BỘ GIÁO DỤC VÀ ĐÀO TẠO TRƯỜNG ĐẠI HỌC KINH TẾ QUỐC DÂN VIỆN ĐÀO TẠO TIÊN TIẾN, CHẤT LƯỢNG CAO VÀ POHE ~~~~~~*~~~~~~ INTERNATIONAL BIDDING TOPIC: SITUATION 1, 2 Doãn Phương Linh Group 6 International Business Võ Tường Vy Management 63B Phạm Quốc Bảo Đinh Hà Mi Vũ Hoài Thương Chu Hải Anh HÀ NỘI - 2023 MỤC LỤC I. SITUATION 1 3 1. Stage 1: Prepare for bidding 3 1.1. Determine capital owner needs 3 1.2. Planning for bidding projects 4 1.3. Pre-qualification of contractors and investors 5 1.4. Prepare bidding documents 6 2. Stage 2: Organize bidding 6 2.1. Notice of bid invitation 6 2.2. Organize bidding 7 2.3. Evaluate bid documents 7 2.4. Submit, appraise, approve and publicize the contractor selection results 8 3. Stage 3: Sign the contract 9 4. Stage 4: After signing the contract: 9 Example: Haiphong Port 10 II. SITUATION 2 12 1. Stage 1: Prepare for bidding 12 1.1. Determine capital owner needs 12 1.2. Plan the project 12 1.3. Pre-qualification of contractors 13 1.4. Prepare bidding documents 14 2. Stage 2: Bidding organization 16 2.1. Notice of bid invitation 16 2.2. Issuing the bid invitation dossiers 16 2.3. Meet with contractors (if necessary) 16 2.4. Receive bid documents. 17 2.5. Bid opening. 17 2.6. Bidding Document Evaluation 18 2.7. Submit, Appraise, Approve, and Public Disclosure of the Results of the Selection of Bidders 18 3. Stage 3: Contract Signing 19 3.1. Negotiation and contract signing: 19 3.2. Implement the actions to adjust the contract and proceed with the steps after signing the contract: 20 Example: Hoa Binh Hydropower Expansion Project 20 III. COMPARISON 22 References 27 Bảng đánh giá thành viên 28 I. SITUATION 1 If you are the director of a business and you decide to self-bidding for a project, what do you need to do? In this case, this enterprise will perform both the work of the bid solicitor and the capital owner. According to Clause 3 and 4, Article 4 of the 2013 Bidding Law: “ 3. Bid solicitor is an agency or organization with expertise and capacity to carry out bidding activities, including: a) The capital owner or an organization decided or selected by the capital owner; b) The budgeting unit directly uses capital for regular purchases; c) Centralized purchasing unit; d) Competent state agency or affiliated organization selected by the competent state agency 4. Capital Owner is the organization that owns the capital or the organization assigned to represent the owner of the capital or the borrowing organization that directly manages the project implementation process.” Thus, it can be understood that the business needs to invest capital for the project, directly manage the project implementation process and perform the steps in the bidding process. It will have broader functions and responsibilities and management covers the full project rather than hiring an agency to organize the bidding. 1. Stage 1: Prepare for bidding 1.1. Determine capital owner needs Determine bidding goals: clearly define project goals and organize appropriate personnel and resources around those goals; Identify each task that must be performed, estimate the time needed to complete it, and arrange the tasks in a logical sequence. Economic: Economic indicators are focused mainly on “price” but also include other indicators such as: - Alignment with goals (specifically Quality); - Lifetime project costs (eg operating and maintenance costs) - Appropriate costs (e.g. transportation and storage); - Cost management for bidding activities. Most economic contracts do not always mean the cheapest price. The best value for money (VFM) needs to achieve economic goals and can be summarized according to the following "Five rights": - Right quantity for goods, Right people for consulting and construction. - Right quality. - Right price. - Right location. - On-time (on schedule). When you have clearly mastered the project's objectives, the bidding party will easily be able to provide basic conditions for the contractor to meet the needs of the capital owners. 1.2. Planning for bidding projects When doing any job, planning is the first thing that needs to be done. If you have a good plan, then the job will be effective and the same goes for bidding. You need to have a good plan to bid. successful as desired. To organize bidding work well, we must have a specific plan. - Planning to select contractors: Contractor selection plan is prepared for the entire project and procurement estimate. In case the conditions for making a contractor selection plan for the entire project or procurement estimate are not met, then make a contractor selection plan for one or several bidding packages to implement first. The plan must clearly state the number of bidding packages and the content of each bidding package. - Planning to divide the project into bidding packages: the capital owner must base on the technical nature and implementation sequence to divide the bidding packages appropriately. on scale and implementation time, ensuring project synchronization. Article 35 of Bidding Law No. 43/2013 - Plan the implementation time of each bidding package: based on the overall implementation progress of the project, the scale and level of each bidding package to have an implementation plan for each bidding package on schedule. The contents of the contractor selection plan are prescribed in Article 35 of the Bidding Law No. 43/2013: - Human resource planning: Select qualified individuals to participate in the company's bidding work. - Prepare bidding documents: prepare all necessary documents to prepare bidding documents. - Planning for price and financial resources: the capital owner must determine the expected bidding package price that does not exceed the approved estimated price. - Planning standards and evaluation scales: Technical and technological capacity Financial capacity Experience In addition, the capital owner also needs to plan many other factors so that from that plan we can carry out the project. Bidding is effective. 