Time limit for organizing contractor selection under simplified direct appointment of contractor

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What is simplified direct contracting?

Direct contracting is one of the contractor selection methods prescribed at Point c, Clause 1, Article 20 of the Law on Bidding 2023.

Simplified direct contracting is a contractor selection method applied in cases requiring rapid implementation to meet urgent requirements or for bidding packages within the prescribed threshold. Under this method, the investor is allowed to simplify and shorten certain procedures compared to the ordinary direct contracting process in order to accelerate the implementation progress of the bidding package. However, the implementation must still ensure full compliance with the current regulations of bidding laws.

When is simplified direct contracting applied?

Pursuant to Clause 1 Article 78 of Decree No. 214/2025/NĐ-CP, simplified direct contracting is applied in the following cases:

Article 80. Procedures for simplified direct contracting

1. For bidding packages specified in Clause 1 Article 78 of this Decree, based on the scale and nature of the bidding package and preliminary information about the contractor capable of performing the package, the investor or the agency directly managing the bidding package shall identify and assign a contractor with sufficient capacity and experience to immediately perform the package. Within 15 days from the commencement date of the bidding package implementation, the parties must complete the direct contracting procedures prescribed in Clause 3 of this Article. The implementation of direct contracting is not required to satisfy the conditions prescribed in Clause 2 Article 79 of this Decree.

2. For bidding packages specified in Clauses 2, 3, 4 and Points a, b Clause 5 Article 78 of this Decree, the investor shall apply the simplified direct contracting procedures prescribed in Clause 3 of this Article. The implementation of direct contracting must satisfy all conditions prescribed in Clause 2 Article 79 of this Decree.

Clause 1 Article 78; Clauses 2, 3, 4 and Points a, b Clause 5 Article 78 of Decree No. 214/2025/NĐ-CP provide as follows:

1. Bidding packages with urgent and emergency requirements, including:

Bidding packages with urgent and emergency requirements for the implementation of national defense, security, foreign affairs, and national sovereignty protection tasks;

Bidding packages that need to be implemented immediately to prevent or promptly remedy consequences caused by natural disasters, fires, epidemics, unexpected accidents, incidents, catastrophes, or other force majeure events;

Bidding packages that need immediate implementation to avoid causing harm to the life and property of the local community or to avoid seriously affecting adjacent works;

Urgent bidding packages that must be implemented immediately to maintain the operation of medical examination and treatment establishments;

Bidding packages required for emergency treatment of patients in emergency conditions under the Law on Medical Examination and Treatment;

Bidding packages for consulting services, non-consulting services, pesticides, veterinary medicines, crop seeds, disinfectant chemicals, vaccines, supplies, and chemicals that must be implemented immediately for epidemic prevention and control activities;

Bidding packages for medicines, chemicals, testing supplies, medical equipment, and construction works serving epidemic prevention and control activities under directives of competent authorities;

Bidding packages for establishing, renovating, or constructing treatment areas and field hospitals serving epidemic prevention and control;

Bidding packages serving diplomatic delegations and supporting other countries in epidemic prevention and control that must be implemented immediately upon request of competent authorities;

Bidding packages under urgent public investment projects in accordance with the law on public investment.

2. Bidding packages requiring accelerated progress while ensuring quality and efficiency, including:

Bidding packages requiring urgent implementation under resolutions, decisions, directives, or notices of competent authorities to ensure schedule compliance;

Bidding packages requiring immediate implementation to ensure connectivity and synchronization among project works;

Bidding packages under special public investment projects in accordance with the law on public investment;

Bidding packages for conferences, seminars, exhibitions, national reserve goods procurement, transportation, insurance, and related services requiring urgent implementation;

Bidding packages for office renovation, public housing, digital transformation, and information technology tasks requiring urgent progress;

Construction and installation packages similar to previous packages successfully implemented by contractors within the previous 5 years;

Other cases where direct contracting is necessary to ensure schedule, quality, and efficiency.

3. Bidding packages in strategic sectors, scientific research, innovation, and digital transformation projects, including:

Bidding packages under special scientific research, technology, and innovation projects and tasks;

Bidding packages requiring strategic technologies or products under the law on high technology or strategic sectors;

Bidding packages for leasing or procuring digital technology products and services using state budget funds for national digital transformation tasks;

Bidding packages for construction, expansion, and upgrading of national databases, information systems, public service systems, and digital platforms.

