The Ministry of Finance issued a message, the lowest price winning bid is to be completely cancelled!

"Lowest Price Winning Bid" is going to be completely cancelled!
recently, the Chinese government procurement network issued a new notice, "the Ministry of Finance brewing to curb low-cost vicious competition new measures."
in accordance with the Ministry of Finance's Response to Recommendation No. 2938 of the First Session of the 13th National People's Congress, representatives of the National People's Congress (NPC) put forward "Recommendations on the Establishment of an Optimal Quality Winning System in Government Procurement" during the two sessions. In response to the above-mentioned problems, the Ministry of Finance said that it is currently studying deepening the reform of the government procurement system, further improving the design of the government procurement system, and focusing on solving the problems of vicious competition at low prices in government procurement activities. Preliminary consideration is given to the proposed four-way measures.
most notable are changes to the relevant institutional approach. The Ministry of Finance said it would adjust the low-cost priority trading rules to study the elimination of the minimum price winning provisions, the elimination of the comprehensive scoring method of price weighting provisions, in accordance with the work requirements of high-quality development, efforts to promote high-quality procurement.
also said that in the government procurement of tender regulations, the "lowest price winning bid" provisions will be completely eliminated!
Although the current reform has not yet landed, but the Ministry of Finance has made it clear that in the reform of the bidding system to implement the adjustment of the "low-cost priority trading rules", the abolition of the "low-cost winning bid" provisions, meaning that the minimum bid is completely cancelled is only a matter of time!
Treasury's move is already on the ups and downs. Order No. 87 of the Ministry of Finance issued last year on the Measures for the Administration of Tenders and Tenders for Government Procurement of Goods and Services, which makes it clear that bidders cannot justify their quotations, shall be treated as invalid tenders by the bid evaluation committee.
Article 55 of the existing Regulations of the Tendering and Tendering Law "must determine the first bidder" and the newly released draft amendment to the Tendering and Tendering Law has also been amended to "select the winning bidder by Party A among the winning candidates".means: "
1, first place does not necessarily winning the bid."
2, Party A has the right to decide the second or third place winning bid.
"lowest price winning bid" in the government procurement of medical equipment tenders are not uncommon!
Last year's $930 million budget telemedicor device procurement project in Guizhou Province ended with a winning bid of $390
million; Also at the end of last year, the People's Daily twice in a month issued a "lowest price winning bid", "lowest price winning bid" principle unchanged one day, the industry is difficult to have any artisan spirit, let than say what Chinese brand!the lowest price of the winning bid harm
easy to lead to survival of the fittest, buried security risks, affecting the enthusiasm of enterprise innovation.
- "lowest price winning bid" to promote sub-filling, resulting in a decline in product quality, the survival of the fittest.
- the "lowest price winning bid" can easily lead to work cut, or even buried security risks.
- "lowest price winning bid" affects the enthusiasm of enterprises to innovate research and development.
why, in practice, price is often the only element of bid evaluation?
- the fear of "insanity", "mistakes" and avoiding "job risk" is an important reason why some places and businesses tend to "lowest price winning".
- market quality supervision is absent, not in place, but also the "lowest price winning bid" to help.
- the tenderer overemphed the cost and neglected the quality, which also led to the tender balance tending to price.
The Ministry of Finance this time clearly, will modify the government procurement-related bidding system, completely remove the "lowest price winning bid" provisions, is bound to bring a complete blow to the phenomenon of the lowest price winning bid, "starving peers, tired themselves, pit dead owners" phenomenon is expected to improve. (Medical Device Dealers Alliance)