Based on the experience and practices of government purchasing of the Shenzhen Municipal Government, in 1998 Nanning Municipality established a government purchasing system with unique features.
The Nanning Municipality created a Government Purchasing Commission headed by the Mayor with the participation of various functional agencies, under which a Management Office for Government Purchasing was headquartered in the Nanning Municipal Bureau of Finance. The Commission developed local regulations concerning the management of government purchasing. The Management Office has played an important role in monitoring the unified, central, open, fair and legitimate purchases of the functional agencies, and in normalizing the behaviors of the purchasing units and commodity suppliers. In Nanning, large-scaled commodities and labor services are on the whole purchased by open bidding, and small-scaled purchases are made by negotiation under the system of whole-process monitoring. Non-bottom-line bidding purchasing has played an important role in the construction projects for the Nanning International Exhibition and Conference Center.
The reform in the Government Purchasing System in Nanning Municipality involves several innovations in the details of the purchasing process. A regional government purchasing market has been established in the central city. This market facilitates both marketing by suppliers and united and central purchasing by government functional agencies and county governments. After setting up government purchasing network stations and developing software, it has been possible to make timely and competitive purchases through the network.
The Government Purchasing Commission publishes the Journal of Government Purchasing, which is the only such journal in China, and it has become a forum for purchasing activities of governments in various areas. In the past 3 years of operation, the Government Purchasing System of Nanning Municipality has made over RMB 200 million of government purchases, with a savings rate that has reached over 13 percent. In addition, both the quality of equipment purchased and after-sale service are fully guaranteed.
Some specific features of government purchasing in Nanning show strong potential for application elsewhere. Leaders from the Central Party Discipline Committee of China have commended their methods of operation. Many sister provinces and cities have come to learn from Nanning. Nanning has sponsored a national workshop to exchange experiences in government purchasing.