
A centralized procurement institution of the government shall, under the principles of innovation, economy, efficiency and transparency, determine the strategic partner, agreement-based supplier, shopping mall supplying materials, online shopping mall and other pre-selected suppliers by open bidding and other forms, and the purchaser shall, as required, determine the successful supplier from pre-selected suppliers.
Article 34 The exploration and implementation of the public affair procurement card system shall be encouraged in government procurement, and the scope of application of public affair procurement cards used in settlement shall be gradually expanded for government procurement. The specific measures shall be otherwise prescribed by the detailed rules for the implementation of this Regulation.
Article 35 Under any of the following circumstances, the bid invitation institution may suspend a government procurement project:
1. The procurement activities are in violation of any law and may be conducted only after rectification;
2. The procurement activities temporarily cannot be conducted due to force majeure; or
3. any other circumstance prescribed by laws and regulations.
The bid invitation institution shall make an announcement on the date when the procurement suspension decision is made and notify in writing the purchaser and suppliers participating in procurement.
Where procurement is suspended in accordance with the provisions of the preceding paragraph, the procurement procedures shall be resumed after the circumstance for the procurement suspension no longer exists.
Procurement shall be suspended for not more than ten days, and if the time limit needs to be extended under any particular circumstance, the time limit may be extended for ten days with the approval of the competent department. The procurement suspension period shall not be included in the procurement period.
Article 36 Under any of the following circumstances, the bid invitation institution shall terminate government procurement with the approval of the competent department.
1. the procurement price is higher than the market price and is obviously unreasonable;
2. the continual implementation of procurement activities will seriously impair the interest of the state, society or the government procurement parties or result in invalid procurement;
3. the procurement task cannot be realized due to any force majeure; or
4. any other circumstance as prescribed by laws and regulations.
The bid invitation institution shall make an announcement on the date when the procurement termination decision is made and notify in writing the purchaser and suppliers participating in procurement.
The terminated government procurement project shall be revoked.
Chapter V Government Procurement Contract
Article 37 The purchaser and the supplier shall, within ten working days of the issuance of the notice of winning the bid or notice to the successful supplier, conclude a government procurement contract on the matters as determined by the procurement documents. The substantial provisions of the procurement contract shall comply with the provisions of procurement documents.
The purchaser may conclude a supplementary agreement with the supplier on the matters not stipulated or not clearly stipulated in the government procurement contract. The supplementary agreement shall not modify any substantial provision of the procurement contract.
The purchaser shall, within ten days of the date on which the government procurement contract is concluded, send a copy of the procurement contract to the centralized procurement institution of the government for the record.
Article 38 A long-term government goods procurement contract shall be implemented for a period of not more than 24 months, and a long-term government service procurement contract shall be implemented for a period of not more than 36 months; where the time limit needs to be extended under any particular circumstance, such time limit may be properly extended with the approval of the competent department for a period of not more than six months.
The contract renewal incentive mechanism shall apply to good quality long-term service government procurement contract suppliers. The request, time limit and specific measures for contract renewal shall be otherwise prescribed by the detailed rules for the implementation of this Regulation.
Article 39 The purchaser shall organize acceptance verification in a timely manner in accordance with the standards and methods as prescribed by procurement documents and the government procurement contract.
The purchaser and the supplier shall give feedback on the fulfillment of a government procurement contract and relevant suggestions on government procurement to the centralized procurement institution of the government within 30 days after the completion of fulfillment of the procurement contract.
Article 40 Where the purchaser needs an increase of the same goods, projects or services as the contract subject matter in the fulfillment of the government procurement contract, the purchaser may consult to conclude a supplementary procurement contract with the supplier upon the approval of the competent department. However, the supplementary procurement contract price shall not exceed 10% of the original contract price, and the total contract price shall not exceed the originally planned amount.
Chapter VI Query and Complaint
Article 41 Where a supplier participating in government procurement activities deems that its or his rights and interests have been impaired during procurement activities, the supplier shall, within five working days after it or he knows or should have known about the impairment of its or his rights and interests, raise a query in writing to the purchaser, centralized procurement institution of the government or procurement intermediary (hereinafter referred to as the “party being queried”).
The party being queried shall, within ten working days of receipt of the written query materials, give a written reply on the query matters to the supplier that raises the query.
