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TABLE OF CONTENTS CHAPTER I GENERAL PRINCIPLES CHAPTER II PARTIES CONCERNED IN GOVERNMENT PROCUREMENT CHAPTER III WAYS OF GOVERNMENT PROCUREMENT CHAPTER IV PROCEDURES FOR GOVERNMENT PROCUREMENT CHAPTER V CONTRACT FOR GOVERNMENT PROCUREMENT CHAPTER VI QUERIES AND COMPLAINTS CHAPTER VII SUPERVISION AND INSPECTION CHAPTER VIII LEGAL LIABILITIES CHAPTER IX SUPPLEMENTARY PROVISIONS CHAPTER I GENERAL PRINCIPLES Article 1. The present law has been enacted with a view to regulate the government procurement activities, increasing the benefits of government procurement funds, protecting the interests of the state and the social public interests, defending the lawful rights of the parties concerned in government procurement and promoting the building of a clean government. Article 2. The present law shall be applicable to the government procurement carried out within the territory of the People's Republic of China. The term "government procurement" as mentioned in the present law refers to the procurement of goods, projects and services within the lawfully made centralized procurement lists or above the procurement limits by the state organs, public institutions and bodies with public fiscal funds. The lists for centralized procurement by the government and the procurement limits shall be formulated within the authority as provided in the present law. The term "procurement" as mentioned in the present law refers to the paid obtainment of goods, projects or services by way of contracts, including purchasing, leasing, entrusting, employing, etc. The term "goods" mentioned in this Law, refers to the various forms and types of items, including raw materials, fuel, equipment and products. The term "project" as mentioned in the present law refers to construction projects, including the fresh construction, reconstruction, expansion, decoration, dismantling and repairing, etc. of buildings and structures. The term "service" as mentioned in the present law refers to objects of government procurement other than goods and projects. Article 3. The principles of openness and transparency, fair competition, justice, honesty and trustworthiness shall be observed in government procurements. Article 4. Where the method of bidding is employed in government procurements, the bidding laws shall be applicable. Article 5. No entity or individual may, by any means, obstruct or restrict providers to enter freely into the government procurement market of the local place or the industrial sector concerned. Article 6. Government procurement shall be based strictly on the budgets approved. Article 7. Both the method of centralized procurement and decentralized procurement may be employed in government procurements. The range for centralized procurement shall be limited to the lists for centralized procurement which are published by the people's government on the provincial government or above. Procurement which is included into the centralized procurement catalog of government procurement shall be centralized procurement. Article 8. If any government procurement item is to be paid by the budget of the Central Government, the list for centralized procurement shall be determined and published by the State Council; if the government procurement item is to be paid by the budget of local governments, the list for centralized procurement shall be determined and published by the people's government of the province, autonomous regions or municipality directly under the Central Government or the organs authorized thereby. Article 9. Government procurements shall be conducive to the realization of the policy goals for economic and social development of the state, including protecting the environment, supporting the underdeveloped regions and ethnic minority regions, promoting the development of medium-sized and small enterprises, etc. Article 10. Government procurements shall be based on the procurement of domestic goods, projects and services with the exception of the following circumstances: (1) The goods, projects or services that are needed cannot be obtained within the territory of China or cannot be obtained under reasonable commercial conditions; (2) The procurement is made for the use without the territory of China; (3) It is otherwise provided in other laws or administrative regulations. The aforesaid domestic goods, works and services shall be defined in accordance with the relevant provisions of the General Office of the State Council. Article 11. The information concerning government procurement shall be published in good time to the general public in the mass media designated by the departments supervising government procurements, with the exception of those that involve business secrets. Article 12. In government procurement activities, the purchasing personnel and other personnel who have interests in the providers shall withdraw. Where any provider believes that any purchaser or other relevant persons have interests with other providers, it may request them to withdraw. The term "relevant person" as mentioned in the preceding paragraph shall include the members of the bid appraising committee in bids, the members of the negotiation groups in competitive procurements, the members of the inquiry groups in inquiry procurements, etc. Article 13. The public fiscal departments under the people's governments at all levels are the departments in charge of the supervision and administration of government procurements and shall lawfully perform their duties of supervision and administration of the government procurement activities. Other relevant departments of the people's governments at all levels shall perform lawfully their duties of supervision and administration relating to government procurements. CHAPTER II PARTIES CONCERNED IN GOVERNMENT PROCUREMENT Article 14. The term "parties concerned in government procurement" refers to the various subjects that enjoy rights and undertake obligations in government procurement activities, including