1.3. Pre-qualification of contractors and investors Done before organizing bidding to select qualified and experienced contractors according to the requirements of the bidding package to invite to participate in the bidding. For goods procurement packages and EPC packages (which are often complex in technical nature, requiring contractors to have good capacity and extensive experience to ensure successful implementation bidding package, so contractor pre-qualification is often conducted) with a bidding package price of three hundred billion VND or more; Construction and installation bidding packages with a bidding price of two hundred billion VND or more must be pre-qualified. Procedure for carrying out pre-qualification by the bidding organizer: Step 1: Prepare pre-qualification documents and interest documents The bidding party prepares pre-qualification documents (for contractors) and invitation documents (for investors) and submits them to the capital owner for approval. The invitation for prequalification/invitation for expression of interest includes information on the bidding package and the following requirements for contractors: - Capacity requirements - Financial capacity requirements - Experience requirements Evaluation criteria for prequalification applications/requests of interest are built according to the criteria "pass", "fail" and should be stated in the prequalification documents, including standards for each competency requirement. technical capacity, financial capacity and experience. Pre-qualification documents and invitation for interest documents need to be issued after 3 working days from the first date of posting the pre-qualification notice. Step 2: Notice inviting pre-qualification The notice inviting pre qualification must be published in the bidding newspaper for 3 consecutive issues and on the bidding website; For international bidding, it must also be published simultaneously in an English newspaper widely distributed in the country. After posting according to the above regulations, it can be posted on other mass media. Step 3: Receive and manage prequalification applications and interest documents The bid solicitor receives prequalification applications and expressions of interest submitted by contractors and investors and manages them according to the "confidential" document management regime. Applications are submitted in accordance with the requirements stated in the application documents. Interest documents will be opened publicly immediately after the application closing time. Prequalification documents sent after the closing time of prequalification will not be opened and will be sent back to the contractor in its original state by the bidding invitation agency. Step 4: Evaluate prequalification applications and interest applications The evaluation of application documents is carried out by the bidding party according to the evaluation standards stated in the prequalification documents and invitation for expression of interest documents. The maximum time for evaluating applications of interest and prequalification applications is 20 days for domestic contractors and 30 days for international contractors from the date of bid closing time to the date the bidding party submits it to the capital owner Step 5: Submit and approve the prequalification results The bidding party is responsible for submitting the prequalification results to the capital owner for approval. The maximum approval time is 10 days. Step 6: Announce preliminary results After the capital owner approves the pre-qualification results, the bidding party is responsible for notifying in writing the pre-qualification results to the contractors and investors participating in the pre-qualification to invite them to participate in the bidding. 1.4. Prepare bidding documents Bidding documents are prepared according to the form prescribed by the Government and include the following contents: - For consulting service bidding packages, including requirements on knowledge and professional experience for experts (terms of reference); - For goods procurement packages, including requirements on scope of supply, quantity, and quality of goods are determined through characteristics, technical specifications, technology standards, production standards, and time. Warranty period, environmental requirements and other necessary requirements; - For construction and installation bidding packages, including requirements according to technical design documents, together with bill of quantities, technical instructions and other necessary requirements; - Financial and commercial requirements, including costs to implement the bidding package, quoted price and detailed price list, delivery conditions, payment methods and conditions, financial sources, bidding currency and the terms stated in the general and specific conditions of the contract. - Evaluation standards, important requirements, preferential conditions (if any), taxes, insurance and other requirements. 