Methods to assess bids, proposals; consideration for recommendation as the winning bidder in Vietnam

Vietnam law has regulations on methods to assess bids, proposals; consideration for recommendation as the winning bidder in Vietnam. Let’s find out this issue with Lawyer X through the following situation: “Dear Lawyer! I want to ask what are methods to assess Bids for packages of the non-consulting service provision, goods procurement in Vietnam? What are regulations on consideration for recommendation as the winning bidder for packages of the consulting service provision in Vietnam? Thanks for answering my questions!”

Legal grounds

• 2013 Vietnam Law on Bidding

Methods to assess Bids for packages of the non-consulting service provision, goods procurement, construction, mixed packages

– Least-Cost Selection:

+ This method applies to simple packages with small scale in which technical, financial and commercial proposals are considered as a same ground when satisfy requirements stated in Bid;

+ Criteria for evaluation of Bid include: Evaluation criteria of capability, experiences and criteria of package;

+ For the Bids which have been assessed to satisfy criteria for evaluation as prescribed at point b this Clause, Bid Prices after the errors have been rectified and discrepancies have been adjusted are basis for comparison and ranking. Contractors shall be ranked corresponding to bid price after the errors have been rectified and discrepancies have been adjusted, minus value of discount (if any). The bidder with lowest price shall be ranked the first.

– Lowest Evaluated Bid Selection:

+ This method applies to packages of which expenses may be converted on a same ground on technical, financial and commercial elements for entire use life cycle of goods or works;

+ Criteria for evaluation of Bid include: assessment criteria of capability, experiences in case of not applying prequalification; technical evaluation criteria; standards for determination of evaluated bid price.

Elements which are converted on the same ground to determine evaluated bid price include: Necessary expenses associated with operation, maintenance and other expenses related to origin of goods, loan interest, progress, quality of goods or construction works of the package, prestige of contractor through the progress and quality during implementation of previous similar contracts and other elements;

+ For Bids which have passed step of technical assessment, comparison and ranking are based on evaluated bid prices. The bidder with lowest evaluated price shall be ranked the first.

– Quality- and Cost-Based Selection:

+ This method apply to packages of information technology, telecommunication or packages of goods procurement, works, mixed packages when both Least-Cost Selection and Lowest Evaluated Bid Selection specified at Clause 1 and Clause 2 of this Article fail to be able to apply;

+ Criteria for evaluation of Bid include: assessment criteria of capability, experiences in case of not applying prequalification; technical evaluation criteria; and the collective criteria for evaluation. The collective criteria for evaluation are formulated on the basis of combination between technical aspect and price;

+ For Bids which have passed step of technical assessment, comparison and ranking are based on the collective points score respectively. The bidder with the highest collective points score shall be ranked the first.

– For assessment criteria of capability, experiences, use pass-fail system; for technical evaluation criteria, use Weighted Scoring Method or pass-fail system; for Quality- and Cost-Based Selection specified at Clause 3 of this Article, use Weighted Scoring Method. When using Weighted Scoring Method, the score of minimum technical requirement must be stipulated and not be less than 70% of the total points for technical aspects.

– The Government shall elaborate this Article.

Method to assess Bid for packages of consulting service provision

– For consulting bidder being organization, apply one of the following methods:

+ Least-Cost Selection shall be applied to the simple consulting packages. Criteria for evaluation of Bid are technical evaluation criteria. For Bids which have passed step of technical assessment, base on bid price after the errors have been rectified and discrepancies have been adjusted, minus value of discount (if any). The bidder with lowest price shall be ranked the first;

+ Fixed-Budget Selection shall be applied to the simple consulting packages, expenses associated with performance of package are determined specifically and fixed in Bid. Criteria for evaluation of Bid are technical evaluation criteria. For Bids which have passed step of technical assessment, bid price after the errors have been rectified and discrepancies have been adjusted, minus value of discount (if any) not exceeding expenses associated with performance of package, based on technical score for comparison and ranking. The bidder with the highest technical point shall be ranked the first;

