How many bid evaluation methods applied to consulting service packages in Vietnam are there?
Vietnam: How many bid evaluation methods applied to non-consulting service are there?
Pursuant to Article 58 of the Law on Bidding 2023, regulations on bid evaluation methods applied to non-consulting service, procurement, construction or mixed packages include:
Bid evaluation methods applied to non-consulting service, procurement, construction or mixed packages
1. Least-cost method:
a) The least-cost method applies to packages in which technical, financial and commercial proposals are regarded to be on the same level if they meet the requirements of the bidding documents;
b) The bidder that has a bid meeting technical requirements and the lowest bid price after error correction and deviation adjustment (if any), and deducting the value of discounts (if any), shall be ranked first.
2. Evaluated-price method:
a) The evaluated price is the bid price after error correction and deviation adjustment (if any), as required in the bidding documents, deducting the value of discounts (if any) and adding factors for conversion into the same level for the entire life cycle of goods, works or non-consulting services. Evaluated prices are used for ranking of bids for procurement, construction, non-consulting service or mixed packages that apply competitive bidding, limited bidding or shopping method;
b) The evaluated-price method applies to packages where costs can be converted to the same level in terms of technical, financial and commercial factors for the entire life cycle of goods, works or non-consulting services;
c) One or some factors converted into the same level for determining the evaluated price include: operating and maintenance costs, and other costs associated with loan interests, supply schedule and quality of goods, services or works of the package; capacity or output; statistical and assessment reports on performance of previous contracts, including consideration of origin of goods; sustainable bidding and other factors;
d) The bidder that has the lowest evaluated price shall be ranked first.
3. Combined technique and price-based method:
a) The combined technique and price-based method applies to IT, telecommunications or insurance packages; procurement and/or construction packages with specific or high technical requirements to which the evaluated-price method cannot apply; or packages where technical and price factors should be taken into consideration;
b) The combined score shall be calculated on the basis of the technical score and the price score. The bidder that has the highest combined score shall be ranked first.
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Thus, there are 3 bid evaluation methods applied to non-consulting service, specifically:
Least-cost method.
Evaluated-price method.
Combined technique and price-based method.
Note:
- Responsiveness to the capacity and experience requirements shall be evaluated on pass/fail basis.
- Responsiveness to the technical requirements shall be evaluated on either scoring or pass/fail basis.
- Where the combined technique and price-based method prescribed in Clause 3 of Article 58 of the Law on Bidding 2023 applies, technical criteria shall be evaluated on the basis of a scoring system.
- When the evaluation is based on a scoring system, the minimum technical qualifying score shall be at least 70% of total technical score.
How many bid evaluation methods applied to consulting service packages in Vietnam are there?
How many bid evaluation methods applied to consulting service packages in Vietnam are there?
According to the provisions of Article 59 of the Law on Bidding 2023, regulations on bid evaluation methods applied to consulting service packages, including:
- Least-cost method:
+ The least-cost method applies to simple consulting service packages or consulting service packages where consulting process has been well defined according to existing standards;
+ The bidder that has a bid meeting technical requirements and the lowest bid price after error correction and deviation adjustment (if any), and deducting the value of discounts (if any), shall be ranked first.
- Fixed-price method:
+ The fixed-price method applies to simple consulting service packages where the exact scope of tasks is defined and the rational, specific and fixed costs for executing the package are specified in the bidding documents;
+ The bidder that has a bid meeting technical requirements, the bid price after error correction and deviation adjustment (if any), and deducting the value of discounts (if any), not exceeding the package price, and the highest technical score shall be ranked first.
- Combined technique and price-based method:
+ The combined technique and price-based method applies to consulting service packages where both quality and costs for executing the package are critical;
+ The combined score shall be calculated on the basis of the technical score and the price score. The scoring system must follow the rule that the technical score accounts for 70% - 80% of total score and the price score accounts for 20% - 30% of total score; the sum of technical score and price score shall be 100%. The bidder that has the highest combined score shall be ranked first.
- Technique-based method:
+ The technique-based method applies to consulting service packages with specific or high technical requirements;
+ The bidder that has a bid meeting technical requirements and the highest technical score shall be ranked first, and invited to the opening of financial proposal as the basis for contract negotiation.
Thus, there are 4 bid evaluation methods applied to consulting service packages according to the provisions of law.
What are the conditions for contract award for non-consulting service in Vietnam?
Article 61 of the Law on Bidding 2023 stipulates conditions for contract award for non-consulting service, procurement, construction or mixed packages, including:
- A bidder shall be considered successful and awarded the contract for non-consulting services, procurement of goods, construction or mixed package if the bidder:
+ has a substantially responsive bid or proposal;
+ meets capacity and experience requirements laid down in the bidding documents or RFP;
+ has a technical proposal meeting the requirements of the bidding documents or RFP;
+ has the negative value of deviations not exceeding 10% of the bid price;
+ has the lowest bid price after error correction and deviation adjustment, and deducting the value of discounts (if any), if the least-cost method applies; or has the lowest evaluated price, if the evaluated-price method applies; or has the highest combined score, if the combined technique and price-based method applies; and
+ has a proposed successful bid price not exceeding the approved package price.
- The notice of contractor selection result sent to an unsuccessful bidder must provide the reason(s) their bid was unsuccessful.
Note: The Law on Bidding 2023 takes effect from January 1, 2024.
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