MINISTRY OF
INFORMATION AND COMMUNICATIONS
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SOCIALIST
REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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No.:
04/2020/TT-BTTTT
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Hanoi, February
24, 2020
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CIRCULAR
PRESCRIBING
ESTIMATION AND MANAGEMENT OF COSTS OF INFORMATION TECHNOLOGY APPLICATION
PROJECTS
Pursuant to the Law on Information Technology
dated June 29, 2006;
Pursuant to the Government’s Decree No. 73/2019/ND-CP
dated September 05, 2019 prescribing management of state investments in
information technology;
Pursuant to the Government’s Decree No.
17/2017/ND-CP dated February 17, 2017 defining functions, tasks, powers and
organizational structure of the Ministry of Information and Communications;
At the request of the Director General of
Authority of Information Technology Application;
The Minister of Information and Communications
promulgates a Circular prescribing the estimation and management of costs of
information technology application projects.
Chapter I
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Article 1. Scope
This Circular introduces regulations on estimation
and management of costs of information technology (IT) application projects
funded by state budget for development investment expenditures, including total
investment, cost estimates and norms, and unit costs of IT application.
Article 2. Regulated entities
1. This Circular applies to regulatory authorities,
organizations and individuals engaged or involved in estimation and management
of costs of IT application projects funded by state budget for development
investment expenditures (hereinafter referred to as “cost estimation and
management”).
2. Regulatory authorities, organizations and
individuals involved in cost estimation and management of IT application
projects with other funding sources are encouraged to apply this Decree.
Article 3. Cost estimation and
management rules
1. Objectives and efficiency of IT application
projects must be ensured.
2. Total investment, cost estimates, unit costs of
IT application must be properly calculated and include all cost items as
prescribed.
3. The State shall perform cost management by
promulgating, instructing and inspecting the implementation of regulations on
cost management.
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Chapter II
SPECIFIC PROVISIONS
Section 1. TOTAL INVESTMENT AND
COST ESTIMATE
Article 4. Method for
determining total investment
Total investment shall be determined by adopting
the methods prescribed in Clause 4 Article 19 of the Government's Decree No.
73/2019/ND-CP dated September 05, 2019 prescribing management of state investments
in information technology (hereinafter referred to as “Decree No.
73/2019/ND-CP”). Methods for determining total investment are elaborated in
Appendix 01 enclosed herewith.
Article 5. Method for
determining cost estimate
1. Determination of construction costs
Construction costs are determined by estimation
based on the norms provided in Section 1 of Appendix 02 enclosed herewith.
2. Determination of equipment costs
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- Equipment costs are determined by estimation
based on the quantity and categories of equipment to be purchased, and the
market price of such equipment as prescribed in Section 2.1 of Appendix 02
enclosed herewith;
- Costs of building, development, upgrading and expansion
of internal-use software are determined according to provisions in Section 2.1
of Appendix 02 enclosed herewith.
b) Costs of equipment installation, software setup,
testing and calibration/modification of equipment and software are determined
according to provisions in Section 2.3 of Appendix 02 enclosed herewith;
c) Costs of database building, data standardization
and conversion serving data entry tasks, and inputting of data into the
database are determined according to provisions in Section 2.2 of Appendix 02
enclosed herewith;
d) Costs of training in use of equipment/software
and costs of training provided for system administrators and operators (if any)
are determined according to provisions in Section 2.4 of Appendix 02 enclosed
herewith;
dd) Costs of equipment transport and insurance (if
any), taxes and fees related to the procurement of equipment are determined by
estimation if they are not included in equipment procurement costs;
e) Costs of use, assistance, management or
operation of the project’s products or work items before they are accepted and
transferred (if any) are determined by estimation according to provisions in
Section 2.5 of Appendix 02 enclosed herewith.
3. Determination of project management costs
Project management costs are determined on the
basis of cost norms expressed in percentage or by cost estimation (if project
management consultants are employed) in conformity with duration and scale of
the project, and characteristics of the project management tasks as prescribed
in Section 3 of Appendix 02 enclosed herewith.
