What is minimum expenses incurred by the composition and evaluation of the Request for EOI and Prequalification in Vietnam?

What is minimum expenses incurred by the composition and evaluation of the Request for EOI and Prequalification in Vietnam?

Pursuant to Article 9 of Decree 63/2014/ND-CP stipulating expenses incurred during the selection of contractors as follows:

1. Based on the size and nature of the contracts, investors decide the selling price of one set of bidding documents and request for proposals (taxes included) for the domestic bidding, including the maximum price of VND 2,000,000 for the bid envelope and VND 1,000,000 for the Request for Proposals; as for the international bidding, such selling prices shall adhere to the international bidding practices.

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;

3. Expenditure on compilation and evaluation of the Invitation for Bids and Request for Proposals:

a) Expenses incurred by the composition of the Invitation for Bids and Request for Proposals account for 0.1% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 50,000,000;

b) Expenses incurred by the evaluation of the Invitation for Bids and Request for Proposals 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 50,000,000;

4. Expenses incurred by the evaluation of the EOI Response, Prequalification, Bid Envelope and Proposals:

a) Expenses incurred by the evaluation of the EOI Response 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 Bid Envelopes and Proposals account for 0.1% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 50,000,000.

5. Expenses incurred by the evaluation of the result of the selection of contractors, even when there are none of selected contractors, 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 50,000,000.

6. In respect of the contracts that elaborate the same contents in the same project and purchase estimate as well as the contracts that require redoing the selection of contractors, expenses incurred by the composition and evaluation of the Request for EOI and Prequalification; Invitation for Bids and Request for Proposals account for maximum 50% of the expense regulated in Clause 2 and Clause 3 of this Article. In case of the contracts that require another selection of contractors, expenses on the selection of contracts for the project and purchase estimates must be accounted for and supplemented to meet the actual requirements mentioned in the contracts.

7. Expenses prescribed in Clause 2, 3, 4, 5 and 6 of this Article shall be applicable to investors and procuring entities who are directly involved in the bidding. In case bidder’s consultants are hired to carry out the contents specified in Clause 2, 3, 4, 5 and 6 of this Article, expenses are defined on the basis of the content, scope of work, execution period, competence and experience of consultants and other elements.

8. Expenses paid to a council in charge of considering the contractor's recommendations on the selection of contractors (hereinafter referred to as Advisory Council) account for 0.02% of the quoted bid of the bidders who have made recommendations but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 50,000,000.

9. Expenses incurred by the dissemination of bidding information and participation in the national bidding network and the use of receipts during the selection of contractors shall follow the instructions from the Ministry of Planning and Investment and the Ministry of Finance.

Thus, according to current regulations in Vietnam, the cost of the bidding dossier is 0.05% of the bid package price, but it is necessary to ensure the minimum price is 1 million VND.

Is there a fee for issuance of EOI requests in Vietnam? 

According to Clause 1, Article 13 of the Law on Bidding 2013 regulations on expenses associated with bidding:

1. Expenses associated with the process of selection of bidder include:

a) Expenses associated with preparation of EOI responses, Applications, Bids, Proposals and participation in bidding shall be borne by bidders;

b) Expenses associated with process of bidder selection shall be included in total investment or estimated budget of procurement;

c) EOI requests, Prequalification Documents shall be issued to bidders free of charge;

d) Bidding Documents, Requests for Proposals shall be sold or issued free of charge to bidders.

According to this Article, EOI requests will be issued to bidders free of charge in Vietnam.

Best Regards!