Bidding and tendering system in China has gone through what stages of development?

The development and application of bidding and tendering in China

Bidding and tendering originated from government procurement more than 20 years ago, and is a product of the high development of commodity economy. The world's economically developed countries and international organizations have put the bidding and tendering into the legal track, in order to improve the economic efficiency and transparency of procurement, maintain equal competition, regulate the bidding behavior, and protect the interests of the public ****. As a high-level, organized and standardized transaction method, bidding and tendering's full development and application in China is after the reform and opening up.In 1980, the State Council put forward in the Provisional Provisions on the Development and Protection of Socialist Competition[1] that "for some production and construction projects and business projects adapted to contracting, bidding and tendering can be carried out on a trial basis ", opening a new chapter in China's bidding and tendering. over the past 20 years, China's bidding and tendering has developed significantly in many areas.

(I) Bidding and tendering in the field of civil engineering

In the early 1980s, in order to reform the construction industry and the capital construction management system, China took the lead in implementing the bidding and tendering system in the field of engineering.In 1983, the Ministry of Urban and Rural Construction issued the Trial Measures for Tendering and Bidding for Construction and Installation Projects[2], which stipulated that the owner selects the construction unit on the basis of merit through bidding, and that the construction unit may contract the tasks. This is the first departmental regulation on bidding and tendering for construction projects, and also the first one in China to make detailed regulations on bidding and tendering, and its promulgation laid the foundation for the implementation of the bidding and tendering system in China. l992, the Ministry of Construction issued the Measures for the Administration of Bidding and Tendering for Construction Projects [3], which regulates the bidding and tendering activities. At present, there are 21 provinces, autonomous regions and municipalities directly under the Central People's Congress issued the "construction market management regulations"; there are seven provinces, autonomous regions and municipalities directly under the Central People's Congress issued the "construction project bidding regulations". After the introduction of these local laws and regulations, many places have also formulated supporting regulations and normative documents, including construction, bidding agent, bidding declaration, bidding documents and tender management review, bid opening, bid evaluation, bidding, evaluation of the percentage system and other aspects of the management of the provisions of the standardized management of bidding, reduce the work of arbitrariness. In order to strengthen supervision and management, the construction system has established construction project bidding and tendering management offices at all levels from top to bottom to carry out daily supervision and management of construction project bidding and tendering. These have greatly promoted the construction project bidding and tendering work.

Over the past ten years, the civil construction bidding has developed rapidly. in 1984, the bidding area only accounted for 4.8% of the construction area in that year, in 1985, the proportion rose to 13%, in 1986, 15%, in 1987, 18%, in 1988, 21.7%, in 1989, 24%, in 1990, 29.5%. in 1996, reached 54%. Individual provinces and cities such as Shaanxi, Hebei, Jiangsu, etc. up to 90% or more.

(ii) Bidding for national key construction projects.

The implementation of bidding and tendering for construction projects is an important element in the reform of China's investment system. 1984, the State Planning Commission and other relevant departments jointly issued the Interim Provisions on Bidding and Tendering for Construction Projects, and a series of methods have been issued since then, which require that, except for special reasons why it is not appropriate to invite bids for the design, procurement of equipment, and construction of a construction project, conditions for bidding and tendering should be created; and that bids and tenders may be invited in accordance with the nature, scale, complexity, and quality of the project. According to the nature, scale, complexity and other objective conditions of the project, respectively, open bidding, inviting tenders, and other ways, and the construction project bidding and tendering of the relevant procedures and the substantive issues to be stipulated.

At present, the national construction project bidding and tendering work has been widely promoted, and has achieved significant economic and social benefits. Such as the three gorges, the two beaches, Xiaolangdi project and other major projects, are the state investment-oriented, related to the national economy and social development of the overall situation of the big projects. The use of bidding and tendering for these projects has had a significant impact on the management of investment in fixed assets and the improvement of investment efficiency.

