Shanghai Wire and Cable Company: Discussing Domestic and International Wire and Cable Bidding

Reviewing the characteristics of domestic and international wire and cable bidding procedures, bidding document features, key points in bid preparation, and evaluation methods, combined with the deepening development of China's socialist market economy and the continuous improvement of market mechanisms in recent years, along with the impact of e-commerce, vigorously promoting the bidding procurement system and introducing competition mechanisms into the procurement process has become imperative. This approach truly meets the requirements of the market economy, broadens procurement channels, optimizes procurement quality, and reduces procurement costs. It is also an important means and measure to regulate procurement behavior, strengthen procurement supervision, and curb corruption. Therefore, seizing this opportunity, adjusting market positioning, learning advanced bidding technologies and principles from home and abroad, and under the principles of openness, fairness, and justice, fully considering factors such as product quality, price, delivery time, and after-sales service are essential.
　　1. Introduction
　　Since the 1980s, the trend of global economic integration has accelerated, with production integration, financial internationalization, and trade liberalization as key components profoundly and broadly changing the operation and organizational structure of the world economy. However, due to the world economic crisis in the late 1990s and the Southeast Asian economic crisis, a shadow was cast over global economic development, and Western economies, led by the United States, fell into difficulties. In recent years, although the world economy has entered a period of slow growth, countries worldwide have focused on restoring business and consumer confidence and promoting economic recovery as the main theme of macroeconomic policies, achieving good results. The ability of countries to resist economic downturns has improved continuously, global inflation rates remain relatively low, and since the beginning of the new century, the world economy has not declined but started slow growth. Under this situation, the number of bidding projects worldwide, including international wire and cable bidding projects driven by power development needs, has maintained a certain level of growth, especially in developing countries, where the trend continues to increase. The author has worked in the wire and cable industry for over thirty years, including more than ten years in import and export business, managing domestic and international wire and cable bidding projects, accumulating considerable knowledge and experience. Therefore, this article will focus on wire and cable bidding procedures and key points for reading bidding documents, important aspects and issues in bid preparation, evaluation methods, and related case analyses to benefit readers.
　　2. Wire and Cable Bidding Procedures and Key Points for Reading Bidding Documents
　　Vigorously promoting the bidding procurement system, including international bidding procurement systems, and introducing competition mechanisms into the procurement process have become important measures for governments or enterprises worldwide to adapt to market economy requirements, broaden procurement channels, optimize procurement quality, save procurement funds, and reduce procurement costs. It is also an effective means to regulate procurement behavior, strengthen procurement supervision, and curb waste and corruption. Bidding procurement can be divided into two types: open bidding procurement and invited bidding procurement. Open bidding refers to the procurement party (including government or enterprise procurement departments) or their entrusted procurement agency (collectively called the bidder) inviting unspecified suppliers (collectively called bidders) to bid through a bidding announcement. Invited bidding procurement refers to the bidder inviting five or more specific suppliers to bid through a bidding invitation letter. From these definitions, open bidding can select suppliers to the greatest extent but requires in-depth understanding of suppliers' credibility, credit, and technical level, otherwise it will cause difficulties in bid evaluation. Therefore, it is more commonly used in government procurement and less in enterprises. Invited bidding, due to better knowledge of the invited suppliers, does not have the information difficulties of open bidding and is more commonly used in enterprise procurement, also known as negotiated bidding, which will not be elaborated here.
　　1. Bidding Procurement Procedures
　　(1) Bidding: Bidding procurement refers to the procurement party issuing a bid invitation to potential suppliers or contractors based on confirmed procurement needs and project conditions. The main steps include: determining the procurement agency and needs, preparing bidding documents, setting the base price, publishing procurement announcements or issuing bid invitations, conducting prequalification of bidders, notifying bidders to participate and selling bidding documents, organizing pre-bid meetings, etc. These tasks are mainly organized by the procurement agency.
