Do bidding documents include taxes and fees? What are the specific expenses incurred during the selection of contractors in Vietnam?
What are the general regulations on price of package in the plan on bidder selection for each package?
Pursuant to Clause 2, Article 35 of the 2013 Law on Procurement in Vietnam stipulating as follows:
Content of plan on bidder selection for each package
…
2. Price of package:
a) Price of package is determined on the basis of total investment or estimated budget (if any) for project; estimate of procurement for recurrent procurement. Price of package is included exactly and fully entire expenses associated with performance of package, including reserve expenses, charges, fees and taxes. Price of package may be updated in time limit of 28 days before day of bid opening if necessary;
b) For packages of consulting service provision for formulation of pre-feasible study report, feasible study report, price of package shall be defined on the basis of information on average price according to statistics of projects which have been made in a defined duration; the estimated total investment based on investment ratio norms of projects; preliminary total investment;
c) If package includes many separate parts, to clearly indicate the estimated price for each part in price of package.
Thus, price of package is determined on the basis of total investment or estimated budget (if any) for project; estimate of procurement for recurrent procurement.
Price of package is included exactly and fully entire expenses associated with performance of package, including reserve expenses, charges, fees and taxes.
Price of package may be updated in time limit of 28 days before day of bid opening if necessary.
Do bidding documents include taxes and fees? What are the specific expenses incurred during the selection of contractors in Vietnam?
Do expenses of preparing the bidding documents include taxes and fees?
Pursuant to Article 9 of Decree No. 63/2014/ND-CP stipulating as follows:
Expenses incurred during the selection of contractors
1. Based on the size and nature of the contracts, investors decide the selling price of one set of bidding documents and request for proposals (taxes included) for the domestic bidding, including the maximum price of VND 2,000,000 for the bid envelope and VND 1,000,000 for the Request for Proposals; as for the international bidding, such selling prices shall adhere to the international bidding practices.
At the same time, according to the general regulations on price of package according to Clause 17, Article 4 of the 2013 Law on Procurement in Vietnam, bid price means the price stated by a bidder in application for bid participation, quotation, including all costs for performance of package as required by Bids, Request for Proposals.
In Article 35 of the 2013 Law on Procurement in Vietnam, the bidder's bid price must include all taxes, fees and charges (if any) based on the tax rates, charges and fees at 28 days before the date of bid closing as prescribed.
In case the bidder declares that the bid price does not include taxes, fees and charges (if any), the bidder's bid will be rejected.
Therefore, when participating in the bid, the bidder is responsible for finding out, calculating and offering all taxes, fees and charges (if any) in the bid price. At this time, bidding documents also include taxes and fees.
What are the specific expenses incurred during the selection of contractors in Vietnam?
Pursuant to Clause 2, Article 9 of Decree No. 63/2014/ND-CP stipulating as follows:
Expenses incurred during the selection of contractors
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2. Expenses incurred by the composition and evaluation of the Request for EOI and Prequalification:
a) Expenses incurred by the composition of the Request for EOI and Prequalification account for 0.05% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 30,000,000;
b) Expenses incurred by the evaluation of the Request for EOI and Prequalification account for 0.03% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 30,000,000;
3. Expenditure on compilation and evaluation of the Invitation for Bids and Request for Proposals:
a) Expenses incurred by the composition of the Invitation for Bids and Request for Proposals account for 0.1% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 50,000,000;
b) Expenses incurred by the evaluation of the Invitation for Bids and Request for Proposals account for 0.05% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 50,000,000;
4. Expenses incurred by the evaluation of the EOI Response, Prequalification, Bid Envelope and Proposals:
a) Expenses incurred by the evaluation of the EOI Response and Prequalification account for 0.05% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 30,000,000;
b) Expenses incurred by the evaluation of Bid Envelopes and Proposals account for 0.1% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 50,000,000.
5. Expenses incurred by the evaluation of the result of the selection of contractors, even when there are none of selected contractors, account for 0.05% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 50,000,000.
6. In respect of the contracts that elaborate the same contents in the same project and purchase estimate as well as the contracts that require redoing the selection of contractors, expenses incurred by the composition and evaluation of the Request for EOI and Prequalification; Invitation for Bids and Request for Proposals account for maximum 50% of the expense regulated in Clause 2 and Clause 3 of this Article. In case of the contracts that require another selection of contractors, expenses on the selection of contracts for the project and purchase estimates must be accounted for and supplemented to meet the actual requirements mentioned in the contracts.
7. Expenses prescribed in Clause 2, 3, 4, 5 and 6 of this Article shall be applicable to investors and procuring entities who are directly involved in the bidding. In case bidder’s consultants are hired to carry out the contents specified in Clause 2, 3, 4, 5 and 6 of this Article, expenses are defined on the basis of the content, scope of work, execution period, competence and experience of consultants and other elements.
8. Expenses paid to a council in charge of considering the contractor's recommendations on the selection of contractors (hereinafter referred to as Advisory Council) account for 0.02% of the quoted bid of the bidders who have made recommendations but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 50,000,000.
9. Expenses incurred by the dissemination of bidding information and participation in the national bidding network and the use of receipts during the selection of contractors shall follow the instructions from the Ministry of Planning and Investment and the Ministry of Finance.
Thus, specific expenses incurred during the selection of contractors in Vietnam include:
(1) Expenses incurred by the composition and evaluation of the Request for EOI and Prequalification:
- Expenses incurred by the composition of the Request for EOI and Prequalification account for 0.05% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 30,000,000;
- Expenses incurred by the evaluation of the Request for EOI and Prequalification account for 0.03% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 30,000,000;
(2) Expenditure on compilation and evaluation of the Invitation for Bids and Request for Proposals:
- Expenses incurred by the composition of the Invitation for Bids and Request for Proposals account for 0.1% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 50,000,000;
- Expenses incurred by the evaluation of the Invitation for Bids and Request for Proposals account for 0.05% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 50,000,000;
(3) Expenses incurred by the evaluation of the EOI Response, Prequalification, Bid Envelope and Proposals:
- Expenses incurred by the evaluation of the EOI Response and Prequalification account for 0.05% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 30,000,000;
- Expenses incurred by the evaluation of Bid Envelopes and Proposals account for 0.1% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 50,000,000.
(4) Expenses incurred by the evaluation of the result of the selection of contractors, even when there are none of selected contractors, account for 0.05% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 50,000,000.
(5) Expenses paid to a council in charge of considering the contractor's recommendations on the selection of contractors (hereinafter referred to as Advisory Council) account for 0.02% of the quoted bid of the bidders who have made recommendations but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 50,000,000.
(6) Expenses incurred by the dissemination of bidding information and participation in the national bidding network and the use of receipts during the selection of contractors shall follow the instructions from the Ministry of Planning and Investment and the Ministry of Finance.
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