(C) mechanical and electrical equipment bidding and tendering

In 1985, in order to deepen the reform of the circulation system, reform the management of mechanical and electrical equipment imports, the State Council decided to carry out mechanical and electrical equipment bidding work, and approved the establishment of China's mechanical and electrical equipment bidding center. The development of electromechanical equipment bidding work, roughly experienced three stages of development. The first stage is the initial stage. 1985, China's mechanical and electrical equipment bidding center was established, while working on the development of bidding systems and methods, while approving the formation of Beijing and other eight central cities and standard institutions. At present, it has grown to more than 30. And choose some suitable projects, with reference to the World Bank and other international experience and procurement procedures, combined with China's national conditions, in the bidding procedures and effects of the pilot, and accumulated some basic experience. The second is the stage of comprehensive promotion of domestic bidding for imported electromechanical equipment. This stage began in 1987, the following requirements: all domestic construction projects need to import electromechanical equipment, must first be entrusted to the China Electrical and Mechanical Equipment Bidding Center under the bidding agencies in the domestic public tender; where the domestic manufacturing enterprises can win the bidding for manufacturing and supply, it is no longer approved for imports; the domestic can not win the bidding can be approved for imports. Third, the international bidding stage. With China's reform and opening up further in-depth, China in the reform of tariffs, import management and other aspects of a series of major initiatives, clearly required mechanical and electrical equipment bidding in accordance with international practice. Starting from 1992, the import of electromechanical equipment domestic bidding gradually shifted to international bidding, that is, the user needs to import electromechanical equipment for open international bidding, fair treatment of domestic and foreign bidders, the best winners. 1994, China's import system to carry out major reforms, in addition to a substantial reduction in tariffs, but also a major reform of the non-tariff system, the management of electromechanical products are divided into three major categories: the first category is the electromechanical products subject to quota management; the second category is specific electromechanical products subject to tendering; and the third category is automatic registration of imported electromechanical products. For specific electromechanical products, bidding is carried out by specialized agencies with qualifications recognized by the State.

Over the past decade, the field of electromechanical equipment bidding and tendering to establish a more complete system and approach. 1986 formulated the "application for domestic bidding and tendering of imported electromechanical equipment Interim Measures" [4]. 1993 issued the "Guidelines for Bidding and Tendering of Electromechanical Equipment". Clearly the principles to be followed in bidding, the basic procedures, put forward the bidding in conjunction with international practice in the guidance. November 1996, the State Economic and Trade Commission promulgated the "mechanical and electrical equipment bidding management" and "mechanical and electrical equipment bidding agency qualification management interim measures". 1999 Ministry of Foreign Trade and Economic Cooperation issued the "imported electromechanical products, international bidding management measures".

Over the past ten years, the national tendering system for electromechanical equipment has carried out tendering for more than 10,000 projects, and the tendering for imported equipment has amounted to more than 15 billion US dollars, with an average exchange rate saving of more than 10%; the tendering for domestic equipment has amounted to more than 10 billion US dollars, with an average saving of more than 15%, which has resulted in a better economic and social benefit.

(D) government procurement bidding

In recent years, with the reform of China's financial system and the extensive promotion of bidding and tendering, some localities have begun to bidding and tendering as the main mode of government procurement bidding pilot work. At present, government procurement mainly focuses on medical equipment, office supplies, official vehicles and related services, etc. In 1996, Shanghai took the lead in realizing government procurement bidding for medical equipment purchased with financial allocations. After that, the Shenzhen Municipal Government purchased 27 official vehicles by public tender in November 1997, which aroused wide public concern. Government procurement tendering from now on a hair and can not be collected. From the pilot areas, the tender procurement savings rate is generally 10-15%, a few projects reached 30% or even 50%. At the beginning of this year, central government procurement was launched. At present, the Ministry of Finance has promulgated the "Measures for the Administration of Government Procurement" and other related measures. on June 29, 2002, the Ninth National People's Congress Standing Committee Twenty-eighth Meeting of the People's Republic of China adopted the "Chinese People's Republic of China * * * and the State Government Procurement Law" [5]. It is estimated that the national government procurement amounted to about 200 billion yuan, if calculated according to the average savings rate of 10%, it can save 20 billion yuan of procurement funds each year. China's government procurement bidding prospects are very broad.