　　(2) Bidding Submission: Bidding refers to bidders receiving the bidding notice and filling out the bidding documents according to the requirements, then submitting them to the procurement agency. At this stage, bidders mainly apply for bidding qualification, purchase bidding documents, inspect the site, arrange bid bonds, calculate bids, prepare and submit bidding documents, etc.
　　(3) Bid Opening: Bid opening is the act of the procurement agency officially unsealing and announcing bidders' submissions at a predetermined time and place. The procurement agency organizes the bid opening but must invite bidder representatives to attend. During this stage, procurement officials open each bid envelope according to relevant requirements, and after the opening, the organizer prepares a bid opening meeting record.
　　(4) Bid Evaluation: Bid evaluation is the procurement agency's review and comparison of all bids according to the bidding document requirements. It is conducted solely by the procurement agency. Tasks include reviewing whether bids meet the bidding document requirements and regulations, organizing personnel to compare and evaluate bids using certain methods, requesting bidders to clarify issues found in selected bids during evaluation, and finally determining and writing the evaluation report.
　　(5) Awarding the Contract: Awarding the contract means deciding the winning bidder. This is a sole action by the procurement agency but requires joint decision-making with the user agency or others. Tasks include deciding the winning bidder, notifying them of acceptance, issuing a letter of intent, notifying unsuccessful bidders, and returning bid bonds.
　　(6) Contract Awarding: Contract awarding is commonly called contract signing, as it involves the bidder being awarded the contract by the bidder and both parties signing it. At this stage, both parties confirm the content of the bid documents and sign the formal contract accordingly. To ensure contract performance, after signing, the winning supplier or contractor should provide a performance guarantee or deposit to the purchaser or owner.
　　2. Key Points for Reading Bidding Documents
　　Bidding documents (hereinafter referred to as bidding documents) generally include the invitation to bid, instructions to bidders, bid data sheets, general contract terms, special contract terms and data sheets, goods requirement lists, technical specifications, and format samples. However, due to different national conditions and enterprise requirements, the composition of bidding documents varies greatly. Generally, major government or large enterprise bidding projects have comprehensive and standardized bidding documents; conversely, regional and small enterprise general goods procurement bidding documents tend to be simpler and rougher, sometimes even patchy and contradictory.
　　(1) Invitation to Bid (IFB): The invitation to bid usually uses concise language to clarify the following key points:
　　① The funding source of the bidding project, either clearly self-funded by the government and enterprises or clearly funded by government and enterprises through loans from the World Bank (WORLDBANK), Asian Development Bank (ADB), or Japan Bank for International Cooperation (JBIC).
　　②Specific content of the bidding project, namely the name of the procured goods or work content, sometimes including the scope of supply, and may also include supply and installation laying, etc.
　　③Qualified bidders can obtain further information and review the bidding documents as well as the location, time, and amount for purchasing the bidding documents. ④Bidding time, location, and the accompanying bid bond amount, including the place and time for delivering the bidding documents.
　　⑤Bid opening time and location, including requirements for delivering the bidding documents. Among the above key points, the funding source of the bidding project is particularly important. Generally, payment for projects funded by the World Bank, Asian Development Bank, or Japan Overseas Investment Bank loans is more guaranteed. As long as the contract is performed on time, with quality and quantity, issues such as accounts receivable and bad debts are unlikely to occur.
　　(2) Instructions to Bidders (ITB) The Instructions to Bidders include six parts: General Provisions, Bidding Documents, Preparation of Bids, Submission of Bids, Bid Opening and Evaluation, and Award of Contract. Among these, the Preparation of Bids and Bid Opening and Evaluation sections are especially important. Therefore, these two parts will be separately elaborated and discussed below to assist bidders in preparing bids and understanding key points of bid evaluation.