2. Stage 2: Organize bidding 2.1. Notice of bid invitation The party calling for bids can invite bids through public announcements on the mass media or send bid invitations to contractors and investors. There are two forms of bid invitation: notice of bid invitation and sending letter of bid invitation. Notice of bid invitation: this form applies in case of open bidding or for pre-qualification bidding packages. The bidding party must make announcements on the mass media depending on the scale and nature of the bidding package as prescribed. The notice inviting tenders includes the following contents: + Name and address of the bidding party. + Brief description of the project + Instructions for understanding bidding documents. + Deadline and address for receiving bids. - Sending bid invitations: This form is applied in the limited bidding category where the bidding party must send bid invitations directly to each contractor on the approved list. After inviting bids, contractors must complete their bid documents and submit them to the bid solicitor in a sealed state before the prescribed deadline. The bid solicitor is responsible for preserving the bid documents in a confidential manner for the public. to the time of bid opening. 2.2. Organize bidding a. Release records Issue bidding documents to participating contractors. In case the bidding documents need to be amended after publication, it must be notified to contractors who have received the bidding documents at least 10 days before the bid closing time. b. Receive and manage bids Bids submitted according to the requirements of the bidding documents must be received and managed by the bidding party according to the "Confidential" document management regime. Bids sent to the bidding party after the bid closing time are considered invalid and are returned to the contractor in their original state. Any documents sent by the bidder after the bid closing time to amend or supplement the submitted bid are considered invalid. c. Bid opening The bid opening must be conducted publicly immediately after the bid closing time according to the date, time and address stated in the bidding documents for bids submitted according to the requirements of the bidding documents. The main information stated in each bidder's bid must be announced during the bid opening session and recorded in the bid opening record with confirmation signatures of the representative of the bid solicitor, the contractor's representative and the agency's representative. relevant authorities attend. Open bids in alphabetical order by bidder's name. 2.3. Evaluate bid documents a. Evaluate bid documents The capital owner preliminarily evaluates bids to eliminate invalid bids that do not meet important requirements of the bidding documents according to the following regulations: - Technical evaluation to determine bids that basically meet the requirements of the bidding documents; - For goods procurement, construction, and EPC bidding packages, determine costs on the same technical, financial, and commercial basis to compare and rank bids. - For consulting service bidding packages, comprehensive evaluation is required to compare and rank bids; - For consulting service bidding packages with high technical requirements, financial proposals will be considered for the contractor ranked first in terms of technical aspects. The maximum time for evaluating bids is 45 days for domestic contractors and 60 days for international contractors from the time of closing the bid until submitting the results to the capital owner for approval. b. Approving the winning bid Conditions for consideration and approval of winning bids are specified in Articles 42 and 43 of Bidding Law No. 43/2013 For bidding to provide consulting services, consulting contractors will be considered for winning the bid when they fully meet the following conditions: - Valid bid documents; - Technical proposals including capacity, experience, solutions and personnel that are assessed to meet the requirements; - The highest technical and financial composite score; In case the bidding package has high technical requirements, it will have the highest technical score; - A winning bid price that does not exceed the approved bid package price. For bidding for procurement of goods, construction and EPC, contractors providing goods, construction or implementing EPC packages will be considered for winning bids when they fully meet the following conditions: - Valid bid documents; - Evaluated as meeting requirements for capacity and experience; - A technical proposal that is assessed as meeting the requirements according to the point system or "pass" or "fail" criteria; - The lowest cost on the same ground; - A winning bid price that does not exceed the approved bid package price. 