Core Viewpoint - The Ministry of Finance has issued a notification to address the issue of "abnormally low prices" in government procurement, aiming to establish a market order characterized by quality and fair pricing, thereby promoting high-quality development in government procurement [2]. Preemptive Measures - The notification clarifies the basis for setting maximum prices and procurement packages, using factors such as historical bidding data, market supply, and industry cost standards as references [3]. - It introduces a life-cycle cost concept to ensure that procurement packages are reasonably divided, avoiding overly large projects that lead to insufficient competition [3]. - The notification specifies the range of equipment with high consumable usage, including copying, printing, experimental, and medical devices, to enhance management and control costs [4]. Monitoring Measures - The notification establishes four conditions that trigger the review of abnormally low prices, allowing the evaluation committee to exercise discretion based on professional judgment [6]. - It grants procurement entities the authority to raise the threshold for triggering reviews of abnormally low bids, with a maximum increase of 65%, to adapt to varying project conditions [7]. - Suppliers are required to provide explanations for their bids within a reasonable timeframe, generally not less than 30 minutes, along with necessary documentation to justify their pricing [8]. - The notification outlines reference factors for determining the reasonableness of supplier bids, including similar project prices and industry standards [9]. Accountability Measures - The notification mandates that evaluation experts are held accountable for not conducting reviews of abnormally low bids, with legal consequences for non-compliance [10]. - It emphasizes the procurement entity's responsibility for contract acceptance, requiring detailed verification of compliance with technical and business requirements [11].