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a) Investment consultancy costs are determined on
the basis of cost norms expressed in percentage adopted by the Ministry of
Information and Communications or by cost estimation based on the scope and
quantity of consulting works, and the plan for performing the contract package
as prescribed in Section 4 of Appendix 02 enclosed herewith;
b) Costs of investment consultancy works performed
before the cost estimate is prepared shall be determined by values of the
concluded consulting service contracts in accordance with state regulations.
5. Determination of other costs
Other costs include costs which are not specified
in Clause 1 through 4 of this Article and are determined on the basis of cost
norms expressed in percentage adopted by the Ministry of Information and
Communications, or by a regulatory authority, or by cost estimation as
prescribed in Section 5 of Appendix 02 enclosed herewith.
6. Determination of cost contingency
Cost contingency for additional quantity of works
is expressed as a percentage (%) of total amount of construction costs,
equipment costs, project management costs, investment consultancy costs and
other costs;
Contingency for cost escalation is determined
according to the duration of investment in the project (expressed in months,
quarters and years).
Cost contingency shall be determined according to
provisions in Section 6 of Appendix 02 enclosed herewith.
Section 2. COST NORMS AND UNIT
COSTS OF IT APPLICATION
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1. IT application cost norms include
economic-technical norms and cost norms expressed as percentage.
2. Economic-technical norms are the norms for
consumption of materials, manpower and building machinery which are determined
in conformity with technical requirements, adopted technologies and solutions,
and specific scope of works for completing a workload unit.
3. Cost norms expressed as percentage are the basis
for determination of costs of some works of an IT application project,
including project management costs, investment consultancy costs and other
costs.
Article 7. Methods of
establishing IT application cost norms
1. Economic-technical norms are established as
follows:
a) Make list of works in which specific technical
requirements, adopted technologies and solutions, scope of works and suitable
calculation unit must be specified;
b) Determine work components from the preparation
stage to completion of works;
c) Determine costs of consumption of materials,
manpower and building machinery;
d) Establish cost norms by aggregating costs of
consumption of materials, manpower and building machinery.
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Article 8. Management of IT
application cost norms
1. The Ministry of Information and Communications
shall promulgate IT application cost norms which shall be used for estimation
and management of IT application costs.
2. With regard to distinct works of sectors or
provinces, related ministries and provincial People’s Committees shall, based
on the methods for establishing cost norms laid down in Clause 1 Article 7
hereof, determine or hire qualified organizations or individuals to determine,
adjust and verify costs, and promulgate cost norms after obtaining the consent
from the Ministry of Information and Communications. Promulgated cost norms
must be presented to the Ministry of Information and Communications for monitoring.
Promulgated economic-technical norms are the basis
for determining unit costs, total investment, cost estimates and managing costs
of IT application projects.
Article 9. Methods of
establishing IT application unit costs
1. Unit costs are the basis for determining costs
of an IT application project.
2. IT application unit costs shall be established
on the basis of costs selected from economic-technical norms adopted by the
Ministry of Information and Communications, relevant cost items and provisions
in Appendix 04 enclosed herewith.
Chapter III
IMPLEMENTATION
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1. This Circular comes into force from April 09,
2020 and supersedes the Circular No. 06/2011/TT-BTTTT dated February 28, 2011
of Minister of Information and Communications prescribing estimation and
management of costs of IT application projects.
2. In-progress IT application projects, which have
been approved before the effective date of Decree No. 73/2019/ND-CP shall be
governed by regulations on estimation and management of costs of IT application
projects applicable at the time the project is given approval.
Where necessary, provisions herein may be applied
to such projects according to decisions by competent persons provided any
interruption to the project progress should be avoided.
Article 11. Responsibility for
implementation
1. Authority of Information Technology Application
affiliated to the Ministry of Information and Communications shall be
responsible for disseminating, organizing, instructing and supervising the
implementation of this Circular.
2. Regulatory authorities, organizations and
individuals engaged or involved in estimation and management of costs of IT
application projects funded by state budget for development investment expenditures
are responsible for the implementation of regulations herein.
3. Difficulties that arise during the
implementation of this Circular should be reported to the Ministry of
Information and Communications (via Authority of Information Technology Application)
for consideration./.
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