　　① General Provisions
　　The General Provisions mainly explain the project funding source, qualified bidders, qualified goods and services, and bidding costs. The project funding source has been discussed above and will not be elaborated here. Qualified bidders are first defined as bidders from eligible source countries. The World Bank, Asian Development Bank, and Japan Overseas Investment Bank have strict source country restrictions, meaning bidders from non-member countries are not allowed to participate. Secondly, qualified bidders must have no connection or affiliation with the bidding agency, the buyer's hired consulting companies, or their affiliates, as this would affect the fairness of bid evaluation. Enterprises owned by the buyer's government are only eligible if they are legally and financially independent and operate independently under commercial law. Companies blacklisted by the World Bank, Asian Development Bank, or Japan Overseas Investment Bank due to corruption or fraud are strictly prohibited from bidding. Qualified goods and services strictly specify the source countries and origins (place of origin) of goods and services. Goods and services with unclear source countries or non-origin goods and services generally cannot participate in bidding. Of course, the place of origin of goods and services differs from the nationality of the bidder. Bidding costs refer to expenses borne by bidders in preparing and submitting bids, including bid bond issuance fees and bank charges. Regardless of the bidding result, the bid bond will be returned to the issuing bank after the bond period expires, so there is no risk associated with the bid bond.
　　② Bidding Documents
　　After the bidder's authorized agent or the bidder themselves purchases the bidding documents (bidding book), if any doubts or issues are found in the commercial or technical parameters, they can immediately notify the bidding party in writing at the address specified in the Instructions to Bidders. The bidding party should respond in writing to the bidder's clarification requests at least 30 days before the bid deadline and notify all bidders who have purchased the bidding documents of this written response. This is commonly known as pre-bid clarification. Pre-bid clarification is very important. When bidders carefully review the bidding documents and find any commercial or technical doubts or issues, if they do not promptly request clarification in writing, the bid may be penalized for serious non-compliance; even if awarded, unnecessary disputes and troubles may arise during contract performance, causing economic losses. For example, in the 1998 Indian power grid company's steel core aluminum stranded wire project, the factory raised no objections when confirming technical specifications and test methods. However, after winning the bid, it was found that although the Indian side's steel wire winding test method requirements were lower than the Chinese national standard, there was no available machine domestically for the test. Eventually, after much effort, a makeshift test was demonstrated on a lathe according to the Indian standard, which was satisfactory, and the Indian inspection representative agreed to conduct the steel wire winding test according to the Chinese GB standard. Also, at any time before the bid deadline, the bidding party may modify the bidding documents for any reason. Written modification notices have the same binding force as the bidding documents. To allow bidders sufficient time to study the modifications, the bidding party may extend the bid deadline accordingly.
　　③ Submission of Bids After preparing the bids, the original and copies must be sealed separately in envelopes marked "Original" and "Copy" respectively, then all envelopes must be enclosed in an outer envelope. Both inner and outer envelopes must indicate the delivery address specified in the bidding documents, project name, title and number of the invitation to bid. It must also be marked "Do not open before the bid deadline." Bids must be submitted to the designated location before the bid deadline. Especially for international bids, it is advisable to send them slightly earlier to the local agent; otherwise, they will be considered "late bids" and rejected.
　　Reviewing the characteristics of domestic and international wire and cable bidding procedures, bidding document features, key points in bid preparation, and evaluation methods, combined with the deepening development of China's socialist market economy and the continuous improvement of market mechanisms in recent years, along with the impact of e-commerce, vigorously promoting the bidding procurement system and introducing competition mechanisms into the procurement process has become imperative. This approach truly meets the requirements of the market economy, broadens procurement channels, optimizes procurement quality, and reduces procurement costs. It is also an important means and measure to regulate procurement behavior, strengthen procurement supervision, and curb corruption. Therefore, seizing this opportunity, adjusting market positioning, learning advanced bidding technologies and principles from home and abroad, and under the principles of openness, fairness, and justice, fully considering factors such as product quality, price, delivery time, and after-sales service are essential.
