Shall the direct procurement apply if the contractor has won the bid through limited bidding in Vietnam?
Vietnam: What is the direct procurement? How many contractor selection methods are there?
Direct procurement applies to packages for purchase of similar goods of projects or procurement cost estimates of the same employer or another employer provided that the requirements laid down in Clause 2 of this Article must be satisfied (Clause 1, Article 25 of the Law on Bidding 2023).
Pursuant to Article 20 of the Law on Bidding 2023, contractor selection methods include:
Contractor selection methods
1. Contractor selection methods include:
a) Competitive bidding;
b) Limited bidding;
c) Direct contracting;
d) Shopping;
d) Direct procurement;
e) Self-execution;
g) Community participation;
h) Price negotiation;
i) Contractor selection in special circumstances.
2. The Government shall adopt specific regulations on contractor selection methods other than those specified in Clause 1 of this Article which are preeminent and use advanced and modern electronic equipment and facilities, procedures and subjects of such methods in conformity with new features of VNEPS and in a manner that ensures competitiveness, fairness, transparency and economic efficiency in bidding.
Contractor selection methods include:
- Competitive bidding;
- Limited bidding;
- Direct contracting;
- Shopping;
- Direct procurement;
- Self-execution;
- Community participation;
- Price negotiation;
- Contractor selection in special circumstances.
Shall the direct procurement apply if the contractor has won the bid through limited bidding in Vietnam? (Image from the Internet)
Shall the direct procurement apply if the contractor has won the bid through limited bidding in Vietnam?
Pursuant to Article 22 of the Law on Bidding 2023, limited bidding is as follows:
Limited bidding
Limited bidding is a contractor selection method whereby only bidders meeting the requirements of the package are invited to submit bids, and is adopted in the following cases:
1. Packages have high technical requirements or involve special techniques that can only be satisfied by some bidders;
2. The limited bidding method is adopted at the request of the donor that finances the project or package under an international convention or loan agreement.
Therefore, limited bidding is a contractor selection method whereby only bidders meeting the requirements of the package are invited to submit bids.
Pursuant to Article 25 of the Law on Bidding 2023, regulations on direct procurement are as follows:
Direct procurement
1. Direct procurement applies to packages for purchase of similar goods of projects or procurement cost estimates of the same employer or another employer provided that the requirements laid down in Clause 2 of this Article must be satisfied.
2. The direct procurement shall apply if all of the following requirements are satisfied:
a) The contractor has won the bid through competitive bidding or limited bidding and has signed a contract for executing a previous package;
b) The employer may only make one direct procurement of goods for the current package of which the quantity of each procurement item must be smaller than 130% of that of the corresponding procurement item of the previous package, excluding quantities of additional purchase (if any);
c) Unit prices of component tasks of the package applying the direct procurement do not exceed those of corresponding tasks of the previous package and must be also conformable with the market price at the time of contract completion;
d) The previous contract has been signed no more than 12 months before the date of approval of the direct procurement result.
3. If the previous contractor is no longer capable of executing the direct procurement contract, another contractor who satisfies all capacity, experience, technology and price requirements laid down in the bidding documents and according to the previous contractor selection result may be awarded the contract.
Thus, the direct procurement shall apply if the contractor has won the bid through limited bidding and all of the following requirements are satisfied:
- The employer may only make one direct procurement of goods for the current package of which the quantity of each procurement item must be smaller than 130% of that of the corresponding procurement item of the previous package, excluding quantities of additional purchase (if any);
- Unit prices of component tasks of the package applying the direct procurement do not exceed those of corresponding tasks of the previous package and must be also conformable with the market price at the time of contract completion;
- The previous contract has been signed no more than 12 months before the date of approval of the direct procurement result.
When will the bid cancellation occur in case of contractor selection in Vietnam?
Pursuant to Article 17 of the Law on Bidding 2023, in case of contractor selection, bid cancellation shall occur when:
- all EOIs, prequalification applications, bids or proposals are considered substantially nonresponsive to the EOI request, prequalification document, bidding documents or RFP;
- there are changes in the objectives and scope of investment specified in the investment decision resulting in changes in volume of tasks and evaluation criteria specified in the EOI request, prequalification document, bidding documents or RFP;
- the EOI request, prequalification document, bidding documents or RFP does not comply with regulations laid down in this Law or other relevant laws to the extent that the selected bidder fails to meet the requirements of the package;
- the successful bidder commits any of the prohibited acts in Article 16 of the Law on Bidding 2023; or
- another organization or individual that is not the successful bidder commits any of the prohibited acts in Article 16 of the Law on Bidding 2023 resulting in inaccurate contractor selection result.
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