07:36 | 24/10/2022

Vietnam: When shall procuring entities send out the invitation letters and reference terms to consultants of individual bidders in the list?

May I ask when procuring entities shall send out the invitation letters and reference terms to consultants of individual bidders in the list? - Question of Mr. Hung from Thanh Hoa (Vietnam).

What are the regulations on provision, submission and approval of reference terms and list of consultants of individual bidders in Vietnam?

According to Article 42 of Decree No. 63/2014/ND-CP on provision, submission and approval of reference terms and list of consultants of individual bidders in Vietnam as follows:

Providing, submitting and approving reference terms and list of consultants of individual bidders
1. Procuring entities must provide the reference terms and draft contract for the position of consultants of individual bidders that need to be selected as well as determine the list from 03 to 05 of consultants of individual bidders that will be then submitted for approval. In case there is only one consultant of individual bidders that meet the expected requirements for the contract execution, procuring entities send a report to investors for their consideration and decision. The content of reference terms must include:
a) A concise description of projects;
b) Requirements for coverage, workload, quality and time of the contract execution;
c) Requirements for capability and expertise of the consultants;
d) Conditions and venues for the contract execution;
dd) Other essential contents (if any).
2. Consultants of bidders as individuals may include one individual consultant or a group of consultants. If the consulting party is a group of consulting experts, they must appoint their representatives to carry out transactions with procuring entities and investors.
3. Based on all documents that procuring entities submit, investors must consider and approve reference terms and list of consultants of individual bidders.

Thus, the provision, submission and approval of reference terms and list of consultants of individual bidders in Vietnam are regulated as above.

Vietnam: When shall procuring entities send out the invitation letters and reference terms to consultants of individual bidders in the list?

Vietnam: When shall procuring entities send out the invitation letters and reference terms to consultants of individual bidders in the list? (Image from the Internet)

When shall procuring entities send out the invitation letters and reference terms to consultants of individual bidders in the list?

According to the provisions of Article 43 of Decree No. 63/2014/ND-CP on sending invitation letters and evaluating scientific resumes of individual consultants; approve and sign the contract as follows:

Sending out the invitation letters and evaluating the scientific background record of consultants of individual bidders; approving and signing the contract
1. After reference terms and list of consultants of individual bidders have been approved, procuring entities shall send out the invitation letters and reference terms to consultants of individual bidders in the list in which the deadline and address for the receipt of scientific background record must be clarified.
2. Submitting the scientific background record:
Consultants of individual bidders must prepare their scientific background records as required in the reference terms as well as technical proposals (if any) submitted to procuring entities according to the time and venue specified in the invitation letters.
3. Evaluating the scientific background record:
Based on the content mentioned in the reference terms, procuring entities must evaluate the scientific background record of each consultant of individual bidder. Individual bidder’s consultants, who have their legal status as stipulated in Clause 2 Article 5 of the Bidding Law as well as keep their best scientific background record and technical proposal (if any) in compliance with the reference terms, shall be invited to negotiate and complete the contract with procuring entities.
4. Negotiating and completing the contract.
5. Approving the result of the selection of individual bidder’s consultants must be carried out in writing and referred to the statements on approving and reporting the result of evaluating the scientific background records of individual bidder's consultants as well as the result of contract negotiation. The official contract must accord with the decision on approving the result of the selection of individual bidder's consultants, the result of contract negotiation and contents enclosed in the reference terms.

Thus, according to the regulations, after reference terms and list of consultants of individual bidders have been approved, procuring entities shall send out the invitation letters and reference terms to consultants of individual bidders in the list.

What are the regulations on expenses incurred during the selection of contractors in Vietnam?

According to Article 9 of Decree No. 63/2014/ND-CP stipulating expenses incurred during the selection of contractors in Vietnam 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.
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, expenses incurred during the selection of contractors in Vietnam are specified as above.

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