The Government Procurement Law stipulates the following government procurement methods:

(1) public bidding;

(2) Invitation to bid;

(3) competitive negotiation;

(4) single source procurement;

(5) inquiry;

(6) Competitive consultation。What is the difference between these procurement methods？What are the requirements for conversion？

1Open bidding

It means that a tenderer invites an unspecified legal person or other organization to bid by way of a tender announcement。

Open bidding, also known as competitive bidding, that is, the tenderer publishes the bidding announcement in newspapers, electronic networks or other media to attract a large number of enterprises to participate in the bidding competition, and the tenderer selects the best bidder from the bidding method。

According to the degree of competition, public bidding can be divided into international competitive bidding and domestic competitive bidding。

 

优点

It is conducive to real competition，To demonstrate to the fullest extent the principles of open, fair and fair competition，Preventing and overcoming monopoly;It can effectively promote contractors to cultivate their internal skills in enhancing their competitive strength，Strive to improve the quality of the project，Shorten the construction period，Reduce cost，Achieve economy and efficiency，Create the most reasonable profit return;It is helpful to prevent the operators of bidding activities And the fraud of supervisors。

The more bidders participate in the competition, each participant wins the bid The smaller the rate will be, the greater the risk of losing the bidding cost in vain;The amount of work for the tenderer to examine the qualifications of the bidders and the bidding documents It is relatively large, takes a long time, and the cost of bidding is also relatively large。It should be affirmed that the advantages of open bidding are the main ones. The disadvantages are secondary, so in practice, vigorously advocate public bidding, so that public bidding quickly become the main way of construction project bidding, is in line with the development trend of engineering transactions。

2 Invitation to Tender

It means that the tenderer invites a specific legal person or other organization to bid by way of invitation to bid。

Invitation bidding, also known as limited competition bidding, is a kind of bidding method in which the tenderer selects a number of suppliers or contractors, issues bidding invitations to them, and the invited suppliers and contractors bid for competition and select the winning bidder。

 

特点

（1) The invitation to bid shall not be made in the form of public announcement;

（2) The unit that accepts the invitation is the qualified bidder;

（3) The number of bidders is limited。

3. Competitive Negotiation 

Competitive negotiation refers to the way in which the purchaser or procurement agency directly invites three or more suppliers to negotiate on procurement matters。

 

特点

First, it can shorten the preparation period, which can make the procurement project play a role faster。

The second is to reduce the workload, saving a lot of bid opening and bidding work, which is conducive to improving work efficiency and reducing procurement costs。

Third, the supply and demand sides can conduct more flexible negotiations。

Fourthly, it is conducive to the protection of national industry。Fifth, it can encourage suppliers to consciously apply high-tech to purchased products, and at the same time reduce procurement risks

4 Single source procurement

Single-source procurement refers to procurement from a single supplier only, unforeseen emergencies, purchase of the original contract amount from the original supplier in order to ensure consistency or supporting servicesIn the case of government procurement projects within 10% of the case, a government procurement method in which the purchaser purchases from a specific supplier。

5Inquiry purchase

Price inquiry is a method of purchasing in which the quotations of several suppliers (usually at least three) are compared to ensure that the prices are competitive

 

特点1.The number of suppliers invited to quote is at least three。

特点2.Only suppliers are allowed to provide one quote。Each supplier or contractor may submit only one quotation and may not change its quotation。No negotiation shall be conducted with a particular supplier or contractor regarding its quotation。The quotation may be submitted by telex or fax。

特点3.The evaluation of the offer shall be carried out in accordance with the good practice of the buyer's public or private sector。Procurement contracts are generally awarded to the supplier or contractor that offers the lowest price that meets the needs of the procuring entity。

6 Competitive Consultations

Competitive negotiation procurement methods，Refers to the procurement of goods, construction and services through the formation of a competitive consultation group (hereinafter referred to as the Consultation Group) with eligible suppliers to negotiate matters，Suppliers submit response documents and offers in accordance with the requirements of the consultation document，The Purchaser shall determine the procurement method of the contracted supplier from the list of candidate suppliers proposed by the consultation group after review。

 

Comparison of procurement methods

Procurement method	Applicable condition
Open bidding	Goods, projects and services within the list of centralized procurement or above the amount standard for open bidding。
Invitation to tender	1.Having special characteristics that can only be purchased from a limited range of suppliers; 2.The cost of public bidding accounts for too large a proportion of the total value of government procurement projects。
Competitive negotiation	1.After the bidding, there is no supplier bid or no qualified target, or the re-bidding fails to be established; 2.The technology is complex or special in nature, and the detailed specifications or specific requirements cannot be determined; 3.The time required for bidding cannot meet the urgent needs of users; 4.The total price cannot be calculated in advance。
Single source	1.Can only be purchased from a single supplier; 2.It is impossible to purchase from other suppliers due to unforeseen emergencies; 3.It is necessary to ensure the consistency of the original procurement items or the requirements of supporting services, and it is necessary to continue to purchase from the original supplier, and the total amount of additional purchase funds does not exceed 10% of the original contract purchase amount。
询价	Government procurement items with uniform specifications and standards, sufficient spot supply and small price changes may be procured by means of inquiry in accordance with this Law。
Competitive negotiation	1.Government purchases of services; 2.The technology is complex or special in nature, and the detailed specifications or specific requirements cannot be determined; 3.The total price cannot be calculated in advance because the time and quantity of the purchase of works of art, patents, know-how or services cannot be determined in advance, etc.; 4.Scientific research projects with insufficient market competition, and projects for the transformation of scientific and technological achievements in need of support; 5.Construction projects other than those that are subject to tender in accordance with the Law on Tendering and Bidding and its implementing regulations

 

Procurement method	Special provision
Open bidding	No goods or services that should be procured by public tender shall be broken up into pieces or any other means to circumvent public tender procurement。
Invitation to tender	Before the procurement activities begin, after obtaining the approval of the competent budget unit, an application for approval shall be submitted to the financial department of the people's government at or above the city or autonomous prefecture divided into districts。
Single source
Competitive negotiation
Competitive negotiation
询价

 

 

Procurement method	Amount standard
Open bidding	Government procurement items under the central budget shall be prescribed by The State Council;Government procurement items belonging to local budgets shall be prescribed by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government。
Invitation to tender
Single source	Centralized procurement within the catalog，Goods and services that do not meet the amount standard for public bidding;Goods and services that do not meet the amount standard for open bidding, the procurement quota standard or above, or those not included in the list of centralized procurement;Goods and services that meet the amount standard for open bidding and have been approved to adopt non-open bidding methods;Government procurement projects other than construction projects that are subject to tender in accordance with the Law on Tendering and Bidding and its implementing regulations。
Competitive negotiation
Competitive negotiation
询价	Procurement of goods in accordance with the above amount criteria。

 

 

Procurement method	Special provision
Open bidding	No goods or services that should be procured by public tender shall be broken up into pieces or any other means to circumvent public tender procurement。
Invitation to tender	Before the procurement activities begin, after obtaining the approval of the competent budget unit, an application for approval shall be submitted to the financial department of the people's government at or above the city or autonomous prefecture divided into districts。
Single source
Competitive negotiation
Competitive negotiation
询价