11:50 | 02/03/2024

Issuance of Decree 24 providing detailed regulations and measures for the implementation of the Bidding Law regarding the selection of contractors in Vietnam

Has Decree 24 providing detailed regulations and measures for the implementation of the Bidding Law regarding the selection of contractors in Vietnam been issued yet? Thank you! - Mr. Cuong (Dong Nai)

Issuance of Decree 24 providing detailed regulations and measures for the implementation of the Bidding Law regarding the selection of contractors in Vietnam

On February 27, 2024, the Government issued Decree 24/2024/ND-CP providing guidance on the Bidding Law 2023 regarding the selection of contractors. The Decree takes effect from the date of issuance.

Decree 24/2024/ND-CP stipulates:

(1) Detailed regulations on certain provisions of the Bidding Law 2023 regarding the selection of contractors, including:

- Clause 6 of Article 6 regarding ensuring competitiveness in bidding.

- Clause 6 of Article 10 regarding incentives in contractor and investor selection.

- Clause 3 of Article 15 regarding costs associated with contractor/investor selection.

- Clause 4 of Article 19 regarding the capacity and experience of members of expert teams and appraisal teams.

- Clause 2 of Article 20 regarding other methods of contractor selection.

- Clause 7 of Article 23 regarding direct contracting.

- Clause 4 of Article 29 regarding contractor selection in special circumstances.

- Clause 4 of Article 36 regarding contractor selection master plan for projects.

- Clause 2 of Article 39 regarding contents of contractor selection plan.

- Clause 8 of Article 43 regarding the procedures and processes of contractor selection.

- Clause 1 and Clause 5 of Article 50 regarding online contractor selection.

- Clause 7 of Article 53 regarding centralized procurement.

- Clause 3 and Clause 4 of Article 55 regarding the selection of suppliers of drugs, chemicals, test equipment and medical devices.

- Clause 4 of Article 67 regarding signing of contract with successful bidder.

- Clause 6 of Article 70 regarding modification of contract.

- Clause 2 of Article 84 regarding responsibility for state management of bidding.

- Clause 4 of Article 86 regarding inspection and supervision of bidding activities.

- Clause 5 of Article 87 regarding handling of violations.

- Clause 4 of Article 88 regarding handling certain situations in bidding.

(2) The decree also provides measures for the implementation of the Bidding Law regarding the selection of contractors, including:

- Registration on the National Bidding Network System.

- Timeframe for organizing the selection of contractors.

- Authority to decide on procurement for the procurement plan.

- Public disclosure of information in bidding activities.

- Contractor management.

(3) The decree also regulates the selection of contractors for the provision of public products and services through ordering and the assignment of tasks, according to separate regulations issued by the Government.

Issuance of Decree 24 providing detailed regulations and measures for the implementation of the Bidding Law regarding the selection of contractors in Vietnam - image from internet

Decree 24/2024/ND-CP guiding on bidding stipulates the cost of consulting to resolve complaints about the results of contractor selection in 2024 in Vietnam

Based on the provisions of Clause 8, Article 12 of Decree 24/2024/ND-CP, the regulations on costs in contractor selection are as follows:

Costs in contractor selection

...

8. Costs for the Advisory Council to resolve complaints (hereinafter referred to as the Advisory Council) of the contractor regarding the results of contractor selection shall be calculated as a percentage of the contractor's bidding price with a complaint as follows:

a) Bidding price below 50,000,000,000 VND, the rate is 0.03%, but a minimum of 5,000,000 VND;

b) Bidding price from 50,000,000,000 VND to less than 100,000,000,000 VND, the rate is 0.025%, but a minimum of 15,000,000 VND;

c) Bidding price from 100,000,000,000 VND to less than 200,000,000,000 VND, the rate is 0.02%, but a minimum of 25,000,000 VND;

d) Bidding price of 200,000,000,000 VND or more, the rate is 0.015%, but a minimum of 40,000,000 VND and a maximum of 60,000,000 VND.

For procurement packages that apply the one-stage two-envelope or two-stage two-envelope method, in cases where the contractor with a complaint is not allowed to open the proposed financial documents, the determination of the cost for the Advisory Council shall be based on the bidding price of the procurement package.

...

Therefore, according to the regulations, when the contractor has a complaint about the results of contractor selection, they can request the Advisory Council to resolve the complaint.

In such cases, the consulting costs for the Advisory Council to resolve the contractor's complaint about the results of contractor selection will be calculated as a percentage of the contractor's bidding price.

Specifically:

- Bidding price below 50,000,000,000 VND, the rate is 0.03%, but a minimum of 5,000,000 VND;

- Bidding price from 50,000,000,000 VND to less than 100,000,000,000 VND, the rate is 0.025%, but a minimum of 15,000,000 VND;

- Bidding price from 100,000,000,000 VND to less than 200,000,000,000 VND, the rate is 0.02%, but a minimum of 25,000,000 VND;

- Bidding price of 200,000,000,000 VND or more, the rate is 0.015%, but a minimum of 40,000,000 VND and a maximum of 60,000,000 VND.

Note: For procurement packages that apply the one-stage two-envelope or two-stage two-envelope method, in cases where the contractor with a complaint is not allowed to open the proposed financial documents, the determination of the cost for the Advisory Council shall be based on the bidding price of the procurement package.

Is the contractor entitled to a refund of the consulting costs for resolving complaints about the results of contractor selection in Vietnam?

Based on the provisions of Clause 9, Article 12 of Decree 24/2024/ND-CP, the costs in contractor selection are stipulated as follows:

Cost in contractor selection

......

9. Refund of complaint resolution costs:

a) In cases where the contractor's complaint is concluded to be valid, the relevant organizations and individuals are responsible for reimbursing the complaining contractor the amount equivalent to the complaint resolution costs that the complaining contractor has paid.

b) In cases where the contractor's complaint is concluded to be invalid, the contractor is not entitled to a refund of the complaint resolution costs.

....

According to the regulations, if the contractor's complaint is concluded to be valid, the relevant organizations and individuals are responsible for reimbursing the complaining contractor the amount equivalent to the complaint resolution costs that the complaining contractor has paid.

Therefore, the contractor may be entitled to a refund of the consulting costs for resolving complaints about the results of contractor selection.

However, in cases where the contractor's complaint is concluded to be invalid, the contractor is not entitled to a refund of the complaint resolution costs.

Best regards!

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