FORMS OF BIDDING IN VIETNAM

According to the provisions of the Bidding Law 2013, there are 8 forms of selecting contractors, investors: Open bidding, Restricted bidding, Appointment of bidders, Competitive offers, Direct procurement, Self-realization Select contractors, investors in special cases and Participate in the implementation of the community.

1. Open bidding

Open bidding is a form of selecting contractors and investors in which there is no limit on the number of bidders and investors attending.

Extensive domestic bidding is applied in the following cases:

Investment fields that Vietnamese laws or international treaties to which the Socialist Republic of Vietnam is a signatory contain restrictions on foreign investors’ participation in the implementation;
Foreign investors do not attend international prequalification or fail to win prequalification;
Group C PPP project in accordance with the law on public investment. In case it is necessary to use advanced technology, techniques, international management experience, domestic investors may enter into joint ventures with foreign investors or use foreign contractors to participate in bidding and implement projects. .
Investment projects with land use, with a preliminary estimate of the total project implementation cost (excluding compensation and ground clearance expenses) of less than VND 120,000,000,000 (one hundred and twenty billion) dong.

2. Limited bidding

Restricted bidding is applied in cases where the bidding package has a high technical or peculiar requirement that only a number of contractors meet the requirements of the bidding package.

3. Appoint contractors.

a) Conditions for bidding packages to be performed appointment of contractors:

Having an approved investment decision, except for project preparation consultancy packages;
Having an approved contractor selection plan;
Having been allocated capital at the request of the progress of bidding package implementation;
Having an approved estimate according to regulations, except for cases of EP, EC, EPC bidding packages, turnkey bidding packages;
Having time to implement bid appointment from the date of approving the request dossier to the date of signing contract not exceeding 45 days; In case the bidding package is large and complex within 90 days;
Contractors proposed for appointment of contractors must have their names in the contractor’s database of state management agencies in charge of bidding activities.

b, Cases where contractor appointment is applied to contractors:

The bidding package needs to be carried out to immediately overcome or to handle in time consequences caused by force majeure incidents; bidding packages need to be implemented to ensure state secrets; the bidding package should be implemented immediately to avoid causing immediate harm to the lives, health and property of the population community in the area or so as not to seriously affect adjacent works; bidding packages for the purchase of medicines, chemicals, medical supplies and equipment for epidemic prevention and control in emergency cases;
Urgent bidding packages should be implemented in order to protect national sovereignty, national borders and islands;
Bidding packages providing consultancy services, non-advisory services, and procurement of goods must be purchased from contractors that have previously been performed because of the compatibility of technology and copyright that cannot be purchased from contractors. other; bidding packages of research or testing nature; buy intellectual property rights;
The bidding package to provide consultancy service of making feasibility study report, construction design is assigned to the author of the architectural design of the successful project or is selected when the author is qualified according to regulations. specified; construction bidding packages of monuments, reliefs, murals, works of art associated with copyright from creation to construction;
The package of relocation of technical infrastructure works directly managed by a specialized unit to serve the ground clearance work; bidding packages for detection of bombs, mines and explosive objects to prepare work construction ground;
Bidding packages of public products and services, bidding packages with price of bidding package within the limit of application of contractor appointment:
Not exceeding VND 500 million for bidding packages to provide consultancy, non-advisory services and public services; not exceeding VND 1 billion, for bidding packages of goods procurement, construction and installation, mixture, purchase of medicines, medical supplies and public products;
Not exceeding VND 100 million, for bidding packages of regular procurement estimates.

c, Appointed bidding to investors is applied in the following cases:

Only one investor registers for execution;
Only an investor is able to perform due to intellectual property, trade secrets, technology or capital arrangements;
The investor proposes the project to meet the requirements of the most feasible and effective project implementation according to the Government’s regulations.

4. Competitive offers

a, Competitive quotation is made when fully meeting the following conditions:

Having an approved contractor selection plan;
Having an approved estimate according to regulations;
Having been allocated capital according to the requirements of the progress of bidding package implementation.

b, Competitive offers shall apply to bidding packages of the following cases:

For competitive offers under normal process (bidding packages valued at no more than VND 5 billion)
Common and simple non-advisory service bidding package;
Procurement package of common goods, available on the market with standardized specifications and similar quality;
A simple construction bidding package has an approved construction drawing design
For competitive offers follow shortened process
Common and simple non-advisory bidding package (valued at no more than VND 500 million);
Procurement package of common goods, available on the market with standardized technical specifications and similarity in quality (valued at no more than VND 1 billion);
A simple construction bidding package has an approved construction drawing design (valued at no more than VND 1 billion);
The bidding package for regular procurement is worth not more than VND 200 million

5. Shop directly

a) Conditions for conducting direct procurement:

The contractor has won the tender through open bidding or limited bidding and has signed a contract to perform the previous bidding package;
The bidding package has the same content, similar nature and the scale is 130% smaller than the previous signed bidding package;
The unit price of parts of a bidding package subject to direct procurement must not exceed the unit price of corresponding jobs of similar bidding packages that have been signed in the previous contract;
The time limit from the signing of the previous bidding package to the date of approval of direct procurement results shall not exceed 12 months.

b, Direct procurement is applied to bidding packages of similar goods belonging to the same project, procurement estimates or other procurement projects or estimates.

c, Where contractors performing previous contracts are unable to continue performing direct procurement bidding packages, direct procurement may apply to other contractors if satisfying the capability and business requirements. testing, technical and price based on bidding documents and results of selection of previous contractors.

6, Self-implementation

a) Self-implementation is applicable to bidding packages in the following cases:

Project, procurement estimate in case the organization directly manages and uses the bidding package with technical, financial and experience capability meeting the requirements of the bidding package.

b, Conditions for applying the form of self-implementation:

Having functions, tasks, fields of operation and business lines suitable to the requirements of the bidding package;
Must prove and show in the self-implementation plan the ability to mobilize personnel, machinery and equipment to meet the requirements on the progress of bidding package implementation;
Units assigned to perform bidding packages must not assign work volumes with a total amount of 10% or more of the bidding package price or under 10% of the bidding package price but over VND 50 billion.

7.Selection of contractors and investors in special cases.

In case a bidding package or project has specific and specific conditions that cannot be applied to the above modes of selection of contractor or investor, state agencies, political organizations and political organizations – social, socio-political-professional organizations, social-professional organizations, social organizations, units of the people’s armed forces, public non-business units, scientific organizations and public technology when using state capital to purchase assets, goods and services in order to maintain regular operations and submit them to the Prime Minister for consideration and decision on contractors and investors.

8.Join the implementation of the community

Local communities, organizations, groups and groups of workers in a locality where the tender package is assigned are responsible for carrying out all or part of such package in the following cases:

Bidding packages belong to the national target program, programs to support hunger eradication and poverty alleviation for rural and mountainous districts, communes, remote areas, islands, extremely difficult socio-economic regions;
Small-scale bidding packages that can be undertaken by local communities, organizations, groups and craftsmen include:
Bidding package of non-advisory service provision, goods procurement with value of bidding package not exceeding 10 billion VND;
Construction and mixture bidding packages are valued at a value of not exceeding VND 20 billion.

Above are the bidding forms for contractors and investors to consider, please pick up the phone to contact us at hotline 0984624444 or gmail phapluatdoanhnghiepso1@gmail.com if you need advice. We are always ready to listen and support you quickly, accurately and economically.

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