Government Procurement Law of the Peoples Republic of China中华人民共和国政府采购法

oth sides shall be specified in accordance with law.

　　Article 21 The suppliers refer to the legal persons， other organizations or natural persons that provide goods， construction or services to the procuring entities.

　　Article 22 A supplier in government procurement shall meet the following requirements：

　　（1） having the capacity to assume civil liabilities independently；

　　（2） having a good business reputation and sound financial and accounting systems；

　　（3） having the equipment and professional expertise needed for performing contracts；

　　（4） having a clean record of paying taxes and making financial contributions to social

　　security funds in accordance with law；

　　（5） having committed no major breaches of law in its business operation in the three years

　　prior to its participation in the procurement；

　　（6） other requirements provided for in laws and administrative regulations.

　　A procuring entity may specify special requirements for suppliers on the basis of the special

　　need of a particular item for procurement， provided that they are not unreasonable requirements that result in differential or discriminatory treatment of supplies.

　　Article 23 The procuring entity may require the suppliers participating in government procurement to provide the documents certifying their qualifications and information about their business performance and examine the qualifications of the suppliers against the requirements provided for in this Law and the special requirements necessitated by the items to be procured.

　　Article 24 Two or more natural persons， legal persons or other organizations may form a consortium to participate in government procurement in the capacity of a single supplier.

　　Where the form of consortium is taken in government procurement， each of the suppliers in the consortium shall meet the requirements specified in Article 22 of this law and， in addition， a consortium agreement shall be submitted to the procuring entity， in which the assignments allotted to and the obligations undertaken by each party to the

consortium are clearly started. All parties to the consortium shall jointly enter into a procurement contract with the procuring entity， bearing joint and several liabilities to the procuring entity for matters agreed upon in the contract.

　　Article 25 No parties to government procurement may act in collusion with each other to harm the interest of the State or the public or the legitimate rights and interests of other parties to government procurement， or exclude， by any means， other potential suppliers from participating in competition.

　　No supplier may try to win a bid or conclude a deal by bribing members of the procuring entity， the procuring agency， or members of the bid evaluation committee， the competition negotiation team or quotation inquiry team， or by any other illegitimate means.

　　No procuring agency may seek illegal interests through bribing members of the procuring entity or by any other illegitimate means.

　　Chapter III Methods of Government Procurement

　　Article 26 The following methods shall be adopted for government procurement：

　　（1） public invitation；

　　（2） invited bidding；

　　（3） competitive negotiation；

　　（4） single-source procurement；

　　（5） inquiry about quotations；

　　（6） other methods confirmed by the department for supervision over government

　　procurement under the State Council.

　　Public invitation shall be the principal method of government procurement.

　　Article 27 Where public invitation is required for procurement of goods or services by the procuring entity， if such goods or services are included in the government procurement items covered by the central budget， the specific quotas shall be determined by the State Council； if the items covered by local budgets， the specific quotas shall be determined by the people's government of a province， autonomous region or municipality directly under the Central Government. Where it is necessary to adopt a method other than public invitation under special circumstances， the matter shall be subject to approval by the department for supervision over procurement under the people's government at or above the level of the city divided into districts or of the autonomous prefecture， before procurement is conducted.

　　Article 28 No procuring entity may avoid public invitation required for procuring certain goods or services by breaking them up into parts or by any other means.

　　Article 29 Under one of the following conditions， goods or services may be procured by invited bidding in accordance with this Law：

　　（1）where the goods or services in question are special in character and can only be procured form a limited number of suppliers；

　　（2）where the cost of public invitation forms an excessive proportion of the total value of the government procurement items.

　　Article 30 Under one of the following conditions，goods or services may be procured through competitive negotiation in accordance with this Law：

　　（1）where， after bidding is invited， no supplier submits any tender， or qualified tender is lacking， or re-invitation fails；

　　（2）where it is hard to determine the detailed specifications or specific requirements because of technical complexity or special nature；

　　（3）where bid invitation takes so long a time that it is hard to satisfy the urgent needs of the procuring entity；

　　（4）where the total value of the goods or services to be procured cannot be determined in advance.

　　Article 31 Under one of the following conditions， goods or services may be procured through single-source procurement in accordance with this Law：

　　（1） where goods or services can be procured from only one supplier；

　　（2） where goods or services can not be procured from other suppliers due to an

　　unforeseeable emergencies；

　　（3）where consistency of the items or com

patibility of the services procured requires procurement of additional items or services from the same supplier， provided that the total value of the additional procurement does not exceed 10 percent of the value of the base procurement contract.

　　Article 32 Inquiry about quotations may be adopted in accordance with this law for government procurement of those goods the specifications and standards of which are uniform， the supply of which for spot transaction is sufficient and the prices of which fluctuate very little.

　　Chapter Ⅳ Government Procurement Proceedings

　　Article 33 When the department in charge of departmental budgeting drafts the budget for the next fiscal year， the items to be procured and the funds required shall be included in the budget and submitted to the financial department at the same level for compilation. The departmental budget shall be subject to examination and approval conducted and granted within the limits of powers of budgetary administration and in accordance with budgetary administration procedures.

　　Article 34 Where invited bidding is adopted for the procurement of goods or services， the procuring entity shall randomly choose three or more suppliers from among those that meet the qualifications required， and send invitation documents to them.

　　Article 35 Where public invitation is adopted for the procurement of goods or services， the period of time beginning from the date of issuance of the bid invitation documents to the deadline for submission of the bid documents by bidders shall be not less than 20 days.

　　Article 36 When one of the following circumstances arises in procurement through bid invitation， the bid proceeding shall be annulled：

　　（1）where there are less than three suppliers that meet the professional qualifications required or that have made substantive response to the bid invitation documents；

　　（2）where violations of laws or regulations occur to the detriment of impartial procurement；

　　（3）where all the prices offered by the bidders exceed the budget for procurement so that the procuring entity can not afford them； or

　　（4）where the procurement project is cancelled due to major changes in circumstances.

　　Once the bid proceeding is annulled， the procuring entity shall inform all the bidders of the reasons for the annulment.

　　Article 37 After annulment， the bid proceedings shall be rearranged unless the procurement project is cancelled. Where it is necessary to adopt other methods of procurement， the matter shall， before procurement starts， be subject to approval by the department for supervision over procurement under the people's government at or above the level of a city divided into districts or of an autonomous prefecture， or by a relevant government department.

　　Article 38 Where competitive negotiation is adopted for procurement， the following procedure shall be followed：

　　（1）Setting up of a negotiation team. The team shall be composed of three or more representatives of the procuring entity and experts shall be not less than two-thirds of the total.

　　（2）Drafting of documents for negotiation. In the documents shall be clearly stated the negotiation procedure and contents， the terms of a draft contract and the criteria for evaluating a deal concluded.

　　（3）Deciding on the name list of the suppliers to be invited to participate in the negotiation. The negotiation team shall choose not less than three suppliers from among all the qualified suppliers in the name list to participate in negot

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