Vietnam: Content of bidder selection plan

Vietnam: Content of bidder selection plan

I would like to learn about the bidder selection plan and the content of the bidder selection plan - Thai Tu (Tra Vinh)

1. Principles of making the plan on bidder selection in Vietnam

 Principles of making the plan on bidder selection include:

- The plan on bidder selection shall be formulated for the entire project, estimate of procurement. In case where there are inadequate conditions to formulate a plan on bidder selection for the entire project, estimate of procurement, it shall be permitted to formulate a plan on bidder selection for one or a number of packages to be performed in advance.

- A plan on bidder selection must set out clearly the number of packages and the contents of each procurement.

- Division of the project, estimate of procurement into different packages shall be based on the technical nature and the sequence for its implementation, ensuring unity within the project, estimate of procurement and an appropriate size of procurement.

(Article 33 of Law on Procurement 2013)

2. Formulation of plan on bidder selection

2.1. Bases to formulate plan on bidder selection for project:

- Decision on approving project or certificate of investment and relevant documents. For packages which must be performed prior to a decision on approving project, based on decision of head of investor or head of unit assigned to perform task of preparation of project, in case the investor has not yet been identified;

- Capital sources for project;

- International treaties, international agreements for projects used official development assistance capital, concessional loans;

- Relevant legal documents.

(Clause 1, Article 34 of the Law on Procurement 2013)

2.2. Bases to formulate plan on bidder selection for recurrent procurement:

Bases to formulate plan on bidder selection for recurrent procurement are as follows:

- Standards, norms of equipment, means of working of agencies, organizations, units and cadres, civil servants, public employees;

Equipment, means of working existing which need to be replaced, purchased for supplementation, procured new ones to serve for work;

- The approved decision on procurement;

- The approved capital sources and estimate for recurrent procurement;

- Scheme on procurement, equipping for entire branch which has been approved by the Prime Minister (if any);

- Result of price evaluation of agencies and organizations with function providing service of price or quotation evaluation (if any).

Note: Plan on bidder selection may be formulated after decision on approving project, estimate of procurement or concurrently with process of formulating project, estimate of procurement or before decision on approving project for procurement which need to be performed before decision on approving project.

(Clause 2, 3, Article 34 of Law on Procurement 2013)

3. Content of plan on bidder selection for each package

The content of the contractor selection plan for each bidding package shall specify the name of the bidding package as follows:

- Name of package:

Name of procurement presents nature, content and work scope of package, in line with contents stated in project, estimate of procurement. If package includes many separate parts, plan on bidder selection should state the name describing basic content of each part.

- Price of package:

+ Price of package is determined on the basis of total investment or estimated budget (if any) for project; estimate of procurement for recurrent procurement. Price of package is included exactly and fully entire expenses associated with performance of package, including reserve expenses, charges, fees and taxes. Price of package may be updated in time limit of 28 days before day of bid opening if necessary;

+ For packages of consulting service provision for formulation of pre-feasible study report, feasible study report, price of package shall be defined on the basis of information on average price according to statistics of projects which have been made in a defined duration; the estimated total investment based on investment ratio norms of projects; preliminary total investment;

+ If package includes many separate parts, to clearly indicate the estimated price for each part in price of package.

- Capital sources:

For each package, it must clearly state capital sources or methods of capital arrangement, time of capital allocation to pay for bidder; case of using official development assistance capital, concessional loans, it must clearly state name of donors and structure of capital sources, including the financed capital, domestic reciprocal capital.

- Forms and methods of selection of bidders:

For each package, it must clearly state forms and methods of selection of bidders; selection of domestic or international contractor.

- Beginning time of contractor selection:

Beginning time of contractor selection is calculated as from issuing Bid, Request for Proposals, and clearly indicated under month or quarter in year. In case of competitive bidding with application of short-list selection procedures, beginning time of contractor selection is calculated as from issuing EOI requests, Prequalification Documents.

- Contract type:

Plan on selection of bidder must clarify contract type as prescribed in Article 62 of Law on Procurement 2013 as the basis for formulation of EOI requests, Prequalification Documents, Bidding Documents, Request for Proposals; and signing contract.

- Time for contract performance:

Time for contract performance is number of days calculated from the effective date of contract until parties fulfill obligations as prescribed in contract, exclusive of duration of warranty obligation performance (if any).

(Article 35 of Law on Procurement 2013)

4. Submission for approval of plan on bidder selection

The contractor selection plan for approval shall specify the contractor selection plan as follows:

 - Responsibilities for submission for approval of plan on bidder selection:

+ Investor for project, the Procuring Entity for recurrent procurement shall be responsible for submission of plan on bidder selection to the competent person for consideration and approval;

+ For packages which need to be performed prior to a decision on approving project, in case where the investor is identified, unit of investor shall submit the plan on bidder selection to the head of investor for consideration and approval.

In case the investor has not yet been identified, unit assigned to perform task of preparation of project shall submit plan on bidder selection to the head of its unit for consideration and approval.

- Documents to submit for plan on bidder selection include the following contents:

+ The performed part of work, including content of work related to preparation of project, packages performed previously with the respective value and legal bases for implementation;

+ The part of work which is not able to apply one of form of contractor selection, including: operation of project management board, organization of compensation and ground clearance, commencement, inauguration, payment of loan interest and other affairs not able to apply form of contractor selection;

+ The part of work in plan on bidder selection, including content of work and respective value forming packages which are performed in one of forms of contractor selection defined in Articles 20, 21, 22, 23, 24, 25, 26 and 27 of Law on Procurement 2013.

This part must clarify bases of division of project, estimate of procurement into packages. For each procurement, it must ensure to have full contents specified in Article 35 of Law on Procurement 2013.

For procurement not apply form of competitive bidding, document to submit for plan on bidder selection must clarify reason of applying other selection form;

+ The part of work which have not yet adequate conditions for formulating plan on bidder selection (if any), in which clarifying content and value of this part of work;

+ Part of summing up values of part of works specified in points a, b, c and d this Clause. Total value of this part does not exceed the approved total investment of project or estimated budget of procurement.

- Documents enclosed with report to submit for approval of plan on bidder selection:

When submitting for approval of plan on bidder selection, it must enclose copies of documents as the basis for formulation of plan on bidder selection as prescribed in Article 34 of Law on Procurement 2013.

(Article 36 of Law on Procurement 2013)

5. Evaluation and approval of plan on bidder selection

Article 37 of the Law on Procurement 2013 provides for the appraisal and approval of the contractor selection plan as follows:

- Evaluation of plan on bidder selection:

+ Evaluation of plan on bidder selection includes examination, assessment of contents as prescribed in Articles 33, 34, 35 and 36 of Law on Procurement 2013;

+ Organization assigned evaluation of the plan on bidder selection shall formulate report on evaluation and submit to the competent person for the approval;

+ Organization assigned evaluation of the plan on bidder selection shall make an evaluation report and submit it to the head of investor or the head of unit assigned to perform task of preparation of project for approving plan on bidder selection in case where package needs to be performed prior to decision on approval for project.

- The approval for plan on bidder selection:

+ Based on the evaluation report, the competent person shall approve the plan on bidder selection in writing in order to do as basis for selection of bidder after project or estimate of procurement has been approved or concurrently with decision on approving of project, estimate of procurement in eligible case;

+ Based on the evaluation report, the head of investor or the head of unit assigned to perform task of preparation of project shall approve plan on bidder selection in case where package needs to be performed prior to decision on approval for project.

Ngoc Nhi

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