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People's Daily: the price of medicine lowest price is harmful to big, should change!
 
Author:中國銘鉉 企劃部  Release Time:2017-6-27 14:32:17  Number Browse:565
 
"In some places, the bidding system can be said to be 'simple and brutal'. As long as the principle of 'lowest price winning bid' remains unchanged, it is difficult to have a spirit of craftsman and a hundred years old store!" Sichuan qiankun group vice President zhou shujun said. 
 
Reporter recently in jiangsu province, suzhou and wuxi, wuhan and yichang, hubei province, chengdu and deyang of sichuan province, the three provinces 6 cities of more than 100 entity enterprise investigation found that "the lowest bid" become focus of the problem. 
 
Officials said several enterprises, some places and enterprises bidding adopts "the lowest bid", the "price, quality" baton, does not conform to the new development concept, hindered the transformation and upgrading of China's economy. 
 
▍ harm is bigger, easy to cause the optimal eliminating wins, buried under the safe hidden trouble, influence the enthusiasm of enterprise innovation 
 
"The raw material is 8,000 yuan, but the price of the project is only six or seven thousand yuan, and the result is often a false victory and an excellent exit." 
 
A set of automatic inspection kit is priced at a 30% lower than the cost of manufacturing. This is not an impossible dream, but rather a reality for many enterprises. 
 
"Now a lot of the PPP (government and social capital cooperation) project, led by the government or a large state tender, are often the lowest bid, interacting, is very serious. Originally module cost of each station should be 5 million yuan to 5.5 million yuan, but the bid price is only 3.5 million yuan. Integrators to material suppliers from the device, pressure is very big." Yuan xin, deputy general manager of suzhou regent intelligent equipment co., LTD., the largest domestic market for urban rail transportation, said. 
 
Many state-owned enterprises and local government tendering projects have adopted the principle of "lowest price winning bid". However, the "lowest price winning bid" is very damaging. 
 
- "the lowest bid winning bid" encourages shoddy work, resulting in lower quality of products and engineering construction, and superior and inferior quality 
 
"Many local tender, 8000 yuan a ton of raw materials, project bidding price actually only LiuQiQian yuan, many normal company couldn't do, as a result of fraud, do out best." "Said he jie, deputy general manager of Sichuan Guoguang Agrochemical Co., Ltd. 
 
Yuan Xin also said that the domestic bidding interacting, serious, but on the industrial chain each link to make money, so both upstream and downstream enterprises in one thousand by mining "low prices, good quality is ok but not particularly" products to bid. Wuhan changxing electric appliances development co., LTD. Deputy general manager li weihong admitted that "the lowest price winning bid" is often the sacrifice quality to make money. 
 
-- the "lowest price winning bid" affects the initiative of enterprise innovation and development 
 
Guo yaoyao, finance manager of chengdu baiyu pharmaceutical co., LTD., said that "the lowest price winning bid" is bad for the innovation-oriented enterprise. "We have a high cost of research and development, and the pricing is naturally high, although it's good, but it's very bad for bidding." 
 
Chen qiang, chief financial officer of jiangsu shuangliang group co LTD, said that "the lowest bid winning bid" rarely considers the quality of the company's products and will not consider the technical level. "We have to bid for a project, zhejiang will truth 'lowest bid inviting party, does not require quality and operations. The bidding system, transformation and upgrading: how can you have? And how to encourage enterprise investment innovation?" 
 
"The price pressure competition, including the lowest price, is very harmful. It is not only the benefit of the enterprise, but also the space for continuous innovation." Sichuan Sunny Seal Co., ltd. manager zhang zhi said. 
 
▍ why "popular" : worry about "say", avoid "since the risk", leading to some places tend to be "the lowest bid" 
 
"It is generally accepted by the tenders that prices are low and there is no mistake" 
 
So where does the company come from? 
 
The legal basis of "the lowest price winning bid" is the tendering and bidding law. Bidding law "the regulation in our country, one of the winning bidder bidding shall meet the following conditions:" (a) to maximize meet all comprehensive evaluation criteria specified in the tender documents; (2) can satisfy the requirement of the tender documents material, and through the review of the lowest bid price, except bid price below cost." In addition, the interim provisions on bid evaluation commission and bid evaluation methods article 29 also make clear a regulation: "the bid evaluation methods including the review of the lowest bid price method, comprehensive evaluation method or the laws and administrative rules and regulations to allow other evaluation methods." 
 
As you can see from the above law, the method of evaluation is not unique. So why are prices often the only elements of the bid in practice? 
 
Fear of "making mistakes" and avoiding "performance risk" is an important reason why some places and businesses tend to be the "lowest bidder" 
 
"Everyone hates the lowest bid, but on the industrial chain each ring in the 'lowest bid, because you don't make cheap, audit may came you! Now strongly against corruption, who can purchase high quality but high price? Although it is totally different, but everyone else is' lowest bid, and they were afraid I sometimes couldn't say for sure." Wang ping, deputy party secretary of China's second heavy machinery group. 
 