　　III. Important Aspects and Issues to Note in Cable Bid Preparation
　　Bid preparation must begin only after carefully reviewing the bidding documents and fully understanding all the terms. During bid preparation, each requirement specified in the bidding documents must be addressed accordingly; otherwise, the bidding party may consider it as deviation or non-response (resulting in point deductions during evaluation), and serious cases may lead to bid rejection. The commercial documents of the bid are usually prepared by the import-export company or the factory's import-export department, technical documents by the manufacturer or relevant technical engineers providing data, and qualification documents jointly provided by both parties. As a professional Shanghai wire and cable import-export company, we often provide a full set of bid preparation services, with the factory only needing to provide the necessary materials and information as required.
　　1. Bid
　　Preparation of commercial documents The commercial documents of the bid should consist of the bid letter format, bid bond, bid authorization letter, bid price list, warranty commitment, and price adjustment rate, etc.
　　(1) Bid Letter Format (BIDFORM)
　　The bid letter format is the soul of the bid. Any detail error may lead to bid rejection, so it must be filled out very carefully. Besides carefully filling in the date, loan number (loan project), and bid number, special attention should be paid to the following points:
　　① Total bid amount
　　② After completing the bid price list, repeatedly verify it is correct, then fill in the total bid amount in both Arabic numerals and words, ensuring no discrepancies, and correctly write the currency name.
　　③ The bid validity period should be filled in according to the relevant clause in the bidding documents, starting from the bid opening date, generally 120 days.
　　④ Some bids require specifying the start of delivery and completion periods if awarded, counting from the notice of award. These must be slightly extended after the manufacturer prepares the delivery schedule, and note that the actual delivery completion period can only be before the delivery completion period specified in the bidding documents, i.e., it can only be earlier, not later.
　　⑤Agent Name and Commission Some countries' tender documents require the bid letter format to specify the local agent's name, address, and commission amount. Once awarded and fulfilled, payment will be made by the buyer in local currency. Therefore, the agent commission rate shown in the general bid letter format should not be too high, preferably around 1%, because a high commission rate may be considered suspicious of corruption during bid evaluation. Additionally, foreign agents generally do not want their commission rates fully exposed in the bid documents, and the entire commission is paid by the buyer in their own currency.
　　(2) Bid Security (BIDSECURITY)
　　Bid security is also an indispensable important document in the commercial documents of the bid. If the bid does not include a bid security, the tendering party will consider the bidder insincere and invalidate the bid. Generally, bid security carries no risk because whether or not the bid wins, the bid security will be returned by the buyer to the issuing bank on time. The validity period of the bid security usually needs to be 30 days longer than the bid validity period, i.e., 150 days. The bid security should be issued by the bidder's bank according to the tender document's prescribed format, which can be a letter of credit (letter format) or a telecopy (internal bank fax or SWIFT). However, when issued by telecopy, the bank must clearly specify the tendering party as the beneficiary in the message sent to the foreign correspondent bank and ensure delivery to the relevant department of the tendering party before the bid opening date. The amount of the bid security is generally 2% of the total bid amount, but in recent years, to prevent bank leaks, tender documents usually specify the exact amount of the security.
　　(3) Price Schedule (PRICESCHEDULE)
　　The price schedule should clearly show the name and content of goods or services, quantity, unit price, and total price. Some international tender documents also require the price schedule to separately indicate FOB (Free On Board) and CIF (Cost, Insurance, and Freight) prices, and require an additional inland transportation (service) price to the final destination in the tendering party's country. According to World Bank and Asian Development Bank regulations, if the unit price and total price do not match, the unit price shall prevail; if there is a discrepancy between the itemized price and total price, the itemized price shall prevail. When preparing the price schedule for wires and cables, full attention should be paid to the international market conditions of raw materials, because the price composition of wires and cables is material-heavy and labor-light. Especially if the tender document stipulates a fixed price, manufacturers should prepare for hedging the main raw materials.
