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Nanchang City Introducing Government Procurement Policy to Support the Development of SMEs
updated on: 2021-06-10

A few days ago, our city printed and issued the Notification on the Implementation of Several Policies for Government Procurement Supporting the Development of SMEs (Notification for short), clarifying our city’s policy for government procurement supporting the development of SMEs in terms of increasing the procurement share from SMEs, implementing the preferential policy for price for SMEs, reducing the tendering cost of SMEs, lowering the operation cost of SMEs, and etc.

Expand the participation of SMEs in various forms. It is for the first time clarified that in terms of government procurement projects, for the goods and service procurement projects of less than 2 million yuan and engineering procurement projects of less than 4 million yuan, if the projects are suitable to be provided by SMEs, the procuring entity is required to purchase from SMEs.

Enhance price preferential benefits. According to the stipulations of Management Method for Government Procurement Facilitating the Development of SMEs, the procuring entity and procuring agent may offer 6%-10% (3%-5% for engineering projects) deduction for the offer by small and micro businesses, and the deducted price will be used for review. It is clarified in the Notification that the government procurement projects of our city shall offer 10% (5% for engineering projects) deduction for the offer by small and micro businesses.

Cancel the bid bond from SMEs. It is clarified in the Notification that the bid bond from the supplier shall be cancelled for the government procurement projects for SMEs. For other procurement projects, the procuring entity is encouraged to reduce the payment proportion of the bid bond according to project features, supplier’s integrity, and etc., which shall be set out in the procurement document.

Further increase the efficiency of procurement fund payment. It is clarified in the Notification to shorten the period for signing the government procurement contract from the original 30 days since the date of issuing the letter of acceptance to 15 days. When signing government procurement contract with SMEs, the procuring entity shall offer appropriate support in terms of performance bond, term of payment, form of payment, and etc. The procuring entity should pay the procurement contract payment within 30 days since the date of qualified acceptance inspection.

Encourage to reduce enterprise operation cost by means of advance payment. It is clarified in the Notification to encourage the procuring entity to reduce the operation cost of SMEs by means of advance payment under the premise of controlling the risk of contract performance, and the advance payment shall be no less than 30% of the total contract amount in principle.