What Is Government Procurement?

Government Procurement means that, in order to carry out daily government affairs or provide services to the public, governments at all levels use financial methods, legal methods, methods and procedures, through public bidding, fair competition, and direct financial departments to direct Payment by suppliers, the purchase of goods, engineering and labor services for government departments or affiliated groups from domestic and foreign markets. Its essence is the organic combination of market competition mechanism and fiscal expenditure management. Its main feature is the legal management of government procurement. Government procurement is mainly based on bidding procurement, limited competitive procurement and competitive negotiation. ^[1]

Government Procurement

(Government Action)

Government Procurement means that, in order to carry out daily government affairs or provide services to the public, governments at all levels use financial methods, legal methods, methods and procedures, through public bidding, fair competition, and direct financial departments to direct Payment by suppliers, the purchase of goods, engineering and labor services for government departments or affiliated groups from domestic and foreign markets. Its essence is the organic combination of market competition mechanism and fiscal expenditure management. Its main feature is the legal management of government procurement. Government procurement is mainly based on bidding procurement, limited competitive procurement and competitive negotiation. ^[1]

There are differences in the definition of government procurement at home and abroad. In our country, the legal concept of government procurement is: The government procurement stipulated in Chapter 1 and Article 2 of the "People's Republic of China's Government Procurement Law", the main body is state organs, institutions or organizations of all levels. The target must belong to the procurement catalog or meet the quota standards, or the government procurement of government and social capital cooperation projects (ie, PPP project procurement) stipulated in the "Administrative Measures for Government and Social Capital Cooperation Projects Government Procurement"; (Appropriation, own or financing) funds for procurement, there is no requirement for the procurement subject and whether the procurement target belongs to a centralized procurement catalog or whether it has reached the limit standard, or the use of social capital for PPP project procurement; in a narrow sense, it refers to the goods And services for government procurement. ^[5]

specific

The organizational form of government procurement

There are generally three models of domestic government procurement:

(1) Procurement subject

The procurement bodies in government procurement activities include state organs, institutions and organizations at all levels. State organs refer to organs at all levels that enjoy administrative powers granted by the state according to law, have independent legal person status, and use the state budget as an independent activity fund. Institutions refer to social service organizations that are organized by state organs or other organizations using state-owned assets for the purpose of social welfare, and are engaged in education, science, technology, culture, health and other activities. Group organizations refer to the voluntary formation of Chinese citizens to achieve membership Non-profit social organizations that work together in accordance with their charters.

(2) Purchase funds

If the purchaser uses all or part of the financial funds for procurement, it belongs to the scope of government procurement management. Financial funds include budget funds, extra-budgetary funds, and government funds. Loans repaid using fiscal funds are treated as fiscal funds.

(3) Purchase contents and limits

The content of government procurement shall be goods, engineering and services within the "Centralized Procurement Catalogue" formulated in accordance with the law, or goods, engineering and services that are not listed in the "Centralized Procurement Catalogue" but whose purchase amount exceeds the prescribed limit.

The "Centralized Government Procurement Catalogue" and the minimum government procurement standards are set by the State Council and the people's governments of provinces, autonomous regions and municipalities.

The procurement content in the "Centralized Government Procurement Catalogue" generally refers to the goods, engineering and services common to various purchasing units, such as computers, printers, copiers, fax machines, business cars, elevators, heating boilers, etc., house repair and decoration works, conferences Service, car repair, insurance, refueling, etc. The procurement content of the "Centralized Government Procurement Catalogue" of the central budget unit also includes goods, engineering and services commonly used in the central department, such as flood and drought relief and disaster relief supplies, medical equipment and instruments, special meteorological instruments, police equipment and supplies, quality inspection Special instruments, marine special instruments, etc. The contents of procurement in the "Centralized Government Procurement Catalogue" belong to the scope of government procurement regardless of the amount.

For procurement content other than the "Centralized Government Procurement Catalogue", if the purchase amount exceeds the minimum threshold for government procurement, it also belongs to the scope of government procurement.

Decentralized purchase limit standards

Except for centralized procurement agency procurement projects and departmental centralized procurement projects, each department shall independently purchase goods or services with a single or batch amount of more than 1 million yuan, and engineering projects of more than 1.2 million yuan shall be in accordance with the "People's Republic of China Government Procurement Law" And the relevant provisions of the "People's Republic of China Tendering and Bidding Law".

Open Tender Amount Standard

If the government purchases goods or services, and the single purchase amount exceeds 2 million yuan, public bidding must be adopted. The amount of public bidding for government procurement projects shall be implemented in accordance with the relevant regulations of the State Council. ^[6]

In order to understand the behavioral characteristics of government procurement, the following basic concepts need to be clearly distinguished:

(1) Government procurement management agency: refers to the administrative management agency established within the financial department to formulate government procurement policies, laws and regulations, and regulate and supervise government procurement behavior. The agency does not participate in or interfere with specific commercial activities in procurement.

(2) Government procurement agency: refers to the government responsible for the level

There are three types of procurement targets for government procurement: goods, services, and engineering.

There are four basic types of government procurement: purchase, lease, commission, and hire. Among them, purchase refers to the government procurement behavior in which the ownership of the goods is transferred; leasing is the transfer of the right to use and gain the goods from the lessor to the lessee, that is, the government purchaser within a certain period of time; entrustment and employment are the government purchasers' trust The bidding of a project is an entrustment if the party or employee is engaged in a transaction.