Zhang Zhi also said that although the government procurement now only pay attention to the price there are objective reasons, the product quality can only be verified to use, but more important still is "inviting party is generally believed that, the price is low to make no mistake". 
 
-- the lack of market quality supervision, not in place, is also the "lowest price winning bid" popular support 
 
From the bidding to the winning bid, from construction to completion, China's quality safety regulatory system is covered. But there are still some shoddy products that can be "unimpeded," often associated with lax enforcement or lower penalties. 
 
YanChangLong introduction, many products, such as the quality inspection of the cable testing is not difficult, but the inferior product like okay but can get qualified quality supervision department report, shows that the relevant departments of quality supervision and loopholes, law enforcement is not enough. "No matter what kind of bid evaluation method, inspection and sampling must strictly enforce the law, justice and oversight of the market can't lack, or it will bad money after bad money. Since the cable kay after the accident, we intensified the efforts on sampling quality supervision department, many irregularities of small businesses around us immediately closed." 
 
-- the tenderer overemphasizes the cost and ignores the quality, which also leads to the tendering of the balance in favor of the price 
 
Although legal documents and other indicators of bidding have been made, it is difficult to judge the pros and cons of such indicators, and only the price can be easily divided. In order to maximize the savings and improve efficiency, some projects deliberately ignored the conditions of "meeting the substantive requirements of the tender documents" in the bidding, and the low price as the highest standard. Even if the bidders are found to be too low, the price identification procedure will not be started, resulting in a vicious competition of bidders regardless of cost. 
 
"The bidding law clearly requires that the price cannot be lower than the cost. Why would anyone bid for it? Because no one is accounting for the reasonable cost." Wang ping said. 
 
Yan changlong discloses, our country commonly adopt "the lowest price to win the bid", have an objective reason namely the tenderer is not understand the performance of the bidding product, can only talk about the price. "We bid for some foreign enterprises or foreign investment projects, tenderee to product detailed requirements, such as ratio of raw materials, product structure and even negotiation according to your drawings, quality, and domestic such a tender little." 
 
▍ should not continue: business advice, in products bidding, modify "after the review of the lowest bid price method", to prevent malicious bid low 
 
"To encourage enterprises to take the innovation path of" people without me, people have my best, and people are superior to me ", government procurement should gradually change the model of "lowest price winning bid". 
 
Companies have consistently said that the "lowest price winning bid" affects legitimate competition and reduces product quality, and has become an obstacle to the revitalization of the real economy. It is not only bad for the implementation of supply-side structural reform, it is not conducive to the implementation of national strategies such as quality power and brand rejuvenating countries, but also grave security risks. To this end, business proposals should be cancelled as soon as possible, "low price is the only" and "lowest price winning" mode. 
 
"Chinese often emphasizes the cheap and fine. In fact, made in China at this stage, more spirit should be emphasized. Carefully polished product, invest so much, how can be cheap? Emphasize quality, don't continue the tradition of" lowest bid." Wuxi jiangnan cable co., LTD. Executive deputy general manager xia yafang said. 
 
Survey, a number of enterprises, head of the proposal, our country should establish and perfect laws and regulations, in products bidding, modify "after the review of the lowest bid price method" mode, using "the review of the average bid price method"; Secondly, we should form an industry cost pricing system to guard against malicious and low price bidding. Finally, we should establish a system of integrity and improve the system of punishment for dishonesty. 
 
"If prices continue to spell, made in China is not a voice in the international market. To encourage enterprises to go 'no, I have had my best, best I fine" the road of innovation, government procurement should gradually change' lowest bid, release a positive signal to the whole society." Li tao, deputy general manager of Sichuan Kexin Mechanical and Electrical Equipment Co., Ltd., said that if the government and state-dominated bids continue to use the "lowest bid price", it could force the manufacturing industry to expand the path of extension. 
 
The enterprise also suggests that during the bidding process, the market should be strictly regulated and the market clearing mechanism should be improved. For occurred serious quality and safety accidents and serious bid failed, the performance of losing credibility, bribery, bidders and illegal testing institutions and personnel, to make a serious processing, in accordance with the law to limit its into the tendering and bidding market and regulatory domain. At the same time, we should improve the accountability mechanism in the process of government tendering. Once the quality problem is found, even the lowest price can be held responsible for the responsible person. 
 
"As our enterprise specializes in high-tech product is hard to participate in government tender, because in some places and state-owned enterprises in the purchase, as long as meet the basic requirements, tend to be more biased towards the price. But if it is decorate his own house purchasing, we will ignore the quality, give preference to the lowest price of the product, or a preferred choice of the best quality, function, consider the price again? This is a matter of responsibility." Sichuan xigarang yunshan technology co., LTD. Deputy general manager zheng xinshu said. 
 
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