　　(4) Power of Attorney (POWEROFATTORNEY)
　　The power of attorney is another indispensable important legal document in the bid, generally authorized by the legal representative of the company or unit to the bidding unit or department head, stating that this person will represent the legal entity to participate in and fully handle all bidding activities, including signing the bid documents, clarifying before or after bidding with the tendering party, participating in commercial and technical negotiations, and signing contracts. The power of attorney should be concise but must be structurally tight and logically clear, usually drafted by a legal advisor or according to an agreed format.
　　(5) Warranty Letter (WARRANTY)
　　According to international practice, the warranty letter should promise that the supplied goods are manufactured using the latest technology and design, with new raw materials and free of process defects. The product is fully manufactured and tested according to the technical specifications and test methods specified in the tender documents. The warranty letter must also confirm that within 12 months after commissioning or within 18 months after the goods arrive at the destination (port), if the buyer finds any problems, repairs, returns, and compensation will be provided.
　　(6) Price Variation Table (PRICEVARIATION)
　　If the tender document stipulates that the bid price will be subject to price variation, the commercial documents of the bid must include a price variation table, listing the prices of each raw material 30 days before the bid opening date correctly and indicating the source of the price information. For example, when preparing an international bid for wires and cables, it is necessary to accurately provide the London Metal Exchange (LME) prices for copper and aluminum, or other main raw material prices, including international prices for PVC or polyethylene. During contract execution, the buyer will calculate payment based on the average international raw material prices three months before actual shipment, using the following price variation formula (Indian steel core aluminum stranded wire standard ZEBRA), and pay accordingly. dEC=ECO[a(A1-A0)/A0+b(B1-B0)/B0] In this formula: dEC = adjusted USD price (excluding freight) ECO = CIF conductor USD price (excluding advance payment, Indian agent commission, and freight) '0' = raw material price 30 days before bid opening '1' = average daily raw material price three months before actual shipment A = electrical aluminum ingot (LME) B = high-grade electrolytic zinc (BULLETIN or LME) a = coefficient for electrical aluminum ingot (0.65) b = coefficient for high-grade electrolytic zinc (0.02) 33% (0.33) of CIF price is a fixed coefficient (processing fee, etc.) and is not included in the price variation formula.
　　2. Preparation of Bid Qualification Documents
　　Bid qualification documents generally consist of two parts: import-export company and manufacturer (factory). If the manufacturer bids independently, only its own qualification documents need to be provided. According to the tender document, besides proving that the bidder is qualified (has the minimum qualification to participate), the bid qualification documents must also provide the following sufficient supporting documents:
　　(1) Overview of the bidder and manufacturer;
　　(2) Business licenses of the bidder and manufacturer;
　　(3) Three years of financial statements and audit reports of the bidder and manufacturer, including balance sheets, profit and loss statements, and cash flow statements (some tender documents require five years of financial statements);
　　(4) Bank credit reports or certificates of the bidder and manufacturer to confirm financial capability to perform the contract if awarded.
　　(5) Manufacturer's supply experience and user operation certificates, with supply quantities meeting the tender document requirements. For example, the Indian steel core aluminum stranded wire (ZEBRA) standard requires the manufacturer to prove having supplied similar products for more than 1000 km, including supply contracts, quality inspection certificates, delivery notes, and user operation certificates. Otherwise, the bid and manufacturer will be considered to have questionable supply experience and may be penalized or disqualified during bid evaluation.
　　(6) Manufacturer's production equipment, testing facilities, and quality control processes for supplied goods, including ISO9000 certification.
