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THE MINISTRY OF
PLANNING AND INVESTMENT
THE MINISTRY OF TRADE THE MINISTRY OF CONSTRUCTION
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SOCIALIST
REPUBLIC OF VIET NAM Independence - Freedom Happiness
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No. 2-TT/LB
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Hanoi, February
25, 1997
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CIRCULAR
GUIDING THE IMPLEMENTATION OF THE REGULATION ON BIDDING
(Issued together
with Decree No.43-CP of July 16, 1996 of the Government)
The Regulation on Bidding was
issued together with Decree No.43-CP of July 16, 1996 of the Government with a view
to ensuring the objectivity, fairness and uniformity of bidding activities
nationwide in such fields as selection of consultants, procurement of materials
and equipment and construction and installation carried out on the territory of
the Socialist Republic of Vietnam.
In furtherance of Article 3 of
Decree No.43-CP and Article 46 of the Regulation on Bidding, the Ministry of
Planning and Investment, the Ministry of Construction and the Ministry of Trade
hereunder jointly provide guidance concerning a number of main contents of the
Regulation on Bidding for the uniform execution by the ministries, branches,
localities and establishments.
Part I
GENERAL PROVISIONS
1. Scope of
regulation
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(a) Investment projects ratified
by the agency competent to decide the investment in accordance with the
Regulation on the Management of Investment and Construction issued together
with Decree No.42-CP are projects with State allocated capital, projects
belonging to State enterprises and projects using capital from ODA sources as
provided for in Decree No. 20-CP of March 15, 1994 of the Government.
(b) Joint venture investment
projects in which the contributions of Vietnamese enterprises represent at
least 30% of the prescribed capital are projects which have been granted
investment licenses by competent agencies in accordance with current
regulations.
(c) With regard to bidding for
the selection of partners for joint venture and business cooperation projects,
wholly foreign-invested projects, BOT projects or BT projects, separate
regulations shall apply.
(d) For projects other than the
above-mentioned projects, the application of the Regulation on Bidding is
encouraged, though not compulsory.
2. Forms of
bidder selection
(a) Unrestricted bidding: This
form of bidding is encouraged so as to achieve high competitiveness through
participation of many bidders. However, its application depends on each
specific project to be carried out within a locality, region, an inter-region
or on national or international scale.
(b) Restricted bidding: This
form of bidding shall be applied in the following cases:
- Where only a number of bidders
meet the tendering dossiers requirements, but there must be at least 3
potential participants in the bid.
- Where the sources of capital
require restricted bidding.
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(c) Appointed bidding: This form
shall have to comply with Article 30 of the Regulation on the Management of
Investment and Construction issued together with Decree No.42-CP of July 16,
1996 of the Government.
3.
Prequalification of bidders
(a) The prequalification of
bidders shall apply to construction and installation bidding packages valued at
100 billion VND and more; bidding packages for the procurement of materials and
equipment valued at more than 200 billion VND or with complicated technologies.
For bidding packages of lesser value than the above-prescribed levels, the
tenderer may conduct prequalification, if necessary. Prequalification steps
taken by the tenderer shall comply with Article 26 and Part A (Appendix III) of
the Regulation on Bidding.
With regard to construction and
installation bidding packages opened for international bids, foreign bidders
must make a written commitment to have at least one Vietnamese bidder in
partnership.
The prequalification dossier may
be elaborated by the tenderer(s) or by the hired agencies specialized in
bidding and bidding packages or consultancy organizations which have business
permits or operating licenses. The tenderer shall have to submit the
prequalification dossier to the person(s) competent to decide the investment or
the authorized level(s) for ratification before announcing the
prequalification.
(b) With regard to bidding
packages of lesser value than the above-prescribed levels, though
prequalification is not required, the tenderer must request the bidders to
submit all documents on bidding conditions as stipulated in Article 6, Item 2
of the Regulation on Bidding and to declare their capabilities and experiences
based on forms No. 2, 3, 4, 5, 6, 7, and 8, 9 (if any) in Appendix III (Part A)
attached to the Regulation on Bidding which shall serve as basis for
considering the bids administratively and juridically as well as the bidders
capability to perform the contract before the evaluation and classification of
the bids. Regarding form No. 3, it shall be readjusted according to Section
VII, Clause 2.4, Point (d) of this Circular so as to conform with the current
accounting regime.
4. Privileges
for domestic bidders
Domestic bidders who participate
in an international bid organized in Vietnam and win the bid shall be entitled
to privileges in accordance with special provisions of the State.
5. Price for
bid consideration
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The price for bid consideration
shall be determined on the following bases:
- Requirements and instructions
stated in the tendering dossier.
- The total cost estimate or the
ratified cost estimate.
- The total investment capital
of the project, if the total cost estimate or the ratified cost estimate is not
available.
The price for bid consideration
must be included in the total cost estimate or the ratified cost estimate and
must not exceed the ratified total investment capital of the project.
The winning bidding price must
not exceed the price for bid consideration already ratified.
6. Head of the
competent agency
The Head of the competent agency
is the person of the level stipulated in Article 7 of the Regulation on the
Management of Investment and Construction issued together with Decree No.42-CP
of July 16, 1996 of the Government, who shall have the responsibilities and
powers defined in Point 4, Article 42 of the Regulation on Bidding.
Part II
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I.
Preparation for the bid
Contents of preparation for the
bid include:
- The bidding plan.
- Personnel.
- Tendering dossier.
- Criteria for the evaluation of
the bids
1. Bidding
plan
The overall contents of the
bidding plan stipulated in Article 5 of the Regulation on Bidding shall comply
with the following detailed guidances:
1.1. Division of bidding
packages
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- The estimated value of each
bidding package must not exceed the cost estimate (if the bidding package is
part of the project) and the total value of bidding packages must not exceed
the total investment or the total cost estimate (if any) which has already been
ratified.
- With regard to the selection
of consultants, the estimated value of each bidding package shall be determined
on the basis of the estimated level, compared with the total investment already
ratified.
1.2. Mode of contract
performance
The selection of a mode for
contract performance must be based on the characteristics, size and duration of
the performance of each bidding package.
(a) Package contract (with
package price):
For bidding packages which allow
exact determination of the quality, volume and price at the moment of bidding,
the mode of package contract shall apply. In the process of the contract
performance, the price already agreed upon in the contract must not be changed.