+ Quality- and Cost-Based Selection shall be applied to the consulting packages that pay attention to quality and expenses associated with performance of package. Criteria for evaluation of Bid are technical evaluation criteria and collective criteria for evaluation. The collective criteria for evaluation are formulated on the basis of combination between technical aspect and price. When formulating the collective criteria for evaluation, it must ensure principle which the points for technical aspects shall account for between 70% and 80% and the points for price shall account for between 20% and 30% of the collective points score, percentage of points for technical aspects plus to percentage of points for price shall be equal to 100%. The bidder with the highest collective points score is ranked the first;

+ Quality-Based Selection shall apply to consulting packages with high and particular technical requirements. Criteria for evaluation of Bid are technical evaluation criteria. When formulating technical evaluation criteria, the score of minimum technical requirement must be stipulated and not be less than 80% of the total points for technical aspects. Bidder has Bid satisfying the minimum technical score as prescribed and obtain the highest technical score shall be ranked the first and invited to come for opening Financial Proposal as basis for negotiating contract.

– For technical evaluation criteria specified at points a, b, c and d Clause 1 of this Article, use the method of marking a score. When formulating technical evaluation criteria, the score of minimum technical requirement must be stipulated and not be less than 70% of the total points for technical aspects, except for case specified at point d Clause 1 of this Article.

– For consulting bidders being individuals, criteria for evaluation of Bids shall be criteria for evaluation of dossiers of scientific curriculum vitae and Technical Proposal (if any). The bidder with the best dossier of scientific curriculum vitae, Technical Proposal and satisfying requirements of reference provisions shall be ranked the first.

Method to assess Proposals in Shopping Method shall comply with Least-Cost Selection specified at clause 1 article 39 of 2013 Vietnam Law on Bidding.

Consideration for recommendation as the winning bidder for packages of the consulting service provision

– The consulting bidder being organization shall be considered for recommendation as the winning bidder upon satisfying the following conditions:

+ Having valid Bid and Proposal ;

+ Having Technical Proposal satisfying requirements;

+ Having bid price after the errors have been rectified and discrepancies have been adjusted, minus value of discount (if any) being lowest price for Least-Cost Selection; having the highest technical score for Fixed-Budget Selection and Quality-Base Selection; having the highest collective points for the Quality- and Cost-Based Selection;

+ Having the proposed successful bid not exceeding the approved package price. If the approved estimated budget of procurement is lower than or higher than the approved package price, this estimate shall replace package price as basis for consideration for recommendation as the winning bidder.

– The consulting bidder being individual shall be considered for recommendation as the winning bidder upon satisfying the following conditions:

+ The bidder has the best dossier of scientific curriculum vitae, Technical Proposal (if any) and satisfying requirements of reference provisions;

+ The bidder has the proposed successful bid not exceeding the approved package price. If the approved estimated budget of procurement is lower than or higher than the approved package price, this estimate shall replace package price as basis for consideration for recommendation as the winning bidder.

– For bidders fail to be selected, in notice of bidder-selection result must clearly state the reason thereof.

Consideration for recommendation as the winning bidder for bidding the non-consulting service provision, goods procurement, works and mixed packages

– The supplier of non-consulting service, goods, works, mixed packages shall be considered for recommendation as the winning bidder upon satisfying the following conditions:

+ Having valid Bid and Proposal ;

+ Having qualifications satisfying requirements;

+ Having Technical Proposal satisfying requirements;

+ Having deficient discrepancies not exceeding 10% of Bid Price;

+ Having bid price after the errors have been rectified and discrepancies have been adjusted, minus value of discount (if any) being lowest price for Least-Cost Selection; having the lowest assessment price for Lowest Evaluated Bid Selection; having the highest collective points for the Quality- and Cost-Based Selection;

+ The bidder has the proposed successful bid not exceeding the approved package price. If the approved estimated budget of procurement is lower than or higher than the approved package price, this estimate shall replace package price as basis for consideration for recommendation as the winning bidder.

– For bidders fail to be selected, in notice of bidder-selection result must clearly state the reason thereof.

Please see more:

• Instructions for exclusive registration of company logos in Vietnam
• Service of changing the legal representative of Vietnamese enterprises

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