Which package of procurement does the Shopping Method apply to? What are the regulations on shortened process of shopping in Vietnam?
Which package of procurement does the Shopping Method apply to?
Pursuant to the provisions of Article 23 of the 2013 Law on Procurement in Vietnam on Shopping Methods as follows:
Shopping Method
1. Shopping Method shall apply to packages with value in limitation as prescribed by Government and belonging to one of the following cases:
a) Package of procurement of non-consulting services which are commonly used and simple;
b) Package of procurement of goods which are commonly used goods, readily available on the market, have standardized technical features and are similar to each other in quality;
c) Package of procurement of simple works which have had the approved construction drawing design.
2. Shopping Method is performed when satisfying all following conditions:
a) Having an approved plan on selection of bidders;
b) Having an approved estimate in accordance with regulation;
c) Having been allocated capital at the request of the time for performance of package.
Thus, Shopping Method shall apply to package of procurement of non-consulting services which are commonly used and simple; package of procurement of goods which are commonly used goods; and package of procurement of simple works.
Which package of procurement does the Shopping Method apply to? What are the regulations on shortened process of shopping in Vietnam?
What is the limit for Shopping Method in bidding?
Pursuant to the provisions of Article 54 of Decree No. 63/2014/ND-CP, the limit for Shopping Methods according to the shortened process applies to the following package of procurement:
- Contracts for consulting services, non-consulting services, and public services: VND 500 million;
- Contracts for goods procurement, construction, installation, procurement of medicines, medical equipment, public procurement, mixed contracts: VND 01 billion;
- Contracts for regular procurements: VND 100 million.
What are the regulations on shortened process of shopping in Vietnam?
The shortened Shopping Methoding process as prescribed in Article 59 of Decree No. 63/2014/ND-CP:
Step 1. Preparing and sending the request for proposals:
- The request for quotation shall specify the tasks, technical requirements, validity period of the quotation, quotation submission date, requirements with regard to warranty, maintenance, training, transfer, contract drafting, time for preparation and submission of the quotation (at least 03 working days from the date of issue of the request for quotation) and other relevant information. Guarantee for participation in bidding shall be omitted;
- After the request for quotations is approved, the procuring entity shall post it on a provincial newspaper, or the national procurement system, or send it directly to at least 03 capable bidders. If the request for quotations is send directly, the procuring entity shall send the request to any bidder that wishes to offers their quotations by the deadline for submitting quotations. The request for quotations shall be issued free of charged and sent directly, by post, email, or fax.
Step 2. Submitting and receiving quotations:
- Each contractor shall prepare and submit 01 quotation as requested. The quotation may be submitted directly, by post, email, or fax;
- The procuring entity is responsible for protect the confidentiality of information in the quotations submitted by bidders. Right after the deadline for submitting quotations, the procuring entity make a note of receipt of quotations submitted by the deadline, which specify information such as: contains: names of bidders, quoted prices, validity periods of quotations. This note shall be sent to every bidder who has submitted their quotation.
Step 3. Evaluation of quotations:
- The procuring entity shall compare the quotations according to the request for quotations. Any quotation that satisfies all requirements in the request and the quoted price in which is lowest and does not exceed the contract value after error correction, adjustment of deviation, and deduction of discount (if any) shall be selected;
- During the evaluation, procuring entity may invite the bidder that offers the lowest price after error correction, adjustment of deviation, and deduction of discount (if any) to enter into a contract negotiation.
Step 4. Reporting, verifying, approving, and announcing contractor selection result:
The result of contractor selection shall be reported, verified, and announced in accordance with Article 20 of Decree No. 63/2014/ND-CP.
Step 5. Drafting and concluding the contract:
The contract between both parties must conform to the decision to approve the result of shopping, the contract negotiation record, and relevant documents.
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