02 Methods for Implementing Centralized Procurement

The Ministry of Finance issued Circular 35/2016/TT-BTC on February 26, 2016, specifying two methods for implementing centralized procurement.

Accordingly, Circular 35 stipulates that centralized procurement is implemented in one of the following two methods:

Centralized procurement by signing a framework agreement:

- The centralized procurement unit consolidates procurement needs, proceeds to select contractors in accordance with the law on bidding or hires a professional bidding organization to select contractors, and signs a framework agreement with the selected contractor.- The agency, organization, or unit using the assets directly signs a procurement contract with the selected contractor, directly pays the selected contractor (except in cases where the competent state agency assigns the budget to the centralized procurement unit), receives the assets, asset records, and fulfills the contract obligations, including policies for warranty and maintenance from the selected contractor;

Centralized procurement by signing a direct contract:

- The centralized procurement unit consolidates procurement needs, proceeds to select contractors in accordance with the law on bidding or hires a professional bidding organization to select contractors, directly signs a contract with the selected contractor, and directly pays the contractor.- The agency, organization, or unit using the assets receives the assets, asset records, and implements warranty and maintenance policies from the selected contractor.

See details Circular 35/2016/TT-BTC effective from April 10, 2016.

-Thao Uyen-

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