the purchaser, provider, purchasing agency, etc. Article 15. A purchaser is a state organ, public institution or body that makes government procurements according to law. Article 16. Centralized procurement organs are purchasing agencies. The cities with districts and the people's governments on the level of autonomous prefecture and above may establish centralized procurement organs according to the demand for organizing centralized procurements. Centralized procurement organs are non-profitable public institutions that handle procurements upon the entrustment of purchasers. Article 17. The government procurements made by centralized procurement organs should satisfy the requirements that the procurement prices shall be lower than the average market prices, and the requirements of better procurement efficiencies, good procurement quality and good services. Article 18. Where a purchaser purchases any item of government procurement included in the list for centralized procurement, it must entrust centralized procurement agencies to make the purchases. If the item of government procurement is not included in the list for centralized procurement, it may make the procurement on its own initiative or entrust the centralized procurement agencies to make the procurement. If any item of government procurement that is included in the list for centralized procurement is a general item, the procurement thereof shall be made by the centralized procurement agencies upon entrustment; if there are special requirements of the department or industrial sector concerned for the item, the procurement thereof shall be made through centralized procurement by the department; if there are special requirements of the entity for the item, the procurement may be made by the entity itself upon the people's government on the provincial level or above. Article 19. The purchaser may entrust the procurement agencies recognized by the relevant departments of the State Council or the relevant departments of the provincial people's government to make the government procurements within the scope of entrustment. The purchaser shall be entitled to select its own procurement agencies, no entity or individual may designate by any means any procurement agencies for the purchaser. Article 20. Where the purchaser entrusts any procurement agencies to handle the procurement according to law, an entrustment agency agreement shall be entered into between the purchaser and the procurement agency so as to specify the items of entrustment as well as the rights and obligations of the parties concerned. Article 21. A provider is a legal person or other organization or natural person that provides goods, projects or services to purchasers. Article 22. A provider who intends to participate in government procurement activities shall meet the following requirements: (1) Having the capacity to independently undertake civil liabilities; (2) Having good business credit standing and perfect financial and accounting rules; (3) Having the necessary equipments and professional technical abilities for performing contracts; (4) Having good records of paying taxes and social security funds according to law; (5) Having no record of serious violation of law in business operations within the three years prior to participating in government procurement activities; (6) Other requirements as provided in laws and administrative regulations. The purchaser may, according to the special requirements of the purchasing items, stipulate special conditions for providers, but shall not resort to unreasonable conditions so as to give different or discriminatory treatments to providers. Article 23. Purchasers may request the providers that participate in government procurements to provide relevant attestation documents about their qualifications and business performances, and examine the qualifications of the providers according to the conditions of the providers and the special conditions of providers required by the procurement items which have been set down according to the provisions of the present law. Article 24. Two or more natural persons, legal persons or other organizations may form a complex so as to participate in government procurements as a provider. Where any one participates in government procurements in the name of a complex, all the providers that join the complex shall meet the conditions as provided in Article 20 of the present law, and shall submit to the purchaser an agreement of complex, specifying the work and obligations undertaken by each party to the complex. All the parties to the complex shall jointly enter into a procurement contract with the purchaser and take several and joint liabilities for the matters as stipulated in the procurement contracts. Article 25. The parties concerned in government procurements may not collude with each other to impair the lawful rights and interests of the state or the general public or other parties concerned, and may not exclude the competitions of other providers by any means. Providers may not seek to win bids or conclude transactions by offering bribes to the purchaser, procurement agency, any member of the bid appraising committee, any member of the competitive negotiating group, any member of the inquiry group or by any other unfair means. No procurement agency may fish for unlawful interests by offering bribes to the purchaser or by any other unfair means. CHAPTER III WAYS OF GOVERNMENT PROCUREMENT Article 26. A government procurement may be made in any of the following ways: (1) Public call for bids; (2) Invitation-based call for bids; (3) Competitive negotiations; (4) Single-source purchases; (5) Price inquiries; (6) Other ways of procurement as recognized by the departments of the State Council in charge of the supervision and administration of procurements. Public call for bids shall be used as the main procurement method. Article 27. Where any purchaser procures goods or services by public call for bids, the specific amount rates shall be