The Ministry of Finance ("MOF") has recently issued the Interim Administrative Measures for Agencies for Government Purchases (the "Measures"), with effect from March 1, 2018.
The Measures stipulate that agencies for government purchases are subject to registration in directory administration. The information registered in the directory shall be shared nationwide and made public. To act as agents for government purchases, the agencies shall meet five conditions, such as "being able to bear civil liability independently". Further, the Measures clearly state that a purchaser shall select, at its discretion, an eligible agency from the directory, in light of the project's characteristics, the fields agencies are specialized in, and the comprehensive credit ratings. No entity or individual may intervene a purchaser's own choice in selecting an agency by means of lottery, casting lots or shortlisting. Additionally, the Measures state that the agency fee may be borne either by the supplier wining the bid or striking the deal or by the purchaser itself. Where the agency fee is undertaken by the supplier that wins the bid or strikes the deal, the quotation offer by such supplier shall cover the agency fee. However, the agency fee, if higher than the upper limit for decentralized procurement, shall be paid by the supplier winning the bid or striking the deal in principle.