What are the bid evaluation methods applied to non-consulting service in Vietnam under the Law on Bidding 2023?
Is bid evaluation a contractor selection process in Vietnam?
Pursuant to Clause 1, Article 43 of the Law on Bidding 2023, the contractor selection process is as follows:
Contractor selection process
1. The contractor selection process in case of competitive bidding or limited bidding includes the following steps:
a) Preparation for contractor selection;
b) Organization of contractor selection;
c) Bid evaluation;
...
According to the above regulations, the bid evaluation step is one of the contractor selection process.
What are the bid evaluation methods applied to non-consulting service in Vietnam under the Law on Bidding 2023?
What are the bid evaluation methods applied to non-consulting service in Vietnam under the Law on Bidding 2023?
Pursuant to Article 58 of the Law on Bidding 2023, for bid evaluation methods applied to non-consulting service as follows:
(1) Least-cost method:
- 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;
- 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:
- 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;
- 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;
- 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;
- The bidder that has the lowest evaluated price shall be ranked first.
(3) Combined technique and price-based method:
- 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;
- 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.
In addition, bid evaluation methods applied to non-consulting service will:
- For responsiveness to the capacity and experience requirements: be evaluated on pass/fail basis
- For responsiveness to the technical requirements: be evaluated on either scoring or pass/fail basis
Where the combined technique and price-based method 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.
Vietnam: When will the Law on Bidding 2023 officially apply?
Pursuant to the provisions of Article 95 of the Law on Bidding 2023, the implementation effect is as follows:
Effect
1. This Law comes into force from January 01, 2024.
2. The Law on Bidding No. 43/2013/QH13, as amended by the Law No. 03/2016/QH14, the Law No. 04/2017/QH14, the Law No. 40/2019/QH14, the Law No. 64/2020/QH14 and the Law No. 03/2022/QH15, (hereinafter referred to as “Law on Bidding No. 43/2013/QH13") shall cease to have effect from the effective date of this Law, except provisions of Article 96 of this Law.
3. Contracts signed according to the provisions of Point a Clause 1 Article 55 of this Law shall be valid for a validity period specified therein which shall not exceed 05 years from the effective date of this Law.
Accordingly, the Law on Bidding 2023 takes effect from January 1, 2024.
The Bidding Law 2013 ceases to be effective from the effective date of the Law on Bidding 2023, except for the provisions in Article 96 of this Law.
In addition, the contract signed under Point a, Clause 1, Article 55 of the Law on Bidding 2023 shall be performed within the time limit specified in the contract but not exceeding 05 years from the effective date of the Law on Bidding 2023.
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