There are two ways of government procurement: entrusted procurement and self-procurement. Among them, entrusted procurement refers to the purchaser's purchase through a centralized procurement agency or other government procurement agency. If it belongs to the centralized procurement catalog or the procurement quota is reached, it shall be purchased through entrusted procurement. ^[8]

(1) Saving fiscal expenditures and improving the use efficiency of procurement funds . Practice has proved that the government procurement system is an open and transparent procurement system that combines centralized and decentralized procurement. From the international experience, the general capital saving rate of government procurement is more than 10%.

(2) Strengthen macro-control . Giving play to the government's role in macroeconomic regulation in the development of the national economy, and the implementation of policies to protect domestic industries, protect the environment, and support underdeveloped regions and small and medium-sized enterprises require the formulation of a government procurement law.

(3) Active market economy . The active market economy of government procurement is mainly manifested in:

1. The government purchases the goods, construction projects and services needed for the normal operation of the government, from the government's self-produced, self-constructed, and self-managed to an all-round market-opening, and greatly active market economy;

2. Public bidding and competitive negotiation of government procurement, etc., encourage enterprises to operate in accordance with the laws of the market economy, continuously improve product quality, improve service quality, improve product competitiveness, etc., and also promote the active market economy.

3. The government's macro-control measures to increase investment and promote domestic demand are mostly carried out through government procurement channels. A large number of government procurement activities have made the market economy more active.

(4) Promote the fight against corruption and upholding integrity . Administrative corruption is a major problem that restricts the reform of China's political and economic system. Governing administrative corruption requires not only severe sanctions using party discipline and state law, but also an eradication from economic sources. A large number of cases show that money and rights transactions in the government purchase process are the main form of breeding administrative corruption. Therefore, based on the institutionalization and openness of the government procurement market, government procurement policies can eliminate the behavioral norms of government procurement entities , Effectively and timely eradication of administrative corruption seedlings.

(5) Protect national industries . Moderate protection of national industries in the government procurement market is a necessary measure for developing countries in the process of opening up. According to WTO regulations, China's import tariff level has fallen to the limit, so government procurement has become one of the important non-tariff barriers. . In accordance with international practice, we can fully formulate some government procurement policies and related domestic supporting policies that protect national industries based on national security and underdeveloped economic reasons. In international trade, this is to protect the domestic government procurement market and protect A reasonable and legal means of national industry. ^[9]

I. Basic information on procurement activities In 2000, under the leadership of party committees and governments at all levels, the financial department implemented

Introduction of "Government Procurement-Norm Interpretation and Operation Guide"

Chinese government procurement is moving to a new level at a steady pace, and all industries are closely

Fundamentals of government procurement

Lecturer: Sheng Jiemin, Director of Peking University Institute of Economic Law, Ph.D. Supervisor, Consultant of Government Procurement Law Drafting Group

brief introduction:

Combined with the basic theory, service principles, and purpose of the Chinese Government Procurement Law, it explained in detail the work functions of the government procurement supervision and enforcement department, the laws and regulations that enterprises must follow in the process of participating in government procurement projects; government procurement departments and enterprises are implementing Things to note during the process. How to correctly understand the practical significance of government procurement law. The rights enjoyed by enterprises in participating in government procurement projects and the performance obligations of government procurement departments. How companies use government procurement law to safeguard their rights and interests.

Government procurement procedures

Speaker: Ma Haitao, Dean and Professor, School of Finance and Public Management, Central University of Finance and Economics.

brief introduction:

The entire process of government procurement, different from the considerations of non-government procurement. How and how will the national government procurement department perform government procurement activities, starting from the most basic operation procedures of enterprises participating in government procurement, explaining step by step how enterprises participate in various procurement activities of government procurement, and how companies will properly follow Various forms of procurement activities. Combined with actual cases, a detailed and clear analysis is made of the problems in the process of participation of enterprises. Point out the cause of the problem and how to solve it.

Problems in signing and fulfilling government procurement contracts

Speaker: Liu Junhai, Researcher, Institute of Law, Chinese Academy of Social Sciences.

brief introduction:

In government procurement activities, the supply and demand side and the government procurement execution department, the three parties reached a consensus on how to allocate various obligations to be fulfilled and the responsibilities to be assumed. The signing of the contract is mainly based on those laws and regulations in China. How the three parties will safeguard the various obligations and interests stipulated in the contract. How to deal with the related issues in the supplementary agreement. The responsibility of the contract itself should be properly maintained through the laws and regulations of China. Whether the performance of a government procurement contract is a civil contract or a procurement contract. How to distinguish the relationship between the two.

How companies win government purchase orders

Speaker: Shang Xiaoting, Director of the Government Procurement Center of the Central State Organs

brief introduction:

Combined with actual cases, this paper analyzes the methods and means adopted by enterprises in participating in government procurement activities in order to increase their probability of winning bids. For the procurement documents issued by the government procurement, from which aspects to analyze the focus of procurement needs. How to grasp the time of government procurement activities. For some procurement requirements that are not clearly described, how to grasp the focus of the analysis to correctly understand the purchase list. Drafting of bidding proposals, how to distinguish between key and non-key points. How to describe the important part. What kind of scheme can improve the influence of the enterprise. How to reflect the advantages of the enterprise itself.

Government Procurement Procurement Strategy

Speaker: Yang Bingzhi, Director of Research Department, Peking University Network Economy Research Center

brief introduction:

Based on the analysis of the Internet market prospects, combined with the development status of the global government procurement market, a serious and responsible analysis of China's government procurement market was made. What is the relationship between the network and government procurement? The process of enterprises participating in government procurement activities How to use the resources of network information. The development of organic integration between government procurement departments and network information in the future.