For any changes not initiated by the bidder, they must be approved in writing
by the person(s) competent to decide the investment or the authorized level.
(b) Contract with price
readjustment :
b.1. Scope of application:
- Bidding packages that cover
jobs or parts of the project which have no conditions to determine or cannot
determine the volume or quantity exactly at the time of the bidding.
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b.2. Principles of
application:
- The tenderer can only apply
the mode of contract with price readjustment to bidding packages which have been
ratified in the bidding plan or approved by the person(s) competent to decide
the investment.
- This mode shall apply only to
the changes in quantity or volume (increase or decrease) not caused by the
bidder, certified by the related parties and permitted by the person(s)
competent to decide the investment. Any quantity or volume change due to the
bidders fault shall not be considered.
- The readjusted value of the
contract must not exceed the total cost estimate or the ratified cost estimate.
The readjusted value of the whole project must not exceed the total investment
amount already ratified.
b.3. Conditions and formula
for readjustment:
The tendering dossier must
clearly specify the conditions for the price readjustment, parts of the work or
parts of the project eligible for price readjustment, the limit and formula
thereof.
(c) Turn-key contracts: With
regard to projects the whole of which is offered for bidding, if the project
owner cannot manage it, the mode of turn-key contract shall apply, provided
that it is allowed by the person(s) competent to decide the investment.
Depending on concrete conditions and characteristics of each project, the
project owner may apply the mode of package contract or contract with price
readjustment in accordance with the stipulations in Points (a) and (b) above.
1.3. The time frame of the
bidding plan
Besides the overall bidding plan
for the whole project, with regard to projects for which the bidding must be
conducted within at least 24 months (2 years), detailed bidding plans for each
year or for every two years at most should be determined one by one to serve as
basis for the submission and approval.
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The bidding plan elaborated by
the tenderer must be ratified by the person(s) competent to decide the
investment:
+ For projects using State
capital: The person competent to decide the investment is stipulated in Item 1,
Article 7 of the Regulation on the Management of Investment and Construction.
As for bidding packages of Group A projects, the stipulations in Article 42 of
the Regulation on Bidding shall apply.
+ For joint venture projects (to
which a Vietnamese enterprise contributes at least 30% of the prescribed
capital): The bidding plan shall be ratified by the Managing Board of the joint
venture enterprise on the basis of a written agreement of the Ministry of
Planning and Investment.
2. Personnel
2.1. Person(s) competent to
decide the investment
The responsibilities and powers
of the person(s) competent to decide the investment are stipulated in Article
42 of the Regulation on Bidding.
2.2. Tenderer
The tenderer may be the project
owner or his/her lawful representative who is responsible for bidding
activities. The responsibilities and powers of the tenderer are stipulated in
Article 40 of the Regulation on Bidding.
2.3. Group of specialists or
consultants assisting the tenderer
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In cases where there is a
requirement to hire consultants (instead of appointing a group of assisting
specialists) for the performance of the work mentioned in Point 1, Article 40
of the Regulation on Bidding, if the cost is 500 million VND or more, the tenderer
shall have to organize a bid in accordance with the provisions of the
Regulation on Bidding and provisions on the selection of consultants in this
Circular.
2.3.1. Appointing a group of
specialists or hiring consultants
The group of specialists or consultants
assisting the tenderer shall be established or hired and have the tasks
stipulated in Item 1, Article 40 and responsibilities and powers stipulated in
Article 41 of the Regulation on Bidding with the following detailed guidance:
(a) With regard to bidding
packages belonging to projects of groups A and B in which tenderers are project
managing boards or organizations specialized in the management of investment
and construction, the tenderer shall have to appoint a group of specialists or
hire consultants to assist the bidding.
The specialists invited by the
person(s) competent to decide the investment to provide consultancy on the
evaluation of the bidding results (the evaluation of results shall be submitted
by the tenderer) shall have to comply with the stipulations in Article 41 of
the Regulation on Bidding.
(b) With regard to bidding
packages belonging to projects of group C and a number of small-size bidding
packages valued at less than 10 billion VND belonging to projects of groups A
and B, in which tenderers are non-business or administrative agencies or
organizations having little experience in the management of investment and
construction, the agency competent to decide the investment shall have to guide
the tenderer to set up a group of bid-assisting specialists (including
specialists invited by the authority competent to decide the investment) to
assist the organization of bidding, the evaluation and classification of
bidders.
2.3.2. Structure of the group of
specialists or consultants
- A member (or group of members)
in charge of the technical and technological matters.
- A member (or group of members)
in charge of the economic-financial matters.
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The tenderer shall have to
appoint a head to manage the activities of the group, sum up the situation and
prepare reports of evaluation ...
2.3.3. Criteria for the
selection of specialists
- Having professional
qualifications related to the bidding package.
- Having a firm grasp of the
contents of the bidding package.
- Experienced in practical
management or research.
- Understanding the order and
process of evaluation and selection of the bidding results.
- Members of the group of
specialists or consultants shall not be entitled to participate in the
evaluation of the bidding results.
2.3.4. Responsibilities of
members of the group of specialists or consultants (In addition to the
stipulations in Article 41 of the Regulation on Bidding)
- To respect the specific
contents and requirements defined in the tendering dossier as well as the
criteria for the evaluation of the bids which have been ratified by the
person(s) competent to decide the investment or the authorized level.
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- The evaluation and ranking of
bidders must be conducted objectively. The ranking shall be based on the
general evaluation of standards with sound analysis of each index in each criterion
unanimously approved by all the specialists. If in the process of evaluating
and ranking bidders, the specialists opinions vary with regard to a number of
important contents, the person(s) competent to decide the investment shall have
to organize the assessment and inspection to clarify the matter.
- Not to cooperate with the
bidders in any form.
- Any member of the group of
specialists or assisting consultants who violates the above-said regulations
shall be handled in accordance with Article 45 of the Regulation on Bidding.
3.
Preparation of the tendering dossier
(a) The contents of the
tendering dossier have been provided for in the Regulation on Bidding and
guided in details in the attached Appendice. More concretely:
- Consultancy selection: Article
16 of the Regulation on Bidding and Part B of Appendix I attached to the
Regulation on Bidding.