prescribed by the State Council is the procurement item is to be paid by the budget of the Central Government or to be prescribed by the people's government of the province, autonomous region or municipality directly under the Central Government concerned if the procurement item is to be paid by the budget of local governments. Where it is necessary to make the procurement by any means other than the public call for bids, it shall be subject to the approval of the supervision and administration department of the people's government of the city with districts or prefecture or above before the procurement is initiated. Article 28. Purchasers may not avoid the adoption of public call for bids by disaggregating the goods or services into parts or by any other means for which the method of public call for bids should have been adopted. Article 29. In any of the following circumstances, the goods or services may be procured by invitation-based call for bids according to the provisions of the present law: (1) The goods or services are so special that they can only be procured within a limited scope; (2) The proportion of the expenditure for procurements to be made by public call for bid is too large within the total value of the government procurements. Article 30. In any of the following circumstances, the goods or services may be procured by competitive negotiations: (1) After an invitation for bids is made, no provider tenders for bid or there is no eligible bid or it is not possible to have a new invitation for bids; (2) The goods or services are so complicated in techniques or so special in nature that it is impossible to determine the detailed specifications or concrete requirements; (3) The end-users are in urgent need of the goods or services so that there is not enough time to make the procurement by invitation for bids; (4) It is impossible to calculate the total value of the goods or services. Article 31. In any of the following circumstances, the goods or services may be procured by means of single-source procurement according to the provisions of the present law: (1) The goods or services can only be procured from a sole provider; (2) Unpredictable emergencies have happened so that the goods or services cannot be procured from other providers; (3) The goods or services have to be in consistency with the originally procured goods or services so that they have to be procured from the original providers and the total value of the new procurement is no more than 10% of the procurement value as stipulated in the original contract. Article 32. The government procurements of the goods that are unified in specifications or standards, for which there are plenteous sources, and the price changes are small, the procurements may be made by way of inquiries according to the provisions of the present law. CHAPTER IV PROCEDURES FOR GOVERNMENT PROCUREMENT Article 33. The department responsible for making budgets of the government organs shall, when making budgets for the next public fiscal year, list the items of government procurement and the budget funds of the public fiscal year, and report to the public fiscal department at the same level. The examination and approval of the budgets of the departments shall be carried out according to the powers and procedures for the administration of budgets. Article 34. Where the procurement of goods or services is to be made by means of invitation-based call for bids, the purchaser shall select randomly no fewer than three providers from the eligible ones and send letters of invitation for bids to them. Article 35. Where the procurement of goods or services is to be made by means of invitation for bids, the time margin shall not be shorter than 20 days from the day when the document for calling bids are sent out to the deadline for the providers to tender their bids. Article 36. In the procurements made by way of invitation for bids, the bids shall be invalidated if any of the following circumstances occurs: (1) There are fewer than three providers that meet the professional requirements or that make substantial responses to the documents for calling bids; (2) There are any violation of laws or rules that may affect the justice of procurements; (3) All the quotations of the bid tenderers are higher than the budgets so that the purchaser is incapable of payment; (4) The procurement has been canceled due to important changes. After the bids have been invalidated, the purchaser shall inform all the bid tenderers of the reasons for invalidation. Article 37. After the bids are invalidated, a new invitation for bids shall be arranged unless the procurement has been canceled. If it is necessary to make the procurement by any other means, prior approval of the supervision and administration department or other departments of the city with districts or prefectures concerned shall be obtained before the procurement is initiated. Article 38. Where a procurement is to be made by way of competitive negotiations, the following procedures shall be observed: (1) Forming a negotiating group. The negotiating group shall consist of the no fewer than three representatives or relevant experts designated by the purchaser in odd numbers, among whom the proportion of experts shall not be small than two thirds of all the group members; (2) Formulating negotiation documents. The negotiation documents shall clearly specify the procedures for and content of the negotiations, the clauses of the draft contracts, the criteria for appraising the conclusions of transactions, etc.; (3) Determining the providers to negotiate with. The negotiating group shall select no fewer than three providers from those that have met the corresponding qualifications to hold negotiations to whom negotiation documents shall be provided; (4) Negotiations. All the members of the negotiating group shall negotiate with a single provider at a time. During the negotiations, neither party may disclose the technical materials, prices or other information of any other provider