[Source: "High - tech LED - Research and Review" December issue reporter / Liu Qiaomei ]
Jinan University indoor full-color LED P6 display and related service procurement projects, the purchase amount is only 1,230,800 yuan, and there are as many as 14 candidate suppliers.
This is just a microcosm of the fierce competition among many companies involved in the LED bidding of LED products in Guangdong Province. What kind of competition logic is behind the seemingly open and transparent government procurement?
In addition to financial support, government procurement has always been the most direct “big red envelope†for enterprises, but most SMEs are rarely eligible to enjoy.
"Big enterprises benefit, small enterprises rely on the side." A person in charge of a LED company in South China reluctantly told the "High-tech LED" reporter that "the government procurement water is too deep."
Some local government procurement bidding is not a price, quality, but relationship, which has become a "hidden rule" that is well known. "These hidden rules, suppliers are well aware. You don't spend money to get gifts, it's hard to get a list of government purchases." The person in charge of the above company bluntly said, "There is no relationship, the technology, cost-effectiveness of the company. The service still has to keep up, and the government will consider it in many ways."
"In contrast, the Guangdong government, especially the government project bidding work in Shenzhen, is completely commercialized and market-oriented in the country. It can be said to be fair, open and transparent." The person in charge told Gao Gong LED reporter.
The reporter learned that general government procurement is more stringent for the comprehensive assessment of the target enterprises, and the scoring standards mainly include price, technology and business. The price and technical scores generally do not differ too much, and the most likely to affect the final score is the business score. The business score is generally mainly to assess the qualifications of the bidding company including manufacturing capacity, quality management, financial status, corporate reputation and the performance and after-sales service of similar projects.
"For projects with tens of millions or even hundreds of millions of yuan, the government will certainly not give it to small businesses." Li Hua (pseudonym), the head of a company that has participated in government project bidding, said, "Like girls buy Cosmetics, you will also have a choice, a small brand or a new brand that has just entered the market, you may not believe it."
At the same time, Li Hua said: "It is unlikely that small enterprises will stand by the side, but the chances of winning large enterprises will definitely be greater. The winning bid may be the 'one-ninth principle', that is, small enterprises account for 10%, and large enterprises account for 90%. ."
Under this established fact, the advantages of small businesses have been marginallyized invisibly, and it is a blessing to be able to share a piece of it. At the same time, LED products won the bid for many projects, and could not meet the many LED companies that are waiting to be fed.
"High-tech LED" reporter found in the survey that as of December this year, the Guangdong government's LED projects in various cities and towns bidding, the winning amount of tens of millions of yuan is basically taken away by large enterprises, Qinshang Optoelectronics, Hongli Several listed companies such as Optoelectronics, Dehao Runda and Dajin Dongfang shared the government's “big red envelope†(see Table 1 for details).
In addition to the advantages of large companies in bidding, local protectionism is also an unavoidable topic in government tenders.
The reporter learned that in this year's government LED display project bidding in Huizhou City, Guangdong Province, almost all projects were obtained by local enterprises.
Such cases are not uncommon. Take this year's LED-related product procurement project in Zhongshan City as an example. In addition to Dajin's five projects, the other 11 projects were obtained by local enterprises in Zhongshan. (See Table 2 for details.) “Encouraging the preferential procurement of local products under the same conditions of quality and price seems to have become the 'hidden rules' for local governments to support local enterprises,†said industry insiders.
Jinan University indoor full-color LED P6 display and related service procurement projects, the purchase amount is only 1,230,800 yuan, and there are as many as 14 candidate suppliers.
This is just a microcosm of the fierce competition among many companies involved in the LED bidding of LED products in Guangdong Province. What kind of competition logic is behind the seemingly open and transparent government procurement?
In addition to financial support, government procurement has always been the most direct “big red envelope†for enterprises, but most SMEs are rarely eligible to enjoy.
"Big enterprises benefit, small enterprises rely on the side." A person in charge of a LED company in South China reluctantly told the "High-tech LED" reporter that "the government procurement water is too deep."
Some local government procurement bidding is not a price, quality, but relationship, which has become a "hidden rule" that is well known. "These hidden rules, suppliers are well aware. You don't spend money to get gifts, it's hard to get a list of government purchases." The person in charge of the above company bluntly said, "There is no relationship, the technology, cost-effectiveness of the company. The service still has to keep up, and the government will consider it in many ways."
"In contrast, the Guangdong government, especially the government project bidding work in Shenzhen, is completely commercialized and market-oriented in the country. It can be said to be fair, open and transparent." The person in charge told Gao Gong LED reporter.
The reporter learned that general government procurement is more stringent for the comprehensive assessment of the target enterprises, and the scoring standards mainly include price, technology and business. The price and technical scores generally do not differ too much, and the most likely to affect the final score is the business score. The business score is generally mainly to assess the qualifications of the bidding company including manufacturing capacity, quality management, financial status, corporate reputation and the performance and after-sales service of similar projects.
"For projects with tens of millions or even hundreds of millions of yuan, the government will certainly not give it to small businesses." Li Hua (pseudonym), the head of a company that has participated in government project bidding, said, "Like girls buy Cosmetics, you will also have a choice, a small brand or a new brand that has just entered the market, you may not believe it."
At the same time, Li Hua said: "It is unlikely that small enterprises will stand by the side, but the chances of winning large enterprises will definitely be greater. The winning bid may be the 'one-ninth principle', that is, small enterprises account for 10%, and large enterprises account for 90%. ."
Under this established fact, the advantages of small businesses have been marginallyized invisibly, and it is a blessing to be able to share a piece of it. At the same time, LED products won the bid for many projects, and could not meet the many LED companies that are waiting to be fed.
"High-tech LED" reporter found in the survey that as of December this year, the Guangdong government's LED projects in various cities and towns bidding, the winning amount of tens of millions of yuan is basically taken away by large enterprises, Qinshang Optoelectronics, Hongli Several listed companies such as Optoelectronics, Dehao Runda and Dajin Dongfang shared the government's “big red envelope†(see Table 1 for details).
In addition to the advantages of large companies in bidding, local protectionism is also an unavoidable topic in government tenders.
The reporter learned that in this year's government LED display project bidding in Huizhou City, Guangdong Province, almost all projects were obtained by local enterprises.
Such cases are not uncommon. Take this year's LED-related product procurement project in Zhongshan City as an example. In addition to Dajin's five projects, the other 11 projects were obtained by local enterprises in Zhongshan. (See Table 2 for details.) “Encouraging the preferential procurement of local products under the same conditions of quality and price seems to have become the 'hidden rules' for local governments to support local enterprises,†said industry insiders.
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