2.4. Submit, appraise, approve and publicize the contractor selection results a. Submitting and appraising bidding results The representative of the capital owner who invites bids must prepare a report on the bidding results for the capital owner to consider, decide and send to the agency or organization responsible for appraisal. The agency or organization assigned the task of appraisal is responsible for preparing a report on appraisal of bidding results on the basis of the report submitted by the bid solicitor and submitting it to the capital owner to review the results. The maximum appraisal time is 20 days from the date of receipt of complete approval documents. b. Approval of bidding results The capital owner as the company director - will be responsible for reviewing and approving the bidding results on the basis of the bidding results report and bidding results appraisal report. The maximum approval time is 10 days from the date of receipt of the approval proposal or appraisal report c. Announcement of bidding results The announcement of bidding results is carried out immediately after the decision to approve the bidding results of the competent person. In announcing the bidding results, it is not necessary to explain the reason for the unsuccessful bidder. Bidding information needs to be posted on the national bidding network and bidding newspaper according to the provisions of Article 8 of the Bidding Law. The time limit for sending written notification of contractor selection results to participating contractors by post or fax is 5 working days from the date of approval of contractor selection results. 3. Stage 3: Sign the contract Negotiation and finalization of the contract to sign the contract with the winning bidder must be based on: - Bidding results approved; - The contract form has been filled out with all the specific information of the bidding package; - Requirements stated in the bidding documents; - Contents stated in the bid documents and clarification of the winning bidder's bid documents (if any); - The contents need to be negotiated and the contract finalized between the bidding party and the winning bidder. The results of contract negotiation and completion are the basis for the capital owner and contractor to sign the contract. In case the negotiation and completion of the contract fails, the capital owner must report to the competent person to consider selecting the next ranked contractor. In case the next ranked contractors also do not meet the requirements, they shall report to the competent person for consideration and decision. 4. Stage 4: After signing the contract: Take appropriate actions to adjust the contract and take steps after signing the contract. After the two parties sign the contract, they will begin implementing the project. The business will appoint a manager to monitor the project implementation steps of the bidding party to see if they are in accordance with the contract and what was previously discussed: - Progress management, quality management; - Cost management; - Management of labor safety and construction environment; - Risk management; - Other management contents. + Assess the current status of project implementation and understand project implementation processes to plan project management and control; + Evaluate changes related to design, construction, procurement of materials and equipment, labor safety, environmental sanitation and fire and explosion prevention, acceptance testing and project handover , operation training: propose to the capital owner appropriate measures to ensure that the above changes do not affect safety, quality and project implementation progress; + Check and manage the progress and quality of contract implementation by contractors in accordance with the signed contract; + Review and check documents of contractors and other consultants according to the contract signed with the capital owner; + Supervise and manage contractors to implement the schedule established by other contractors and adjust and re-establish the project implementation schedule (if necessary) in accordance with the total progress and approved important milestones. ; + Monitor, evaluate and report progress completion levels of contractors. Handle any delays and take authentic measures to complete on schedule as committed to the capital owner; + Supervise and manage contractors to perform work in accordance with important milestones and time periods of the project; + Review and check the contractor's construction organization measures and quality plans. Example: Haiphong Port Hai Phong port is a State’s business, funded by the State and is allowed to manage, exploit infrastructures which are habours, warehouses and other infrastructures invested by the State... Therefore, the port recruits and allocates its human resource to every operating stage and port activity in consistence with functions and missions delegated by superiors. Current ports in general and Hai Phong ports in particular contract out with 4-5 companies for stevedores recruitment. Qualified stevedores will be trained by experts in ship dispatch, and work permanently for that port. On the other hand, there are about 4-5 ports which do not fix the number of stevedores for some different reasons. When the ship and cargo reach the port, companies of management or port business sign a contract of hiring stevedores from external companies to handle the goods. Therefore, for efficient port services, including cargo handling, it is necessary to bid for handling, even whether the habour has human resource or not. Bidding for handling is the work of bidding through selecting to find out the person organizing and providing stevedores for quick, safe and effective ship dispatch based on available port facilities and port tariffs. Capital owner & Bid solicitor: Hai Phong Port Tenderer: Stevedores center Form of bidding: Hai Phong Port opened the bidding