Article 42 Where a supplier that raises a query is not satisfied with the reply of the party being queried, or the party being queried fails to give a reply within the prescribed time limit, the supplier that raises the query may file a complaint with the competent department within 15 days of receipt of the reply or expiration of the time limit for giving a reply.
The matters on which the supplier files a complaint shall be the matters that have been queried.
Article 43 The competent department shall, upon receipt of the supplier's complaint, immediately examine such complaint, and accept the complaint on the spot if such complaint satisfies conditions; and shall not accept the complaint if such complaint fails to satisfy the conditions, and notify the supplier that files the complaint in writing. Where the competent department cannot accept the complaint on site, the competent department shall make a decision on whether to accept the complaint application within three working days of receipt of such application, and notify the supplier that files the complaint in writing.
Article 44 The competent department shall make a written handling decision and notify the supplier which files the complaint within 20 working days after accepting the complaint; and if the circumstances are complicated, the time limit may be properly extended with the approval of the executive chief of the competent department, but such time limit may be extended for not more than 10 working days.
Government procurement activities shall not be suspended during the period of handling queries or complaints, unless the competent department deems that it is indeed necessary to suspend government procurement.
Article 45 Where any government procurement party other than the supplier deems that its or his rights and interests have been impaired by government procurement activities, the said party may file a complaint with the competent department. The competent department shall handle the complaint pursuant to law, and transfer the complaint not within the scope of its duties to the relevant department in a timely manner.
Chapter VII Supervision and Administration
Article 46 The competent department shall perform the following duties:
1. the implementation of laws and regulations on government procurement and the relevant provisions, the formulation of government procurement policies and government procurement standards, and the formulation of sound government procurement management rules;
2. the compilation of a government procurement plan at the same level and the supervision of the implementation thereof;
3. the handling of government procurement examination and approval matters in accordance with the provisions of this Regulation;
4. the organization of the relevant departments to convene government procurement joint meetings, the establishment of a cooperation mechanism, the supervision and inspection of government procurement activities, and the handling of complaints and reports;
5. the organization of government procurement information-based construction and information statistics;
6. the organization of the establishment of a uniform pool of review experts for the whole city, and the management of review experts;
7. the organization of training and examination on government procurement personnel, centralized procurement institutions of the government and procurement intermediaries;
8. the guidance to and supervision of self-discipline organizations in the government procurement sector; and
9. other duties as prescribed by laws and regulations and the municipal government.
Article 47 The competent department shall establish and improve the supervision and inspection systems covering special inspection and major inspection to supervise and administer government procurement activities.
The competent department shall, jointly with the departments of supervision, auditing and market supervision and other relevant departments, establish a departmental cooperation mechanism and platforms for information exchange and sharing.
Government procurement parties and their relevant personnel shall assist in the supervision and inspection conducted by the competent department, and shall not obstruct or resist inspection.
Article 48 The following government procurement matters shall be subject to the approval of the competent department:
1. procurement in the form of non-open bidding for a procurement project that shall be subject to open bidding;
2. procurement on one's initiative for a procurement project that shall be subject to centralized procurement;
3. procurement of imported goods, projects or services;
4. extension of the time limit for a long-term procurement contract;
5. increase of the subject matter of a procurement contract during its fulfillment;
6. extension of the procurement suspension time;
7. termination of procurement; or
8. other matters prescribed by laws and regulations.
Article 49 In the case of any abnormal circumstance of government procurement activities, the competent department shall give a warning to the purchaser, centralized procurement institution of the government or procurement intermediary.
Article 50 The competent municipal department shall, jointly with the centralized procurement institution of the municipal government, establish the management examination mechanism for procurement intermediaries, review experts and suppliers by creating integrity files, formulating codes of conduct and other methods.
For a procurement intermediary, review expert or supplier that has been punished due to the violation of any law, regulation or rule in government procurement activities, such violation shall be recorded in the integrity files thereof and be announced to the public.
The procurement intermediaries, review experts and suppliers that have integrity and abide by laws shall be rewarded.
Article 51 The government procurement information and the implementation of government procurement shall be published on the website designated by the competent municipal department or other media in a timely, comprehensive, truthful and accurate manner, unless the information involves any state secret or trade secret.
Article 52 Government procurement shall be subject to social supervision. All organizations and individuals shall have the right to file complaints on and report the violation of any law or regulation in government procurement, and the relevant department shall deal with such violation in a timely manner; and if the matters subject to complaint or report are verified to be true and are significant, the competent department or the relevant department shall reward the said organization or individual.
