What is Two-stage one-envelope procedure under the law in Vietnam

What is Two-stage one-envelope procedure under the law in Vietnam? (Internet image)

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

1. What is two-stage one-envelope procedure?

According to Article 32 of the Law on Bidding 2023, the two-stage one-envelope procedure is prescribed as follows:

- Two-stage one-envelope procedure shall be adopted in the competitive bidding or limited bidding for procurement, construction, or mixed packages of which specific and adequate technical requirements are not yet imposed when the bidding is conducted.

- At the first stage, bidders shall submit their technical proposals, without bid prices, which are prepared in accordance with the requirements laid down in the bidding documents and on the basis of fundamental designs or specifications of the package. Bidders are allowed to offer alternatives to the requirements as described in the bidding documents provided that they must be separately offered in addition to the primary technical plan required in the bidding documents. Technical proposals shall be opened immediately after the deadline for submission of bids. Bidders whose technical proposals are considered to have met the requirements of the bidding documents at the first stage shall be invited to the second stage.

- At the second stage, the contractor selection process shall be conducted as follows:

+ (*) Bidders on the list of responsive bidders made at the first stage shall be invited to clarify their technical proposals. A request for clarification may include the employer or procuring entity’s request for bidder’s modification of their technical solutions proposed at the first stage. The bidder may also comment on the contents of the bidding documents;

+ On the basis of the request for clarification of technical proposal and response from each bidder, the bidding documents at the first stage shall be modified in terms of instructions to bidders, evaluation criteria, technical requirements, conditions of contract, and other contents deemed necessary to constitute the bidding documents for the second stage, including bidders’ technical deviations and proposed alternatives which have been accepted;

+ Bidders shall submit bids, including both the technical proposal and the financial proposal, which are prepared in accordance with the requirements laid down in the bidding documents at the second stage and in which the bid price and bid security are determined on the basis of technical solutions proposed at the first stage which have been modified as prescribed in Point (*). All bids shall be opened at the same bid opening.

2. What is two-stage two-envelope procedure?

Pursuant to the provisions of Article 33 of the Law on Bidding 2023, the two-stage two-envelope procedure is as follows:

- Two-stage two-envelope procedure shall be adopted in the competitive bidding or limited bidding for procurement, construction, or mixed packages which employ new, complicated and/or special techniques or technologies but of which specific and adequate technical requirements are not yet imposed when the bidding is conducted.

- At the first stage, bidders shall submit their technical proposals, without bid prices, which are prepared in accordance with the requirements laid down in the bidding documents and on the basis of fundamental designs or specifications of the package. Bidders are allowed to offer alternatives to the requirements as described in the bidding documents provided that they must be separately offered in addition to the primary technical plan required in the bidding documents. Technical proposals shall be opened immediately after the deadline for submission of bids. Bidders whose technical proposals are considered to have met the requirements of the bidding documents at the first stage shall be invited to the second stage.

- At the second stage, the contractor selection process shall be conducted as follows:

+ Bidders on the list of responsive bidders made at the first stage shall be invited to clarify their technical proposals. A request for clarification may include the employer or procuring entity’s request for bidder’s modification of their technical solutions proposed at the first stage. The bidder may also comment on the contents of the bidding documents;

+ On the basis of the request for clarification of technical proposal and response from each bidder, the bidding documents at the first stage shall be modified in terms of instructions to bidders, evaluation criteria, technical requirements, conditions of contract, and other contents deemed necessary to constitute the bidding documents for the second stage, including bidders’ technical deviations and proposed alternatives which have been accepted;

+ A bidder shall submit their bid, including the technical proposal and the financial proposal contained in two separate envelopes, in accordance with the requirements laid down in the bidding documents for the second stage, which also include the bid price and bid security. Prices quoted in the financial proposal must correspond to items included in the primary technical plan proposed by the bidder. If an alternative technical plan is proposed, the financial proposal must also include prices quoted according to this plan. There are two bid opening sessions to be conducted. Technical proposals shall be opened immediately after the deadline for submission of bids. Only financial proposals of bidders whose technical proposals were considered responsive shall be opened for further evaluation.

Nguyen Ngoc Que Anh

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