Is it possible to bid for a mixed package by Shopping Method in Vietnam?

Is it possible to bid for a mixed package by Shopping Method in Vietnam?

Is it possible to bid for a mixed package by Shopping Method? Hello. I want to ask about the Law on Bidding. My agency has a bidding package for construction and installation of fire prevention and fighting equipment with a package price of less than 5 billion VND. Is the above bidding package a mixed package? Is the mixed bidding package mandatory to conduct open bidding? Can I make competitive offers? Where can I find more information about this? Sincerely thank!

Reply:

For your question, based on the provisions of Clause 23, Article 4 of the Law on Bidding 2013, then:

23. Mixed package means a package comprising of engineering and goods provision (EP); engineering, works (EC); goods provision and works (PC); engineering, goods provision, works (EPC); making project, engineering, goods provision, works (turnkey).

Compared with your agency's bidding package, if it is a bidding package for construction, installation and supply of fire protection equipment, it is considered as one of the cases of a mixed bidding package, specifically the case that the bidding package includes goods provision and works (PC).

- The second issue, is the mixed bidding package required to conduct open bidding?

Pursuant to the provisions of Article 20 of the Law on Bidding 2013:

1. Competitive bidding is form of selection of bidders/investors in which the number of participating tenders, investors shall be unrestricted.

2. Competitive bidding is applied to packages, projects under Scope of regulation of this Law, except for cases specified in Articles 21, 22, 23, 24, 25, 26 and 27 of this Law.

- The third issue, the bidding package of your agency with the scale of less than 5 billion dong, can bidding under the form of competitive offer?

According to the provisions of Article 23 of the Law on Bidding 2013 on 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.

According to scope of shopping is guided by Article 57 of Decree 63/2014/ND-CP. As follows:

1. Standard process of shopping applies to any of the contracts defined in Clause 1 Article 23 of the Law on Bidding, the value of which does not exceed VND 05 billion.

2. Shortened process of shopping applies to any of the contracts defined in Point a Clause 1 Article 23 of the Law on Bidding whose value does not exceed VND 500 million; any of the contracts defined in Point b and Point c Clause 1 Article 23 of the Law on Bidding whose value does not exceed VND 1 billion; and regular procurement contracts whose value does not exceed VND 200 million.

Thus, in combination with the above provisions in Vietnam, with your agency's bidding package for construction, installation and supply of fire protection equipment with a scale of less than VND 5 billion, this bidding package can be made in the form of Shopping Method according to the normal process such as the requirements on the scope of Shopping in Clause 1, Article 57 of Decree 63/2014/ND-CP mentioned above.

However, regardless of whether it is a mixed package or another bidding package, in order to apply the competitive bidding form, the units must ensure that they fully meet the conditions on the contractor selection plan, estimates and capital as prescribed above in Vietnam.

What is cost of evaluation of request for EOI of the bidding package in Vietnam?

Relating to regulations on costs in the contractor selection process. Question: What is cost of evaluation of request for EOI of the bidding package? Hope to get a reply soon.

Reply:

In Clause 2, Article 9 of Decree 63/2014/ND-CP guiding the Bidding Law on contractor selection, there are provisions:

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;

The cost of evaluation of request for EOI in Vietnam, the dossier of invitation for pre-qualification is calculated at 0.03% of the bid package price, but the minimum is 1,000,000 VND and the maximum is 30,000,000 VND.

Thus, according to the above regulations in Vietnam, the cost of evaluation of request for EOI is calculated at the rate equal to 0.03% of the bidding package in Vietnam. But the minimum is 1 million and the maximum is 30 million.

Can a contract for goods procurement of 1 billion be applied shortened process of no-bid contract awarding in Vietnam? 

May I ask, if our side is about to prepare a procurement package for goods under 1 billion, can we appoint a shortened contractor?

Reply:

According to Article 56 of Decree 63/2014/ND-CP stipulating the shortened contractor appointment process for the following bidding packages:

1. The shortened process is applied to contracts defined in Point a Clause 1 Article 22 of the Law on Bidding, except for those that must be executed to ensure state secrets:

The investor or the regulatory body in charge of the contract shall appoint an experienced and capable contractor to execute the contract. Within 15 days from the appointment, both parties must complete the no-bid contract awarding procedures, including: preparing and sending the draft contract to the contractor, which specifies the tasks, schedule, quality, and corresponding value, then concluding the contract. According to the result of contract negotiation, the investor or the regulatory body shall approve the no-bid contract and sign the contract with the selected contractor. The contractor selection shall be announced in accordance with Point d Clause 1 Article 7 and Point c Clause 1 or Point b Clause 2 Article 8 of this Decree.

2. If the contract does not exceed the limits on no-bid contracts prescribed in Article 54 of this Decree:

a) In consideration of the targets, tasks, and approved estimates, the procuring entity shall prepare and send the draft contract to the contractor, who is considered experienced and capable enough to execute the contract by the investor. The draft contract shall specify the tasks, schedule, quality, corresponding value, and relevant contents;

b) Based on the draft contract, the procuring entity and the selected contractor shall enter into a negotiation and complete the contract, which is the basis for approving the contractor selection and contract conclusion;

c) Contract conclusion:

The contract signed by the parties must conform to the decision to the contractor selection result, the contract negotiation record, and relevant documents.

For reference, in Article 54 of Decree 63/2014/ND-CP, there are regulations on limits on no-bid contract awarding prescribed in Point e Clause 1 Article 22 of the Law on Bidding

1. 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;

2. Contracts for regular procurements: VND 100 million.

Thus, based on the above regulations in Vietnam, for bidding packages for procurement of goods not exceeding VND 01 billion, a shortened contractor may be appointed. You base the above provisions to properly implement.

Best regards!