What are the 3 bidding forms out of the total of 8 forms for selecting contractors and investors?

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Forms of selecting contractors and investors according to the provisions of the 2013 Bidding Law

1. What is Open Bidding?

Open Bidding is a form of selecting contractors and investors in which there is no restriction on the number of participating contractors and investors. The inviting party must publicly announce the conditions and bidding time through various public information channels before releasing the bidding documents. Open Bidding is the predominant form applied in bidding. This form has the notable advantage of high competition and limits negativity in the bidding process, encouraging contractors to continually enhance their capabilities.

Open Bidding is applied to packages and projects within the scope regulated by the Bidding Law (No. 43/2013/QH13) in 2013, except as specified in Articles 21, 22, 23, 24, 25, 26, and 27.
 

2. What is Restricted Bidding?

Restricted Bidding is applied in cases where the bidding package has high technical requirements or technically specific characteristics that only a limited number of contractors meet.
 

3. What is Direct Appointment?

Direct Appointment is a form in which the inviting party directly selects (appoints) a contractor who meets the requirements of the bidding package to negotiate a contract without going through the bidding process.

1. Direct Appointment for Contractors is applicable in the following cases:

a) Bidding packages needed for immediate rectification or timely handling of consequences caused by unforeseeable incidents; bidding packages needed to ensure state secrets; bidding packages requiring immediate deployment to avoid direct harm to the lives, health, and property of the local community or to prevent significant impact on adjacent works; procurement of medicines, chemicals, materials, medical equipment for urgent epidemic prevention and control.

b) Urgent bidding packages aimed at protecting national sovereignty, national borders, and islands.

c) Bidding packages for consultancy services, non-consultancy services, and procurement of goods that must be obtained from a contractor who has previously implemented due to ensuring technological compatibility, copyright, and cannot be procured from another contractor; packages with a research or experimental nature; purchase of intellectual property rights.

d) Bidding packages for consulting services in feasibility study reports, construction design designated for the author of the architectural design or selected when the author meets the required qualifications according to regulations; construction packages for monuments, reliefs, murals, artistic works associated with authorship rights from the creative phase to project construction.

e) Bidding packages for relocating technical infrastructure managed directly by a specialized unit to serve land clearance; packages for bomb, mine, and explosive clearance to prepare the construction site.

f) Bidding packages for providing products, public services, and packages within the specified price limit are designated based on the Government's regulations that are suitable for the economic and social conditions during each period.

2. Implementation of Direct Appointment for the Bidding Packages specified in points b, c, d, and e of Clause 1 of this Article must satisfy the following conditions:

a) Have an approved investment decision, except for consultancy packages in project preparation; b) Have an approved contractor selection plan; c) Have allocated funds as per the bidding package execution schedule; d) Have an approved budget according to regulations, except for packages EP, EC, EPC, turnkey packages; e) Have a timeframe for the direct appointment from the approval date of the requirement profile to the contract signing date, not exceeding 45 days; for large and complex packages, not exceeding 90 days; f) The proposed appointed contractor must be listed in the database of contractors of the state agency managing bidding activities.

3. For bidding packages falling under the direct appointment cases specified in Clause 1 of this Article and meeting the direct appointment conditions in Clause 2 of this Article but still can apply other contractor selection methods as regulated in Articles 20, 21, 23, and 24 of the 2013 Bidding Law, it is encouraged to apply other contractor selection methods.

4. Direct Appointment for Investors is applicable in the following cases:

a) Only one investor registers for implementation; b) Only one investor has the capability to execute due to intellectual property, trade secrets, technology, or capital arrangements; c) The investor's proposed project meets the requirements for feasibility and maximum efficiency as regulated by the Government.
 

4. What is Competitive Bidding?

Competitive bidding is a form in which the inviting party sends out requests for bids and receives bids (quotations) from contractors. Each bidding package must have at least 3 bids from 3 different contractors based on the bidding requirements of the inviting party. The submission of bids can be done directly, by fax, by mail, or through other means. The winning bidder is typically the one offering the lowest valid price without negotiations.

1. Competitive Bidding is applied to bidding packages within the limit set by the Government and falls under one of the following cases:

a) Common, straightforward non-consultancy service packages; b) Procurement of common goods readily available on the market with standardized technical characteristics and equivalent quality; c) Construction packages for simple projects with approved construction design drawings.

2. Competitive Bidding is carried out when meeting the following conditions:

a) An approved contractor selection plan is in place; b) An approved budget is in accordance with regulations; c) Funding has been allocated as per the package execution schedule.

5. Direct Procurement

1. Direct procurement is applicable to procurement packages of similar goods within the same project, procurement budget, or other procurement projects and budgets.

2. Direct procurement is conducted when meeting the following conditions: a) The contractor has previously won a bid through open or limited bidding and has signed a contract for a prior procurement package. b) The procurement package has content and characteristics similar to and a scale smaller than 130% of the procurement package for which the contract was previously signed. c) The unit prices for the tasks within the directly procured package must not exceed the unit prices for corresponding tasks within the similar package for which the contract was previously signed. d) The period from the signing of the contract for the previous procurement package to the approval of the direct procurement results should not exceed 12 months.

3. In cases where the contractor that executed the previous contract is unable to continue with the direct procurement package, direct procurement may be applied to another contractor meeting the requirements for capacity, experience, technology, and price as specified in the tender documents and the results of the previous contractor selection.
 

6. Self-Implementation

Self-implementation is applicable to procurement packages within a project or procurement budget when directly managing and utilizing the procurement package with technical, financial, and experiential capabilities meeting the requirements of the package.
 

7. Contractor or Investor Selection in Special Cases

In cases where specific and unique conditions arise for a procurement package or project, and the forms of contractor or investor selection specified in Articles 20, 21, 22, 23, 24, and 25 of the 2013 Bidding Law (the six forms mentioned above) cannot be applied, the authorized person shall submit to the Prime Minister for review and decision on the selection of contractors or investors.
 

8. Community Participation

The local community, organizations, associations, and groups of workers in the area where a procurement package is assigned can participate in the entire or partial implementation of that package in the following cases:

1. The procurement package is part of the national target program, a poverty reduction support program for mountainous, remote, island, economically and socially disadvantaged areas.
2. The procurement package is small in scale and can be undertaken by the local community, organizations, associations, or groups of workers.
 

9. Subcontracting

In addition to understanding what open bidding, limited bidding, and direct procurement mean, contractors also need to know the concept of subcontracting. Subcontracting involves applying a previously procured package through open bidding for a similar package under preparation/execution.

Introduction

Many contractors have reached out to DAUTHAU.INFO with inquiries about fundamental knowledge regarding bidding. DAUTHAU.INFO will provide a series of guides for contractors.

After acquiring basic knowledge, it's essential to prepare yourself with software to hunt for bidding information. Refer to the VIP1 software package from DauThau.info at: https://dauthau.asia/en/vip/?plan=1&vip=1.

Why does the Admin recommend choosing the VIP1 package instead of other software packages from dauthau.info?

Because with this software package, you are taking your first steps into this specialized procurement market. It can be used to survey the market, simultaneously researching and understanding the bidding packages of interest. By setting up the software to track the packages you are looking for, similar to getting familiar with a hunting ground, you can also view sample bidding invitations for online bids (freely posted bidding invitations). Download them to study how invitations are made, whether your capabilities meet the requirements, and what needs to be supplemented. If everything seems ready, you can dive into action!