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Is it illegal for the tenderer and the winning bidder to be legal persons?
If the tenderer and the winning bidder are the same person, it involves the self-bidding behavior in bidding laws and regulations. When a legal person participates in bidding competition as a bidder, if it is the tenderer of the project, it constitutes an associated bidding and is not allowed. Therefore, if the tenderer and the winning bidder are the same person, it may violate the relevant laws and regulations.

Associated bidding refers to one of the following circumstances between the tenderer and the bidder;

1. The tenderer is related to the legal representative, directors, supervisors or senior managers of the bidder;

2. The legal representatives, directors, supervisors or senior managers of the tenderee and bidder have worked in the same unit for more than one year in the past two years;

Three, there are other interests between the tenderer and the bidder.

At the same time, if the bidding project in which the legal person participates is a government procurement project, it also needs to comply with the relevant provisions in the Government Procurement Law of People's Republic of China (PRC). Article 36 of the Government Procurement Law stipulates: "The purchaser, the tenderee and the bidder should be independent, equal and mutually beneficial, and there is no relationship that affects fair competition and fair trade in government procurement, such as transferring interests and seeking illegitimate interests." If the tenderer and the winning bidder are the same legal person, they may face such charges in the field of government procurement, so we should pay attention to managing risks.

In addition, in some industries, in order to protect fair competition and market stability, the bidding behavior of relevant units is strictly restricted. For example, the document "Measures for the Administration of Bidding for Public Offering of Securities Investment Funds" issued by the CSRC stipulates that related parties are prohibited from bidding, such as applicants, tenderers, members of the bid evaluation committee, bidders, inquirers or other people who have any connection with the public offering of funds, and so on. For the legal persons of the tenderer and the winning bidder, if there is also an association, it may be found that there is no illegal bidding behavior.

To sum up, if the tenderer and the winning bidder are the same legal person, they may violate relevant laws and regulations in many cases. Especially in government procurement and some industries, this behavior will be subject to more stringent restrictions and constraints. Therefore, it is suggested that bidders carefully consult the bidding documents and bidding laws and regulations before bidding to ensure that their bidding behavior conforms to the provisions of laws and regulations.

Legal basis:

Bidding Law of People's Republic of China (PRC)

Article 22

There shall be no relationship prohibited by this law between the tenderer and the bidder.