In what cases are shopping method applied in Vietnam? What contractor selection methods are there?

In what cases are shopping method applied in Vietnam?

Pursuant to Article 24 of the Bidding Law 2023 regulatinh shopping are as follows:

Shopping 

The shopping method applies to the following packages whose price does not exceed VND 05 billion:

1. Common and uncomplicated non-consulting service packages;

2. Packages for procurement of normal goods which are available on the market, have standardized technical properties and equivalent quality;

3. Simple construction packages for which approved building drawing designs are available;

4. PC packages of which construction tasks meet the requirements laid down in Clause 3 of this Article.

According to this Article, packages whose price does not exceed VND 05 billion can be applied shopping method in bidding activities if they fall into the following cases:

- Common and uncomplicated non-consulting service packages;

- Packages for procurement of normal goods which are available on the market, have standardized technical properties and equivalent quality;

- Simple construction packages for which approved building drawing designs are available;

- PC packages of which construction tasks, in which the simple construction packages for which approved building drawing designs are available.

In what cases are shopping method applied in Vietnam? What contractor selection methods are there? (Image from the Internet)

What contractor selection methods in Vietnam are there?

Pursuant to Article 20 of the 2023 Bidding Law stipulating the contractor selection methods:

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.

Thus, there are the following contractor selection methods:

[1] Competitive bidding is a contractor selection method whereby there is no limit on the number of bidders.

[2] Limited bidding is a contractor selection method whereby only bidders meeting the requirements of the package are invited to submit bids;

[3] Direct contracting is done when there is only one contractor that meets the investor's requirements.

[4] The shopping method applies to the following packages whose price does not exceed VND 05 billion:

- Common and uncomplicated non-consulting service packages;

- Packages for procurement of normal goods which are available on the market, have standardized technical properties and equivalent quality;

- Simple construction packages for which approved building drawing designs are available;

- PC packages of which construction tasks, in which the simple construction packages for which approved building drawing designs are available.

[5] 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 all requirements must be satisfied.

[6] Self-execution is a form where An employer that directly manages and uses goods/services of a package of a project or procurement cost estimate may themself execute that package when all the prescribed conditions are met.

[7] Community participation: Residential communities, teams or groups of adequate skilled workers in the local area where a package of a national target program or public investment program that is executed by both the State and the people is to be executed shall be assigned to take charge of the entire or part of that package provided its price does not exceed VND 05 billion.

[8] Price negotiation applies to the following packages:

+ Purchase of original brand-name drugs or reference biologicals;

+ Purchase of drugs, medical devices or test equipment of a type which can only be manufactured by 01 or 02 manufacturers.

[9] Contractor selection in special circumstances shall apply to the following packages which cannot be executed adopting the contractor selection methods according to the above methods.

Is the single-stage one-envelope procedure adopted in shopping method in Vietnam?

Pursuant to Article 30 of the 2023 Bidding Law stipulating the single-stage one-envelope procedure:

Single-stage one-envelope procedure

1. Single-stage one-envelope procedure shall be adopted in the following cases:

a) Competitive bidding or limited bidding for non-consulting service, procurement, construction or mixed packages, except the cases specified in Point b Clause 1 Article 31 of this Law;

b) Shopping for non-consulting service, procurement, construction or PC packages;

c) Direct contracting for consulting service, non-consulting service, procurement, construction, or mixed packages;

d) Direct procurement for procurement packages.

2. Bidders submit bids or proposals in one envelope containing both the technical proposal and the financial proposal in accordance with the requirements laid down in the bidding documents or RFP.

3. All bids or proposals shall be opened at the same bid opening.

Thus, the single-stage one-envelope procedure is applied in shopping method for non-consulting service, procurement, construction or PC packages;

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