Why is the rate of scrapping furniture purchase increased?

Project scrap is a very common phenomenon in the field of furniture procurement, but this year's scrap rate has increased significantly, accounting for 8% of the total number of projects. Why is the rate of scrapping increased suddenly? How should it be solved? This topic will introduce the above issues.
The government's various measures to save procurement have not only greatly reduced the purchase of furniture projects, but also stimulated the increase in the rate of scrapping of furniture projects to some extent.
According to the statistics of the “Government Purchasing Information”, in the first half of 2014, there were 2,156 national furniture procurement projects, and 169 scrapped projects, and 8% of the total number of projects. Although the proportion is not large, the rate of scrapping is increasing compared to previous years. In addition, the waste standard projects are mostly concentrated in the second and third tier cities.
Why is the rate of scrapping of furniture projects higher? In order to let the government procurement parties deeply understand the reasons for the scrapping of furniture purchases, the “Government Procurement Information News” reporters summarized the reasons for the scrapping through interviews.
Reason one:
Unreasonable budget preparation
<br> Budget preparation is the source of government procurement, and it is also the basis for project implementation. Whether the budget is prepared properly is the key to the success of project bidding. According to the provisions of Article 36 of the Government Procurement Law: "If the bidder's quotation exceeds the purchase budget and the purchaser cannot pay, it shall be scrapped." This means that the bidder's quotation exceeds the budget as long as it exceeds the budget. It is impossible to win the bid.
In the first half of the year, it can be seen that the low budget is one of the main reasons for the scrapping of the standard.
In January, the multimedia classroom equipment and student dormitory furniture purchase project of Gannan Weinan Teachers College was abolished. The reason for the announcement of the scrap label was “Because the quotations of the three suppliers exceeded the budget of the purchaser, the bid was rejected.”
In March, the "National Youth Jinggangshan Revolutionary Traditional Education Base Phase III Furniture Purchasing Project" organized by the procurement center of the Central Committee of the Communist Party of China was scrapped because there were fewer than three suppliers participating in the bidding. Wang Hao, deputy director of the Purchasing Department of the Center, said: "The main reason for the scrap is that the budget is too low. The project requires furniture to be solid wood, but the budget is low, leaving no reasonable profit margin for suppliers." After the bidding failed, the project purchaser raised the budget and finally won the bidding success.
Liu Kuan, general manager of Shandong Jinnuo Furniture Group Co., Ltd. said: "Since this year, the budget of many furniture projects has been controlled too tightly, and the budget amount is significantly lower than in previous years. This may be related to the government's efforts to save procurement. For projects with too low budget, we Generally will not participate."
Budget pricing is too low, and even reasonable profits and necessary travel expenses are not taken into account, making it easy for foreign suppliers to be discouraged. However, if the number of local suppliers that meet the requirements is insufficient, it will inevitably lead to the elimination of three effective bidders.
Reason two:
The project subcontracting is unreasonable
<br> The data statistics show that the waste standard projects are mostly concentrated in the second and third tier cities. According to the relevant provisions of the "Government Procurement Law", projects with a scale of 1 million yuan to more than 1.2 million yuan must be subject to public bidding. Items below the amount range are free to choose one of open tendering, competitive negotiation, inquiry and invitation to tender for procurement.
The quotas for open tenders stipulated by local governments are not exactly the same. For some county-level cities or second- and third-level procurement units, since the procurement items are small and the purchase amount is small, the purchase project of 100,000 yuan is not small for them. Therefore, 10 Open tenders will be implemented for projects above RMB 10,000. However, the price of open tendering is fiercely competitive. In the case of small purchases, the enthusiasm of enterprises is not high.
On July 18th, the "Zhuhai City Public Security Frontier Detachment Apartment Housing Furniture, Electrical Appliances Purchasing" project was announced, and the announcement stated that at the time of bid opening, no bidder submitted the bidding documents, because there were not enough effective bidders, not Effective competition, project bidding failed.
Assistant Director Yi of the Public Security Frontier Detachment of Zhuhai City told reporters: "The project is small and miscellaneous is an important reason for the project's scrap."
It is understood that the procurement of the project includes furniture and electrical appliances, and the total purchase amount is only 100,000 yuan. Yi assistant introduced that the initial consideration was to subcontract to bid, but after subcontracting, the budget per package was lower. If the budget is too small, the supplier bids will be less aggressive, so they are combined into one package. However, furniture and electrical appliances belong to two industries, and it is difficult to find a supplier that can provide two types of goods at the same time, which eventually leads to the project being rejected.
Reason three:
Qualifications for fraud or incompleteness
<br> In the announcement of the scrapping of furniture projects, a common notice of announcement is that "there are fewer than three suppliers due to the substantive response to the bidding documents, resulting in the project being rejected." The technical requirements of the documents are mainly for the falsehood or forgery of the test report, and the employee's social security requirements are not guaranteed.
In the procurement of furniture projects, the procurement unit and the operating organization require the bidding supplier to provide a test report of various raw materials to ensure the environmental protection and quality stability of the purchased products. If required to provide quality inspection reports for major products or similar products, raw material quality inspection reports, if it is a wooden furniture enterprise, it is also necessary to provide a formaldehyde emission inspection report for major products and raw materials.
In the first half of the year, many furniture projects in Guangxi were scrapped. Tang Zan, the head of the procurement department of the government procurement center of Guangxi Zhuang Autonomous Region, told reporters: "The main reason for the scrap is that there are fewer than three bidders, especially if there are less than three suppliers who purchase bid documents. "Tangzan further said that another major reason is that various problems will be found during the bid evaluation process. For example, the bidder's test report is not true, and some even after the bid winning announcement is issued, other bids. The person raised the question and finally found that the test report of the winning bidder was false or forged. In the business aspect, the main focus is on the social guarantee that the documents are unqualified.

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