What are bids? Regulations on evaluation of bid packages in Vietnam

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1. What are bids?

According to Clause 31, Article 4 of the Law on Procurement 2013, bids mean all documents which are made by bidders/investors and submitted to the Procuring Entity at the requirements of the Bidding Documents, Requests for Proposals.

2. Regulations on evaluation of the bid packages in Vietnam

The evaluation of bids according to Article 18 of Decree 63/2014/ND-CP is as follows:

- Examining the validation of the bid packages must include:

+ Check the number of original and duplicate bid packages;

+ Examine ingredients of the bid packages, including

++ The bid letter, agreement on founding joint venture or consortium (if any), authorization for the validation of the bid letter (if any);

++ Tender guarantee;

++ Proof of bidder’s validation;

++ Proof of bidder's competence and experience;

++ Technical proposal;

++ Financial proposal;

++ Other relevant ingredients.

+ Examine the consistency of contents described in the original and duplicate, which supports the detailed evaluation of bid packages.

- Evaluation of the validation of bid packages: A bid package is considered valid when it fully meets the following requirements:

+ Keep an original of the bid package available;

+ Hold the bid letter signed and sealed by a bidder’s legal representative (if any) as required in the bidding documents; identify definite time for the contract execution specified in the bid letter to correspond to the technical proposal;

Detail and fix the offer price in numbers and words, which must logically match total offer price quoted in the general pricelist; do not propose different quoted bids or invent any disadvantageous terms and conditions to investors or procuring entities.

As for a bidder as a joint venture or consortium, the bid letter must be signed and sealed by a legal representative of each partner (if any) or the head on behalf of joint venture or consortium must sign the bid letter with reference to the duties assigned in the agreement on founding joint venture or consortium;

+ Validate the bid package to conform to the regulations specified in the bidding documents;

+ Hold the tender guarantee with its validity and expiry date conforming to requirements given in the bidding documents.

In the event of the tender guarantee in the form of a guarantee letter, it must be issued by the legal representative of credit institutions or foreign bank's branches in compliance with Vietnam laws, which specify the value, expiry date and beneficiary as required by the bidding documents;

+ Do not take part in two or more bid packages in which they are considered the main contractor (independent contractor or a partner of joint venture or consortium);

+ Show the agreement on founding the joint venture or consortium, signed and sealed by every partners (if any);

+ Prove that bidders are not prohibited from participating in the bidding according to bidding laws;

+ Ensure their valid status under regulations specified in Clause 1 Article 5 of the Law on Procurement 2013.

++ Having registration for establishment and operation issued by the competent authority of country where it is operating;

++ Keeping independent accounting records;

++ Not undergoing dissolution process, are not thrown into bankruptcy, and do not incur bad debts as prescribed by law.

++ Having registered on National E-procurement System;

++ Ensuring the competitiveness in bidding as prescribed in Article 6 of the Law on Procurement 2013;

++ Not being banned from bidding;

++ Its name is stated in short list for case where the short list has been selected;

++ Being in a joint venture with domestic contractors or employment of domestic subcontractors in case of a foreign contractor making an international bidding in Vietnam, unless the domestic contractor cannot acquire the competencies necessary to perform any portion of the package.

Those who submit their validated bid packages shall be considered and evaluated to verify their competence and experience.

- Evaluation of competence and experience:

+ Competence and experience evaluation shall comply with the evaluation criteria prescribed in the bidding documents;

+ Bidders with satisfactory competence and experience shall be considered and evaluated to examine their technical capability.

- Technical and price-based evaluation:

+ Evaluation of bidder’s offer price and technical capability must adhere to the evaluation standards and methods prescribed in the bidding documents;

+ Bidders who satisfy technical requirements shall be considered to define the lowest price (in respect of the application of the lowest bid price method) and evaluated price (in respect of the application of evaluated price method).

- After finalizing the rating of bidders, the expert group shall compile reports to procuring entities for their consideration. Reports must clarify the following contents:

+ List of bidders who have been qualified for further consideration and rating together with bidder’s positions in this rating;

+ List of bidders who are not qualified and eliminated; reasons for elimination;

+ Remarks on bidder's competitiveness, fairness, transparency and economic efficiency of the contractor selection. If competitiveness, fairness, transparency and economic efficiency have not been ensured, reasons and recommendations for any possible solution must be stated as well;

+ Any content of the bidding documents that has not conformed to bidding laws, which can result to any possible confusion or ambiguity in further implementation or lead to any possible deviations on the result of contractor selection; recommendations and solutions.

Quoc Dat

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