Legal News
Selecting bidders through the Internet

28 - 01 - 2018
VGP

The Ministry of Planning and Investment on November 15, 2017 issued Circular 04/2017/TT-BKHDT (“Circular 04”), which details the selection of bidders through the National Bidding Network System (hereinafter referred to as the “network”) with respect to bidding packages for provision of consultancy and non-consultancy, procurement and erection services, governed by the Law on bidding and putting in competitive and nationwide bids.

Question: What are the regulations on securing bidding by letters of guarantee; simplifying the network selection of bidders in the form of one phase one dossier set; putting in place a more simple procedure for a competitive offering through the network; and supplementing the network selection of bidders by the form of one phase two dossier sets?

Answer:

Securing bidding by letters of guarantee

Pursuant to Circular 4, to participate in a bid through the network, bidders must conduct measures prior to the bid closing time in the form of a guarantee letter issued by banks or credit institutions in Viet Nam.

For banks and credit institutions which have been connected to the National Bidding Network System, bidders may have secure bidding through the network. For banks and credit institutions which are not connected to the System, bidders need to scan their letters of guarantee and attach them to Bidding Dossiers. In these cases, they must submit originals of guarantee letters within 5 business days of the date it is requested by the bid solicitor, if not, bidders will be subject to sanctions based on their undertakings in the letter of bid.

Circular 4 also provides for 02 cases where bidders must submit originals of guarantee letters to the bid solicitor, including:

- Bidders to be invited to negotiate contracts;

- Bidders to violate the law on bidding resulting in them losing the bid security amount.

Simplifying the network selection of bidders in the form of one phase one dossier set

Besides small changes to the types of documents that must be included in an invitation to bid dossier ("ITBD"), steps in the process of selecting bidders are also detailed by Circular 4 on the System and less bulky; especially, the preparation, appraisal and approval of the ITBD will be conducted completely on the System, and corrections are also made directly on the System after being accepted by the owner.

Supplementing the network selection of bidders by the form of one phase two dossier sets

As prescribed by current regulations, the network selection of bidders will be conducted in the form of a one phase, one dossier set, and Circular 4 now permits the network selection of bidders in the form of one phase, two dossier sets.

The Circular also details the documents and procedure required for each step in a similar manner to the one phase, one dossier set. This regulation helps promote competitiveness, fairness, transparency and efficiency in bidding activities.

Circular 4 takes effect as from 01/03/2018, superseding Circular 07/2016/TT-BKHĐT dated 28/06/2016 and Chapter III of Joint Circular 07/2015/TTLT-BKHĐT-BTC dated 08/09/2015. This Circular does not govern bidding packages which are divided into parts; if it is required to select bidders for bidding packages divided into parts, these parts must be split into separate packages./.

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