　　3. Preparation of Technical Documents
　　The preparation of technical documents is generally carried out by relevant engineers of the manufacturer after carefully reviewing the technical specifications and requirements of the tender documents, confirming each item, and actively and clearly responding to the technical data specified in the tender technical specifications. In principle, technical differences are generally not filled in; otherwise, points will be deducted due to technical differences, and major technical differences will be regarded as invalid bids. When preparing technical documents, manufacturers must also pay close attention to the test standards and methods of the goods described in the tender technical specifications, because some tender technical specifications are prepared by internationally authoritative supervision companies invited by the buyer, whose technical requirements and test methods are higher than general international standards. Bidders and manufacturers should adopt a cautious attitude and raise clarifications promptly if there are any objections or issues. The preparation of technical documents generally includes the following content:
　　(1) Technical Parameter Guarantee Letter
　　(2) Product structure drawings; for wires and cables, in addition to product structure drawings, packaging reel drawings must also be prepared
　　(3) Type test reports of similar products, which must be conducted by independent authoritative testing institutions. After the preparation of the commercial documents, qualification documents, and technical documents of the bid, careful proofreading must be conducted, especially ensuring that the prices listed in the bid letter format and the bid price list in the commercial documents are consistent and accurate. After proofreading, the commercial documents should be signed and stamped by the authorized bidding leader, and each page of the bid must be corner signed. The bid is generally prepared in English; if relevant certificates and test reports are in Chinese, they should be translated and stamped by an authoritative translation agency to certify the accuracy of the translated documents.
　　Reviewing the characteristics of domestic and international wire and cable bidding procedures, bidding document features, key points in bid preparation, and evaluation methods, combined with the deepening development of China's socialist market economy and the continuous improvement of market mechanisms in recent years, along with the impact of e-commerce, vigorously promoting the bidding procurement system and introducing competition mechanisms into the procurement process has become imperative. This approach truly meets the requirements of the market economy, broadens procurement channels, optimizes procurement quality, and reduces procurement costs. It is also an important means and measure to regulate procurement behavior, strengthen procurement supervision, and curb corruption. Therefore, seizing this opportunity, adjusting market positioning, learning advanced bidding technologies and principles from home and abroad, and under the principles of openness, fairness, and justice, fully considering factors such as product quality, price, delivery time, and after-sales service are essential.
　　4. Evaluation Methods and Case Analysis of Wire and Cable Bidding
　　1. Evaluation Methods for Wire and Cable Bidding
　　Evaluation: Selecting suitable suppliers is crucial in domestic and international bidding procurement. There are many evaluation methods; the following are examples of evaluation methods used by Sinopec Yanshan Petrochemical Company for wire and cable procurement.
　　(1) Lowest Bid Price Method
　　The lowest bid price method refers to determining the winning bidder by the lowest price under the condition that substantive requirements and connotations are the same. For example, in April 2000, Yanshan Petrochemical Company conducted a cable bidding among resource manufacturers, awarding the contract to manufacturers such as Tiankang Group with the lowest bid. The lowest bid price evaluation method is simple to operate and widely applicable, making it a common evaluation method. However, this method only considers price factors during evaluation and ignores other factors, lacking scientific rigor. Since each manufacturer differs in production capacity, scale, production conditions, quality assurance, reputation, delivery time, and transportation distance, their bids will vary. Therefore, low price should not be the sole criterion for awarding the contract.
　　(2) Base Price Evaluation Method
　　The base price evaluation method involves the tenderer first determining the base price of the goods. The evaluation committee then uses this base price as a reference to select the bidder whose price is closest to the base price as the winner. For example, if the base price of a project is 1 million yuan and delivery time is a key influencing factor, if Party A delivers one week early, a 1% discount applies, making the evaluation price 990,000 yuan; if Party B delays delivery by one week, a 2% surcharge applies, making the price 1,020,000 yuan, so Party A is the final winner. This method requires clear specification of how various factors affect the bid price in the tender documents, so comprehensive consideration should be given when preparing the tender documents to avoid disputes during the bidding process.