- Procurement of materials and
equipment: Article 19 of the Regulation on Bidding, Appendix II attached to the
Regulation on Bidding.
- Construction and installation:
Article 27 of the Regulation on Bidding, Part B of Appendix III attached to the
Regulation on Bidding.
With regard to bidding for
construction and installation, special attention should be paid to the
following: the designing dossier and the cost estimate must be determined from
the technical design for construction (in case of one-step designing) or the
blueprint for construction (in case of two-step designing); all technical
instructions must be extremely specific and clear. For large-size projects
which have no blueprint at the moment of bidding, the cost estimate may be
determined on the basis of the technical design. With regard to other cases, if
it is allowed by the person(s) competent to decide the investment, the tenderer
shall have to make a uniform cost estimate to serve as basis for bidding. With
regard to projects designed by foreign parties, the designing dossier must
enable the determination of the construction volume of the project.
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- In cases where the bid is
conducted by the specialized agencies or domestic consultancy organizations,
all costs of making tendering dossier and evaluating bids shall comply with
Decision No.501/BXD-VKT of September 18, 1996 of the Ministry of Construction.
- In cases where the bid is
conducted by a foreign consultancy organization, the costs of foreign
consultancy shall comply with Item 1, Article 17 of the Regulation on Bidding.
4. Evaluation
criteria
4.1. Bidding for the selection
of consultants
The evaluation of consultancy
bids shall be conducted in two steps:
(1) Evaluation of the technical
solutions dossier,
(2) Evaluation of the dossier of
financial solutions and contract negotiation.
The evaluation of the technical
solutions dossier shall be conducted on the basis of the three following
criteria:
- Experiences.
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- Personnel.
The personnel proposed for the
performance of consultancy services is considered the most important factor. They
must have a clear working record and experience suitable to the requirements of
bidding packages. The chief consultant (head of the group of consultants) must
have enough years of service in branches conforming to the bidding package. All
members must make a commitment (with their signatures) that they will have
enough time for the execution of bidding package according to schedule. In case
of an international bid, the foreign consultancy company must make a written
commitment to have a Vietnamese consultancy company in partnership; priority
shall be given to proposals on using a large number of domestic consultants.
All the above-said commitments must be written in the contract.
Guidance is provided for the
detailed contents in Section IV, Appendix I of the Regulation on Bidding.
4.2. Bidding for the procurement
of materials and equipment
a/ Criteria for the evaluation
of prequalification dossiers
With regard to bidding packages
listed in Section 3, Part I of this Circular, to select eligible and capable
bidders to participate in the bid, the tenderer shall have to conduct the same
prequalification as for bidding for construction and installation stipulated in
Item 4.3 below.
b/ Criteria for bid evaluation
1. Capabilities and experiences.
2. Techniques.
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4. Duration of performance.
5. Technology transfer.
6. Training.
7. Other criteria (if any)
A scale of rating (up to100 or
1000 marks) should be set up to make the detailed evaluation of each criterion,
of which the 3 main criteria are: (1) capabilities and experiences, (2)
techniques and (3) finance and prices. They must account for at least 65% of
the total of marks. With regard to the bids having already passed the
prequalification, the bid evaluation according to converted prices on the same
plane is encouraged.
In case of an international bid,
in addition to the above-said requirements, foreign bidders shall have to make
a written commitment to join Vietnamese bidders or to use suitable materials
and equipment which can be manufactured and processed in Vietnam so as to meet
the requirements of the tendering dossier (regarding quality and prices). All
the above-said commitments must be written in the contract.
4.3. Bidding for construction
and installation
(a) Prequalification of bidders
To select eligible and capable
bidders to participate in the bid, the tenderer shall evaluate prequalification
bidding dossiers for bidding packages stipulated in Item 3, Part I of this
Circular, according to three following factors:
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2. Financial capability.
3. Experiences.
A scale of rating should be set
up to evaluate the three above factors, and depending on the characteristics of
each bidding package, to determine the proportion of each factor. Only those
bidders who obtain at least 60% of the total of standardized technical marks
shall be selected for participation in the bid.
(b) Criteria for bid evaluation
1. Technical and quality
criteria.
2. Criteria on the bidders
experiences.
3. Financial and price criteria.
4. Criteria on the construction
tempo.
A scale of rating (up to 100 or
1000 marks) should be set up to make the detailed evaluation of each criterion,
of which the main three are: (1) experiences, (2) techniques and (3) finance
and price. The latter criterion must account for at least 65% of the total of
marks.
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In case of an international bid,
in addition to the above-said requirements, foreign bidders must have a written
commitment to have at least one Vietnamese bidder in partnership. Such a
commitment shall include: the commitment to use domestic sub-contractors for
construction and installation; the commitment to use suitable materials and
equipment which can be manufactured and processed in Vietnam to meet the
requirements of the tendering dossier (regarding quality and prices); the
determination of percentages of the work volume and prices to be assigned to
the Vietnamese bidder(s). All the above commitments must be written in the
contract.
II.
Invitation for bidding
1. Bid announcement
The bid announcement shall apply
to the unrestricted bidding. The contents of the bid announcement must be
widely publicized so as to provide initial information for the bidders to
prepare for the participation in the bid. With regard to bidding packages with
prequalification, before the official bid, the tenderer shall have to announce
the prequalification. The form of the prequalification announcement and the bid
announcement are provided for in details in Appendice attached to the
Regulation on Bidding.
The announcement must be made by
the tenderer at least for three consecutive times on the mass media (daily
newspapers, audio-visual means...), depending on the sizes and characteristics
of bidding packages. In case of an international bid, in addition to the above
requirements, the tenderer shall also have to announce the bid on at least one
English newspaper with a wide circulation in Vietnam.
2. Sending the letter of
invitation
With regard to restricted
bidding, the tenderer shall have to send a letter of invitation for the bid
directly to each of the bidders in the already approved list of bidders. The
form of the invitation letter for each concrete field is provided for in
Appendice attached to the Regulation on Bidding.
III. Bid
submission
1. General principles
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2. Sealing
- The bidder shall have to seal
all the documents of his/her bid which must clearly state the original and
copies of bidding documents.