find out the person organizing and providing stevedores by themselves The main steps: Depending on particular situation of each port, there are certain major steps of bidding for cargo handling: - - - Bidding board/ Port operations center of collecting information from the agent, ship owner and ship and cargo-related information Forming a team of bidding and bidding appraisal experts, including members of Business department, Finance and Accountancy department. The bidding experts creates Bidding documents. The specific tasks of ship dispatch: kind of cargo, ship and ship parameters, time of ship dispatch and other related port operations details. The bidding team for handling is stevedore centers (of the ports or of the employment companies) Processing based on the proper steps of usual bidding: Publish Bidding documents, Receive and manage bid applications, Open bidding, Assess bidding, Summarize bidding results, Assess bidding results, Approve and inform bidding result before the ship reaches the port and sign the contract with the stevedore center who wins the bid. Provide, support necessary services Accumulate applications and related documents of the bid. Monitor, check the handling of the stevedore center In terms of the bidding process, 24 hours before the ship arrives at the port, the bidding board/Port operations center will inform all information about the ship, cargo to the stevedore centers. All the units receive the information, calculate the targets to serve the ship and cargo, tariffs and join bidding. The winning bidder unit will be announced before the ship arrives and complete to sign the contract with related parties to serve the ship. The bidding result of ship dispatch will be written down in Production statement for other units to follow and cooperate. The conduct of ship dispatch has to comply with the bidding process of each specific kinds of cargo approved by the port managers. II. SITUATION 2 If you are the director of a business hired to organize the bidding for a project, what do you need to do? The enterprise is a consulting company hired as the party inviting bids. At that time, the enterprise will perform the work of the bid solicitor and not of the capital owner. The bid solicitor is defined in Clause 3, Article 4 of the 2013 Bidding Law as follows: “3. Bid solicitor is an agency or organization with expertise and capacity to carry out bidding activities, including: a) The capital owner or an organization decided or selected by the capital owner; b) The budgeting unit directly uses capital for regular purchases; c) Centralized purchasing unit; d) Competent state agency or affiliated organization selected by the competent state agency” Thus, it can be understood that the bid solicitor is an agency or organization with deep expertise and capacity to carry out bidding activities. The capital owner is the organization that owns the capital or the organization assigned to represent the owner of the capital or the borrowing organization that directly manages the project implementation process. Thus, the capital owner has broader functions and responsibilities and management covers the entire project, while the bid solicitor only specializes in bidding for bidding packages in that project. After being hired by the capital owner to advise on organizing bidding to implement the project, the enterprise needs to perform the following tasks: 1. Stage 1: Prepare for bidding 1.1. Determine capital owner needs Determine the capital owner's requirements in terms of price, organizational process, time (progress), location and results that the capital owner wants to receive. 1.2. Plan the project Step 1: Plan to select a contractor According to Article 33, Bidding Law 2013: Contractor selection plan is prepared for the entire project and procurement estimate. In case the conditions for making a contractor selection plan for the entire project or procurement estimate are not met, then make a contractor selection plan for one or several bidding packages to implement first. The plan must clearly state the number of bidding packages and the content of each bidding package. Step 2: Plan to divide the project into bidding packages According to Articles 33 and 35 of the 2013 Bidding Law: when dividing a project into bidding packages, it must be based on technical characteristics and implementation order, so that there is a reasonable division of bidding packages in terms of scale, implementation time, ensuring project synchronization. In particular, the content of bidding packages includes: Bidding package name, bidding package price, capital source, bidding method, bidding package selection time, contract form, contract implementation time. - Time plan for implementation of each bidding package. - Personnel plan. - Financial resource plan… 1.3. Pre-qualification of contractors Step 1: Prepare pre-qualification documents and interest documents: Concept of pre-qualification documents: Pre-qualification documents are specified in Clause 27, Article 4 of the 2013 Bidding Law as follows: Invitation for expression of interest and prequalification documents are all documents that include capacity and experience requirements for contractors and capital owners as a basis for the bid solicitor to select a list of contractors and contractors. investment that passes prequalification, the list of tenderers whose documents of interest are evaluated to meet