Government procurement, known as the "Under Sunshine" system in China, has saved millions of US dollars of government expenditure. China will gradually expand the scope and scale of government purchase after the country's first Government Procurement Law took effect on January 1, 2003. Compared to the developed countries, the technology applied in government procurement is obsolete. Government electronic procurement auctions are irregular, and the government electronic procurement auction systems are not completely implemented. In this paper, we analyze the current situation of government procurement in China, and support that establishing government procurement electronic auction system is the best way to solve problems such as unfairness, collusion, inequality and inefficiency. Then, we give a detailed discussion about the framework of government procurement electronic auction system and the features of each subsystems and modules. Finally an actual application of this system is given, and an auction algorithm is also developed. We also provide directions for further studies about government procurement and the application of electronic commerce in this field.