- The names of the bidding
package, the project, the bidder, the name and address of the tenderer must be
stated clearly on the dossier bag, and with the inscription: not to be
opened before...(date and time of the bid opening)
The tenderer shall not take
responsibility for any breach of the above-said regulations.
3. Late submission
Any bid which is sent to the
tenderer after the deadline of the bid submission already prescribed in the
tendering dossier shall be invalid and sent back in its original state to the
bidder. In case of force majeure, the tenderer may consider the delayed bids on
a case-by-case basis, according to the post stamp on the envelope with the date
of receiving and sending.
4. Amendment and withdrawal of
bids
- The bidder may amend or
withdraw the already submitted bid, provided that he/she notifies in writing
such amendment or withdrawal and the tenderer must receive such notification
before the deadline of the bid submission prescribed in the tendering dossier.
- The document on the withdrawal
of the bid may be sent directly to the tenderer, by telex, fax or registered
mail.
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- The bidder must submit
together with his/her bid a bid security equivalent to 1%-3% of the total
estimated value of the bidding price or an amount of money for security set for
all bidders and prescribed in the tendering dossier.
- The bid security currency may
be the one which is used in the bid or any other convertible currency accepted
by the tenderer in one of the following forms:
a/ Bank security or irrevocable
letters of credit issued by a bank located in the tenderers country or in a
foreign country which is accepted by the tenderer in compliance with the form
provided for in Appendice of the Regulation on Bidding and which shall be
effective within 30 days after the expiry of the bid.
b/ Cash or check.
- If the bidder fails to pay the
bid security as prescribed in the tendering dossier, the bid shall be
eliminated.
- Bid security shall not apply
to appointed bidding.
6. Contract performance security
(except for the selection of consultants)
Provisions on contract
performance security are prescribed in Article 25 of the Regulation on Bidding
and guided in details as follows:
- With regard to bidding for the
procurement of materials and equipment: The performance security shall be
valued at from 10% to 15% of the total value of the contract.
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With regard to construction and
installation contracts to be carried out by domestic bidders, the value of
performance security shall be effective till the project is handed over
according to the contract and shifts to the stage of maintenance of the construction
and installation project.
IV. Bid
opening
The bid opening shall be
conducted in accordance with Article 10 of the Regulation on Bidding. In
special cases (if the project is a security and defense project), the tenderer
shall invite only a limited number of bidders representatives to participate in
the bid opening. The bid opening is encouraged to be conducted right after the
closure of the bid but must not exceed 48 hours (excluding holidays stipulated
by the State) after the bid submission deadline. In cases where the bid is
opened after the said time limit, it must be accepted by the person(s)
competent to decide the investment or the authorized level.
1. Preparation for bid opening
The tenderer shall have to
prepare the following:
(1) Inviting representatives to
witness the bid opening, including:
- Representative(s) of the
agency that manages the concerned branch.
- Representative(s) of the local
administration (with regard to important bidding packages to be carried out in
the locality).
- Representative(s) of the
capital supplying agency (if any).
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(2) Preparing the suitable means
to fully and accurately announce the data in the bids.
(3) Preparing the bids to be
opened according to the order prescribed by the tenderer.
2. Order in the opening of the
bid
1. Announcement of participants.
2. Announcement of the number
and names of the bidders who have already submitted their bids.
3. Inspection of the sealing of
the bids.
4. Opening envelopes of the bids
one by one in the prescribed order, reading and recording the following major
information:
- The names of the bidders.
- The number of originals and
copies.
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- The rate of price reduction
and conditions for price reduction.
- Bid security and its value (if
any).
- Other matters.
5. Signing for the certification
of the bids (as prescribed in details by the tenderer).
6. Approval of the report on the
bid opening.
7. Representatives of the tenderer
and the bidders (if any) and a number of other representatives (representatives
of the managing agencies and the State administrative agencies) shall sign the
certification of the report on the bid opening.
8. The tenderer shall have to
organize the management of the bids in accordance with the State regulations on
keeping secrets.
V. Evaluation
of bids for consultancy selection
The evaluation of bids for the
selection of consultants shall be conducted through the mode of two-dossier bag
bidding: The dossier bag with technical solutions shall be evaluated first for
classification on the basis of the tendering dossiers requirements and the
ratified criteria.
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Evaluation of the dossier bag
with technical solutions
1. Considering the
administrative and legal suitability of each bid to the requirements of the
tendering dossier.
2. Clarifying bids: In order to
facilitate the process of inspection, evaluation and comparison of the bids,
the tenderer may request the bidders to clarify their submitted bids. A request
for clarification must be made in writing and sent to the bidders. The
clarification of the bids must not change their main contents.
3. Evaluating in details each of
the bids regarding technical solutions on the basis of the criteria already
ratified by the competent authority before the time of the bid opening, mainly
the 3 following criteria:
- Experiences of the bidder.
- Solutions and methodology.
- Personnel.
3.1. Criterion on experiences:
includes 3 following contents:
(this criterion often
accounts for about 10% to 20% of the total of marks)
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The dossier with technical
solutions must report on projects already carried out by the bidder with
contents similar to those of the project offered in the tendering dossier.
Depending on the offered
project, the maximum number of marks for content (1) shall be determined
correspondingly to the number of similar projects already carried out by the
bidder.
(2) Experiences in carrying out
projects with similar conditions:
In addition to the requirements
mentioned in Point (1), in some cases it is necessary to consider the bidders
experiences in carrying out projects with similar conditions, regarding not
only natural factors, but also other factors, such as population, conditions
for economic development... Depending on the offered project, the maximum number
of marks for content (2) shall be determined correspondingly to the certain
number of projects already carried out in similar conditions.
(3) Other factors:
- Capability: The bidders
capability to meet the quantitative demand for personnel being involved and to
be involved in the work.
- Managerial experiences: to
evaluate the suitability of the bidders managerial skills to the requirements
of the projects.
- Other activities...
The ratio of marks for contents
(1), (2) and (3) shall depend on the characteristics of the offered project.
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(this criterion often
accounts for 30% to 40% of the total of marks)
(1) Having the firm grasp of
the projects objectives: The bidders general understanding of the projects
objectives and requirements already stated in the "Terms of
references" and the organization of visits to the site of construction.
(2) Methodology proposed by
the bidder: The methodology proposed by the bidder must be complete,
reasonable and meet the requirements of the "Terms of references".
