Cases of bid suspension, refutation of contractor/investor selection result under the new regulations in Vietnam

Cases of bid suspension, refutation of contractor/investor selection result under the new regulations in Vietnam (Internet image) 

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

1. Cases of bid suspension, refutation of contractor/investor selection result under the new regulations in Vietnam

According to Article 18 of the Law on Bidding 2023, cases of bid suspension, refutation of contractor/investor selection result in Vietnam are prescribed as follows:

- If there is evidence that an organization or individual participating in the bidding commits any of the prohibited acts in Article 16 of this Law or violations against relevant laws which adversely affect the achievement of competitiveness, fairness, transparency, and economic efficiency or falsify the contractor/investor selection result, the competent person shall adopt one or some of the following measures:

= Suspend the bidding process in order to suspend all contractor/investor selection activities and take remedial actions against violations immediately. Bid suspension shall be made during the contractor/investor selection and before the contractor/investor selection result is approved;

= Refuse to recognize the contractor/investor selection result during the contractor/investor selection and the contract execution;

= Impose penalties for violations as prescribed in Article 87 of the Law on Bidding 2023.

- The decision on bid suspension or refutation of contractor/investor selection result must clearly indicate the causes thereof, remedial measures and time limit for completing remedial measures against violations.

Thus, according to the above regulations, bid suspension, refutation of contractor/investor selection result will apply when there is evidence that an organization or individual participating in the bidding commits any of violations of the law on bidding or violations against relevant laws which adversely affect the achievement of competitiveness, fairness, transparency, and economic efficiency or falsify the contractor/investor selection result.

2. What are the cases of bid cancellation in Vietnam?

2.1. Case of contractor selection

(i) All EOIs, prequalification applications, bids or proposals are considered substantially nonresponsive to the EOI request, prequalification document, bidding documents or RFP;

(ii) There are changes in the objectives and scope of investment specified in the investment decision resulting in changes in volume of tasks and evaluation criteria specified in the EOI request, prequalification document, bidding documents or RFP;

(iii) The EOI request, prequalification document, bidding documents or RFP does not comply with regulations laid down in this Law or other relevant laws to the extent that the selected bidder fails to meet the requirements of the package;

(iv) The successful bidder commits any of the prohibited acts in Article 16 of the Law on Bidding 2023; or

(v) Another organization or individual that is not the successful bidder commits any of the prohibited acts in Article 16 of the Law on Bidding 2023 resulting in inaccurate contractor selection result.

2.2. Case of investor selection

(i) All bids are considered substantially nonresponsive to the bidding documents;

(ii) There are changes in the objectives, scale, location, investment capital or duration of investment project execution due to force majeure events resulting in changes in evaluation criteria specified in the issued bidding documents;

(iii) One or some contents of the bidding documents does not comply with regulations laid down in this Law or other relevant laws resulting in inaccurate investor selection result or to the extent that the selected investor fails to meet the requirements of the investment project;

(iv) The successful investor commits any of the prohibited acts in Article 16 of the Law on Bidding 2023; or

(v) Another organization or individual that is not the successful investor commits any of the prohibited acts in Article 16 of the Law on Bidding 2023 resulting in inaccurate investor selection result.

Bid cancellation may occur within the period from the issuance of the EOI request, prequalification document, bidding documents or RFP to the signing date of the contract or framework agreement in case of centralized procurement.

Organizations and individuals that commit violations to the extent of bid cancellation as prescribed in Points  (iii), (iv), (v) Section 2.1 and Points  (iii), (iv), ( v) Section 2.2 shall pay compensation to related parties.

(Article 17 of the Law on Bidding 2023)

Nguyen Ngoc Que Anh

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