Is it permissible to apply shopping method package of procurement of goods in Vietnam?

Is it permissible to apply shopping method package of procurement of goods in Vietnam?

If my unit has a package of procurement of common goods, can shopping method be applied? What are conditions to apply it?

Answer:

Pursuant to Clause 1 Article 23 of the Law on Procurement in 2013, 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.

Pursuant to Article 57 of the Decree 63/2014/NĐ-CP stipulating scope of shopping 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.

The information you have provided is not specific. If the package of procurement of common goods is valued at no more than 05 billion VND, the shopping method will be applied according to the normal process.

The shopping methods are made when the following conditions are fully satisfied:

- Having an approved contractor selection plan;

- Having an approved budget according to regulations;

- Capital has been allocated according to the requirements of the bidding package implementation schedule.

Is it permissible to extend framework agreement in the centralized procurement in Vietnam?

Hello Lawnet. I have a question: Is it permissible to extend framework agreement in the centralized procurement in Vietnam? Thank you.

Answer:

Pursuant to Article 45 of the Law on Procurement in 2013 stipulating framework agreement in the centralized procurement in Vietnam as follows:

1. Framework agreement in the centralized procurement means a long-term agreement between the centralized procurement unit with one or many selected bidders, in which include standards and conditions as basis for procurement according to each specific contract.

2. Duration for use of framework agreements shall be stipulated in plan on bidder selection but not exceed 03 years.

Pursuant to Article 72 of the Decree 63/2014/NĐ-CP stipulating contents of the framework agreement as follows:

Depending on the scale and characteristics of the contract, the bulk-purchasing unit shall specify the contents of the framework agreement in the invitation for bids, which consist of:

1. The goods/services provided; quantities of goods/services;

2. Intended delivery time and location;

3. Conditions for transfer of goods/services; advances, payments, and contract finalization;

4. Ceiling prices of goods/services;

5. Warranty, maintenance; training, instructions on using goods/services;

6. Responsibilities of the goods/services provider;

7. Responsibilities of the unit that directly signs the sale contract;

8. Responsibilities of the bulk-purchasing unit;

9. Effective period of the framework agreement;

10. Penalties for contract breaches;

11. Relevant contents.

As regulations above, duration for use of framework agreements shall be stipulated in plan on bidder selection but not exceed 03 years. Currently, there is no document regulating the extension of the framework agreement in centralized procurement. In case the framework agreement in centralized procurement expires, the parties must agree again.

What is the time limit for process of shopping in Vietnam?

According to the Law on Procurement, what is the time limit for process of shopping in Vietnam? Look forward to receiving your feedback.

Answer:

Pursuant to Clause 6 Article 58 of the Decree 63/2014/NĐ-CP stipulating as follows:

Article 58. Standard process of shopping

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6. Schedule for standard process of shopping:

a) The minimum time limit for preparing the proposal is 05 working days from the day on which the request for proposals is issued;

b) If the request for proposals must be adjusted, the procuring entity must notify the bidder at least 03 working days before the deadline for submitting proposals;

c) Proposals shall be evaluated within 20 days from the bid opening date. Then, the procuring entity shall make a request for approval for the result of contractor selection, which is enclosed with the report on proposal evaluation.

d) The result of contractor selection shall be verified within 07 working days from the day on which the request for verification is received;

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Article 59. Shortened process of shopping

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6. Schedule of shortened process of shopping:

a) Quotations shall be evaluated within 10 days from the bid opening date. Then, the procuring entity shall make a request for approval for the result of contractor selection, which is enclosed with the report on quotation evaluation.

b) The result of contractor selection shall be verified within 04 working days from the day on which the request for verification is received;

Thus, according to the above regulations, the time to evaluate the results of selection of contractors to buy cassava for competitive offers is normally 07 working days at most. If the competitive offer is shortened, the time to appraise the results of contractor selection is 04 working days at most. (excluding weekends and public holidays)

Best regards!