(3) Innovative opinions:
Any bidder who proposes reasonable innovative opinions shall be best
appreciated.
(4) Program of action: The
program of action includes the organizational scheme, working plan and
personnel disposition program. The organizational scheme shall be made on the
basis of relations between the project owner and the bidder as well as measures
for the project management and tasks of each party. The personnel arrangement
shall be determined on the basis of reasonable arrangement of work and
according to an appropriate timetable.
(5) Wage (monthly-person):
The monthly wage for a person shall be proposed by the bidder in conformity
with the projects estimated readjustments.
(6) Training and technology
transfer: The bidder should propose the contents of the training and
technology transfer which must be clear and suitable to the projects
requirements in the immediate and far future.
(7) Working facilities:
All demands for the support in working places, facilities and equipment,
personnel, transport means... must be reasonable and practical.
(8) Presentation: The
bids shall be considered on the basis of their presentation which must be
clear, complete, transparent and easy to understand.
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3.3. Criterion on personnel
(This criterion often
accounts for 50% to 60% of the total of marks).
The personnel evaluation shall
be conducted according to a saparate form on the basis of the four following
contents:
- General experience (10%-20%):
educational level, working seniority.
- Experiences related to the
project (60%-70%): the number of projects in the same field which have been
carried out.
- Other factors (10%-20%):
experiences in working abroad, foreign languages...
- Regular staff of specialists
belonging to the bidder (5%).
(a) With regard to the chief
consultant (the head of group): It is necessary to evaluate experiences of this
specialist as a chief consultant in earlier projects. At the same time, to
evaluate his capabilities and experiences as a specialist. A specialist as a
chief consultant must have at least 5 consecutive years working in the
specialized field related to the project.
(b) With regard to specialists
in specific fields: To evaluate their educational qualifications and training
results related to the requirements of the project. To evaluate the scope of
their similar experiences related to the requirements of the project. In the
process of evaluation, it is necessary to distinguish regular specialists from
contractual specialists working for the bidder.
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After the classification, the
bidder who is ranked first and get at least 65% of the total of marks shall be
invited by the tenderer to attend the opening of the second dossier bag with
financial solutions. The negotiation on the contract should be based on
reasonable financial and price conditions and other conditions suitable to the
tenderers requirements. If the negotiation on the contract fails and in case of
acceptance by the competent authority, the tenderer shall invite the next
bidder who have a number of marks for his/her technical solutions equivalent to
at least 65% of the total of marks to attend the opening of the second dossier
bag with financial solutions and negotiate the contract.
VI.
Evaluation of bids for the procurement of materials and equipment
The evaluation of bids for the
supply of materials and equipment must be based on the tendering dossiers
requirements and the criteria already ratified by the competent authority.
Depending on the characteristics of each bidding package, the tenderer shall
have to conduct the bid evaluation through the four following steps:
- Preliminary evaluation of the
bids.
- Detailed evaluation of the
bids.
- General evaluation and
classification.
1. Preliminary evaluation of the
bids
1.1. The compatibility of the
bids
(a) First, the tenderer shall
have to consider the administrative and legal compatibility of each bid to the
requirements of the tendering dossier so as to determine the acceptability of
the bid.
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1.2. Clarification of the bids
To assist the process of
inspecting, evaluating and comparing the bids, the tenderer may request the
bidders to clarify the submitted bids. The request for clarification must be
made in writing and sent to all bidders. The clarification of the bids must not
change their major contents and bidding prices, except in cases where the
tenderer requests the correction of arithmetic errors.
1.3. Elimination of unqualified
bids
(a) Any bid which does not comply
with the requirements of the tendering dossier shall be considered invalid and
may be eliminated, but it must be reported to the person(s) competent to decide
the investment or the authorized level(s) for consideration.
(b) The determination of each
bids acceptability must be conducted objectively and according to uniform
criteria for all bids.
2. Detailed evaluation of the
bids
2.1. Consideration of bidding
prices for readjustment
The tenderer shall consider the
bids to correct arithmetic errors and then readjust the bidding prices.
2.2. Conversion of bidding
prices currencies to the common currency (applied only to international bids)
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(b) The exchange rate for the
conversion shall be the rate announced by the State Bank of Vietnam on the day
of the bid opening (according to Article 11 of the Regulation on Bidding).
(c) The tenderer shall have to
ensure the accuracy of the conversion. If any mistake is found, the tenderer
shall have to correct it to ensure the accuracy of the bid evaluation.
2.3. Consideration of the bids
technical compatibility
(a) The tenderer shall have to
consider in details the bids compatibility with the tendering dossiers
technical requirements. This includes the consideration of major technical
factors such as the size of the project, the prescribed equipment or materials,
the tempo of goods delivery or the implementation tempo...
(b) Determination of differences
from the set technical criteria for financial readjustment. The technical
evaluation must be conducted objectively and fairly for all bidders.
2.4. Readjustment of disparities
In cases where the bid includes
non-basic disparities (which do not exceed 10% of the total bidding price),
compared with the tendering dossiers requirements, the tenderer shall have to
make additional readjustment of the bidding price to have a readjusted bidding
price for the comparison of the bids on the same plane.
2.5. Evaluation according to the
ratified criteria
After the correction of
mistakes, conversion of bidding prices currencies (if any) and readjustment of
disparities, the bids shall be evaluated according to each criterion with the
following main contents:
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- Technical capability: To
consider the main commercial products (quantity and lines), the number and
qualifications of specialized personnel...
- Financial and business
capabilities: To consider the turnovers, profits... at the time of bidding and
during at least the three latest years.
- Experiences: To consider
experiences in performing similar projects during at least the 5 latest years.
(b) Technique: The following
contents shall be considered:
- Capability to meet the
requirements on technology, quality of materials and equipment and technical
properties prescribed in the tendering dossier.
- Economic and technical
features, codes of the offered materials and equipment, names of manufacturing
firms and countries...
- The rationality and economic
efficiency of technical solutions and measures to organize the delivery of
materials and equipment to the place of installation.
- Capacity to install equipment
and technicians qualifications.
- Technical adaptability.
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- Impacts on the environment and
solutions thereto.
