Direct contracting's value limit according to the Bidding Law 2023

Thursday, 02 November 2023 2:23 PM
The establishment of Bidding Law 2023 has enhanced the Bidding Law 2013. So how has the contracting’s value limit changed? If you have the same question, please take a look at the following article.
Direct contracting's value limit according to the Bidding Law 2023
Direct contracting's value limit according to the Bidding Law 2023

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What is direct contracting?

A direct contracting is the process of selecting a contractor or supplier of products, services, or construction works, in which only one pre-identified contractor with the necessary capacity and experience is chosen to execute the project.
quy dinh ve han muc chi dinh thau
Contractor appointment is the process of selecting a contractor or supplier of products, services or construction works
Direct contracting is the process of selecting a contractor or a product, service or construction provider, the selection procedure is simple, and the process is relatively quick; therefore, companies often opt for direct contracting for urgent contracts that require immediate attention.

What situations does the 2023 Law stipulate for applying the direct contracting form?

According to Article 23 of the 2023 Bidding Law, specific cases for direct contracting are defined as follows:
  • Urgent contracts that need to be implemented to protect national sovereignty and security; contracts that need to be executed immediately to mitigate or timely handle consequences caused by natural disasters, fires, unexpected accidents, incidents, disasters, or other force majeure events;
  • Bidding packages for the provision of consulting and non-consulting services, goods, and construction works that need to be implemented immediately to avoid harm to the lives and property of the community in the area or to prevent serious impact on adjacent projects
  • Bidding packages for consulting and non-consulting services, medications, chemicals, laboratory supplies, medical equipment, components, accessories, transportation means, and construction works must be deployed immediately for disease prevention and control or to maintain the operation of medical examination and treatment facilities in urgent cases, to prevent risks to public health and safety; bidding packages for the purchase of drugs, chemicals, laboratory supplies, medical equipment, components, accessories for emergency patient care as stipulated by the Medical Examination and Treatment Law in cases where the medical facilities lack sufficient drugs, chemicals, laboratory supplies, medical equipment, components, accessories; bid packages for purchasing drugs, medical equipment that are exclusively produced by a single manufacturer in the market;
  • Bidding packages for protecting national and government secrets.
  • Bidding packages for consulting services must be purchased from contractors who have previously performed the work due to the need to ensure technological compatibility and copyright, which cannot be obtained from other contractors; bid packages for procurement of goods, non-consulting services must be purchased from contractors who have previously performed the work or from manufacturers, agents of the manufacturers due to the need to ensure technological compatibility and copyright with existing equipment, machinery, software, services, or due to warranty conditions of the contractor, manufacturer, which cannot be obtained from other contractors, different manufacturers;
  • Bidding packages involving research, experimentation, purchase of intellectual property rights, acquisition of broadcast rights; bid packages for the transportation of national reserve goods for relief and aid in situations requiring immediate delivery;
  • Bidding packages for consulting services in preparing feasibility study reports and construction designs are designated for the authors of the winning architectural plan, provided they meet the capacity requirements as per the construction law; bidding packages for construction, restoration of statues, reliefs, grand murals, and art works linked to copyright from creation to construction; bidding packages for consulting services in developing construction planning are designated for the authors of the winning concept or construction planning project through a competitive bidding selection process;
  • Bidding packages for consulting and construction in relocating technical infrastructure facilities for land clearance purposes; bidding packages for consulting, detecting and clearing bombs, mines, and explosives for construction site preparation;
  • Bidding packages that can only be executed by a dedicated contractor in the market due to specific technological solution requirements;
  • Bidding packages for national priority projects are designated as per the parliamentary resolution when deciding on the investment policy for the project;
  • Bidding packages for renting warehouses for temporary storage; bidding packages for renting transportation and handling services for temporary storage at ports, concentrated goods inspection locations, in cases where there is only one service provider in the port; bidding packages for importing sports weapons for clubs, schools, training centers for sports training and annual competitions;
  • Bidding packages within the procurement budget with a package value ranging from over 50 million VND to 100 million VND; bidding packages for investment projects of state-owned enterprises, enterprises wholly owned by state-owned enterprises, and investment projects as per the Public Investment Law, including: consulting service bidding packages with a package value not exceeding 500 million VND, non-consulting, goods, construction, mixed bidding packages with a package value not exceeding 01 billion VND.

Package value limit of direct contracting according to the 2023 Bidding Law

As per point M, paragraph 1, Article 23 of the 2023 Bidding Law, the package value limitation for direct contracting is stipulated as follows:
  • Bidding packages within the procurement budget that have a package value ranging from over 50 million VND to 100 million VND.
  • Bidding packages for investment projects of state-owned enterprises, enterprises wholly owned by state-owned enterprises, and investment projects according to the Public Investment Law, include: consulting service bid packages with a package value not exceeding 500 million VND.
  • Non-consulting, goods, construction, mixed bid packages with a package value not exceeding 01 billion VND.
Limit for appointing contractors
Limit for appointing contractors according to the Bidding Law 2023​​​​​
Thus, the direct contracting package value limit has been changed in accordance with the Bidding Law 2023, assisting businesses in understanding the limits of bidding packages that are allowed to be carried out

Those are DauThau.info's comments on the Bidding Law 2023's direct contracting package value limits. Hopefully, the above beneficial information will assist your company in better understanding this matter.

If you have questions about the contractor appointment limit or issues related to bidding, please contact DauThau.info for support:

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