Decree 95: Content of the contractor selection plan for each package in Vietnam

Decree 95: Content of the contractor selection plan for each package in Vietnam (Illustrative image)

Decree 95/2020/ND-CP specifies the names and prices of packages in the content of the bidding plan for each package on procurement under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Specifically, as follows:

1. Name of the package: The name of the package reflects its nature, content, and scope of work, conforming to the content stated in the project or procurement estimate. If the package includes multiple distinct parts, the bidding plan should specify basic names for each part.

2. Package price:

- The package price is determined based on the total investment level or estimate (if any) for the project; for regular procurement, it is determined based on the procurement estimate. If the estimate was approved before forming the bidding plan, the package price is set according to the estimate. The package price must accurately and fully account for all costs to execute the package, including contingency costs (costs for unforeseen work, price escalation), fees, and taxes. Determining contingency costs must be appropriate to the conditions, scale, and nature of each package in compliance with sectoral legal provisions.

- For construction service packages with contract performance times under 12 months, without risks or price escalations, contingency costs are zero. The investor determines contingency costs based on the nature of each package but must not exceed the maximum level stipulated by sectoral laws. The package price is updated within 28 days before the bid opening date if necessary;

- For consultancy service packages for preparing pre-feasibility study reports, feasibility study reports, the package price is determined based on average prices from statistics of similar projects realized within a defined timeframe; investment estimate levels; preliminary total investment estimates;

- If the package includes multiple distinct parts, clearly state the estimated price for each part in the package price;

- When calculating the package price to determine if it falls under the scope of this Decree, the total estimated maximum value of the package over the entire execution period must be calculated, including all types of fees, commissions, earnings, or other revenues that may be paid under the contract; for packages with optional additional purchases, include the value of these options in the package price to compare with the threshold prices in Appendix I of this Decree;

- For non-consultancy service packages under regular procurement estimates requiring long-term commitments with the supplier (more than one year) such as leased transmission lines, stations; leased infrastructure; leased software; leased domains, servers, and electronic data storage services; hardware and software operation support services, user support services, the entire package price (estimated total contract cost) and anticipated annual payments to the contractor must be specified.

3. Source of funds: For each package, clearly state the source or method of arranging funds, funding time for payments to the contractor; if using official development assistance or concessional loans, state the sponsor's name and the structure of the sources, including sponsorship funds and domestic counterpart funds.

4. Form and method of selecting a contractor: For each package, clearly state the form as per regulations in Article 20 and Article 21 of this Decree and the method of selecting a contractor specified in Articles 22, 23, 24, and 25; whether selecting contractors from within the bloc or internationally, and if shortlisting procedures are applied.

5. Start time of organizing contractor selection: The start time of organizing contractor selection is calculated from the issuance of the bidding document, the request for proposals, specified by month or quarter in the year. In the case of open bidding with shortlisting procedures, the start time is calculated from the issuance of the expression of interest document, prequalification document.

6. Type of contract:

The bidding plan must clearly define the type of contract as per Article 80 of this Decree, serving as a basis for preparing the expression of interest document, prequalification document, bidding document, request for proposals; contract signing.

7. Contract execution time:

The contract execution time is the number of days from the effective date of the contract until the obligations are completed by all parties as stated in the contract, excluding the warranty period (if any).

For details, refer to Decree 95/2020/ND-CP effective August 24, 2020.

Ty Na

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