(c) Finance and prices: To consider
the financial capability, capability and conditions of financial supply (if so
requested) and the bidding price. The financial supply capability and
conditions must comply with the tendering dossiers requirements as well as
international and domestic practices. The winning bidding price must not exceed
the bidding price ratified for the bid evaluation.
(d) Duration of the contract
performance: The duration of the contract performance must comply with the tendering
dossier and the commitment to finish the contract on time or before schedule .
(e) Technology transfer: To
consider the capability of technology transfer for the whole project or parts
of the project on the basis of the requirements of the project or of the
necessary fields.
(f) Training: To consider the
plan for disposition of specialists for the contract performance in combination
with technical training for Vietnamese workers and cadres and overseas
training.
(g) Other necessary criteria.
3. General evaluation and
classification of bidders
When the bids have been checked
and recognized to meet the general requirements and the bidding prices have
been inspected and readjusted (if any), the tenderer shall conduct a general
evaluation and classification of the bids according to the ratified criteria.
The general evaluation may be conducted on the basis of the converted prices on
the same plane or the ratified scale of rating attached to the evaluation
criteria. After the general evaluation of criteria, the bidders shall be
classified on the basis of the result of the general evaluation.
VII.
Evaluation of bids for construction and installation
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- Preliminary evaluation of the
bids.
- Detailed evaluation of the
bids.
- General evaluation of the
bids.
1. Preliminary evaluation of the
bids
1.1. Consideration of the bids
validity
(a) With regard to bidding
packages having passed the prequalification, it is necessary to check the
updated information that have been declared by the bidders at the time of the
prequalification so as to continue the consideration of the bidders capability
to meet the financial and technical requirements. Any updated information
contrary to the bid shall be checked and examined. The number of bids, the
bidders signatures and bid security shall be inspected in accordance with the
provisions of Points b.3 and b.4 below.
(b) With regard to bidding
packages without going through prequalification, it is necessary to examine the
bidders eligibility and capability:
1. To inspect their business
permits or operating licenses.
2. To inspect their technical
and financial capabilities and experiences as required by the tendering
dossier.
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4. To inspect the legality of
the certifying signatures in the bids and bid securities...
1.2. Consideration of the bids
capability to meet basic requirement
A bid with basic acceptability
is the one that meets the requirements, conditions and the technical properties
defined in the tendering dossier; that has no documentary errors or limitations
which greatly affect the size, quality or materialization of the project or
restrict the powers of the tenderer or the obligations of the bidders.
The determination of a bids
invalidity or its failure to meet the basic requirements must be conducted in
an objective manner and in compliance with the requirements of the tendering
dossier.
1.3. Clarification of the bids
(if necessary)
The clarification of the bids
shall comply with the stipulations of Section VI, Item 1.2 of this Circular.
1.4. Elimination of the bids
which are invalid or which fail to meet basic requirements
The elimination of the bids
which are invalid or which fail to meet basic requirements shall comply with
the stipulations of Section VI, Item 1.3 of this Circular.
2. Detailed evaluation of the
bids
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Bids which are considered valid
and meeting basic requirements shall be examined by the tenderer for arithmetic
errors. The tenderer shall correct arithmetic errors (if any) and promptly
inform the bidders thereof. In case of any difference between the value written
in figures and that written in words, the latter shall be the legal basis. In
case of any difference between the unit price and the total price due to the
multiplication of the unit price by the volume, the unit price shall be the
legal basis.
The bidding price stated in the bid
shall be readjusted by the tenderer in accordance with the above-mentioned
procedure. If the bidder disagrees, his/her bid shall be eliminated but the bid
security money shall not be returned to him/her.
2.2. Readjustment of disparities
In cases where the bids contain
non-basic disparities (which do not exceed 10% of the total bidding price),
compared with the requirements of the tendering dossier, the tenderer shall
have to make an additional readjustment of the bidding price so as to compare
the bids on the same plane.
2.3. Conversion of bidding
prices currencies into a common currency (applied only to international bids)
(a) After the bids have been
checked, their arithmetic errors have been corrected and the disparities
readjusted, the tenderer shall have to convert different currencies (if any)
used in bidding prices of the bids into a common currency to serve as basis for
the bid evaluation and comparison of bids.
(b) The exchange rate applied to
the convertible currency shall be the rate announced by the State Bank of
Vietnam at the time of the bid opening (according to Article 11 of the
Regulation on Bidding).
(c) The tenderer shall have to
ensure the accuracy of the currency conversion, thus ensuring the objectivity
and fairness for the bidders.
2.4. Evaluation according to the
ratified criteria
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(a) Criterion on technique and
quality: the following must be considered:
- The bids capability to meet
technical requirements and requirements on the quality of materials and
equipment stated in the designing dossier and technical instructions.
- A diagram of the site (see
form 7, Appendix III of the Regulation on Bidding).
- Disposition of personnel at
the site (see form 6, Appendix III of the Regulation on Bidding); together with
a list of the key cadres, their qualifications, working seniority, tasks to be
assigned and their related experiences.
- Possibility of cooperation and
joint venture with Vietnamese construction organizations (in case of
international bids).
- The rationality and feasibility
of technical solutions and measures to organize the construction.
- Measures to ensure conditions
on environmental hygiene and other safety requirements, such as prevention of
fire and explosion, labor safety...
- The compatibility of
construction equipment (regarding quantity, types, capacity and tempo of the
mobilization for the construction...according to form 5, Appendix III of the
Regulation on Bidding.)
(b) Criterion on the bidders
experiences shall comply with the contents of form 4, Appendix III of the
Regulation on Bidding.
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- To consider the capability of
ensuring the general construction timetable defined in the tendering dossier.
- To consider the rationality of
the timetable for the completion of construction sections or related parts of
the project.
(d) Financial and price criteria
(see form 3, Appendix III of the Regulation on Bidding) shall be readjusted as
follows:
- Financial criterion:
+ To consider the financial
capability in the three latest years regarding the total property, movable
property, total debts, current due debt, the owners capital sources and capital
sources for business.
+ To consider the bidders credit
capability and the addresses of the banks supplying credits for the bidder.
+ Lists and the total value of
the contracts which are being carried out; the value of the uncompleted
project; date of completion of the remaining parts of the contract.
