How to make a plan on selecting bidders in accordance with Vietnam’s regulations?

According to Article 4 of the Circular No. 39/2015/TT-BNNPTNT of the Ministry of Agriculture and Rural Development of Vietnam, the investor and project owner shall have to organize the formulation of a contractor selection plan according to the provisions of Articles 33, 34, 35, 36 of the Law on Procurement No. 43/2013/QH13 of Vietnam and the following provisions:

First, the division of a project into bidding packages must satisfy the technical requirements, the approved project implementation schedule or the signed Agreement (for ODA projects), ensuring the synchronization of the project; tender packages of reasonable scale, in accordance with technical requirements, project characteristics, domestic regulations and regulations of the Sponsor.

Second, the bid package price is determined on the basis of the total investment or approved estimate (if any). The bid package price is calculated correctly, including all costs to implement the bidding package (including contingency costs, taxes, fees and charges). In which, provision costs include provision for volume generation (calculated as a percentage (%) and in accordance with the design step when formulating the plan on selecting bidders), provision for price slippage (calculated according to the time and progress of the bidding package) and suitable to the type of contract specified in Clause 5 of this Article.

- In case the determined bid package price is higher than the approved item value in the total investment (including the provision for items), before approving the bid package price as a basis for submission to the investment decider for approval for approval of the plan on selecting bidders, the investor must report to the investment decider and clearly explain the reasons, propose the funding source to be used for that increase in the bidding package, and take responsibility before law for his decision;

- In case a bidding package is assembled from many items or an item in the total investment is divided into several bidding packages or where the bidding package can be divided into parts (for domestic projects) or lots (for ODA projects) separately according to the nature of the work, the investor must clearly state the reason, the content of the work and the value of each such item, part or lot in the plan on selecting bidders.

Third, the form of contractor selection: Investors and project owners comply with the provisions of Articles 20, 21, 22, 23, 24, 25, 26 and 27 of the Law on Procurement No. 43/2013/QH13 of Vietnam. Depending on the nature, characteristics and price of the bidding package, the investor and project owner shall choose an appropriate form of contractor selection, which must clearly explain the reasons and applicable conditions for the competent person to consider and decide.

Fourth, method of contractor selection: The investor and project owner shall comply with the provisions of Articles 28, 29, 30 and 31 of the Law on Procurement No. 43/2013/QH13 of Vietnam, proposing the method of selecting a contractor. Contractor must ensure compliance with the scale, nature and technical requirements of the bidding package.

Fifth, type of contract: The investor and project owner shall comply with the provisions of Article 62 of the Law on Procurement No. 43/2013/QH13 of Vietnam and clearly state the basis and conditions for selecting the type of contract appropriate to the scale, nature and characteristics of the bidding package. Package contract is applicable in the following cases:

+ Bidding packages for providing simple consulting services (including consultancy on setting up Bid Documents, evaluating bids, converting investment capital etc.) and simple non-consulting services;

+ Bidding packages for procurement of goods with a bidding package value of not more than VND 10 billion;

+ Construction and installation bidding packages, mixed bidding packages with a bidding package value of not more than 20 billion VND.

Sixth, in case it is necessary to supplement the bidding package to implement one or more additional items during the implementation of the project or work, but these items have not been approved in the investment project or the funding has not been determined in the total investment and construction cost estimate, the investor shall temporarily calculate the price of the bidding package, propose the capital source to execute the bidding package and submit it to the competent person for consideration and approval of the plan on selecting bidders as a basis for organizing the project. The appraisal and approval of the bid package estimate shall comply with regulations on management of construction investment costs.

Seventh, for ODA projects: Investors and project owners shall base themselves on the provisions of Clauses 1, 2, 3, 4, 5 and 6, Article 4 of the Circular No. 39/2015/TT-BNNPTNT to formulate the plan on selecting bidders as the basis for negotiation with the Donor when signing the Agreement.

View more details at the Circular No. 39/2015/TT-BNNPTNT of the Ministry of Agriculture and Rural Development of Vietnam, effective from December 10, 2015.

Le Vy

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