When is a bidder Eligible to Participate in Bidding?

Monday, 10 June 2024 11:39 PM
To participate in bidding, a bidder must first be eligible. So, what is bidder eligibility? When is a bidder eligible to participate in bidding? Let's explore this topic in the following article from DauThau.info!
When is a bidder Eligible to Participate in Bidding 1
When is a bidder Eligible to Participate in Bidding 1

Nhấn VÀO ĐÂY để chuyển bài viết sang bản tin tiếng Việt
 

What is bidder Eligibility?

In simple terms, bidder eligibility is a set of conditions that a bidder must meet to participate in bidding according to Vietnamese law.
So, when is a bidder eligible to participate in bidding? Please continue reading the following content from DauThau.info.

When is a bidder Eligible to Participate in Bidding?

According to Article 5 of the 2023 Law on Bidding, the conditions for determining bidder eligibility are specified as follows:

1. For organizations:

Clause 1, Article 5 of the 2023 Law on Bidding states that a bidder is an eligible organization if it meets the following conditions:

  1. For domestic bidders and investors: Being enterprises, cooperatives, cooperative unions, partnerships, public service units, or economic organizations with foreign-invested capital established and operating according to Vietnamese law.

For foreign bidders and investors: Being registered and operating according to foreign laws.

  1. Independent financial accounting.

  2. Not in the process of dissolution or having their enterprise registration certificate, cooperative registration certificate, or cooperative union registration certificate revoked; not in a state of insolvency according to the bankruptcy law.

  3. Listed on the national bidding network system before the approval of bidder selection results.

  4. Ensuring competition in bidding according to Article 6 of the 2023 Law on Bidding (*).

  5. Not being banned from bidding by a decision of the competent authority, Minister, Head of Ministry-equivalent agencies, central government bodies, or Provincial People's Committee Chairman as specified in Clause 3, Article 87 of the 2023 Law on Bidding (**).

  6. Not under criminal investigation.

  7. Listed in the shortlist for cases where a shortlist has been selected.

  8. For foreign bidders, must form a joint venture with domestic bidders or use domestic subbidders, except when domestic bidders are not capable of participating in any part of the package.

(*) Article 6 of the 2023 Law on Bidding stipulates:

Article 6. Ensuring Competition in Bidding
 
1. bidders submitting expressions of interest or prequalification applications must be legally and financially independent from the following entities:
 
a) Consulting bidders preparing the expression of interest, prequalification documents, project management, supervision; consulting bidders preparing, verifying, and appraising design documents and estimates; consulting bidders preparing and appraising survey and design tasks;
b) Consulting bidders evaluating expressions of interest and prequalification applications;
c) Consulting bidders appraising the results of expressions of interest and prequalification applications;
d) Investors, inviting parties, except when the bidder is a public service unit under the state management agency with assigned functions and duties matching the nature of the package of that state management agency or is a member company, subsidiary of a state-owned corporation with main production and business sectors matching the nature of the package of that state-owned corporation.

2. bidders participating in bidding must be legally and financially independent from the entities listed in point d, clause 1 of this Article and the following:
 
a) Consulting bidders managing the project, supervising; consulting bidders preparing, verifying, and appraising design documents and estimates; consulting bidders preparing and appraising survey and design tasks; consulting bidders preparing and appraising bidding documents and request for proposal documents; consulting bidders evaluating bids and proposals; consulting bidders appraising bidder selection results of that package;
b) Other bidders participating in the same package in limited bidding.
 
3. Consulting bidders supervising contract implementation, bidders executing the contract, and consulting bidders inspecting that package must be legally and financially independent from each other.
 
4. bidders specified in clauses 1, 2, and 3 of this Article are considered legally and financially independent when meeting the following conditions:
 
a) Not being part of the same direct managing agency or organization for public service units;
b) bidders and investors, inviting parties do not hold over 30% shares or capital contribution of each other;
c) bidders do not hold over 20% shares or capital contribution of each other when participating in the same package in limited bidding;
d) bidders participating in bidding and consulting bidders for that package do not hold shares or capital contribution of each other; do not share over 20% shares or capital contribution of another organization or individual with each other.

5. Investors participating in bidding must be legally and financially independent from the following entities:
 
a) Competent authorities, inviting parties;
b) Consulting bidders preparing and appraising bidding documents; consulting bidders evaluating bids; consulting bidders appraising bidder selection results until the investment project contract is signed.

(**) Clause 3, Article 87 of the 2023 Law on Bidding stipulates:

3. The authority to decide to ban from participating in bidding activities is specified as follows:
 
a) The competent person has the authority to ban from participating in bidding activities for projects, investment projects, and procurement estimates under their management;
b) Ministers, heads of Ministry-equivalent agencies, central government bodies, and provincial people's committee chairpersons have the authority to ban from participating in bidding activities within their ministry, sector, and local management;
c) The Minister of Planning and Investment has the authority to ban from participating in bidding activities within the ministry's management scope and nationwide.
đấu thầu
Participation in Bidding

2. For bidder who is households business :

Also, in Clause 2, Article 5 of the 2023 Law on Bidding, a business household is eligible if it meets the following conditions:

  1. Having a business registration certificate according to the law.
  2. Not in the process of ceasing operations or having their business registration certificate revoked; the business household head is not under criminal investigation.
  3. Meeting the conditions specified in points d, đ, e, and h of Clause 1, Article 5 of the 2023 Law on Bidding.

3. For individuals bidder:

An individual bidder is eligible if they meet the following conditions (Clause 3, Article 5 of the 2023 Law on Bidding):

  1. Having full civil capability according to the law of the country of which they are a citizen.
  2. Having appropriate professional certificates if required by law.
  3. Meeting the conditions specified in points e and g of Clause 1, Article 5 of the 2023 Law on Bidding.

The above is DauThau.info's sharing about the conditions for determining bidder eligibility. We hope this information will be useful when you explore participation in bidding. If you have any questions regarding bidding-related issues, you can refer to the News section of DauThau.info or contact DauThau.info for support!

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