Research On Denficency And Countermeasure Of Shandong Provincial Government Procurement System

Shandong Provincial Government Procurement System (SPGPS) has been gradually developed with the continuous reform progress of socialism market economy and administrative system. Reform and opening up is the driving force of the development of Chinese economy and society, which has leaded to the prosperity of all industry, enhancing our economic strength and expanding the financial income and expenditure. Meanwhile, with the replacement of market economy to planned economy, the rules of commodities exchange has been rooted in various industry and fields; as a negative result of that, the idea of governing for the people is being seriously challenged by growth and spread of corruption. In this condition, the government procurement becomes the inevitable requirement of establishment of public financial system with Chinese characteristics, which could be the major measure of national macro control and anti-corruption; additionally, it is the one of the most important tasks of establishing government under the rule of law and the harmonious society of socialism. From1998, the development of SPGPS has been through three steps:the initial start stage, the combination of management and procurement stage, and the separation of management and procurement stage. In the past14years, SPGPS has made marvelous achievements in clearly defining responsibilities of all purchasers; regulating procurement scale and method; unifying procurement process; establishing effective appeal and relief system; improving assessment system for procurement agent; and making government procurement transparent. The standard operation of SPGPS has been in the top level of the whole nation. It has contributed massively to the repaid increase of government procurement scale, quality and effectiveness. The annual procurement has increased from less than0.2billion RMB in1999to10.898billion RMB in2011; and the yearly increasing rate is over30%. Up to now, SPGPS has finished procurement37.707billion RMB in total and saved5.116billion RMB with a saving rate of12.2%. But because of the short history of SPGPS, there are a lot of deficiency including controversial policies, insufficient supervision, and inadequate operation, which results in ineffectiveness, small scale, arbitrariness, and blindness. Sometimes there are even illegal procurement. So, SPGPS should adjust itself according to requirement of social development and make a further step in strengthening system regulation. On the base of raising awareness and leaders’ attention, SPGPS is going to do the following key tasks:establishing a government procurement system with separation power of decision-making and execution; improving supervision system; systemizing organization mode of government procurement; and setting up system guarantee for government procurement professional stuff.