Competitive offer is a term defined in the law on bidding. This is one of the forms of bidding applied to limited bidding packages and in certain fields regulated by the bidding law. LSX Lawfirm will give you an article about: “Competitive Offers in accordance with Vietnamese law”, as follows:
Legal grounds
Law on Bidding 2013
What is competitive offering?
Competitive offer is one of the forms of bidding applied to bidding packages with the limit prescribed by the Law on Bidding and will fall into the following cases for your reference.
– For the bidding package to provide common and simple non-consulting services
– For the procurement of common, simple and available goods on the market with standardized technical specifications and equivalent in quality
– Then, for bidding packages that have approved construction drawings for simple construction and installation
But
The competitive offer to be made in the above bidding package must also satisfy the following conditions: The plan approved by the contractor; have approved cost estimates according to regulations; and are allocated capital according to the requirements for the execution of the above bidding package.
– Competitive offer limit
– Limits of competitive offers divided into two types: normal competitive offers and shortened competitive offers
For normal competitive offers for simple and common non-consulting service procurement packages, valued at no more than VND 05 billion.
For competitive offers according to a shortened process, the following shall be applied: For a simple and common non-consulting service provision bidding package; For a tender package for the procurement of common, simple and readily available goods on the market with technical specifications standardized and equivalent in terms of quality, not exceeding 01 billion VND, and regular procurement packages not exceeding 200 million VND.
Thus, when the competition limit specified in each bidding package and the amount is different.
Distinguish between a commercial competitive offer and a shortened competitive offer?
– Inquiry with the contractor
For normal competitive offers, the target criterion is the bidder’s capacity; experience; technical evaluation criteria and determine the lowest price for the whole bidding package
As for a short competitive offer, the most dominant criterion is the quotation. The contractor’s quotation must have a low value but still have to meet the technical requirements set by the bid solicitor.
– About the contractor selection organization
For competitive offers, documents will normally be sent to bidders wishing to participate and posted on the national bidding network or on the bidding newspaper.
For a short competitive offer, it will be published in an industry newspaper – no specific newspaper is specified or the dossier is sent directly to the bidder.
Can consulting tenders be offered competitively?
Article 23 of the Law on Bidding provides:
1. Competitive offers shall be applied to a bidding package with a value within the limit prescribed by the Government and in one of the following cases:
a) Simple and common non-consulting service bidding packages;
b) Bidding packages for procurement of common and available goods on the market with standardized technical characteristics and equivalent in quality;
c) Bidding packages for construction and installation of simple works with approved construction drawing designs
2. Competitive offers are made when the following conditions are fully satisfied:
a) Having an approved contractor selection plan;
b) Having an approved cost estimate according to regulations;
c) The capital allocated according to the requirements of the bidding package implementation schedule.
Thus, the law on bidding does not have a form of competitive offer for consulting service bidding packages.
Shortened competitive offer limit
According to Clause 2, Article 57 of the Government’s Decree No. 63/2014/ND-CP dated June 26, 2014 detailing the implementation of a number of articles of the Bidding Law regarding contractor selection, the competitive offer limit withdrawn as follows:
+ with the bidding package of common and simple non-consulting services: not more than 500 million VND;
+ And with the procurement of common goods, available on the market with standardized technical characteristics and equivalent in quality; bidding package for construction and installation of simple works with approved construction drawing design: not more than 1 billion VND;
+ Then, with the bidding package for regular procurement: not more than 200 million VND.
Shortened competitive offering process
Shortened competitive offering process needs to go through the following procedures:
– Prepare and send request for quotation
The bid solicitor will have to prepare a request for quotation: this request includes the contents of the scope of work performed, the technical requirements when implementing the bidding package; the quotation validity period; time for preparing and submitting quotation for service providers (Note that this time will be specified at least by the law on bidding) and other contents if any,
This quotation will be approved in terms of contents. Upon successful approval, the bid solicitor must publish the information in a widely distributed newspaper in the industry for the purpose of announcing the invitation to bid. Or there is a method of direct invitation for at least 03 contractors capable of implementing the bidding package.
– Submit and receive quotes
After receiving information about the bidding package through the bid solicitor. The Contractor will prepare a quote upon prior request. Bidders can choose to send their quotation via: direct mail; post office; email; Fax.
When receiving quotations from contractors, the bid solicitor is responsible for keeping confidential information in the quotations of contractors. At the end of the quotation submission deadline, I will close the bid and record the information sent to me.
– Evaluation of quotes
Based on the quotations, information received by the contractor, the procuring entity will compare the quotations according to the requirements set forth previously to receive the following information: Price after error correction, deviation adjustment; minus the lowest discount value and do not exceed the value of the bidding package offered for selection.
– Submit, appraise, approve and publicize contractor selection results.
On the basis of the quotation that the contractor has sent to the bid solicitor, the bid solicitor will evaluate the bid and the evaluation contents of the expert group.
When selecting a contractor, it pre-evaluated and approved in writing.
– Finalize and sign the contract
After negotiating all terms and requirements, a contract signed between the parties in accordance with the results of competitive offers, negotiation minutes and other documents.
Related questions
Article 216 of the Commercial Law 2005, includes two methods:
– Bidding for a bag of documents;
– Bidding for two dossier bags.
The parties may agree that the successful bidder must make a deposit, deposit, or guarantee to secure the performance of the contract. This amount is specified by the bid solicitor but must not exceed 10% of the contract value. Unless otherwise agreed. The successful bidder is not entitled to receive the deposit or deposit back if it refuses to perform the contract after the contract is signed.
You can also refer to Conditions for issuance of bidding documents in Vietnam or Bidding in accordance with Vietnamese law; Time of bidding in Vietnam
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