Some regulations related to competitive bidding

Some regulations related to competitive bidding

Legal basis

Law on Bidding No. 22/2023/QH15 dated June 23 2023

Some regulations related to competitive bidding

2.1. What is competitive bidding?

Pursuant to Article 21 of the 2023 Law on Bidding, competitive bidding is a form of contractor selection in which the number of participating contractors is not limited.

The competitive bidding method may apply to all packages, except the following cases:

Limited bidding
Direct contracting
Shopping
Direct procurement
Seft-execution
Community participation
Price negotiation
Contractor selection in special circumstances

In case a contractor selection method other than competitive bidding is adopted, the written application for approval of the contractor selection plan must indicate the reasons for failure to adopt the competitive bidding; the competent person shall decide the adoption of a contractor selection method other than competitive bidding and assume responsibility for his/her decision.

2.2. Method of selecting contractors for competition bidding

Single-stage one-envelope procedure

Single-stage one-envelope procedure shall be adopted in the following cases:

Competitive bidding or limited bidding for non-consulting service, procurement, construction or mixed packages, except the cases specified in Point b Clause 1 Article 31 of Law on Bidding 2023;
Competitive offers for bidding packages for providing non-consulting services, procurement of goods, construction and installation, mixed bidding packages for providing goods and construction and installation;
Direct contracting for consulting service, non-consulting service, procurement, construction, or mixed packages;
Direct procurement for procurement packages.

Bidders submit bids or proposals in one envelope containing both the technical proposal and the financial proposal in accordance with the requirements laid down in the bidding documents or RFP. All bids or proposals shall be opened at the same bid opening.

Single-stage two-envelope procedure

Single-stage two-envelope procedure shall be adopted in the following cases:

Competitive bidding or limited bidding for consulting service packages;
Competitive bidding or limited bidding for non-consulting service, procurement, construction, or mixed packages with high technical requirements as prescribed by the law on science and technology.

A bidder shall simultaneously submit the technical proposal and the financial proposal in two separate envelopes in accordance with the requirements laid down in the bidding documents. The bid opening is conducted twice. Technical proposals will be opened immediately after the bid closing time. Contractors that meet technical requirements will have their financial proposals opened for evaluation.

Two-stage one-envelope procedure

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 a of this Clause. All bids shall be opened at the same bid opening.

Two-stage two-envelope procedure

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, the contractor submits a technical proposal that does not include the bid price as required in the bidding documents based on the basic design or technical specifications of the bidding package. Contractors are allowed to propose alternative plans for the required content in the bidding documents but must propose a separate plan along with the main technical plan according to the requirements of the bidding documents. Technical proposals will be opened immediately after the bid closing time. Contractors whose technical proposals meet the requirements of the first stage bidding documents are invited to participate in the second stage bidding.

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.

Reference

Vietnam National E-Procurement System: https://muasamcong.mpi.gov.vn/