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The Government Procurement Law of the People's Republic of China (hereinafter referred to the Government Procurement Law) has been effective as of January 1, 2003. In order to ensure the successful implementation of the Government Procurement Law, urge the governmental departments in all regions to further reform the government procurement system, and standardize the government procurement procedure, the following opinions are hereby put forward as follows: I. FURTHER ENHANCEING UNDERSTANDING AND STEADILY PUSHING FORWARD THE REFORM OF GOVERNMENT PROCUREMENT SYSTEM The reform of government procurement system plays an important role in the reform of administration of financial expenditure, contributing to raising financial efficiency, supporting the development of domestic enterprises and preventing corruption. In recent years, great progress has been made in the reform of government procurement. However, there remain a number of problems, e.g. some governmental departments in some regions have been hesitant in the implementation of the reform, the interference with the specific procurement activities takes place quite often, the procurement procedure is far from standardized, transparent, or scientific, the administration of procurement is not adequate, and the competence of the procurement administrators and executives remains to be improved, etc. Due to the wide range covered and immense policies involved in the reform of government procurement system, all the departments shall attach great importance to the reform, strengthen the organization and take full responsibility for the implementation. Different considerations shall be unified in order to establish the concept of procurement by law and exert the role of the government and regulation. The reform is a complicated and systematic program concerning system innovation and transfer of concept, and is related closely to the standardization of administration, therefore the relevant administrative measures shall be formulated and working procedures established according to the facts, so as to realize standardized and efficient procurement and ensure the successful implementation of the Government Procurement Law. II. ACTIVELY ADOPTING MEASURES, FOCUS ON THE IMPORTANT ISSUES AND ENLARGE THE SCOPE OF GOVERNMENT PROCUREMENT STEADILY The government centralized procurement catalog and the standard of the government procurement quota shall be formulated scientifically in light of the actual conditions of the region, so as to enlarge the scope of government procurement implementation, ensure the annual increase of the procurement scale. The budget of government procurement shall be established by specifying the procurement items and drafting annual plans to strengthen planning. With regard to the departments that have implemented the budget reforms, the budget of the procurement shall be unified. And as to those that have not implemented the budget reforms, the budget of the procurement shall be established separately. Direct payment of the government procurement fund shall be actively pushed forward so as to enlarge the scale of procurement. And administration and supervision shall be strengthened with regard to decentralized procurement. At present, government procurement shall be regarded as a way to support the development of industries such as office software, computer and automobile, so as to improve the competitiveness and momentum of development of the domestic enterprises. III. SEPARATE ESTABLISHMENT OF THE ADMINISTRATIVE AND EXECUTIVE AGENCIES SO AS TO SPEED UP THE ESTABLISHMENT OF THE ADMINISTRATIVE SYSTEM OF GOVERNMENT PROCUREMENT It is the objective requirement of the government procurement system to separate the administrative and executive functions and to establish separate institutions to take charge of government procurement and with a scientific definition of the different functions. The administrative and supervision department of government procurement shall take the responsibility in policy and budget formulation, payment, information management, employment of expert, handling the complaints of the suppliers, examining the performance of the centralized procurement institution and supervision and administration of personnel. The centralized procurement institutions shall undertake the authorization to implement the project procurement listed in the centralized procurement catalog, formulate operation rules for centralized procurement, and train the personnel involved in procurement. A mechanism where the administrative departments and the centralized procurement institutions coordinate with each other shall be established. The administrative department shall not participate in the transactions in the procurement market. As the executive branch, the centralized procurement institution shall comply with the relevant policies strictly, and ensure the publicity, impartiality, justice and efficiency of the procurement. The establishment of the centralized procurement system shall be focused upon, so that it plays a vital role in the reform of government procurement system. Centralized procurement institutions not subordinate or related to the administrative departments shall be established according to law and the requirement of work. With regard to the established institutions, administration shall be emphasized by strengthening institutional construction and the improvement of the supervision mechanism. Provided that the institution is not established, effective measures shall be explored to increase the efficiency of spending the procurement fund according to the regional conditions. The institutions subordinate to the administrative department currently shall be separated by the end of 2003. IV. FURTHER IMPROVING THE SYSTEM, PUSH FORWARD THE STANDARDIZED ADMINISTRATION OF GOVERNMENT PROCUREMENT All governmental departments in all regions shall attach more importance to the establishment of the procurement system. Before the State Council issues detailed rules for the implementation of the Government Procurement Law, all departments in all regions may within the jurisdiction authorized by law stipulate supportive regulations or transitional measures according to the demands in order to guide and standardize government procurement. The current regulations contrary to the principle of the Government Procurement Law shall be repealed or amended. The Ministry of Finance shall, in collaboration with other relevant departments, and according to the requirements of law, research on and draft the detailed rules for the implementation of the Government Procurement Law and report it to the State Council, and formulate a standard contract for government procurement as well as other relevant measures in administrating the bidding service, government procurement information management, management of procurement experts, handling of complaints of suppliers and examination of the performance of centralized procurement institutions, etc. The standardized administration of government procurement shall be strengthened. The principle of publicity, transparency, fair competition and impartiality shall be followed, and public bidding shall be the major method in government procurement. The procurement procedures shall be further improved in order to achieve standardization and efficiency. And experts shall be employed to establish scientific and standardized government procurement system. Complaints of the suppliers shall be properly handled so as to systemize and standardize the system. Focus should be put on research and study so as to solve the prominent problems in the reform of government procurement system. V. CARRYING OUT SUPERVISION AND EXAMINATION AND FURTHER IMPROVE THE SUPERVISION SYSTEM OF GOVERNMENT PROCUREMENT An effective supervision system shall be established with the focus on the financial department, and cooperation of the supervision, auditing and other relevant departments. The latter shall play a competent role in the supervision of procurement, strengthening the restriction of government procurement, ensuring the implementation of various policies, and preventing and eliminating corruptions, various ways to evade government centralized procurement, and the protection from the local government. The supervision and administration of the implementation of the scope, ways, procedures and catalog of procurement shall be strengthened. The relations between the financial departments and other governmental departments shall be coordinated so as to establish a coordination system combining the comprehensive administration and industrial supervision. The transparency of government procurement shall be strengthened, and various ways of social supervision established, with the mass media and the public playing a role in supervision. VI. STRENGTHENING THE ORGANIZATION OF THE PROCUREMENT PERSONNEL AND IMPROVE THE ADMINISTRATIVE COMPETENCE Government procurement is both a political and professional job. It is necessary to train highly competent and professional personnel to improve the administration of procurement. All levels of local governments and financial departments shall establish an examination system to evaluate the performance of the procurement executives, to improve the competence in policy, law and profession, to make the government administrators and executives fully and accurately grasp the various regulations concerning the government procurement system, to strengthen the concept of administration by law, so as to develop moral and capable personnel in government procurement. |
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