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There are many tricks in bidding processes, and instrument manufacturers need to come up with strategies to counter them”

2018-09-12View Original

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  Bidding is a method of transaction used under market economy conditions for the purchase and sale of bulk goods, the assignment and contracting of construction projects, as well as the procurement and provision of service projects. Especially in the instrumentation industry, bidding activities are quite frequent; the purchase amounts range from several hundred thousand to tens of millions, or even over 100 million. Many manufacturers and distributors invest a great deal of effort in this; winning bids, especially large ones, not only helps to improve performance but also contributes to enhancing the company’s brand reputation. http://www.jiweimeter.com/uploads/image/20180906/1536229355.jpg “Standards for duck legs” turn into “machine tool standards”; there are many irregularities in the bidding process. Many newcomers to the instrumentation industry might think that as long as a product meets the required performance standards, has excellent quality, and is offered at a competitive price, it will be able to win the bid. In reality, there are various irregularities in some bidding projects; not only do the bidders engage in unfair practices, but the tendering parties as well may do the same, and some regulatory authorities also fail to fulfill their duties.   For example, recently, there were several flaws in the three tenders for a nutrition meal delivery project in a certain area, which led to two lawsuits; the various absurd issues involved were truly astonishing. Firstly, the tender documents issued by the agency company mistakenly stated that the \"duck leg standards\" should comply with GB/T23568 **Standard**; it should be noted that this standard is not a food standard, but rather a standard for **industrial machine tools**. Later, it was revealed that the agency refused to return the 1.2 million yuan deposit paid by the bidders; it took almost a year after the bidders filed a lawsuit for them to get their deposit back. In the two subsequent tenders, another bidder alleged that the judges did not review the original version of its bid, while another company complained that the tendering party had not followed the proper procedures. The series of problems that arose from the three bidding rounds are not only the fault of the bid issuer and the agency company, but also the responsibility of the regulatory authorities. In the bidding processes within the instrumentation industry, issues such as errors in these bidding documents or shortcomings in the submitted proposals have also occurred due to procedural violations; this means that instrumentation manufacturers need to keep a close eye on things during the bidding process.   Instrument manufacturers need to keep a close eye on things and take appropriate actions to maintain market order. The examples mentioned above occurred recently, but they are not related to the instrument industry. Some of the cases mentioned below are from the industry, and they can serve as a reference for instrument manufacturers that frequently bid, helping to avoid encountering similar situations in the future.   A supplier of instrumentation and equipment, when participating in a tendering process, claimed that another supplier who won the bid used illegal tactics such as submitting fraudulent bids to secure the contract. They believe that the technical requirements specified in the tender documents for ion chromatographs are quite high; only high-end ion chromatographs from a certain foreign brand can meet these requirements, and the low-end products offered by this supplier do not satisfy them. In this case, the key issue is whether the product submitted by the winning bidder can genuinely meet the technical requirements specified in the tender documents; this is also the challenge associated with bidding processes in the instrumentation industry. Due to the wide variety of models available for instrumentation products, it is difficult for non-experts to determine whether they meet the technical requirements; therefore, bidders need to provide sufficient evidence to avoid being questioned. Similarly, when it is discovered that a bidder has submitted false bids, instrument manufacturers must also present their own evidence and file complaints actively in order to maintain fairness in the bidding process.   Furthermore, industry professionals familiar with the bidding requirements for instruments will surely notice that in the tender documents for many projects in China, it is often specified that only imported instruments are acceptable, or that domestic instruments do not meet the requirements and therefore imports have to be used. Only a few mid-to-low-end instrument products specify in their documents that \"only domestic instruments are accepted,\" and this is also due to **policies aimed at supporting domestic instruments**. In previous bidding processes, domestic instrument manufacturers have also repeatedly accused the bid organizers of setting barriers in an attempt to exclude domestic instruments. For example, a domestic instrument manufacturer once pointed out that a certain organization defined in its tender documentation that \"all domestic microwave digesters are modified versions of household microwave ovens,\" thereby setting unreasonable technical requirements for the products to be procured through the tender.   Upon the emergence of this matter, two major viewpoints emerged within the industry. One view is that domestic instruments are like those who say the grapes are sour just because they can’t have them; they should focus on improving themselves rather than overpromising the features of their products and ignoring the actual needs of users. The second view is that domestic instruments do suffer from unfair treatment; the tendering parties should not discriminate against domestic products, nor should they manipulate the tender documents in such a way. In fact, the reason why domestic instruments are not favored is the consequence of remaining stuck in the low-end market for a long time and showing no willingness to improve; many organizations reject domestic instruments because of their substandard quality. On the other hand, many domestic instruments can indeed achieve the same performance as imported ones, so users might as well give them a chance to prove themselves. Whether it is imported or domestic equipment, the labels of “imported” and “domestic” should be set aside, and only the technical specifications and cost-performance ratio should be considered. Indeed, replacing imported products and winning users’ trust in domestic instruments requires a process. Thanks to its excellent quality and superior service, Jiwei Automation’s range of level measurement instruments has gradually earned the trust and praise of users. It has turned out that by working hard to improve internal capabilities and constantly raising the quality of products as well as technical standards, it is possible to help users overcome their prejudices.   Finally, there is the issue that all bidding companies detest the most and find hardest to prevent: the \"under-the-table deals\" between the tendering party and the bidders. Previously, some regulatory officials in certain agencies were dealt with for taking bribes by exploiting their positions in bidding processes for instruments and equipment, and many of the bidding companies that offered bribes were also punished. In the eyes of some people, this is an unspoken rule that must be followed when navigating the world, as if nothing can be accomplished without giving gifts. In fact, if instrumentation manufacturers wish to achieve long-term success, they should not seek profits through unwritten rules, but rather pursue healthy competition. When faced with unreasonable requests, one should firmly refuse them or even report them. At the same time, it is necessary to develop technical products thoroughly and strengthen both the hard and soft capabilities of the enterprise, so as to have more confidence in bidding processes. It is hoped that instrument and meter manufacturers will always adhere to a fair market order and eliminate unhealthy practices within the industry.

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