Answering questions about the proposed winning price, bidders for reference!

Monday, 09 October 2023 9:05 AM
The winning bid price is a term that is no longer unfamiliar to businesses participating in online bidding. In the article below, DauThau.info will answer some frequently asked questions from contractors about the winning bid price, please refer to it!
Answering questions about the proposed winning price, bidders for reference!
Answering questions about the proposed winning price, bidders for reference!

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What is the winning bid price?

According to the provisions of Clause 13, Article 4 of the Bidding Law 2023, the proposed winning price is understood as follows:
19. The proposed winning bid price is the bid price of the proposed winning bidder after errors have been corrected and discrepancies adjusted according to the requirements of the bidding documents and request documents, minus the discount value. (if any).

Approval of winning bids for bidding to provide consulting, non-consulting, goods procurement, construction, and mixed services

Approval of winning bids for bidding to provide consulting and non-consulting services, procurement of goods, construction and installation, and mixed services is specified in the Bidding Law 2023 as follows:

1. For bidding to provide consulting services

In Article 60, regulations on approval of winning bids for bidding to provide consulting services are as follows:

If the consulting contractor is an organization, it will be considered and recommended to win the bid when it fully meets the following conditions:

a) Have valid bidding documents and proposal documents;
b) Have a technical proposal that meets the requirements of the bidding documents and request documents;
c) For the lowest price method: have the bid price after error correction and deviation adjustment minus the lowest discount value (if any); For bidding packages applying the package contract type, have the lowest bid price minus discount value (if any); for the fixed price method and the technical-based method: has the highest technical score; For the combined technical and price method: has the highest combined score;
d) Have the winning bid price not exceeding the approved bid package price.


If the consulting contractor is an individual, it will be considered and recommended to win the bid when it fully meets the following conditions:

a) Have the best scientific background and technical proposals (if any) and meet the requirements of the terms of reference;
b) Have the winning bid price not exceeding the approved bid package price.

 
If the contractor is not selected, the notice of contractor selection results must state the reason why the contractor was not successful.
 

2. For bidding to provide non-consulting services, procurement of goods, construction and installation, mixed services

In Article 61, regulations on approval of winning bids for bidding for the provision of non-consulting services, procurement of goods, construction and installation, and mixed services are as follows:

1. Contractors providing non-consulting, goods procurement, construction, and mixed services will be considered and proposed to win the bid when they fully meet the following conditions:

a) Have valid bidding documents and proposal documents;
b) Have the capacity and experience to meet the requirements of bidding documents and request documents;
c) Have a technical proposal that meets the requirements of the bidding documents and request documents;
d) The value of the deviation is not more than 10% of the bid price;
d) For the lowest price method: have the lowest bid price after error correction, deviation adjustment, minus discount value (if any); For the evaluated price method: have the lowest evaluated price; For the combined technical and price method: has the highest combined score;
e) Have a winning bid price that does not exceed the approved bid package price.

 
2. For a contractor not selected, the notice of contractor selection results must state the reason the contractor did not win the bid.

Thus, depending on each case and each different bidding field, there will be different regulations regarding the approval of winning bids. However, one of the important conditions that you need to keep in mind when considering the winning bid is that the winning proposed price MUST NOT exceed the approved bid package price.
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Suggested winning bid price (Illustration)

03 frequently asked questions about the winning bid price

Question 1: Are the proposed bid price and the winning bid price the same or different?

DauThau.info answers as follows:

According to the provisions of Clauses 19 and 20, Article 4 of the 2013 Bidding Law, regulations on proposed bid prices and winning bid prices are as follows:

19. The proposed winning bid price is the bid price of the proposed winning bidder after errors have been corrected and discrepancies adjusted according to the requirements of the bidding documents and request documents, minus the discount value. (if any).
20. Winning price is the price stated in the decision approving the contractor selection results.

Basically, the winning offer price and winning bid price are the same.

Question 2: Can the winning bid price exceed the approved goods procurement package price?

DauThau.info answers as follows:

As shared in section 2 - Conditions for approval of winning bids for bidding for the provision of non-consulting services, procurement of goods, construction and installation, one of the important conditions for approval of winning bids is The proposed winning bid price does not exceed the approved goods procurement package price.

Question 3: The winning proposed bid price is lower than 50% of the approved bid package price, what should I do?

DauThau.info answers as follows:

According to the provisions of Clause 9, Article 117 of Decree No. 63/2014/ND-CP, the case of the proposed winning bid price being lower than 50% of the approved bidding package price will be handled as follows:
9. In case the proposed winning bid price is less than 50% of the approved bidding package price, it is allowed to establish an interdisciplinary appraisal team to request the contractor to clarify the elements constituting the bid cost and review the evidence. related to the following:
a) Economic factors related to construction methods, production processes or service provision;
b) Economic solutions applied or special advantages of the contractor leading to price advantages;
c) Origin of goods, services, and personnel provided for the bidding package, which must ensure compliance with legal regulations;
In case the conditions specified in Points a, b and c of this Clause are met, the contractor's bid documents and proposals will still be accepted as the winning bid. In order to prevent risks, the investor may stipulate the value of the contract performance guarantee to be greater than 10% but not more than 30% of the winning bid price and must be approved in writing by a competent person. If a contractor receives subsidies from any organization or individual leading to unfair competition, the contractor's bids and proposals will be disqualified.
Thus, in case the proposed bid price is lower than 50% of the approved bid package price, it will be handled according to the above regulations. However, contractors also need to be careful and calculate a reasonable bid price to ensure the quality of the bidding package and avoid similar cases from occurring, affecting the contractor selection process.

Note: Decree No. 63/2014/ND-CP only provides guidance for the 2013 Bidding Law. In this case, according to the 2023 Bidding Law, there are currently no implementation instructions.

Above is DauThau.info's share of the proposed winning bid price. We hope to support your business in the research process.

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