- Price criterion:
Depending on concrete conditions of each bidding package, the winning bidding
price must not exceed the price already ratified for the bid evaluation. In the
process of evaluation, there should be concrete measures to eliminate price
dumping in bidding. The suitability of the bidding price shall be determined on
the following basis:
+ The compatibility of the
construction and installation price of parts of the project or parts of the
bidding package which has already been ratified.
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3. General evaluation of
criteria and classification of bidders
- Depending on concrete requirements
and conditions of each project, the general evaluation of criteria may be
conducted according to the method of price conversion on the same plane or in
accordance with the scale of ratings already ratified. The standard marks of
criteria and the structuring norms of such criteria shall be determined
according to the scale of ratings ratified by the level competent to decide the
investment or the authorized agency before the bid opening.
- After the general evaluation
of criteria through the method of price conversion or according to the scale of
ratings as mentioned above, the bids shall be classified for the submission to
the person(s) competent to decide the investment for consideration and
ratification of the winning bidder.
VIII.
Submission for ratification of bidding results
1. Regarding bidding packages
belonging to projects of group A
1.1 With regard to consultancy
bidding packages valued at 10 billion VND or more, bidding packages for the
procurement of materials and equipment or construction and installation bidding
packages valued at 50 billion VND or more belonging to projects of group A, the
bidding results shall be ratified by the Prime Minister as stipulated in Point
1, Article 43 of the Regulation on Bidding:
a/ The tenderer shall have the
responsibility to submit the bidding results to the Prime Minister and at the
same time inform the managing agency of the project owner and the related
specialized agency thereof.
b/ The Ministry of Planning and
Investment shall have to organize the assessment of the bidding results for
submission to the Prime Minister.
c/ The time limit for organizing
the assessment of the bidding results shall not exceed 30 days from the
reception of the full dossier on the bidding results for ratification.
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(1) Legal documents:
- The decision on project
investment, aid agreement (if any).
- The ratified bidding plan of
the project.
- The tendering dossier and
ratified evaluation criteria.
- The decision on the
establishment of the group of specialists or consultants.
(2) Documents related to
bidding process:
- A report made by the managing
agency of the project owner.
- Reports on the bidding process
and the bidding results made by the tenderer (attached with the evaluation
comments of the group of specialists or consultants, results of the
evaluation...).
- The bid opening record.
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(3) Copies of the bid.
(4) Other relevant documents.
1.2 With regard to the remaining
bidding packages of the Group A projects, the provisions of Point 1, Article 43
of the Regulation on Bidding shall apply:
- The time limit for assessment
(if necessary) shall not exceed 20 days from the reception of the full dossier
on the bidding results for ratification.
2. With regard to bidding
packages belonging to Group B projects, the provisions of Point 2, Article 43
of the Regulation on Bidding shall apply.
2.1. With regard to consultancy
bidding packages valued at 10 billion VND or more and bidding packages for the
procurement of materials and equipment or for construction and installation
valued at 50 billion VND or more:
a/ The tenderer shall have to
submit the dossier on the bidding results to the person(s) competent to decide
the investment in projects of Group B for ratification. Before ratifying the
bid winner, the person(s) competent to decide the investment shall have to
submit the bidding results to the Prime Minister for approval.
b/ The time limit for assessment
(if any) shall not exceed 30 days from the reception of the bidding results
dossier submitted for ratification.
2.2. With regard to bidding
packages with a value below the above-mentioned level:
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b/ The time limit for assessment
(if any) shall not exceed 20 days from the full reception of the dossier with
the bidding results.
3. With regard to bidding
packages of Group C
a/ The tenderer shall have to
submit the dossier on the bidding result to the person(s) competent to decide
the investment for ratification.
b/ The time limit for assessment
(if any) shall not exceed 15 days from the full reception of the bidding result
dossier.
4. With regard to bidding
packages belonging to joint venture projects of State enterprises of Vietnam
which contribute 30% and more to the prescribed capital.
The bidding results of all
bidding packages belonging to the projects which have been granted investment
licenses by the Ministry of Planning and Investment shall be ratified by the
Managing Boards of the joint venture enterprises on the basis of a written
agreement from the Ministry of Planning and Investment.
The bidding results of all
bidding packages belonging to projects which have been granted investment
licenses by the Peoples Committee of a province or city directly under the
Central Government or by the authorized level shall be ratified by the Managing
Board of the joint venture enterprise on the basis of the written agreement
from the Peoples Committee of the province or city directly under the Central
Government or the authorized level.
The time limit for agreement
shall not exceed 20 days, from the full reception of the bidding result dossier
for ratification.
IX.
Promulgation of the bidding results, negotiation on completion of the contract
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1.1. The tenderer shall announce
the bidding results and conduct the negotiation on the contract only after a
document is issued ratifying the bid winner from the level competent to decide
the investment.
1.2. Before announcing the bid
winner and signing an official contract, the tenderer shall have to update all
changes in the bidders capabilities and other information relating to the
bidder. In case any change is detected which affects the performance of the
contract, the tenderer shall have to promptly report it to the person(s)
competent to decide the investment for consideration and decision.
2. Cases of re-consideration of
the bidding results
2.1. Elimination of bids and
re-organization of the bidding
The bidding results shall be
considered for elimination when:
- For objective reasons, the
projects objective has been changed which makes it different from the initial
plan stated in the tendering dossier.
- All the bids have, basically,
not met requirements of the tendering dossier.
- There are evidences showing
that the bidders have been acting in connivance with one another, thus making
the bid uncompetitive.
On the basis of the decision
issued by the person(s) competent to decide the investment, the tenderer shall
have to notify the cancellation of the bidding results to all bidders.
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With regard to biddings for the
procurement of supplies and equipment or for construction and installation, if
all the bids meet technical requirements but fail to meet requirements on price
and finance, the tenderer shall propose the person(s) competent to decide the
investment to allow the bidders to offer new bidding prices. In cases where the
bids have failed to fully meet the technical requirements of the project owner,
the tenderer should report it to the person(s) competent to decide the
investment for consideration and permission to request the bidders to
supplement and readjust their bidding dossiers on the same technical plane and
then offer new bidding prices. All requirements must be made in writing and
sent to all the bidders.