The competent municipal department shall establish a government procurement supervisor system to supervise government procurement activities.
Article 53 The municipal government shall report the implementation of government procurement of the previous year to the Standing Committee of the Municipal People's Congress each year.
Chapter VIII Legal Liability
Article 54 Where a purchaser or any of its personnel commits any of the following conducts during government procurement, the competent department or the relevant organ shall take disciplinary action against the person in charge of the entity, the directly responsible person in charge and other directly liable persons and circulate a notice of criticism; and if loss is caused to any other person, the relevant liable persons shall assume compensation liability pursuant to law; and a person suspected of committing a crime shall be transferred to the judicial organ for handling pursuant to law:
1. evasion of centralized procurement or open bidding;
2. procurement beyond the standards or beyond the government procurement plan;
3. procurement of imported goods, projects or services without approval;
4. failure to withdraw as required during procurement activities;
5. failure to determine or confirm the bid winner or successful supplier in accordance with the provisions of this Regulation;
6. increase of the subject matter of a procurement contract without approval during the fulfillment of the contract;
7. collusion with any other procurement party to internally decide the bid winner or successful supplier;
8. failure to organize the acceptance verification of a procurement project, or conclude or fulfill a procurement contract in accordance with the provisions of this Regulation;
9. seeking or acceptance of bribes or any other illegal benefits;
10. obstruction of or resistance to the supervision and inspection conducted by the competent department; or
11. any other violation of this Regulation.
Where anyone commits any conduct as provided for in item (6) of the preceding paragraph, the procurement regarding the increased subject matter shall be invalid.
Article 55 Where a centralized procurement institution of the government or any of its personnel commits any of the following conducts during government procurement, the competent department or the relevant organ shall take disciplinary action against the directly responsible person in charge and other directly liable persons and circulate a notice of criticism; and if loss is caused to any other person, the relevant liable persons shall assume compensation liability pursuant to law; and a person suspected of committing a crime shall be transferred to the judicial organ for handling pursuant to law:
1. failure to perform the duties prescribed in this Regulation, which causes any serious consequence;
2. failure to withdraw as required during procurement activities;
3. entrustment of a procurement project;
4. procurement of imported goods, projects or services without approval;
5. procurement beyond the standards or beyond the government procurement plan;
6. failure to organize procurement under the procedures prescribed in this Regulation;
7. collusion with any other procurement party to internally decide the bid winner or successful supplier;
8. seeking or acceptance of bribes or any other illegal benefits;
9. obstruction of or resistance to the supervision and inspection conducted by the competent department; or
10. any other violation of this Regulation.
Article 56 Where a procurement intermediary commits any of the following conducts during government procurement, the competent department shall circulate a notice of criticism against the procurement intermediary and its person in charge, the directly responsible person in charge and other directly liable persons, record the conduct in the integrity files of the procurement intermediary, and impose a fine of not less than 10,000 yuan but not more than 100,000 yuan on the procurement intermediary; and if the circumstances are serious, cancel its qualification as an agency in this city's government procurement, record the conduct in the integrity files of the procurement intermediary, and concurrently impose a fine of not less than 100,000 yuan but not more than 200,000 yuan on the procurement intermediary; and if loss is caused to any other person, the procurement intermediary shall assume compensation liability pursuant to law; and a person suspected of committing a crime shall be transferred to the judicial organ for handling pursuant to law.
1. evasion of centralized procurement or open bidding;
2. procurement beyond the standards or beyond the government procurement plan;
3. procurement of imported goods, projects or services without approval;
4. failure to withdraw as required during procurement activities;
5. entrustment of a procurement project;
6. collusion with any other procurement party to internally decide the bid winner or successful supplier;
7. failure to organize procurement under the procedures prescribed by this Regulation;
8. seeking or acceptance of bribes or any other illegal benefits;
9. obstruction of or resistance to the supervision and inspection conducted by the competent department; or
10. any other violation of this Regulation.
Article 57 Where a supplier commits any of the following conducts during government procurement, the supplier shall be prohibited from participating in the city's government procurement within one to three years, the competent department shall record the conduct in the supplier's integrity files, and impose on the supplier a fine of not less than 1% but not more than 2% of the amount of procurement; and if the circumstances are serious, cancel the supplier's qualification to participate in this city's government procurement, and impose on the supplier a fine of not less than 2% but not more than 3% of the amount of procurement, and the market supervision department shall revoke the supplier's business license pursuant to law; and if loss is caused to any other person, the supplier shall assume compensation liability pursuant to law; and the supplier suspected of committing a crime shall be transferred to the judicial organ for handling pursuant to law.
