The Ministry of Finance and the Ministry of Industry and Information Technology issued the Interim Measures for Government Procurement to Promote the Development of Small and Medium Enterprises

In order to increase the policy support for SMEs to participate in government procurement, the Ministry of Finance, Industry and Information Technology recently issued the Interim Measures for Government Procurement to Promote the Development of Small and Medium-sized Enterprises (Caiwan [2011] No. 181, hereinafter referred to as the Interim Measures 》). Improve the proportion of SMEs' goods, engineering and services by adopting measures such as reserve purchase quota, review concessions, encourage consortium bidding and subcontracting, and promote the development of SMEs. The relevant person in charge of the Ministry of Finance, Industry and Information Technology stated that the Interim Measures apply to all types of procurement entities as stipulated in the Government Procurement Law, including state organs, institutions and organizations, and the procurement targets include goods, engineering and services. At the same time, small and medium-sized enterprises that enjoy policy support must meet two conditions at the same time: one is to meet the standards for SMEs; the other is to provide goods, undertaking projects or services manufactured by the company, or to provide goods manufactured by other small and medium-sized enterprises, excluding use. Goods registered trademarks of large enterprises. In order to create more market opportunities for SMEs, the Interim Measures stipulate that the budget for SME procurement should account for more than 30% of the total government procurement project budget. In the government procurement project budget for SME procurement, no less than 60% reserved for small and micro enterprises. The Interim Measures also proposes that SMEs will receive support measures such as evaluation concessions when participating in government procurement activities, 1 on price deductions. The purchaser and the procurement agency shall, in the procurement documents, make specific provisions for supporting small and micro enterprises, and deduct the price of small and micro enterprise products by 6%-10%, and participate in the review with the deducted price. Taking into account the different levels of competition in different industries, the practice of the prescribed ratio range has been adopted. In order to highlight support for small and micro enterprises, the price deduction policy is only applicable to small and micro enterprises, and medium-sized enterprises do not enjoy this preferential policy. 2 Encourage joint bidding. Encourage large and medium-sized enterprises and other natural, legal or other organizations to form joint consortiums with small and micro enterprises to participate in government procurement activities. When the consortium participates in the government procurement activities, in the joint agreement, if the contract amount of the small and micro enterprise agreement accounts for more than 30% of the total contract amount, according to the principle that the price deduction policy is basically equivalent, the method can provide the consortium 2 3% price deduction. All parties in the consortium are small and micro-enterprises, and the consortium is regarded as a supportive policy for small and micro-enterprises. 3 Encourage subcontracting. Encourage purchasers to allow large enterprises that obtain government procurement contracts to subcontract to SMEs according to law, but only take incentives to include the subcontracted amount in the amount of SME procurement statistics, and no specific evaluation concessions are given. 4 Other support measures. When a purchaser signs a government procurement contract with a small and medium-sized enterprise, the purchaser gives appropriate support to the SME in terms of performance bond, payment term, and payment method. The purchaser pays the purchase funds in full and on time according to the contract. At the same time, the Interim Measures also have some restrictive provisions for SMEs in the bidding and subcontracting of consortiums. In order to avoid large and medium-sized enterprises and small and micro-enterprise consortia with associated relationships, they use government procurement preferential policies to win the bid. The "Interim Measures" restricts the bidding of consortiums with associated relationships. There must be no investment relationship between large and medium-sized enterprises and other natural persons, legal persons or other organizations that form a consortium and small and micro enterprises. In addition, after obtaining government procurement contracts, small and micro enterprises do not score or subcontract to large and medium-sized enterprises, and medium-sized enterprises do not score or subcontract to large enterprises.

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