Regulations on contents of contractor selection plan

Regulations on preparing contractor selection plan in Vietnam

Pursuant to Article 38 of the Law on Bidding 2023, regulations on preparing contractor selection plan are as follows:

- Basis for preparation of the contractor selection plan for a project:

+ The project approval decision and relevant documents, except packages which need to be executed before the project is approved. In case a package needs to be executed before the project is approved, the decision issued by the head of the entity acting as the project employer or the head of the unit tasked with preparing the project, if the project employer is not yet identified, shall be used;

+ The contractor selection master plan (if any);

+ The project included in the assigned medium-term public investment plan, except urgent public investment projects defined in the Law on public investment;

+ The fund disbursement plan or sources of funding for the project other than the one specified in Point c of Clause 1 of Article 38 of the Law on Bidding 2023;

+ The international convention or loan agreement, if the project is funded by ODA or concessional loans, except the cases of bidding in advance prescribed in Article 42 of the Law on Bidding 2023;

+ Other relevant legislative documents.

- Basis for preparation of the contractor selection plan for a procurement cost estimate:

+ Standards and norms for use of public property of regulatory authorities, organizations, units and officials, public employees and workers (if any);

+ The procurement cost estimate;

+ Other relevant legislative documents.

Regulations on the contents of contractor selection plan (Internet image)

Contents of contractor selection plan in Vietnam

Pursuant to Article 39 of the Law on Bidding 2023, the contents of contractor selection plan in Vietnam specified as follows:

(1) Name of the package:

Name of the package must reflect the nature, contents and scope of tasks of the package. If a package is divided into smaller parts, each of them must have a suitable name.

(2) Package price:

- The package price is the value of the package defined in the contractor selection plan to be approved. The package price includes all costs for execution of the package, including contingencies, fees, charges and taxes. The package price may be updated at least 28 days before the bid opening date if deemed necessary;

- If a package is divided into smaller parts, the package price and the estimated price of each part shall be specified;

- Regarding a package with additional purchase option as prescribed in (8), the package price excludes the additional purchase value.

(3)  Funding sources:

Determined or approved sources of funding for each package must be specified. If a package is funded by ODA or concessional loan of a foreign donor, name of the donor and capital structure, including funding allocated by the donor and reciprocal capital from Vietnamese party, shall be specified. In case a package is to be executed within duration of exceeding 01 year under a procurement cost estimate, the funding sources may be determined on the basis of the procurement cost estimate of the current budget year and expected procurement cost estimates of the following budget years.

(4) Contractor selection method and procedure:

- Specific contractor selection method and procedure must be determined for each package: domestic or international contractor selection; whether or not online contractor selection is employed;

- If a project is to be executed under a contractor selection master plan, contractor selection method and procedure must be specified in conformity with the contractor selection master plan.

(5) Contractor selection duration:

The contractor selection plan must clearly indicate the duration and the time of initiating contractor selection. The contractor selection process shall begin from the month or quarter in which bidding documents or RFP is issued. In case of competitive bidding that employs the shortlisting procedure, contractor selection process shall begin when the EOI request or prequalification document is issued.

(6)  Type of contract:

- The specific type of contract must be determined as prescribed in Article 64 of the Law on Bidding 2023 and used as the basis for preparation of the EOI request, prequalification document, bidding documents and RFP, and signing of the contract;

- If a project is to be executed under a contractor selection master plan, the type of contract must be specified in conformity with the contractor selection master plan.

(7) Package execution duration:

The package execution duration starts on the effective date of the contract till the date of acceptance of completed works, goods (including related services, if any), consulting or non-consulting service. The package execution duration is expressed as a number of days, weeks, months or years, excluding the warranty period and designer's supervision period in respect of a consulting service package (if any).

(8)  Additional purchase option (if any):

- Additional purchase option allows the employer to purchase an amount of goods, consulting or non-consulting services of the package in addition to the original amount specified in the contract;

- The contractor selection plan for a package with additional purchase option must clearly indicate the volume, quantity and estimated value of additional purchase;

- The additional purchase option may be applied if: the bidding has won the bid through competitive bidding or price negotiation; the volume of additional purchase does not exceed 30% of that of the corresponding item specified in the contract; there is an approved cost estimate for the additional purchase; the unit price of goods or services additionally purchased shall not be higher than that of corresponding goods or services specified in the contract; the additional purchase option is exercised during the validity period of the contract.

(9)  Supervision of bidding activities (if any).

Mai Thanh Loi

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