Research On Bidding Patterns Of Equipment Procurement For Baosteel’s Engineering Projects And The Process Control Methods

With the global economic recession which has significant impact on the real economy, cost control is essential for the survival and development of enterprises. The equipment procurement for engineering project is an important part which has a direct effect on the enterprise operation and its product quality.As one of the most competitive procurement approach, bidding has been widely used in many industries and fields both in China and abroad. Bid procurement process can improve the transparency and objectivity of enterprise purchasing and prevent corruption and abuse of power. By stimulating competition, it allows the enterprise to save its procurement funding to the maximum extent possible. This approach is an efficient way to select the best supplier among a wide range of suppliers. Since few rules exist in the bidding market in China, as well as in some profit-driven areas and enterprises is short of management skills, there are still many shortcomings in the bidding process, such as internal structure building, decision-making and working procedures.Baosteel Company, as China’s largest steel company, has accumulated rich experience in the engineering equipment procurement. Bidding process is widely used for its engineering equipment procurement and proves to be efficient in cost control. By applying the theory of bid procurement for engineering equipment projects and analyzing the real cases in bid procurement process of Baosteel company, this article attempts study and clarify the bid procurement types which the enterprise should adopt for purchasing different products with different suppliers, and the process control methods to use during the bidding procedure in order to come up with some references that may be useful for the following engineering projects of Baosteel company as well as other enterprises. The main contents of this article are as follows:(1) with the theory of bid procurement of equipment in engineering projects, analyze the situation of bid procurement in China and abroad as well as the situation of equipment procurement by bidding in Baosteel Company, sum up the methods and the procedure of bidding when Baosteel Company purchases the equipments for its engineering projects.(2) Research on the bidding patterns of equipment procurement for Baosteel’s engineering projects:by taking the real cases of Baosteel’s equipment procurement for example, analyze how to use different bid procurement types such as open bidding, selected bidding and negotiated bidding in different conditions when faced with various purchasing tasks in order to achieve the objectives; then sum up the experiences in bid procurement.(3) Research on the bidding process control methods of the equipment procurement for Baosteel’s engineering projects:since the equipment procurement for engineering projects is much more complicated and technicalized than ordinary products or raw materials, analyze the skills and methods to be used in the bidding process from arrangement before bidding, preparation of bidding documents, evaluation of applications, etc.