(E) the use of foreign loan project bidding and tendering

Since the reform and opening up, China's use of international financial organizations and foreign government loans has gradually expanded. At present, China's use of international financial organizations and foreign government loans are mainly World Bank loans, Asian Development Bank loans, Japan Overseas Economic Cooperation Fund loans, etc. In 1996, the balance of China's use of loans from international financial organizations amounted to 16.739 billion U.S. dollars, and the balance of its use of loans from foreign governments amounted to 22.164 billion U.S. dollars. In accordance with the requirements of the lenders, projects utilizing these loans are generally subject to international or domestic competitive bidding (with a few special exceptions). China's window management departments of these loans have also formulated some administrative implementation regulations in accordance with the relevant regulations and requirements of the lenders, such as the Guidelines on Domestic Competitive Bidding and Procurement for World Bank Loan Projects, Measures for Reviewing the Bidding and Procurement of Electrical and Mechanical Equipment for World Bank Loan Projects, Circular on the Adoption of Standardized Texts in Bidding and Procurement for World Bank Loan Projects, and the Circular on the Promulgation of International Tender Agents for World Bank and Asian Development Bank Loan Projects. Notice on the Promulgation of Guidelines for Entrustment of International Bidding Agencies for World Bank and Asian Development Bank Loan Projects, etc. In this way, a relatively unique competitive bidding and tendering for the use of international financial organizations and foreign government loans has been formed in China.

The bidding and tendering for projects utilizing the above loans is, in general, relatively transparent and standardized, with corresponding supervisory measures for each step of the procedure, such as the review of bidding documents, the review of pre-qualification decisions, and the review and evaluation of bids, thus ensuring openness, fairness, and a strong competitive nature.

(F) science and technology project bidding

l996, the state science and technology industry for the first time on the national project "high-definition television function prototype research and development project" open bidding. The impact and significance of this bidding activity has gone beyond the project itself, not only in China's scientific and technological community has produced a positive reaction, but also for the further promotion of China's scientific and technological planning projects to implement the bidding system has laid the foundation.

For a long time, China's scientific and technological work has mainly relied on planning and administrative means to manage and adjust. From the identification of scientific research topics to research and development, up to testing and production, are arranged by the state directive program. State funding for the development of science and technology, especially for scientific research projects, comes mainly from financial allocations, and the direction and distribution of funds are determined by means of planning. The determination of scientific research projects and their funding is often determined through a closed top-down or bottom-up approach. This practice, not only in the decision-making has a certain degree of blindness, but also in the specific implementation process there are duplication of projects, sectoral division, scattered inputs, human care and other shortcomings, so that the limited scientific and technological inputs are difficult to play the optimal efficacy. For this reason, since 1985, the relevant state scientific and technological policies and regulations repeatedly clear, science and technology projects to implement the bidding system.

At present, the government's investment in science and technology, still in the whole science and technology investment in a considerable proportion. 1995, the national science and technology investment in the central financial allocation of 30.188 billion yuan; by the State Science and Technology Commission of the implementation of the national "863" program, since 1987, the financial allocation of 2.45 billion yuan; the national The financial allocation for the part of the National Science and Technology Tackling Program for which the State Science and Technology Commission is responsible was 1.389 billion yuan during the Eighth Five-Year Plan period, and 2.3-2.5 billion yuan is planned for the Ninth Five-Year Plan period. In addition, other competent departments of the State Council, military industry research management departments, local governments at all levels, state-owned enterprises and public institutions have also invested a lot of money in research and development activities of scientific research projects. How to better use these scientific and technological inputs, the lowest inputs to obtain optimal results, and promote scientific and technological progress has become an important task of scientific and technological bidding and tendering work. However, due to institutional constraints, differences in understanding, the concept of obsolescence and the actual difficulty of scientific and technological bidding for a variety of reasons, scientific and technological project bidding and tendering progress has been slow, and is still in the pilot stage of exploration. This year, the State Economic and Trade Commission has issued the implementation of the "national technology innovation project project selection bidding management", the State Ministry of Science and Technology is also in the development of relevant management methods, science and technology project bidding will usher in a new development situation.

In addition, bidding and tendering is also sometimes used in the procurement of enterprise materials, talent recruitment.