Are the consulting service packages eligible for international bidding in Vietnam?

Regarding this matter, LawNet would like to answer as follows:

Are the consulting service packages eligible for international bidding in Vietnam?

Pursuant to Point b and Point c, Clause 1, Article 11 of the Law on Bidding 2023 stipulates as follows:

Article 11. International bidding

1. International bidding may be organized if one of the following conditions is satisfied:

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b) In case of a package for consulting services, non-consulting services, construction or mixed package, none of the domestic bidders meets the requirements of the package, or the domestic prequalification or EOI procedure or competitive bidding for the package has been held but none of prequalification applications, EOIs or bids is received;

c) In case of a consulting service package in which the competent person believes that the participation of foreign bidders is necessary for improving the quality of the package or project, the competent person decides to organize international bidding and assumes responsibility for his/her decision;

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Thus, International bidding may be organized for consulting service packages in the following cases

- Package for consulting services, non-consulting services, construction or mixed package, none of the domestic bidders meets the requirements of the package

- Domestic prequalification or EOI procedure or competitive bidding for the package has been held but none of prequalification applications, EOIs or bids is received.

- Consulting service package in which the competent person believes that the participation of foreign bidders is necessary for improving the quality of the package or project.

What is the direct contracting limit for consulting service packages in Vietnam?

Pursuant to Point m, Clause 1, Article 23 of the Law on Bidding 2023, there are regulations on the direct contracting limit as follows:

Article 23. Direct contracting

1. Direct contracting applies to:

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m) Packages of procurement cost estimates whose price ranges from VND 50 million to VND 100 million; packages of investment projects of state-owned enterprises or wholly state-owned enterprises and investment projects defined in the Law on public investment, including: consulting service packages whose price does not exceed VND 500 million, and packages for non-consulting services, procurement of goods, construction, or mixed packages whose price does not exceed VND 01 billion.

In case the limits on package prices specified in this Point need to be adjusted to be suitable to socio-economic conditions and state management requirements, the Government shall submit such adjustments to the Standing Committee of National Assembly for consideration and decision making.

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According to the above regulations, the direct contracting limit for consulting service packages is no more than 500 million VND.

What are the conditions for contract award for consulting service packages in Vietnam?

Pursuant to Clause 1, Article 60 of the Law on Bidding 2023 stipulates as follows:

Article 60. Contract award for consulting service packages

1. A consultant that is an organization shall be considered successful and awarded the contract if the consultant:

a) has a substantially responsive bid or proposal;

b) has a technical proposal meeting the requirements of the bidding documents or RFP;

c) has the lowest bid price after error correction and deviation adjustment, and deducting the value of discounts (if any), if the least-cost method applies; or has the lowest bid price after deducting discounts (if any), in case of a lump sum contract; or has the highest technical score, if either the fixed-price method or technique-base method applies; or has the highest combined score, if the combined technique and price-based method applies; and

d) has a proposed successful bid price not exceeding the approved package price.

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According to this regulation, a consultant that is an organization shall be considered successful and awarded the contract if the consultant:

+ Has a substantially responsive bid or proposal;

+ Has a technical proposal meeting the requirements of the bidding documents or RFP;

+ Has the lowest bid price after error correction and deviation adjustment, and deducting the value of discounts (if any), if the least-cost method applies;

+ Has the lowest bid price after deducting discounts (if any), in case of a lump sum contract;

+ Has the highest technical score, if either the fixed-price method or technique-base method applies;

+ Has the highest combined score, if the combined technique and price-based method applies; and

+ Has a proposed successful bid price not exceeding the approved package price.

Best regards!

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