2013 Central Government Designated Printing Tender: Stronger Policy Steering, Tougher Competition

The 2013 centralized bidding round for designated printing services for central government agencies introduced a notable procedural change: for projects worth RMB 200,000 to RMB 1.2 million (inclusive), procuring units must invite at least three designated printing suppliers (three or more) to submit sealed quotations, and at least one of those suppliers must be selected at random through the Central Government Procurement Network.

At the recent contract-award ceremony and working meeting for 2013 central government agency designated printing suppliers, it was noted that the latest tender round was more competitive than in previous years. Digital printing was brought into the designated printing framework, while green and environmentally friendly operations, small and micro enterprises, and welfare enterprises received support, further amplifying government procurement's policy-guidance role.

Zhang Lihui, director of the Second Procurement Division of the Central Government Procurement Center (referred to as the 'National Procurement Center'), explained that designated printing is a major government procurement category and an essential part of service procurement. In 2012, centralized printing procurement by central government agencies totaled RMB 440.3944 million, up by more than 20%. The National Procurement Center has consistently prioritized this area, developing operating rules that balance procurement needs with scientific feasibility and using different procurement methods based on printed product category and contract value. To sharpen competition, it also piloted practical innovations this year; for example, projects valued at RMB 200,000 to RMB 1.2 million (inclusive) require procuring units to obtain sealed quotations from three or more designated printers, with at least one chosen randomly via the Central Government Procurement Network.

'Winning designated procurement status is only the start of competition—it does not guarantee a contract, nor does it mean permanent security,' one company representative observed. The meeting revealed that about 140 suppliers submitted bids in this designated printing tender, while only 75 ultimately secured designated printing qualification, a shortlisting elimination rate of 50%.

Zhang Lihui stressed that all shortlisted designated printing enterprises must uphold honesty and trustworthiness, follow government procurement procedures strictly, compete in an orderly manner, and especially strengthen their ability to perform contracts after award, so that they can win government contracts through genuine capability. She noted that, marked by the 2013 central government agency designated printing working meeting, the National Procurement Center will tighten post-award contract performance management for designated suppliers. Under the '2013 Central Government Agency Designated Printing Service Contract,' designated enterprises will provide printing services to all units during the valid service period and tailor services to the characteristics of central government agencies.

To ensure that designated printers' products meet relevant national standards and to safeguard the legitimate rights and interests of procuring units, the National Procurement Center will use a points-based deduction and bonus system for routine assessment and spot checks, in line with the 'Central Government Agency Designated Printing Service Contract.' For instance, 5 points will be deducted for failure to complete acceptance forms in time or for falsifying statistical reports; quarterly spot checks will be conducted, and a spot-checked enterprise whose quotation exceeds peer prices by 40% will lose 10 points; once 40 points are accumulated, the contract will be terminated, among other measures. The center will also run user satisfaction surveys, and a supplier complained about by users will incur a 10-point deduction.

Evaluations of suppliers by procuring units will likewise become an important part of the National Procurement Center's supplier performance management.

In addition to tightening post-award performance management, the National Procurement Center will treat printing enterprises as service recipients, strengthen communication and engagement with them, streamline procurement processes, cancel bid bonds, and reduce performance bonds, thereby lowering suppliers' bidding costs.

—This article is reprinted from China Packaging Network (pack.cn); original link: http://news.pack.cn/show-361966.html