3. Announcing the bid winner,
negotiation and signing the contract
3.1. Announcing the bid winner
After a decision is issued by
the competent authority to ratify the bidding results, the tenderer shall send
by registered mail, telegraph, telegram or fax to the bid winner the
announcement on his/her winning together with a draft contract, with notice on
points to be supplemented (if any) so as to meet the requirements of the
tenderer.
At the same time, the tenderer
shall send the winning bidder a timetable, stating the proposed time for
negotiation, the deposit of contract performance security and the signing of
the contract.
3.2. Negotiation for the
completion of the contract and its signing
Upon receipt of the notification
of his/her winning, the bid winner shall send the tenderer a letter accepting
the negotiation on the contract. Within 30 days from the date of the
notification, if the tenderer does not receive a letter of acceptance or
receive a letter of refusal from the bidder, the tenderer shall report to the
competent level for consideration and decision. The bid security deposit shall
not be refunded.
On the basis of the agreed
timetable, the two sides shall conduct the negotiation to complete the contract
then sign the official contract. With regard to small and simple contracts the
application of the above stipulations is not compulsory. Upon receipt of the
notification of his/her winning and the draft contract, the bidder and the
project owner may immediately sign a contract for its performance.
The project owner shall refund
the bid security (if any) and organize the performance of the contract when
receiving the contract performance security from the bid winner within 30 days
from the date of the notification of the bid winning.
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ORGANIZATION OF
IMPLEMENTATION
1. Issues to
be solved after the issue of the Regulation on Bidding
According to the Regulation on
Bidding issued together with Decree No.43-CP, the role of the National Bid
Evaluation Council, the Bid Evaluation Councils at the project as well as the
ministerial, provincial levels shall cease to be legally effective. The
tenderer shall have to take responsibility for all activities in the bidding
process on the basis of the opinions of the Group of Specialists or Consultants
and under the guidance of the related functional agencies.
2. Reporting
on the bid
To help the managerial levels
have information on the bid, the tenderer shall have to periodically (every 6
months or annually) review the situation and report in writing to the related
State managerial agencies.
Basing themselves on the report
of the project owner, the ministries, branches and localities shall have to
review and periodically (every 6 months or annually) report in writing to the
Ministry of Planning and Investment for the review and submission to the Prime
Minister.
3. Bidding
costs
3.1. Depending on the
characteristics and size of each bidding package, the tenderer is entitled to
sell the tendering dossier on the principle of ensuring the States financial
regulations currently in force. Besides, the tenderer shall not be allowed to
collect any other fees from the bidders.
3.2. The funds for the tenderer
to organize the bidding and bid evaluation shall comply with the Regulation on
the Management of Investment and Construction issued together with Decree
No.42-CP of July 16, 1996 of the Government and Decision No.501/BXD-VKT of
September 18, 1996 of the Ministry of Construction determining costs of
assessment and investment and construction consultancy.
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- The level of expenditure for
the assessment of the bidding results shall represent 0.01% of the total value
of the bidding package but must not be lower than 3 million VND and not exceed
30 million VND.
- The above expenditure shall be
included in the cost accounting according to projects financial resources.
- The Ministry of Planning and
Investment shall take responsibility for the management and use of the
above-said financial sources for the right purposes and in accordance with the
current State regulations on financial management.
4. Ensuring
confidentiality of the dossiers and handling violations
4.1. The tenderer shall take
responsibility for ensuring the confidentiality of tendering and bidding
dossiers in accordance with the States regulations on confidential information.
The tenderer shall not be allowed to disclose the tendering dossier and
evaluation criteria till the time of the official announcement.
In the process of organizing the
bid evaluation and selection, the tenderer and specialists participating in the
bidding process shall not be allowed to disclose information related to the
bidding. In special cases, the tenderer may take necessary measures with the
assistance of the security force.
4.2. All acts of disclosing
bidding secrets, whether by groups or individuals, irrespective of their posts
and working positions, shall be handled in accordance with Article 45 of the
Regulation on Bidding.
In cases where a connivance in
any form among bidders is discovered, besides the confiscation of their bid
securities (if any), the violating bidders shall not be allowed to participate
in biddings for any bidding package for 3 consecutive years. The Ministry of
Planning and Investment, the Ministry of Construction and the Ministry of Trade
shall jointly determine the above-said cases, then inform the tenderers and the
related agencies thereof for implementation.
In cases where the bidding
result is canceled by the person(s) competent to decide the investment or the
bid must be re-organized due to the tenderers violation of the Regulation on
Bidding, the tenderer shall not only be subject to administrative sanction in
accordance with Article 45 of the Regulation on Bidding, but also have to
compensate for the bidders costs in the bid. In cases where the bidder is at
fault, all costs of the bid preparation shall be borne by the bidder.
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Upon the completion of the
bidding process and bid evaluation, the tenderer shall have to organize the
regular inspection of the performance of the contract by the bidders so as to
promptly provide necessary information to the competent levels for consideration
and decision.
To solve all problems arising in
the contract performance process in a timely manner, the ministries, branches
and localities and the heads of the competent agencies shall have to inspect
and supervise the implementation of decisions ratifying the bidding results as
well as all clauses stated in the contract and agreed upon by the project owner
and the bidder.
6. State
management over bidding
To exercise its State management
function, the Ministry of Planning and Investment shall assume the main
responsibility and coordinate with the Ministry of Construction, the Ministry
of Trade and the concerned ministries, branches and localities in assisting the
Prime Minister to supervise the implementation of the Regulation on Bidding
throughout the country.
The planning and investment
services attached to the ministries, branches and localities shall assume the
main responsibility and coordinate with the construction and trade managing
agencies and other related agencies in assisting the Ministers or the
Presidents of the Peoples Committees of the provinces and cities directly under
the Central Government to supervise and inspect the implementation of the
Regulation on Bidding in their branches and localities.
Above are some additional
guidances besides the guidances made in Appendice I, II and III of the
Regulation on Bidding issued together with Decree No.43-CP of July 16, 1996 of
the Government. In the course of implementation, if any problem arises, the
ministries, branches and localities and the concerned units should promptly
report it to the Ministry of Planning and Investment for review and settlement
in consultation with the Ministry of Construction, the Ministry of Trade and
the other concerned ministries and branches.
The
Minister of Trade
Le Van Triet
The
Minister of Construction
Ngo Xuan Loc
The
Minister of Planning and Investment
Tran Xuan Gia
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