　　(3) Comprehensive Scoring Method
　　In addition to considering the bid price during evaluation, other factors such as the delivery time reported in the bid documents, technical level, performance, supply capacity, quality and adaptability of the goods, transportation, insurance, and other costs to the destination should be considered. The method that comprehensively considers and scores these many influencing factors is the comprehensive scoring method. For example, various factors affecting evaluation are assigned scores: bidder's basic information 16 points, product information 30 points, bid price 40 points, preferential conditions 5 points, after-sales service 7 points, installation qualification level 2 points, total 100 points. Some scoring standards are fixed, such as 2 points for Grade A installation qualification and 1 point for Grade B; other standards are determined by the evaluation committee. The bid price score can be calculated by the formula: Bid Price Score = 40 - (Bid Price - Lowest Price) * K / (Highest Price - Lowest Price). K is a variable determined and announced before bid opening.
　　(4) Ideal Point Evaluation Method
　　The ideal point evaluation method is a relatively scientific and effective method for evaluating winning manufacturers. Abbreviated as TOPSIS, it is a ranking method close to the simple weighted method. It ranks by using the "ideal solution" and "negative ideal solution" of the target decision problem. The ideal solution is a hypothetical best solution (plan) whose attribute values reach the best values among all candidate solutions; the negative ideal solution is a hypothetical worst solution whose attribute values reach the worst values among all candidates. Using the ideal solution to solve multi-objective decision problems is very effective. Its concept is simple, but it requires defining a measure in the objective space to assess how close a solution is to the ideal solution and how far it is from the negative ideal solution. When facing many suppliers, scientific decision-making is complex and important, involving many considerations such as price, transportation, production capacity, quality, and after-sales service. In the past, procurement channels were often chosen based on intuition and experience, lacking scientific basis. The ideal point method can solve these problems. Using the ideal point method to select suppliers requires procurement personnel to conduct detailed market research and gather extensive information. Then, by using precise ideal point calculations, decisions can be scientific, reasonable, and reduce arbitrariness and blindness.
　　2. Factors Considered During Evaluation
　　Another fundamental characteristic of international competitive bidding is that the contract must be awarded to the bidder with the lowest evaluated price according to the evaluation criteria specified in the tender documents. This is the decisive link to ensure the fairness of international competitive bidding. During the evaluation process of this method, the following factors need to be considered:
　　(1) Evaluation Purpose
　　The purpose of evaluation is to determine the price of each bid, compare based on the evaluated price, select the lowest evaluated price, and award the contract to the bidder with the lowest evaluated price.
　　(2) Basis of Evaluation
　　The basis of evaluation is the tender documents. Evaluation must comply with the requirements of the tender documents, especially the standards, criteria, and factors for evaluation must be based on the provisions of the tender documents. Standards, criteria, or factors not specified in the tender documents must not be used for evaluation.
　　(3) Preliminary Evaluation of Bids
　　The preliminary evaluation mainly checks the following: whether the bidding documents include all the required documents (including bid security); whether there is a fundamental response to the bidding documents (a fundamental response means compliance with all the conditions specified in the bidding documents, without major deviations or differences. Major deviations and differences refer to violations of the bidding documents that fundamentally affect the quantity, quality, or delivery of the contract goods provided by the bidder, or fundamentally violate the rights of the bidder or the obligations under the contract); whether all bidding documents are properly signed; whether there are calculation errors (e.g., if there is a discrepancy between unit price and total price, the unit price shall prevail; if there is a discrepancy between uppercase and lowercase amounts, the uppercase shall prevail). Calculation errors should be corrected and cannot be grounds for immediate rejection. If correcting calculation errors would obviously cause serious financial loss to the bidder (e.g., decimal point misplaced in the unit price), the bidder may choose to accept the correction or withdraw the bid, and the bid security will be forfeited.
　　(4) Basis for Price Evaluation
　　The basis for price evaluation is: for goods supplied within the buyer's country, the ex-factory price; for goods supplied from outside the buyer's country, the cost plus insurance and freight (CIF) price at the destination port.
