Bid evaluation methods applied to non-consulting service, procurement, construction or mixed packages in Vietnam

Bid or proposal means a set of documents prepared and submitted by a bidder or investor to the procuring entity in accordance with requirements laid down in the bidding documents or RFP

Bid evaluation methods applied to non-consulting service, procurement, construction or mixed packages in Vietnam is specified in Article 58 of the Law on Bidding 2023 as follows:

Least-cost method

- The least-cost method applies to packages in which technical, financial and commercial proposals are regarded to be on the same level if they meet the requirements of the bidding documents;

- The bidder that has a bid meeting technical requirements and the lowest bid price after error correction and deviation adjustment (if any), and deducting the value of discounts (if any), shall be ranked first.

Method for evaluating bids for bidding packages providing non-consulting services

Method for evaluating bid documents for bidding packages providing non-consulting services (Image from the internet)

Evaluated-price method

- The evaluated price is the bid price after error correction and deviation adjustment (if any), as required in the bidding documents, deducting the value of discounts (if any) and adding factors for conversion into the same level for the entire life cycle of goods, works or non-consulting services. Evaluated prices are used for ranking of bids for procurement, construction, non-consulting service or mixed packages that apply competitive bidding, limited bidding or shopping method;

- The evaluated-price method applies to packages where costs can be converted to the same level in terms of technical, financial and commercial factors for the entire life cycle of goods, works or non-consulting services;

- One or some factors converted into the same level for determining the evaluated price include: operating and maintenance costs, and other costs associated with loan interests, supply schedule and quality of goods, services or works of the package; capacity or output; statistical and assessment reports on performance of previous contracts, including consideration of origin of goods; sustainable bidding and other factors;

- The bidder that has the lowest evaluated price shall be ranked first.

Combined technique and price-based method 

- The combined technique and price-based method applies to IT, telecommunications or insurance packages; procurement and/or construction packages with specific or high technical requirements to which the evaluated-price method cannot apply; or packages where technical and price factors should be taken into consideration;

- The combined score shall be calculated on the basis of the technical score and the price score. The bidder that has the highest combined score shall be ranked first.

General note: Responsiveness to the capacity and experience requirements shall be evaluated on pass/fail basis. Responsiveness to the technical requirements shall be evaluated on either scoring or pass/fail basis. Where the combined technique and price-based method applies, technical criteria shall be evaluated on the basis of a scoring system. When the evaluation is based on a scoring system, the minimum technical qualifying score shall be at least 70% of total technical score.

Mai Thanh Loi

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