Circular 58/2016/TT-BTC issued by the Minister of Finance on March 29, 2016, detailing the use of state funds for procurement to maintain the regular operations of state agencies, units of the people's armed forces, public service providers, political organizations, political-social organizations, political-social-professional organizations, social organizations, and social-professional organizations.
Article table of contents
Circular 58 stipulates the use of state capital for procurement conducted through contractors and contractors selected through 07 forms such as: Open bidding, restricted bidding, direct appointment, direct procurement, competitive offering, self-implementation, and selection of contractors in special cases. To be specific:
Open bidding and restricted bidding are conducted according to the Bidding Law 2013.
Open bidding is a form of selecting contractors and investors without limiting the number of participating contractors and investors. In contrast to open bidding, restricted bidding is only applied in cases where the package requires high technical specifications or unique technical requirements that only a few contractors can meet.
Direct appointment:
- Direct appointment is carried out when all of the following 03 conditions are met:- There is an approved contractor selection plan;- The time for direct appointment from the date of approval of the request dossier to the signing date of the contract does not exceed 45 days; in the case of large-scale or complex packages, it should not exceed 90 days;- The contractor recommended for direct appointment must be listed in the contractor database.- Cases applicable for direct appointment include:- Packages necessary to immediately resolve or promptly address consequences caused by force majeure events; packages needed to ensure state secrecy; packages that need immediate implementation to avoid direct danger to life, health, and property of the residential community in the area or to avoid seriously affecting adjacent projects; packages for purchasing chemicals, supplies, and medical equipment to carry out urgent epidemic prevention and control;- Urgent packages needed to protect national sovereignty, national border, and islands;- Packages providing consulting services, non-consulting services, procurement of goods that must be purchased from a previously executed contractor to ensure technology compatibility and copyright that cannot be purchased from another contractor; packages of research, experimentation nature; purchase of intellectual property rights;- Packages providing consulting services to prepare feasibility study reports, build design designated for the architect author of the winning architectural design or selected design when the author meets the competency requirements as per regulations; construction packages of monuments, reliefs, large paintings, and artworks associated with the author's rights from creation to construction;- Procurement packages of assets, goods, and services belonging to the project or regular procurement estimates with a package value not exceeding 100,000,000 VND.
Competitive offering:
- Packages subject to competitive offering must have a value not exceeding 2 billion VND and fall under one of the following cases:- General, simple non-consulting service packages;- Packages for purchasing commonly available, market-standardized, and quality equivalent assets, goods.- Competitive offering is conducted when it meets the following 02 conditions:- There is an approved contractor selection plan;- There is an approved procurement estimate document by the competent authority.
Direct procurement:
- Direct procurement applies to packages for purchasing similar assets and goods.- Direct procurement is carried out when the following 06 conditions are met:- There is an approved contractor selection plan;- There is an approved procurement estimate document by the competent authority;- The contractor has previously won the bid through open or restricted bidding and signed a contract for the prior package;- The package has content, nature similar to and smaller in scale by up to 130% compared to the previously contracted package;- The unit price of the works under the direct procurement package shall not exceed the unit price of corresponding works under the previously contracted similar package;- The time from the contract signing of the previous package to the approval date of the direct procurement result does not exceed 12 months.
Self-implementation:
- Applied to packages within the asset, goods, and service procurement estimates where the managing and using organization has the technical capacity, financial capability, and experience to meet the package's requirements.- The application of self-implementation must be approved in the contractor selection plan and meet the following 03 conditions:- It must have functions, tasks, areas of activity, and business sectors consistent with the package's requirements;- It must demonstrate and reflect in the self-implementation plan the ability to mobilize personnel, machinery, and equipment to meet the package execution progress requirements;- The entity entrusted with conducting the package is not allowed to transfer work volumes totaling 10% of package value or more, or under 10% of package value but above 50 billion VND.
Contractor selection process in special cases:
In cases where packages, projects arise with unique, specific conditions that cannot apply the above forms to select contractors, the authorized person presents to the Prime Minister of the Government of Vietnam for consideration and decision on the contractor selection plan.
Circular 58/2016/TT-BTC is effective from May 16, 2016, replacing Circular 68/2012/TT-BTC.