4. Bidding packages within prescribed thresholds

Procurement estimate packages not forming projects with package prices not exceeding VND 500 million; consulting service packages under projects not exceeding VND 800 million; non-consulting, goods, construction, and mixed packages under projects not exceeding VND 2 billion.

5. Bidding packages with specific professional, technical, technological, or supply market requirements, including:

Procurement packages for goods and services supplied by only one manufacturer or provider; procurement packages for medicines and medical equipment with only one manufacturer on the market;

Procurement packages for printing services, stamps, receipts, seals under tax and customs regulations; printing packages serving elections.

Thus, simplified direct contracting is applied to urgent bidding packages, packages requiring accelerated implementation, packages with specific characteristics, or packages within the thresholds prescribed by law.

Latest regulations on the time limit for organizing contractor selection under simplified direct contracting

Pursuant to Clause 1 Article 80 of Decree No. 214/2025/NĐ-CP:

1. For bidding packages specified in Clause 1 Article 78 of this Decree, based on the scale and nature of the bidding package and preliminary information about the contractor capable of performing the package, the investor or the agency directly managing the bidding package shall identify and assign a contractor with sufficient capacity and experience to immediately perform the package. Within 15 days from the commencement date of the bidding package implementation, the parties must complete the direct contracting procedures prescribed in Clause 3 of this Article. The implementation of direct contracting is not required to satisfy the conditions prescribed in Clause 2 Article 79 of this Decree.”

Thus, under current regulations, the time limit for organizing contractor selection under simplified direct contracting is a maximum of 15 days from the commencement date of the bidding package implementation. This method is applied to accelerate implementation progress for urgent and emergency cases as prescribed by law.

Procedures for simplified direct contracting under current regulations

Pursuant to Clause 3 Article 80 of Decree No. 214/2025/NĐ-CP, simplified direct contracting is implemented according to the following procedures:

a) Preparation and submission of draft contract to the contractor

Based on the objectives and scope of work, the investor shall prepare and send a draft contract to the contractor expected to be capable of performing the bidding package. For bidding packages specified at Point e Clause 2 Article 78 of this Decree, the investor shall send the draft contract to the contractor that won the previous package through open bidding or limited bidding and has signed the contract for implementation of the previous package.

The draft contract shall include requirements on the scope and content of work, implementation time, required quality, corresponding value, and other necessary contents.

The contractor proposed for direct contracting must have valid eligibility status as prescribed at Points a, b, c, d, e, g and i Clause 1 Article 5 of the Law on Bidding; for household business contractors, eligibility must comply with Points a, b Clause 2 and Points d, e Clause 1 Article 5 of the Law on Bidding.

For goods procurement packages, contractors being individuals or groups of individuals offering their innovative products are eligible for direct contracting when satisfying the eligibility requirements prescribed in Clause 3 Article 5 of the Law on Bidding.

In cases where relevant laws require contractors participating in bidding and contract implementation to be independent from other organizations and individuals, such regulations must be complied with.

b) Finalization of contract, approval and publication of contractor selection results

Based on the draft contract, the investor and the contractor proposed for direct contracting shall finalize the contract as the basis for approval of contractor selection results and contract signing.

During the contract finalization process, the investor and contractor shall negotiate the price to ensure that the proposed winning bid price achieves savings and economic efficiency. For construction packages subject to direct contracting under Point e Clause 2 Article 78 of this Decree, the investor and contractor shall negotiate the price to ensure savings of at least 5% of the package price.

The publication of contractor selection results shall comply with Clause 5 Article 33 of this Decree.

c) Contract signing and contract performance management

The contract signed between the parties must comply with the decision approving the contractor selection results and other relevant documents.

Contract performance management shall comply with Article 35 of this Decree.

Thus, the current simplified direct contracting process is implemented through steps including preparation of the draft contract, finalization and approval of contractor selection results, and contract signing and management. Although procedures are simplified to accelerate implementation progress, compliance with all bidding regulations must still be ensured.

Conclusion

Above are the latest regulations on the time limit for organizing contractor selection under simplified direct contracting, including the applicable conditions and implementation procedures under current regulations. Hopefully, this article will help contractors and investors better understand this contractor selection method and become more proactive in searching for and monitoring bidding information.

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