To provide detailed provisions for the implementation of the Law on Tendering issued by the National Assembly on 26 November 2013 (“Tendering Law”), the Government promulgated Decree 63/2014/ND-CP dated 26 June 2014 (“Decree 63”), to replace, among others, Decree No. 85/2009/ND-CP dated 15 October 2009 on the same matter. Below are some new regulations on selecting contractors replacing the old regulations of Decree 85.
Decree 63 provides a lower limit for appointment of contractors to cut down the abuse of the contractor appointment. Particularly, tender packages with a value qualifying them to directly appoint a contractor include:
tender packages for consultancy services, non-consultancy services, and public services with a value not exceeding VND500million;
- tender packages for procurement of goods, for construction, for drugs, for medical materials/equipments and for combined tender packages with a value not exceeding VND1 billion; and tender packages as estimated for regular procurement with a value not exceeding VND100million.
Decree 63 expands the limits for competitive quotation. Competitive quotation under normal procedures is applied for tender packages for non-consultancy services, for procurement of goods, for simple construction with values not exceeding VND5 billion. The VND5 billion limit is much higher than that allowed by previous regulations which limited the competitive quotation to VND2 billion.
Decree 63 sets forth detailed guidance for the implementation of regulations on central procurement of goods - the newly-provided regulations under the Tendering Law. Decree 63 provides the following principles, inter alia, for central procurement goods to follow:
- Central procurement must be conducted by, among others, competent bodies under Ministries or equivalent authorities and competent bodies under the Government or competent bodies under provincial peoples’ committees. In case where a competent body is not capable of conducting central procurement, such competent body may engage professional tendering organizations to conduct the selection of a contractor;
- For goods and services that are required to be centrally procured, the state organ demanding such goods and services must recognize the contractor selection result, the contents of the master agreement with the contractor, and 5 Client Alert enter into an agreement with the selected contractor based on terms and conditions set forth under the master agreement;
- In case selection of contractors for implementation of tendering packages having the same content for various competent bodies, the relevant competent bodies will agree and appoint one amongst them as the authorized representative to take responsibilities for the tender process.
Decree 63 took effect on 15 August 2014.