After the public bidding fails twice, can Party A directly designate the winning bidder? What is the legal basis?

You can't. If the bidder fails to win the bid after the second bidding, it may be approved not to bid, and other non-bidding methods may be adopted for procurement.

According to the Measures for the Administration of Non-Bidding Procurement Methods of Government Procurement

Article 4? If the procurement of goods and services that meet the standard of open tender amount intends to adopt the non-tendering procurement method, the purchaser shall, before the start of procurement activities, apply to the financial department of the people's government at or above the municipal level with districts, and report it to the competent budget unit for approval before implementation.

Article 5? According to Article 4 of these Measures, the purchaser shall submit the following materials to the financial department and be responsible for the authenticity of the materials:

(a) the name of the purchaser, the name of the procurement project, the general situation of the project and other basic information;

(two) the project budget, budget approval documents or proof of the source of funds;

(3) the procurement method and reasons for the proposed application.

Article 6? The purchaser and procurement agency shall organize non-tendering procurement activities in accordance with the provisions of the Government Procurement Law and these Measures, and take necessary measures to ensure that bid evaluation is conducted in strict confidentiality.

No unit or individual may illegally interfere with or influence the bid evaluation process and results.

Extended data

Measures for the administration of non-tendering procurement methods of government procurement

Article 7? The competitive negotiation team or inquiry team consists of an odd number of three or more representatives of the purchaser and experts, of which the number of experts shall not be less than two-thirds of the total number of members of the competitive negotiation team or inquiry team. The purchaser shall not participate in the evaluation of the procurement projects of the department or the unit as an evaluation expert. Personnel of a procurement agency shall not participate in the evaluation of procurement projects represented by this agency.

For goods or services procurement projects that meet the standard of open tender amount or government procurement projects that meet the standard of tender scale, the competitive negotiation team or inquiry team shall be composed of more than 5 people in an odd number.

For government procurement projects purchased by competitive negotiation and inquiry, bid evaluation experts shall be randomly selected from the list of experts in related disciplines in the government procurement bid evaluation expert database. If it is difficult to determine the appropriate bid evaluation experts through random methods for competitive negotiation procurement projects with complex technology and strong professionalism, the bid evaluation experts can be selected by themselves with the consent of the competent budget unit.

For competitive negotiation procurement projects with complex technology and strong professionalism, bid evaluation experts shall include 1 legal experts.

References:

Baidu Encyclopedia-Measures for the Administration of Non-tendering Procurement Methods of Government Procurement