that is connected with the negotiations. In case substantial changes have been made to the negotiation documents, the negotiating group shall inform all the participating providers in written form; (5) Deciding the provider to conclude transactions. After negotiations, the negotiating group shall request all the participating providers to make their final quotations within the prescribed time period. The purchaser shall select a provider to conclude transactions from the candidates suggested by the negotiating group according to the principles of "conforming to the requirements of procurement, the quality matching the services, and the quotations being the lowest", and inform all the participating providers that have failed of the result. Article 39. Where the procurement is to be made by way of single-source procurement, the purchaser and the providers shall abide by the provisions as prescribed in the present law so the procurement be made on the basis of ensuring the quality of procurement and on the basis of reasonable prices. Article 40. Where a procurement is to be made by way of price inquiries, the following procedures shall be followed: (1) Forming a inquiry group. The price inquiry group consists of no fewer than three representatives and relevant experts among which the proportion of experts shall not be smaller than two thirds of the total number of members. The inquiry group shall provide for the price constitution and the requirements for appraising the conclusion of transactions for the procurement; (2) Determining the providers from whom price inquiries is to be made. The price inquiry group shall determine no fewer than three providers from the list of eligible providers according to the demand of the procurement, and send inquiry notices to them for making quotations; (3) Making inquiries. The inquiry group requires the providers to make unchangeable quotations; and (4) Deciding the providers to conclude transactions. The purchaser shall decide the providers to conclude transactions according to the principles of "conforming to the requirements of the procurement, the quality matching the services, and the quotations being the lowest", and inform all the failing providers to whom inquiries have been made of the result. Article 41. Purchasers or the procurement agencies entrusted thereby shall arrange for checking and accepting the performance of contracts by the providers. For large or complicated government procurements, the quality inspection institutions acknowledged by the state shall be invited to participation in the checking and acceptance. The members of the party that checks and accepts shall affix their signatures to the letters of checking and acceptance, for which they shall take corresponding legal liabilities. Article 42. Purchasers and procurement agencies shall keep the procurement files concerning each activity involved in the government procurements in a proper way, and may not forge, alter, conceal or destroy them. The procurement files shall be kept for no less than 15 years from the day when the procurement finishes. The procurement files shall include the records of procurement activities, budgets for procurements, invitations for bids, bids, criteria for appraising bids, evaluation reports, documents of deciding the bids, texts of contracts, certificates of checking and acceptance, replies to queries, decisions about the handling of complaints, and other relevant documents and materials. The records of procurement activities shall at least include the following: (1) Types and titles of the procurement; (2) Budgets, capital constitution and contractual prices of the procurement; (3) Ways of procurement. If the procurement is made in any way other than the public call for bids, the reasons thereof shall be specified; (4) The conditions and reasons of inviting and selecting providers; (5) Criteria for appraising bids and the reasons for determining the bid-winner; (6) Reasons for invalidating bids; and (7) Corresponding records about the procurement ways other than the public call for bids. CHAPTER V CONTRACT FOR GOVERNMENT PROCUREMENT Article 43. The Contract Law shall be applicable to the contracts for government procurements. The rights and obligations of the purchasers and providers shall be agreed upon by way of contract according to the principle of equality and willingness. The purchaser may entrust procurement agencies to enter into government procurement contracts with providers on their behalf. If the contract is concluded by the procurement agency on behalf of the purchaser, a letter of authorization shall be provided as an annex to the contract. Article 44. Government procurement contracts shall be concluded in written form. Article 45. The supervision and administration department of the State Council shall provide for the clauses that are necessary for the conclusion of a government procurement contract in collaboration with the relevant departments of the State Council. Article 46. The purchasers and the bid-winning providers or providers to conclude transactions shall enter into government procurement contracts, within 30 days after the notice of winning the bid or concluding transactions is issued, according to the matters decided in the procurement documents. The bid-winning or transaction-concluding notices shall have legal effect for both the purchaser and the providers that win the bid or conclude transactions. Where, after the bid-winning or transaction-concluding notice has been issued, the purchaser changes the result of bid winning or transaction conclusion or the bid-winning or transaction-concluding provider gives up the bid that it has won or the transaction it has concluded, they shall take corresponding legal liabilities. Article 47. The purchaser shall, within 7 working days after the contract is concluded for a government procurement, submit a copy of the contract to the department in charge of the supervision and administration of government procurements and other relevant