Notice on printing and distributing the administrative measures for Government Procurement Promoting the development of small and medium sized enterprises

Notice on printing and distributing the administrative measures for Government Procurement Promoting the development of small and medium sized enterprises

General offices (offices) of all central budget units, financial departments (bureaus) and competent departments of industry and information technology of all provinces, autonomous regions, municipalities directly under the central government and cities under separate state planning, Financial Bureau and competent departments of industry and information technology of Xinjiang production and Construction Corps:

In order to implement the guiding opinions on promoting the healthy development of small and medium-sized enterprises, give full play to the function of government procurement policy and promote the development of small and medium-sized enterprises, according to the law of the people's Republic of China on government procurement and the law of the people's Republic of China on promoting the development of small and medium-sized enterprises and other laws and regulations, the Ministry of Finance and the Ministry of industry and information technology have formulated the administrative measures for promoting the development of small and medium-sized enterprises by government procurement . Now it is printed and distributed to you, please follow it.

Annex: Administrative Measures for Government Procurement Promoting the development of small and medium sized enterprises

treasury department

Ministry of industry and information technology

December 18, 2020

enclosure

Measures for government procurement to promote the development of small and medium-sized enterprises

Article 1 These measures are formulated in accordance with the law of the people's Republic of China on government procurement, the law of the people's Republic of China on the promotion of small and medium sized enterprises and other relevant laws and regulations for the purpose of giving full play to the policy function of government procurement and promoting the healthy development of small and medium sized enterprises.

Article 2 the small and medium-sized enterprises mentioned in these Measures refer to the medium-sized enterprises, small enterprises and micro enterprises established in accordance with the law within the territory of the people's Republic of China and determined in accordance with the criteria for the classification of small and medium-sized enterprises approved by the State Council, except that they are the same person in charge of large enterprises or have a direct holding or management relationship with large enterprises. Individual businesses that meet the criteria for the classification of small and medium-sized enterprises are regarded as small and medium-sized enterprises in government procurement activities.

Article 3 in government procurement activities, purchasers shall enhance the share of small and medium-sized enterprises in government procurement and support the development of small and medium-sized enterprises by strengthening procurement demand management, implementing measures such as reserving procurement shares, preferential price evaluation and preferential procurement.

Article 4 in government procurement activities, if the goods, projects or services provided by suppliers meet the following conditions, they shall enjoy the support policies for small and medium-sized enterprises as stipulated in these measures:

（1） In the goods procurement project, the goods are manufactured by small and medium-sized enterprises, that is, the goods are produced by small and medium-sized enterprises and use the trade name or registered trademark of the small and medium-sized enterprises;

（2） In the engineering procurement project, the project is undertaken by small and medium-sized enterprises, that is, the construction unit is small and medium-sized enterprises;

（3） In the service procurement project, the service is undertaken by the small and medium-sized enterprises, that is, the personnel who provide the service are the employees who conclude the labor contract according to the labor contract law of the people's Republic of China. In the goods procurement project, if the goods provided by the supplier are manufactured by both small and medium-sized enterprises and large-scale enterprises, they will not enjoy the support policies for small and medium-sized enterprises stipulated in these measures. If all parties of the consortium are small and medium-sized enterprises, the consortium shall be regarded as small and medium-sized enterprises. If all parties of the consortium are small and micro enterprises, the consortium shall be regarded as the same.

Article 5 In government procurement activities, purchasers shall reasonably determine the procurement needs of procurement projects, and shall not take the scale conditions and financial indicators such as the registered capital, total assets, operating income, employees, profits, tax amount, etc. of the enterprise as the qualification requirements or evaluation factors of suppliers, and shall not give differential treatment or discrimination to small and medium-sized enterprises in terms of the ownership structure and operating years of the enterprise Depending on the treatment.

Article 6 the budget units in charge shall organize the evaluation of government procurement projects of their own departments and subordinate units, make overall plans to formulate specific plans for reserving procurement shares for small and medium-sized enterprises, and reserve procurement shares for procurement projects and procurement packages suitable for small and medium-sized enterprises, which shall be separately listed in the government procurement budget.

Under any of the following circumstances, it is not necessary to reserve purchasing shares for SMEs:

（1） The laws, regulations and relevant state policies clearly stipulate that procurement should be given priority or should be made to non enterprise entities such as public institutions and social organizations;

（2） It can only be purchased from suppliers other than small and medium-sized enterprises because it is really necessary to use irreplaceable patents, know-how, infrastructure restrictions, or provide specific public services;

（3） The reserved procurement share in accordance with the provisions of these measures can not ensure adequate supply and competition, or there are situations that may affect the realization of government procurement objectives;

（4） Framework agreement procurement project;

（5） Other circumstances stipulated by the financial department of the people's government at or above the provincial level. Except for the above situations, other situations are suitable for small and medium-sized enterprises.

