CMC Equipment Development Department optimizes equipment pricing mechanism

China Military Online
Li Wei
2020-12-15 18:38:58

By Li Guoli and Xu Xiaolei

BEIJING, Dec. 15 -- The Equipment Development Department (EDD) of China's Central Military Commission (CMC) recently launched the regulations on third-party service management for equipment prices, intending to establish a formal and orderly equipment pricing work order.

According to relevant regulations, the equipment price shall be negotiated and determined by both parties after the supplier's quotation and the military organization's price appraisal.

For a long time, the price appraisal was done independently by military without participation of external forces. However, with the in-depth advancement of military supplies, equipment and technology have become more complex, and equipment pricing tasks have become more and more onerous.

Therefore, such a price appraisal mode no longer meets the requirements of the new situations, resulting in problems such as insufficient personnel and lagging tasks.

From March 2019 to June 2020, the EDD has successively introduced 33 civilian units and institutions into the third-party equipment pricing service system, which have undertaken 25 percent of the annual military equipment price appraisal tasks in the past six months, having substantially accelerated the equipment pricing and appraisal work.

To consolidate the progress and strengthen the management system, the EDD formulated and promulgated the above regulations. It specifies the scope of services, commission forms, fee collection standards, access and exit mechanisms to fully promote the implementation of the equipment price system and mechanism reform.


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