Selection of contractors for construction projects of Vietnam’s overseas missions

On August 08, 2018, the Government of Vietnam issued Decree No. 104/2018/NĐ-CP elaborating certain articles of the Law on amendments to the Law on overseas missions of Socialist Republic of Vietnam. A featured content of this Decree is the regulation on the selection of contractors for construction projects of missions.

According to Decree No. 104/2018/NĐ-CP of Vietnam’s Government, the selection of contractors for construction projects of missions is prescribed as follows:

1. The selection of contractors within Vietnam’s territory to execute construction projects of the overseas missions of Vietnam shall comply with applicable law on procurement.

2. If a contractor outside the Vietnam’s territory is selected to execute a construction project of a overseas mission of Vietnam, the competent decision-maker as per the law on procurement shall decide the plan for selection of the contractor that ensure that the chosen contractor is qualified, experienced and has a feasible method to perform the contract with quality assurance, efficiency, competitive prices, in specific:

As for a procurement of consulting services or non-consulting services up to VND 3 billion and procurement of goods, construction and works up to VND 5 billion, the investor shall take the steps below:

- The investor shall select a preferred bidder among the qualified and experienced bidders that is conformable with the procurement.

- The investor shall, based on the objectives, scope of work, approved estimate, make preparation and send a draft contract to the selected bidder. Based on the draft contract, the investor and the selected bidder shall initiate the negotiation and completion of the contract as the basis for approval for the results of bidder selection and conclude the contract.

- Finally, conclude the contract.

As for a procurement of consulting service or non-consulting service greater than VND 3 billion and a procurement of goods or construction greater than VND 5 billion, the investor shall take the steps below:

- The investor shall select a preferred bidder among the qualified and experienced bidders that is conformable with the procurement in order to issue a request for proposals.

- Engage a consulting unit to make a request for proposal, containing a brief statement describing the project/procurement; guidance on preparation and submission of proposals; criteria for qualifications of bidders; technical evaluation criteria and determination of contract price. Use the pass-fail system to evaluate qualifications and the technical proposal.

- The investor shall approve the request for proposals and send it to the selected bidder.

- The bidder shall prepare and submit a proposal as required in the request for proposal.

Engage a consulting unit to evaluate the proposal:

- The proposal shall be evaluated according to the evaluation criteria as specified in the request for proposal. During the evaluation process, the investor shall invite the bidder to negotiate, clarify or amend the necessary information in the request for proposals to establish the eligibility of the bidder to the requirements for qualifications, experience, progress, volume, quality, technical solutions and measures to perform the contract.

- The bidder shall be selected if it meets all of the requirements below: a valid proposal; qualifications, experience and proposal in conformity with the requirements of the request for proposals; and the proposed bid-winning price does not exceed the approved contract price estimate.

- The investor shall, based on the objectives, scope of work, approved estimate, make preparation and send a draft contract to the selected bidder.

- Based on the draft contract, the investor and the selected bidder shall initiate the negotiation and completion of the contract as the basis for approval for the results of bidder selection and conclude the contract.

- Conclude the contract.

View more details at Decree No. 104/2018/NĐ-CP of Vietnam’s Government, effective from August 08, 2018.

- Thao Uyen -

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