Article 7 where goods and services procurement projects with a purchase quota of more than 2 million yuan and engineering procurement projects with a purchase quota of less than 4 million yuan are suitable to be provided by small and medium-sized enterprises, purchasers shall specifically purchase from small and medium-sized enterprises.

Article 8 for procurement projects of goods and services over 2 million yuan and engineering procurement projects over 4 million yuan that are suitable for small and medium-sized enterprises, more than 30% of the total budget of these procurement projects shall be reserved for small and medium-sized enterprises, and the proportion reserved for small and micro enterprises shall not be less than 60%. The reserved shares are carried out through the following measures:

（1） Purchasing projects as a whole or purchasing packages for small and medium-sized enterprises;

（2） The suppliers are required to participate in the procurement activities in the form of consortium, and the proportion of SMEs in the consortium should reach a certain level;

（3） The supplier who has obtained the procurement contract is required to subcontract a certain proportion of the procurement project to one or more small and medium-sized enterprises. No direct holding or management relationship shall exist between the small and medium-sized enterprises forming a consortium or accepting a subcontract and other enterprises or subcontractors in the consortium.

Article 9 for the procurement projects that have not been reserved for the procurement of small and medium-sized enterprises after the overall planning of the competent budget units, and the non reserved part of the procurement packages in the reserved share projects, the purchaser and the purchasing agency shall deduct 6% - 10% of the quotation of small and micro enterprises in accordance with the provisions of these measures (3% - 5% of the project items), and participate in the review with the deducted price. If the government procurement project with the bidding method is applicable, but the comprehensive evaluation method is adopted but the price score is not calculated by the low price priority method, 3-5% of the price score shall be added as the price score on the basis of the original quotation. If the buyer or the purchasing agency accepts the procurement projects that are formed by a joint venture between large and medium-sized enterprises and small and micro enterprises or allows large and medium-sized enterprises to subcontract to one or more small and micro enterprises, if the contract share of small and micro enterprises as stipulated in the joint agreement or subcontract intent agreement accounts for more than 30% of the total contract amount, the purchaser and the purchasing agency shall give the quotation of the consortium or large and medium-sized enterprises Deduct 2% - 3% (1% - 2% of the project), and participate in the review with the deducted price. If the government procurement project with the bidding method is applicable, but the comprehensive evaluation method is adopted but the price score is not calculated by the low price priority method, 1-2% of the price score shall be added as the price score on the basis of the original quotation. If there is a direct holding and management relationship between the small and micro enterprises that form a joint venture or accept the subcontract and other enterprises or subcontractors within the consortium, they shall not enjoy the preferential policies of price deduction.

The proportion of price deduction or the proportion of price score plus points shall be treated equally between small enterprises and micro enterprises, and no distinction shall be made. The price deduction ratio or price score plus ratio of specific procurement items shall be determined by the Purchaser within the range specified in these measures according to the average profit rate of the relevant industries and market competition status of the subject matter.

Article 10 the purchaser shall carry out procurement activities in strict accordance with the provisions of these measures and the specific plans for reserved purchase shares formulated by the competent budget unit. If the number of qualified SMEs is less than 3 after the suppliers are invited by the way of announcement, the procurement activities shall be suspended. The procurement items or purchase packages without reserved shares shall be deemed as those without reserved shares, and the procurement activities shall be reorganized in accordance with the relevant provisions of Article 9 of these measures.

Article 11 small and medium-sized enterprises participating in government procurement activities shall issue the letter of declaration of small and medium-sized enterprises (attachment 1) as stipulated in these measures, otherwise they shall not enjoy the relevant policies for supporting small and medium-sized enterprises. No unit or individual shall require the supplier to provide the "medium" in

Identification documents for small and medium-sized enterprises other than the letter of statement of small enterprises.

Article 12 Where a procurement project involves the purchase of small and medium-sized enterprises, the following contents shall be specified in the procurement documents:

（1） The reserved share of the procurement project or procurement package shall be clear that the project or related procurement package is specifically for small and medium-sized enterprises, as well as the related target and budget amount;

（2） If it is required to participate in or subcontract in the form of a joint venture, it shall be clear the proportion of the contract amount of small and medium-sized enterprises in the joint agreement or subcontract intent agreement, and shall be regarded as the qualification condition of the supplier;

（3） For the procurement items or purchase packages with non reserved shares, the relevant price deduction ratio or the price score plus ratio shall be specified;

（4） Where the government procurement contract is obtained according to the provisions of these measures, small and micro enterprises shall not subcontract the contract to large and medium-sized enterprises, and medium-sized enterprises shall not subcontract the contract to large enterprises;

（5） If the purchaser considers that it has relevant conditions, it shall make clear preferential measures for small and medium-sized enterprises in terms of fund payment period and prepayment proportion;

（6） To clarify the corresponding small and medium-sized enterprises division standards of the procurement subject industry;

（7） Other matters prescribed by laws and regulations and the financial departments of the people's governments at or above the provincial level.

