The National Development and Reform Commission issued a document to significantly reduce the scope of projects that must be tendered.

National Development and Reform Commission (data map) Zhongxin. com reporter Jin Shuo photo
BEIJING, March 30 (Xinhua) According to the website of the National Development and Reform Commission, recently, with the approval of the State Council, the National Development and Reform Commission issued the Provisions on Projects that Must Be Tendered (Order No.16 of the National Development and Reform Commission), greatly reducing the scope of projects that must be tendered.
According to the Bidding Law, in 2000, the former State Development Planning Commission reported and approved by the State Council to issue the Standard Provisions on the Bidding Scope and Scale of Engineering Construction Projects (Order No.3 of the State Development Planning Commission, hereinafter referred to as Order No.3), which clarified the specific scope and scale standards of engineering projects that must be tendered. Since the promulgation and implementation of Order 3, China has formed a relatively complete system of compulsory bidding, which has played a positive role in promoting the popularization and application of bidding system, standardizing bidding behavior, ensuring fair competition, improving the quality and efficiency of bidding and purchasing, and preventing and punishing corruption.
With the continuous development of China’s economy and society and the deepening of reform, the scope of Order No.3 is too wide and the standard is too low. At the same time, according to Decree No.3, all provinces, autonomous regions and municipalities have generally formulated the specific scope and scale standards of the projects that must be tendered in their own regions, which has expanded the scope of compulsory tendering to varying degrees, caused the rules to be inconsistent, and further increased the burden on market participants.
In view of the above problems, the National Development and Reform Commission and the relevant departments of the State Council revised Order No.3, and formed the Regulations on Projects Subject to Bidding, which was issued after being submitted to the State Council for approval and officially implemented on June 1, 2018.
Mainly revised three aspects: First, narrow the scope of projects that must be tendered. Judging from the nature of the funds used, the "projects that use state-owned funds or state financing in whole or in part" stipulated in Article 3 of the Bidding Law are clearly defined as projects that use budget funds of more than 2 million yuan, and the funds account for more than 10% of the investment, and projects that use funds of state-owned enterprises and institutions, and the funds occupy a controlling or leading position.
From the specific project scope, the development and reform department of the State Council is authorized to work with the relevant departments of the State Council to formulate the specific scope of large-scale infrastructure, public utilities and other projects related to social public interests and public safety in accordance with the principle of being really necessary and strictly limited, and submit them to the State Council for approval. At present, the National Development and Reform Commission, together with the relevant departments, has formed a draft of the relevant specific scope, which has been greatly reduced compared with Order No.3. It is proposed to be submitted to the State Council for approval and released before the formal implementation of the Provisions on Projects Subject to Bidding.
The second is to improve the scale standard of projects that must be tendered. According to the level of economic and social development, the bidding limit for construction will be raised to 4 million yuan, the bidding limit for the procurement of important equipment, materials and other goods will be raised to 2 million yuan, and the bidding limit for the procurement of services such as survey, design and supervision will be raised to 1 million yuan, which is twice as high as that of Decree No.3..
The third is to clarify the unified scale standards for national implementation. The stipulation that "the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government may, according to the actual situation, stipulate the specific scope and scale standards that must be tendered in their own regions, but they shall not narrow the scope that must be tendered as determined in these Provisions" was deleted in Decree No.3, and it is clear that uniform rules are applicable throughout the country, and no further adjustment shall be made in all localities.
In the next step, the National Development and Reform Commission, together with relevant departments of the State Council, will do a good job in the implementation of the Provisions on Projects Subject to Bidding, and organize to clean up the provisions that are inconsistent with the Provisions on Projects Subject to Bidding, so that the effect of decentralization can be implemented. At the same time, we will further innovate and improve the bidding system, speed up the revision of the Bidding Law, give better play to the role of bidding competition and promote sustained and healthy economic and social development.