1. failure to withdraw as required during procurement activities;
2. failure to conclude or fulfill a procurement contract in accordance with the provisions of this Regulation, which causes any serious consequence;
3. concealment of any true information or provision of any false material;
4. exclusion of any other supplier's participation in competition by any illegal means;
5. collusion with any other procurement party in bidding;
6. filing of a malicious complaint;
7. offering of bribes to any person related to a procurement project or provision of any other illegal benefits;
8. obstruction of or resistance to the supervision and inspection conducted by the competent department; or
9. any other violation of this Regulation.
Article 58 Where a review expert commits any of the following conducts during government procurement, the competent department shall circulate a notice of criticism against this expert, cancel his or her qualification for being a review expert on government procurement, and record the conduct in his or her integrity files; and if loss is caused to any other person, the review expert shall assume compensation liability pursuant to law; and the expert suspected of committing a crime shall be transferred to the judicial organ for handling pursuant to law.
1. entrustment of any other person to participate in review as a substitute without approval;
2. disclosure of any procurement information in violation of procurement confidentiality provisions;
3. failure to withdraw as required during procurement activities;
4. failure to review in accordance with the review methods and review standards prescribed by laws and regulations;
5. collusion with any other procurement party to internally decide the bid winner or successful supplier;
6. seeking or acceptance of bribes or any other illegal benefits;
7. obstruction of or resistance to the supervision and inspection conducted by the competent department; or
8. any other violation of this Regulation.
Article 59 Where the competent department or any of its personnel commits any of the following conducts, the competent department or the relevant organ shall take disciplinary action against the directly responsible person in charge and other directly liable persons and circulate a notice of criticism; and if loss is caused to any other person, the relevant liable persons shall assume compensation liability pursuant to law; and a person suspected of committing a crime shall be transferred to the judicial organ for handling pursuant to law:
1. failure to withdraw as required during procurement activities;
2. increase of government procurement project approval items or supplementation of the approval procedures or conditions without approval;
3. collusion with any other procurement party to internally decide the bid winner or successful supplier;
4. seeking or acceptance of bribes or any other illegal benefits;
5. abuse of power or neglect of duties; or
6. any other violation of this Regulation.
Article 60 Where any of the following circumstances exists and affects the result of bid winning or determination of a successful supplier, the bid won or the determination of the successful supplier shall be invalid:
1. evasion of centralized procurement or open bidding;
2. procurement beyond the standards or beyond the government procurement plan;
3. procurement of imported goods, projects or services without approval;
4. collusion with any other procurement party in bidding to internally decide the bid winner or successful supplier;
5. exclusion of any other supplier's participation in competition by any illegal means;
6. concealment of any true information or provision of any false material;
7. entrustment of a procurement project;
8. failure to determine or confirm the bid winner or successful supplier in accordance with the provisions of this Regulation;
9. entrustment of any other person to participate in review as a substitute;
10. disclosure of any procurement information in violation of procurement confidentiality provisions;
11. failure to withdraw as required during procurement activities; or
12. offering, seeking or acceptance of bribes or any other illegal benefits.
Where the bid won or the determination of the successful supplier is invalid in accordance with the provisions of this Regulation, the case shall be handled as follows:
1. Where a procurement contract has not been concluded, the procurement contract shall not be concluded, and the notice of winning the bid or notice to the successful supplier shall be revoked;
2. Where a concluded procurement contract has not been fulfilled or is being fulfilled, it shall not be fulfilled or its fulfillment shall be terminated; or
3. Where the fulfillment of a procurement contract is completed or cannot be terminated, the violator shall assume the corresponding civil liability pursuant to law.
Chapter IX Supplementary Provisions
Article 61 The term “district” as mentioned in this Regulation includes Guangming, Pingshan, Longhua, Dapeng New Districts and other administrative districts.
The written reply and notices as prescribed in this Regulation include e-mails or SMS; and the announcement as prescribed in this Regulation may be made on the designated website.
Article 62 The municipal government shall formulate the detailed rules for implementation within six months of the date of implementation of this Regulation.
Article 63 This Regulation shall come into force on March 1, 2012.