Article 13 if the winning and closing suppliers enjoy the supporting policies for small and medium-sized enterprises as stipulated in these measures, the purchaser and the purchasing agency shall, with the winning of the bid, the results of the transaction, publicly win the bid and the declaration letter of the small and medium-sized enterprises of the suppliers. For government procurement projects applying the bidding and bidding law, the declaration letter of small and medium-sized enterprises of the candidates for winning the bid shall be publicly announced.

Article 14 for the procurement contract signed by reservation of procurement items, reserved special procurement package, requirement to participate in the form of joint venture or subcontract of the contract, it shall clearly mark this contract as reserved contract for small and medium-sized enterprises. Where a joint venture is required to participate in procurement activities or subcontract, the joint agreement or subcontract intent agreement shall be regarded as an integral part of the procurement contract.

Article 15 encourage all regions and departments to allow small and medium-sized enterprises to introduce credit guarantee means in procurement activities, and provide specialized services for small and medium-sized enterprises in bid (response) guarantee and performance guarantee. Encourage small and medium-sized enterprises to finance through government procurement contracts in accordance with the law.

Article 16 The competent departments of small and medium-sized enterprises under the people's government at or above the county level where the goods manufacturers or engineering and service providers are registered shall be responsible for the supervision and inspection of government procurement, handling complaints and the recognition of small and medium-sized enterprises in the administrative punishment of government procurement.

The competent departments of small and medium-sized enterprises shall, within 10 working days after receiving the letter of financial department or the relevant administrative supervision department for bidding and bidding, to assist in the development of the letter of identification of small and medium-sized enterprises, make a written reply.

Article 17 all regions and departments shall implement the whole process performance management for budget projects involving procurement of small and medium-sized enterprises, reasonably set performance objectives and indicators, implement relevant policy requirements for supporting small and medium-sized enterprises, regularly carry out performance monitoring and evaluation, and strengthen the results of performance evaluation.

Article 18 The competent budget unit shall report to the financial department at the same level the specific situation of the reserved shares and procurement for small and medium-sized enterprises in the previous year of the Department to the financial department at the same level since 2022, and disclose the implementation of the reserved projects in the procurement network of the Chinese government (attachment 2). If the proportion of reserved shares as prescribed in these measures is not reached, an explanation shall be made.

Article 19 If the Purchaser fails to reserve the purchase shares for small and medium-sized enterprises in accordance with the provisions of these measures, and the purchaser or the purchasing agency fails to implement price deduction or price score plus points in accordance with the provisions of these measures, it shall be deemed that the procurement policy of the government has not been implemented in accordance with the provisions, and the legal responsibility shall be investigated in accordance with the relevant provisions of the procurement law of the people's Republic of China and other relevant provisions of the state.

Article 20 if the contents of the declaration letter provided by the supplier in accordance with the provisions of these measures are not true, the supplier shall provide false materials for winning the bid or concluding the transaction, and shall be investigated for the corresponding responsibility in accordance with the government procurement law of the people's Republic of China and other relevant provisions of the state. For the government procurement engineering construction project applicable to the bidding law, if the contents of the declaration letter provided by the bidder in accordance with the provisions of these measures are not true, it is a fraud to win the bid, and the corresponding responsibility shall be investigated in accordance with the bidding law of the people's Republic of China and other relevant provisions of the state.

Article 21 In performing their duties, financial departments, competent departments of small and medium-sized enterprises and their staff members who violate the provisions of these measures and have other violations of law and discipline, such as abuse of power, dereliction of duty, favoritism, etc., shall be punished in accordance with the law of the people's Republic of China on government procurement, the law of the people's Republic of China on civil servants, the supervision law of the people's Republic of China, and the law of the people's Republic of China on government procurement According to the relevant regulations of the people's Republic of China, such as the regulations on the implementation of the people's Republic of China law, the corresponding responsibilities shall be investigated; those suspected of crimes shall be transferred to the relevant state organs according to law.

Article 22 these Measures shall not apply to foreign aid projects, projects with relevant national qualifications or projects with other provisions in the qualification management system.

Article 23 government procurement support policies for other entities deemed as small and medium-sized enterprises shall be separately formulated by the Ministry of Finance in conjunction with relevant departments.

Article 24 the provincial financial departments may, in conjunction with the competent departments of small and medium-sized enterprises, formulate specific implementation measures in accordance with the provisions of these measures.

Article 25 these Measures shall come into force as of January 1, 2021. The notice of the Ministry of finance, the Ministry of industry and information technology on printing and distributing the Interim Measures for government procurement to promote the development of small and medium sized enterprises (Treasury [2011] No. 181) shall be repealed at the same time.

Attachment: 1. Declaration letter of small and medium sized enterprises

2. Announcement on the implementation of reserved projects for SMEs