In practice, the purchaser how to choose, is still a problem. In this regard, there have been two different views.
One view is that the deferral to the second successful tender is the first choice. This is from the point of view of improving procurement efficiency, in order to complete the procurement project on time, avoid duplication of operations as far as possible, and reduce procurement costs. Therefore, most practitioners have suggested that if the winning bidder abandons the winning bid without any reason, it is feasible to defer to the second winning candidate if the number of qualified suppliers still meets the statutory requirement of three or more and there is no violation of the law.
Another view is that re-tendering is the first option. This is from the prevention of bid-rigging behavior. If, the first winning bidder's transaction price and the second winning bidder's transaction price difference is large, the two bidders collusion with each other cheating, *** with the possibility of obtaining more unlawful money is still very large. That is, the second place pays a favor to the first place in order to bribe the first place to give up the qualification of winning the bid. In this way, the second successful bidder can be a higher price to win the bid, so that both sides are profitable. This is a common reason for suppliers to "give up" their eligibility in practice. Of course, this is not the only reason for abandoning the winning bid. In the absence of a clear investigation into the reasons for the first successful bidder's "abandonment", the second candidate should not be allowed to win the tender so easily. Where time permits, re-tendering is the better option. Although re-tendering time costs, but compared to the investigation of the reasons for the winning bidder to give up the winning bid and the cost of evidence of illegal behavior, re-tendering time costs can be offset, it is recommended to give priority to the re-tendering.
Extended information
Sinopec
China Petroleum & Chemical Corporation (hereinafter referred to as "Sinopec") is a wholly state-owned subsidiary of the China Petroleum & Chemical Corporation (hereinafter referred to as "SINOPEC")[1] SINOPEC's largest shareholder - China Petroleum & Chemical Corporation is the largest shareholder of SINOPEC. China Petroleum & Chemical Corporation is in July 1998, according to the Party Central Committee on the implementation of strategic restructuring of the petroleum and petrochemical industry deployment, in the former China Petroleum & Chemical Corporation on the basis of the restructuring of the establishment of the state-funded state-owned companies, state-authorized investment institutions and state holding companies [2] SINOPEC is an upstream and downstream integration of the petroleum and petrochemical industry, outstanding, with a relatively complete sales network. SINOPEC is a joint-stock enterprise with upstream, midstream and downstream integration, petroleum and petrochemical main business, a relatively complete sales network, and domestic and international listing. SINOPEC is a joint-stock enterprise established on February 25, 2000 by China Petroleum & Chemical Corporation in accordance with the Company Law of the People's Republic of China*** and the State of China in an exclusively initiated manner.The company gives full play to the unique political advantages of state-owned enterprises, and is firmly committed to becoming a strong defender of the country's economic security and energy security
SINOPEC released its 2019 annual results report, with the company realizing turnover and other operating income of CNY2.97 trillion, a year-on-year increase of 2.6 percent, a record high; in accordance with China's corporate accounting standards, the company realized an operating profit of CNY90 billion, a net profit attributable to shareholders of the parent company of CNY57.6 billion, and basic earnings per share of CNY
0.476, with the board of directors recommending a final dividend of CNY0.19 per share
2019 domestic invention patent authorization Sinopec ranked second among national enterprises with 2,883 pieces
The Chinese Entrepreneurs Association released the "2015 China's Top 500 Enterprises List", with Sinopec topping the list for the eleventh consecutive year with a total revenue of 2.89 trillion yuan, PetroChina, State Grid with total revenue of 2.73 trillion yuan, 2.09 trillion yuan respectively, ranked two or three
China Petroleum & Chemical Corporation ranked No. 2 in the Fortune Global 500 companies in 2019[7][8], and still ranked No. 2 in the Fortune Global 500 companies in 2020[9][10]Fortune China 500 companies in 2019 ranked No. 1 2020 Sinopec once again ranked No. 1.