Subsidies Study RFP FINAL DRAFT.doc

REQUEST FOR PROPOSALS

May 16th, 2008

PERIOD OF PROPOSAL SUBMISSION ENDS: 5:30 PM Friday, June 6th, 2008 The U.S.-China Economic and Security Review Commission (hereafter “the Commission”) invites submission of proposals to provide a comprehensive study on the subsidies which the government of the PRC provides to both domestic and foreign firms in China.

ABOUT THE COMMISSION. The Commission was established by Congress in 2000 to monitor and report to Congress on the economic and national security dimensions of the United States’ trade and economic ties with the PRC. Further details about the Commission are available on its website at: www.uscc.gov .

ABOUT PROPOSALS. The Commission solicits proposals from contractors capable of providing a one-time report investigating the subsidies which the government of the PRC provides to both domestic and foreign firms in China, and the effects which these subsidies might have on the competitive ability of U.S. firms.

Key issues and questions to be addressed by the report are:

· Examine the nature and scale of national, provincial, and local PRC government subsidies to what have been officially defined as “absolute control” and “heavyweight” industries, with particular emphasis on those companies in the manufacturing sector which could be in competition with U.S. firms. The study would seek to identify specific subsidy levels. It would also examine the extent to which these subsidies provide a competitive advantage to PRC firms.

· The study would also note past subsidies which may have been either significantly reduced or ended, but which provided benefits to the producer or sector.

· The study would note those subsidies which could be considered prohibited or actionable under World Trade Organization (WTO) agreements.

· The study would also examine the nature and scale of PRC government subsidies and other incentives to U.S. and Western firms which locate research and/or production facilities in China. Determine whether or not there are any identifiable patterns to these incentives, and whether or not they might reveal considerations other than local employment levels, such as longer-term ambitions to acquire foreign expertise and technology, or to create economic dependencies in certain economic sectors.

Additional Requirements of the Commission:

· Once a contractor has been selected by the Commission, a draft of the report must be submitted to the Commission for review no later than 120 days from the date of contract confirmation. The Commission will then endeavor to provide comments and requests for adjustments within 30 days; subsequently, the final report must be submitted within 30 days of formal receipt of the Commission’s comments.

· As work on the report progresses, the Commission’s Research Coordinator shall act as a representative of the Commission in monitoring the progress, quality, and relevance of the report to the identified major issues of concern. The Research Coordinator shall, on request to the contractor, be entitled to informal briefings on the status of the research work and to readings of the draft in progress.

· The contract shall be subject to termination if the Commission deems that the work is of unsatisfactory quality.

· At the Commission’s discretion, the report procured via this Request for Proposal may be posted on the Commission’s website.

· Each organization or individual responding to this request must warrant that it/he/she will perform this work solely for the Commission, and that the resulting report will not be shared with other parties without the prior written consent of the Commission.

· The Commission expects contractors to identify all personnel working on the contract, and that there not be any delegation of responsibilities to other parties without prior approval of the Commission.

Primary Selection Criteria:

· The Commission will determine which organization or individual responding to this request will be awarded the contract based on a comprehensive “best value” analysis of the proposals received, to include costs, technical value, and ability to complete the work satisfactorily and on time.

· The primary weighting criterion in selection shall the assessed qualifications and ability of an organization or individual to address the fundamental points enunciated above (“issues and questions to be addressed by the report”), with the most important points as follows: (1) identification of the specific subsidy levels granted to PRC industries which are in competition with U.S. firms; (2) identification of subsidies which could constitute WTO violations; and (3) explication of the incentives offered to U.S. and other Western firms to relocate their operations to China.

· The cost and amount of time necessary to complete the report will also be considered as criteria in the selection process.

Proposal submissions should include:

· A statement of the applicant’s relevant qualifications to satisfy the terms of this request for proposals (RFP);

· An description of the research methodology the applicant proposes to employ;

· An estimate of the time the applicant will need to complete the required work;

· The price the applicant will charge to the Commission to complete the work set forth in this RFP.

Firms and individuals wishing to submit a proposal in response to this Request for Proposal must ensure that the response arrives at the following location by 5:30 p.m. on Friday, June 6th, 2008, or it will not be accepted or considered.

Electronic submissions are acceptable.

Proposals, as well as any other correspondence related to this matter, should be directed to:

John Dotson

Research Coordinator

U.S.-China Economic and Security Review Commission

Hall of the States, Suite 602

444 North Capitol Street, N.W.

Washington, D.C. 20001 phone: 202-624-1482 jdotson@uscc.gov

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