　　(5) Factors Not Considered in Price Evaluation
　　Except for factors explicitly stated as not considered in the bidding documents, under the cost plus insurance and freight (CIF) price condition, tariffs and import taxes proposed to be levied on the goods after award are not considered; under the buyer's domestic ex-factory price condition, sales tax and other similar taxes proposed to be levied on the goods after award are not considered.
　　(6) Implementation of Domestic Preferences in Price Evaluation
　　In price evaluation, attention should be paid to implementing domestic preferences of the buyer, especially in World Bank and Asian Development Bank loan projects. Domestic bidders of the buyer often enjoy a 15% preference, meaning that if the price level is the same as foreign bidders, the domestic bidder's price is considered 15% lower and given priority for award.
　　(7) Clarifications in Price Evaluation
　　During the price evaluation process, bidders may be invited to provide written clarifications on their bids. The procuring entity may selectively choose bidders to clarify certain aspects of their bids without requiring all bidders to do so; during clarification, bidders shall not be asked or allowed to make substantive modifications to their bids.
　　(8) Post-Qualification in Price Evaluation
　　For procurements without pre-qualification, after determining the lowest evaluated bid, the bidder shall still be subject to qualification review in terms of financial, technical, and production capacity. If the bidder is unqualified, the bid shall be considered rejected, and the next lowest evaluated bidder shall be reviewed.
　　(9) Attention to Bid Validity Period in Price Evaluation
　　The procuring entity should complete the evaluation and award within the bid validity period. If due to special circumstances the evaluation and award cannot be completed within the bid validity period, the procuring entity shall request the bidder in writing to extend the bid and bid security validity before the expiry of the bid validity period and notify the World Bank. When requesting an extension of the bid validity period, bidders shall not be asked or allowed to modify bid prices or other conditions. Bidders have the right to refuse the extension without forfeiting the bid security; however, bidders who agree to extend the bid validity period shall extend the validity of their bid security. After the original bid security expires, the bid is no longer binding on the bidder. In this case, the bidder may withdraw the bid or modify the bid (including price) or other conditions, but the procuring entity shall not forfeit the bid security.
　　(10) Confidentiality in Price Evaluation
　　Except when clarifications are requested by the procuring entity, no bidder shall make inquiry contacts with the procuring entity regarding the bid during the evaluation and award period. Attempts by bidders to influence the procuring entity during evaluation and award will result in bid rejection. Similarly, during the evaluation and award period, the procuring entity shall not disclose information about the evaluation, clarifications, or award to bidders or unrelated persons.
　　(11) Bid Rejection
　　According to World Bank regulations, bids may be rejected under any of the following three circumstances:
　　1) The lowest evaluated bid price is significantly higher than the cost estimate.
　　2) The bidder has not made a fundamental response to the bidding documents.
　　3) Lack of adequate competition. Additionally, bid rejection should seek the consent of the World Bank or Asian Development Bank.
　　India Power Grid Corporation conducted the following three evaluations on all bids:
　　1) Evaluation of the list of bidding documents
　　2) Evaluation of the list of technical documents
　　3) Evaluation of price levels
　　5. Conclusion
　　Reviewing the domestic and international procedures for electric wire and cable bidding, the characteristics of bidding documents, key points in bid preparation, and evaluation methods, combined with the deepening development of China's socialist market economy and continuous improvement of market mechanisms in recent years, along with the impact of e-commerce, vigorously promoting the bidding procurement system and introducing competition mechanisms into the procurement process has become imperative. This is because only by doing so can the requirements of the market economy be truly met, procurement channels broadened, procurement quality optimized, and procurement costs reduced. It is also an important means and measure to regulate procurement behavior, strengthen procurement supervision, and curb corruption. Therefore, seizing this opportunity, adjusting market positioning, learning advanced bidding technologies and principles at home and abroad, and under the principles of openness, fairness, and impartiality, fully considering factors such as product quality, price, delivery time, and after-sales service to achieve cost reduction, efficiency improvement, and enhanced competitiveness is an important topic that cannot be ignored in future economic work.