Self-supply process in bidding in Vietnam

Self-supply process in bidding in Vietnam (Internet image)

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

1. Cases of self-supply in bidding in Vietnam

According to Article 25 of the Law on Bidding 2013, force account shall apply to packages of projects and estimates of procurement in case organizations directly managing and using such packages have technical and financial capability, and experiences satisfying requirements of packages.

2. Conditions for self-supply method in bidding in Vietnam

Conditions for self-implementation in bidding according to Article 61 of Decree 63/2014/ND-CP are as follows:

The employment of self-supply method must be approved in the contractor selection plan in accordance with Article 25 of the Law on Bidding 2013, and satisfy preconditions below:

- The licensed business lines are suitable for the contract requirements;

- The ability to mobilize manpower and equipment to ensure punctuality must be proven in the self-supply plan;

- The unit appointed to perform the contract must not transfer any part thereof if its value is 10% of the contract value or higher than VND 50 billion, whichever come first.

3. Self-supply process in bidding in Vietnam

The self-supply process in bidding according to Article 62 of Decree 63/2014/ND-CP is as follows:

- Preparing the self-supply plan and draft the contract or assignment note:

The self-supply plan shall specify the tasks, value, duration, quality thereof, the draft contract or assignment note. If the contract is performed by a financially dependent unit, the plan must include the draft contract.

If a financially dependent unit is not available, the plan must include a draft of the assignment note, which assigns an internal unit to perform the contract.

- Completing the self-supply plan; negotiating, completing the contract or assignment note:

Discuss the information that is not clear or conformable in the self-supply plan, the draft contract, or the assignment note, and other necessary contents.

- Signing the contract or assignment note:

The procuring entity shall sign the contract or assignment note with a unit to perform the contract.

- If specialized law prescribes that the contract performance must be supervised, the procuring entity must select a supervisory contractor who is legally and financially independent to supervise the contract performance;

If specialized laws do not require this or an independent supervisory contractor is not available because the contract has to be performed in an remote area or the contract value is below VND 01 billion, the procuring entity shall supervise the contract performance itself.

4. Eligibility of bidders/investors in Vietnam

Eligibility of bidders/investors under Article 5 of the Law on Bidding 2013 is as follows:

- A bidder or investor being an organization shall be deemed to be eligible when it satisfies the following conditions:

+ 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 hereof;

+ 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.

- A bidder or investor being an individual shall be deemed to be eligible when it satisfies the following conditions:

+ Having full legal capacity as per the law of the country of which such individual is a citizen;

+ Having an appropriate professional certificate as prescribed by law;

+ Having lawful registration for operation as prescribed by law;

+ Not facing a criminal prosecution;

+ Not being banned from bidding.

- Bidders and investors with eligibility above may make a bid as an independent bidder/investor or in a joint venture; in case of joint venture, it must have written agreement among members, in which clearly stating responsibilities of the leading JV's Party and general responsibilities, particular responsibilities of each JV’s Party.

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