departments of the people¡¡¥s government at the same level for archivist purposes. Article 48. The providers that has won the bid or concluded the transactions may, upon the consent of the purchaser, perform the contract by way of subcontracting. Where a government procurement contract is performed by way of subcontracting, the providers the have won the bid or have concluded the transactions shall be responsible to the purchaser for the procurement items and subcontracting items, and the subcontractors shall be responsible for the subcontracted items. Article 49. If, in the performance of government procurement contracts, the purchaser needs to add goods, projects or services that are the same as the subject matter of the contract, it may, under the precondition of keeping the other clauses of the contract unchanged, enter into supplementary contracts with the providers through negotiations, but the procurement value of all the supplementary contracts shall not be more than 10% of the procurement value of the original contract. Article 50. Neither of the parties to the government procurement contract may unlawfully alter, suspend or terminate the contract. If it will impair the interests of the state or the general public to continue to perform the government procurement contract, both parties to the contract shall alter, suspend or terminate the contract. The party who is held to be at fault shall be responsible for making compensations. If both parties are at fault, both of them shall take corresponding liabilities. CHAPTER VI QUERIES AND COMPLAINTS Article 51. Where any provider has doubt about anything concerning a government procurement, it may inquire the purchaser, and the purchaser shall reply in good time. But the replies may not involve any business secrets. Article 52. Where any provider believes that its rights and interests have been injured by the procurement documents, procurement process, or the result of bid-winning or transaction-concluding, it may pose queries to the purchaser in written form within 7 working days from the day when he knows or should have known that its rights and interests have been injured. Article 53. The purchaser shall give replies within 7 working days after receiving the written queries, and inform the provider that has posed the queries and other relevant providers in written form, but the replies may not involve any business secret. Article 54. Where the purchasers entrust any procurement agency to make the procurement, the providers may pose queries or inquiries to the procurement agencies, and the procurement agency shall give replies concerning the matters within the scope of entrustment according to Articles 51 and 53 of the present law. Article 55. If the provider who has posed the queries is not satisfactory with the reply of the purchaser or the procurement agency, or if the purchaser and the procurement agency fail to give a reply within the prescribed time limit, it may, when the 15-day period for reply expires, file complaints to the supervision and administrative department of the people's government at the same level. Article 56. The department in charge of the supervision and administration of government procurements shall, within 30 working days after receiving the complaint, make a decision concerning the complained matters, and inform the complainant and the parties concerned in the complaint in written form. Article 57. During the time period of handling complaints, the supervision and administration department in charge of government procurements may, according to the specific situations, inform the purchasers to suspend the procurement activities, but the suspension period shall not be more than 30 days at most. Article 58. Where any complainant refuses to accept the decision of the supervision and administration department in charge of government procurement concerning the handling of the complaint, of if the supervision and administration department in charge of government procurements fails to handle the complaint in due time, it may apply for administrative review according to legal provisions or lodge an administrative suit at the people's court. CHAPTER VII SUPERVISION AND INSPECTION Article 59. The supervision and administration departments in charge of government procurements shall strengthen their supervision and inspection over the government procurement activities and the centralized procurement institutions. The content of supervision and inspection include: (1) The implementation of laws, administrative regulations and rules regarding government procurement; (2) The observation of the scope, ways of and the procedures for procurement; (3) The professional quality and technical skills of the government procurement personnel. Article 60. No supervision and administration department in charge of government procurements may set up centralized procurement institutions, and may not engage in the government procurement activities. There shall not exist the relationship of subordination or other interest relationship between the procurement agencies and the administrative organs. Article 61. The centralized procurement institutions shall establish perfect rules for internal supervision and administration. The decision-making and execution procedures of the procurement activities shall be definite, and shall supervise and restrain each other. The duties and powers of the persons that handle the procurements and those in charge of the inspection, check and acceptance of contracts shall be definite and separated from each other. Article 62. The procurement personnel of the centralized procurement institutions shall have corresponding professional qualifications and technical skills, and shall meet the requirements for holding the relevant professional posts as provided by the supervision and administration department in charge of government procurement. The centralized procurement institutions shall strengthen its education and training of the working staff. Regular examinations