Standard process of shopping in Vietnam

Standard process of shopping in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Scope of shopping in Vietnam

According to Article 57 of Decree 63/2014/ND-CP, the scope of shopping in Vietnam is as follows:

- Standard process of shopping applies to any of the contracts defined in Clause 1 Article 23 of the Law on Procurement, the value of which does not exceed VND 05 billion.

- Shortened process of shopping applies to any of the contracts defined in Point a Clause 1 Article 23 of the Law on Procurement whose value does not exceed VND 500 million; any of the contracts defined in Point b and Point c Clause 1 Article 23 of the Law on Procurement whose value does not exceed VND 1 billion; and regular procurement contracts whose value does not exceed VND 200 million.

2. Standard process of shopping in Vietnam

Standard process of shopping in Vietnam according to Article 58 of Decree 63/2014/ND-CP is as follows:

(1) Preparation for contractor selection:

- Making the request for proposals:

The request for proposals must be made in accordance with Clause 1 Article 12 of Decree 63/2014/ND-CP.

The request for proposals shall contain summary of the project/contract; instructions on preparation and submission of the proposal; requirements with regard to the contractor’s competence and experience; criteria for technical evaluation and determination of lowest prices.

The contractor’s competence and experience shall be assessed as satisfactory or unsatisfactory;

- Evaluating and approving the request for proposals:

= The request for proposals must be evaluated in accordance with Article 105 of this Decree before it is approved;

= The approval for the request for proposals must be granted in writing in accordance with the report on evaluation of the request for proposals.

(2) Contractor selection:

- The procuring entity shall post the request for offers in accordance with Point d Clause 1 Article 7 and Point b Clause 1 or Point a Clause 2 Article 8 of of Decree 63/2014/ND-CP.

The request for proposals shall be issued to any bidder that wishes to participate by the deadline written in the request for offers (at least 03 working days from the day on which the request is posted on the national procurement system or the Vietnam Public Procurement Review Journal);

- The request for proposals shall be adjusted and clarified in accordance with Clause 2 Article 14 of Decree 63/2014/ND-CP;

- Bidders shall send their proposals to the procuring entity directly or by post. Each bidder may submit only one proposal;

- The procuring entity is responsible for protect the confidentiality of information in the proposals submitted by bidders.

Right after the deadline for submitting proposals, the procuring entity shall open the proposals and make a bid opening record, which contains: names of bidders, offered prices, validity periods of proposals; values and validity periods of tender guarantee; contract duration. This record shall be sent to every bidder that has submitted their proposals.

(3) Evaluation of Proposal evaluation and negotiation:

- The procuring entity shall evaluate the proposals submitted. A bidder is “passed” if that bidder’s proposal is valid, the bidder’s experience and competence are satisfactory, and all technical requirements are satisfied.

- The procuring entity shall compare offered prices in the proposals that satisfy technical requirements in order to determine the proposal that offers the lowest price.

The bidder that offers the lowest price which does not exceed the contract value after error correction, adjustment of deviation, and deduction of discount (if any) shall be invited to enter into the contract negotiation;

- The contract negotiation shall be carried out in accordance with Article 19 of this Decree.

(4) Reporting, verifying, approving, and announcing contractor selection result:

The result of contractor selection shall be reported, verified, and announced in accordance with Article 20 of this Decree.

(5) Drafting and concluding the contract:

The contract between both parties must conform to the decision to approve the result of shopping, the contract negotiation record, the proposal, the request for proposals, and relevant documents.

(6) Schedule for standard process of shopping:

- The minimum time limit for preparing the proposal is 05 working days from the day on which the request for proposals is issued;

- If the request for proposals must be adjusted, the procuring entity must notify the bidder at least 03 working days before the deadline for submitting proposals;

- Proposals shall be evaluated within 20 days from the bid opening date. Then, the procuring entity shall make a request for approval for the result of contractor selection, which is enclosed with the report on proposal evaluation.

- The result of contractor selection shall be verified within 07 working days from the day on which the request for verification is received;

- The result of contractor selection shall be approved within 05 working days from receipt of request for approval from the procuring entity and the verification report from the verifying unit;

- Other deadlines are specified in Clause 1 Article 12 of the Law on Procurement.

Quoc Dat

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