China’s new measures for government procurement
The Ministry of Finance ("MOF") has recently released the Interim Administrative Measures for Procurement under the Government Procurement Framework Agreement (the "Measures"), with effect from March 1, 2022.
Learning from international experience, the Measures specify the administrative system for the procurement under the framework agreement, with a view to fundamentally and systematically addressing relevant problems and building a long-term mechanism. The Measures clarify that, in case of any of several circumstances, such as "centralized procurement is made for items under the catalog and their supporting essential consumables and parts, which constitutes small-scale or sporadic procurement", procurement under the framework agreement can be adopted. The Measures make clear that procurement under the framework agreement can be divided into close-end procurement and open-end procurement under the framework agreement, with the former being the main form. The framework agreement is mainly concluded between centralized procurement entity and competent budget entity.
The Measures also point out that, in two phases of the procurement under the framework agreement, suppliers can raise their doubts and complaints in accordance with the law; measures to deal with relevant violations are also given.
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