shall be given to test the professional skills, working performances and ethics of the procurement personnel. Any procurement person who is found to be ineligible after examinations may not continue to hold his position. Article 63. The criteria for the purchases in the government procurements shall be made public. If any of the ways of procurement as provided in the present law is adopted, the purchaser shall, after the procurement is accomplished, publish the result of procurement. Article 64. The purchaser shall make the procurements in the procurement ways and follow the procurement procedures as provided in the present law. No entity or individual may violate any provision of the present law by demanding the purchaser or procurement personnel to make the procurements from the providers designed thereby. Article 65. The supervision and administration department in charge of government procurements shall inspect the government procurement activities, and the parties concerned in the government procurement activities shall give true-to-fact representations about the procurement activities and provide relevant materials. Article 66. The supervision and administration departments in charge of government procurements shall check the procurement prices, saving funds, quality of services, credit standing, etc. of the centralized procurement institutions, see if they have any law-breaking activities, and make regular and true-to-fact publications of the results of checks. Article 67. The relevant departments that have the duty of making administrative supervisions over government procurements according to the provisions of laws and administrative regulations shall, according to their respective functions and power, strengthen their supervision over the government procurement activities. Article 68. The auditing departments shall exercise auditing supervisions over government procurements. The supervision and administration department in charge of government procurements and the parties concerned in government procurements shall, in their procurement activities, accept the auditing supervision of the auditing departments. Article 69. The government supervision organs shall strengthen their supervision over the state organs and public servants as well as the other personnel nominated by the state administrative organs that are engaged in the government procurement activities. Article 70. Any entity or individual shall be entitled to prosecute and disclose the law-breaking activities that occur in the government procurement activities. The relevant departments and state organs shall handle the prosecutions in good time according to their respective functions and duties. CHAPTER VIII LEGAL LIABILITIES Article 71. In any of the following circumstances, the purchaser and procurement agency shall be ordered to mend up, be given an warning, and be fined at the same time. The persons-in-charge and other persons who are held to be directly responsible shall be given administrative punishments by the administrative department in charge or other relevant government organs and be criticized in public notices: (1) Making government procurements by other ways unlawfully for which the method of public call for bid should have been adopted; (2) Unlawfully raising the standards of procurement; (3) Entrusting the institutions that do not have the qualifications for serving as government procurement agencies to handle the government procurement; (4) Giving different or discriminatory treatments to providers with unfair conditions; (5) Having consulting negotiations with the bid tenderers in the process of government procurements; (6) Failing to enter into procurement contracts with the providers that have won the bids or have concluded the transactions after the notice of winning bids or concluding transactions has been issued; or (7) Rejecting the lawful supervision and check of relevant departments. Article 72. In any of the following circumstances, the purchasers, procurement agencies and the staff members thereof shall be subject to criminal liabilities if their acts have constituted crimes; and, if their acts have not constituted crimes, they shall be fined with their illegal gains being confiscated. If they are officials at state organs, they shall be given administrative punishments: (1) Viciously colluding with providers or procurement agencies; (2) Accepting bribes or obtaining other unfair interests in the process of government procurement; (3) Providing false information in the lawful supervisions or checks of relevant departments; or (4) Disclosing the base number of a bid. Article 73. In any law-breaking act as mentioned in the preceding two articles has affected or may affect the result of winning the bid or concluding transactions, it shall be dealt with in the following ways: (1) If it has not decided the provider who wins the bid or with whom to conclude transactions, the procurement activities shall be terminated; (2) If it has been decided which provider has won the bid or with whom to conclude transactions, but the procurement contract has not been performed, the contract shall canceled, and another provider shall be selected from the eligible candidates as the bid winner or with whom to conclude transactions; (3) If the procurement contract has been performed and losses have been caused to the purchaser or provider, the persons who are held to be responsible shall be liable for making compensations. Article 74. Any purchaser who fails to entrust centralized procurement institutions to make the procurements for which the method of centralized government procurement should have been adopted shall be ordered to mend up by the supervision and administration department in charge of government procurement. If it refuses to mend up, the payment of money according to its budget shall be terminated and punishments shall be given by the administrative department in charge on the next higher level or other relevant government organs to the persons-in-charge or other persons who are held to be directly responsible. Article 75. Any purchaser who fails publish the criteria and results of government procurements shall be ordered to mend up, and the persons-in-charge who are held to be directly responsible shall be given punishments. Article 76. Any purchaser or procurement agency who violates the relevant provisions of the present law by concealing or destroying the procurement documents that should have been kept, or forges or alters procurement documents, shall be fined not less than 20,000 yuan by the supervision and administration department in charge of government procurement, and the persons-in-charge and other relevant persons who are held to be directly responsible shall be given punishments. If crimes have been constituted, the offenders shall be subject to criminal liabilities. Article 77. In any of the following circumstances, the provider shall be fined not less than 5¡ë but not more than 10¡ë of the procurement value, be included in the list of vicious providers, and shall be prohibited from participating in any government procurement activities within one to three years. The illegal proceeds, if any, shall be confiscated; if the circumstances are serious, the business licenses thereof shall be canceled by the competent administration for industry and commerce. If any crime has been constituted, the offenders shall be subject to criminal liabilities: (1) Winning a bid or concluding a transaction by providing false materials; (2) Denigrating or excluding other providers by unfair means; (3) Viciously colluding with the purchaser or other provider or procurement agency; (4) Offering bribes or other lawful interests to the purchaser or procurement agency; (5) Having consulting negotiations with the purchaser in the process of procurement made by public call for bids; (6) Rejecting the supervision or inspection of relevant departments or providing false information. If any of the circumstances as mentioned in items 1 to 5 of the preceding paragraph occurs to the provider, the bid won or transactions concluded shall be invalidated. Article 78. Any procurement agency who violates the law in the process of acting as the agent of government procurement shall be fined according to relevant legal provisions, and may be disqualified from engaging in relevant businesses; if any crime has been constituted, the offenders shall be subject to criminal liabilities. Article 79. Any party concerned in government procurements who has committed any of the offences as mentioned in articles 71, 72 and 77 of the present law and caused losses to other people shall undertake civil liabilities according to the relevant provisions concerning civil liabilities. Article 80. Any staff member of the supervision and administration department in charge of government procurement who, in the process of supervision or inspection, violates the provisions of the present law by abusing his power or neglecting his duties or misconducting for private gains shall be given administrative punishments; if his acts have constituted any crime, he shall be subject to criminal liabilities. Article 81. In case any supervision and administration department in charge of government procurement who fails to handle the complaints of the providers within the prescribed time period, the persons-in-charge or other persons who are held to be directly responsible shall be given administrative punishments. Article 82. If, in the examinations of the business performances of the centralized procurement institutions by the supervision and administration departments in charge of government procurements, false statements exist or true facts have been concealed, or examinations have not be held regularly or the results of the examination have not been published regularly, the department concerned shall be ordered to mend up, and the person-in-charge thereof shall be criticized in public notices by the department in charge on the next higher level or other relevant departments. The persons who are held to be directly responsible shall be given administrative punishments. Any centralized procurement institution that, in the examinations of the supervision and administration departments in charge of government procurements, make false reports of their business performances or conceals truthful information shall be fined not less than 20,000 yuan but not more than 200,000 yuan, and shall be criticized in public notices; if the circumstances are serious, it shall be disqualified from serving as an agent. Article 83. Any entity or individual that obstructs or restricts any provider from entering into the government procurement market of the local place or of the very industrial sector shall be ordered to mend up within a prescribed time period; if it refuses to mend up, the person-in-charge or the individuals who are held to be responsible shall be given punishments by the administrative department in-charge on the next higher level or other relevant government organs. CHAPTER IX SUPPLEMENTARY PROVISIONS Article 84. If a government procurement is paid by the loan of any international organization or foreign government, and there are different provisions in the agreements entered into between the loaner, provider of capital and the Chinese party concerning specific conditions, such provisions shall be applicable unless the interests of the state or the general public may be damaged. Article 85. The present law shall not be applicable to the emergency procurements made as a result of serious natural disasters or other force majeure and the procurements involving the security or secrets of the state. Article 86. The regulations concerning military procurements shall be separately enacted by the Central Military Committee. Article 87. The specific steps and measures for the implementation of the present law shall be provided by the State Council. Article 88. The present law shall take force as of January 1, 2003. |
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