the requirements of the invitation for expression of interest documents. The content of the prequalification documents shows full information about the scale of the bidding package, detailed technical characteristics and other specific requirements for the goods and services provided, and instructions. for tenderers during pre- qualification as well as selection standards... + The bid solicitor prepares pre-qualification documents (for each requirement on technical capacity, financial capacity and experience. + Pre-qualification documents, invitation documents for interest need to be issued after 3 working days from the first date of posting to tenderer), invitation documents (for capital owner) must be submitted to the capital owner. approve. The invitation for prequalification and invitation for interest documents include some brief information about the project and the scope of the bidding package so that the tenderer participating in the prequalification can evaluate the characteristics of the bidding package. + In addition, the prequalification documents and invitation for interest documents also require the tenderer participating in prequalification to provide data related to the contractor's technical capacity, financial capacity and experience. + Evaluation standards for pre-qualification applications and expressions of interest are built according to the criteria "pass", "fail" and need to be stated in the pre-qualification documents, including standards for pre-qualification invitations. Step 2: Notice inviting pre-qualification: The notice inviting pre qualification must be published in 3 consecutive issues of the bidding newspaper and on the bidding website. For international bidding, it must also be published simultaneously in an English newspaper distributed widely practiced in the country. After posting according to the above regulations, it can be posted on other mass media. Step 3: Receive and manage prequalification applications and interest documents: The bid solicitor receives prequalification applications and expressions of interest submitted by tenderer and capital owners and manages them according to the "confidential" document management regime. Applications are submitted in accordance with the requirements stated in the application documents. Interest documents will be opened publicly immediately after the application closing time. Prequalification applications sent after the closing time of prequalification will not be opened and will be sent back to the contractor in its original state by the bid solicitor. Step 4: Evaluate prequalification applications and interest documents: - The evaluation of application documents is carried out by the bid solicitor according to the evaluation standards stated in the prequalification documents and invitation for expression of interest documents. - The maximum time for evaluating applications of interest and pre-qualification applications is 20 days for domestic tenderer and 30 days for international tenderers from the date of bid closing time to the date the bid solicitor submits it to the capital owner. Approve the results of contractor selection Step 5: Submit and approve prequalification results: The bid solicitor is responsible for submitting the prequalification results to the capital owner for approval. The maximum approval time is 10 days. Step 6: Announcement of preliminary results: After the capital owner approves the pre-qualification results, the bid solicitor is responsible for notifying in writing the pre-qualification results to the tenderer and capital owner participating in the pre-qualification to invite them to participate in the bidding. 1.4. Prepare bidding documents - According to Clause 29, Article 4, Bidding Law 2013: Bidding documents are all documents used for open bidding and limited bidding, including requirements for a project, bidding package, making basis for tenderer and capital owner to prepare bid documents and for the bid solicitor to organize the evaluation of bid documents to select tenderer and capital owner. - Bidding documents are prepared according to the form prescribed by the Government and include the following contents: a. For consulting service bidding packages, including requirements on knowledge and professional experience for experts (terms of reference). b. For goods procurement packages, including requirements on scope of supply, quantity, and quality of goods are determined through characteristics, technical specifications, technology standards, production standards, and time. Warranty period, environmental requirements and other necessary requirements. c. For construction and installation bidding packages, including requirements according to technical design documents, together with bills of quantities, technical instructions and other necessary requirements. d. Financial and commercial requirements, including costs to implement the bidding package, quoted price and detailed price list, delivery conditions, payment methods and conditions, financial sources, bidding currency and the terms stated in the general and specific conditions of the contract. e. Evaluation standards, important requirements, preferential conditions (if any), taxes, insurance and other requirements To ensure quality, after being prepared, bidding documents will be sent to competent individuals and organizations for appraisal and approval before being released to tenderer . In terms of general information, the Bidding Documents include 2 groups of content: instructions for tenderer and methods for evaluating Bidding Documents. - Instructions for tenderer: + Instructions on contractor eligibility + Instructions on using subcontractors + Instructions on language and currency usage + Instructions on preparation and submission of bids + Instructions on the validity period of the bid + Instructions on how to calculate bid prices + Prerequisites for rejection of bids + Preferential conditions - Methods and standards for evaluating bids + Determine the evaluation method: Method based on quality, quality - cost basis, lowest price basis, fixed budget basis, professional capacity basis, contractor experience + Determine evaluation criteria and standards 2. Stage 2: Contractor Selection 2.1. Notice of bid invitation There are 2 forms of notice of bid invitation: - Notice of bid invitation + The bid solicitor calling for bids can invite bids by public announcement on the mass media (applicable to forms of open competition and competitive quotation). + The scope of posting notice inviting bids depends on the form of widespread domestic or international competition. + The notice inviting tenders includes the following contents: ● Name of the bidding package, name of the project containing the bidding package ● Name of investor and bidding party ● Brief description of the project: package price; bid guarantee value.. ● Instructions for understanding bidding documents ● Deadline and address for receiving bids - Letters inviting submission of bidding + The bid solicitor must send invitations to bid directly to each contractor in the approved list (applicable to forms of limited competitive or open competitive contractor selection with pre-qualification). + After inviting bids, contractors complete the bid documents and submit them to the bid solicitor in a sealed state before the prescribed deadline. The bid solicitor is responsible for preserving the bid documents in a confidential manner. until the time of bid opening. 2.2. Issuing the bid invitation dossiers - Issue the bidding invitation dossier to contractors participating in open bidding, to contractors on the list invited to participate in limited bidding or to contractors that have passed the pre-qualification step. - In case the bidding invitation dossiers need to be amended after publication, it must be notified to contractors who have received the bidding documents at least 10 days before the bid closing time. 2.3. Meet with contractors (if necessary) - Purpose: the bid solicitor answers contractor’s questions related to the content of the bidding invitation dossiers, clarifying necessary issues of the bidding package and the project. - The contents discussed during the meeting are made into a document and considered part of the bidding document, this document is sent to all contractors. - This organization is not mandatory for all bidding packages and is only performed by the bid solicitor when necessary. 2.4. Receive bid documents. - Bids submitted according to the requirements of the bidding documents must be received and managed by the bid solicitor according to the "confidential" document management regime. - Bids sent to the bid solicitor after the bid closing time are considered invalid and are returned to the contractor in their original state. Any documents sent by the bidder after the bid closing time to amend or supplement the submitted bid are considered invalid. - Some forms of receiving bids are: + By post + Receive directly from the Contractor + Via the internet (for competitive bidding or when applying electronic bidding) - After the bid solicitor has received the bid, the bidder can still withdraw or make adjustments before the bid closing time. The bid solicitor will be responsible for safely preserving the bids until the opening time. 2.5. Bid opening. - The bid opening must be conducted publicly immediately after the bid closing time according to the date, time and address stated in the bidding documents for bids submitted according to the requirements of the bidding documents. - The main information stated in each bidder's bid must be announced during the bid opening session and recorded in the bid opening record with confirmation signatures of the representative of the bid solicitor, the contractor's representative and the agency's representative of relevant authorities. - Bids are opened alphabetically by bidder name and in the following order: + Request the representative of each contractor attending the bid opening to confirm whether or not there is a letter of discount in the bid documents. + Check the seal + Open the file, read and record the following key information: ● Contractor name ● Number of originals and copies of documents ● Validity period of the application ● Related information - After bid opening, the bid solicitor must sign each original page of each bid and manage it according to the "confidential" document management regime. The Contractor must be responsible for the accuracy, compatibility between the copy and the original as well as the stamping of the bid documents. 2.6. Bidding Document Evaluation - The bid solicitor provides bidders with information on the bidding document evaluation method that will be applied to the lot. A preliminary evaluation of the bidding documents is conducted to identify bidding documents that meet the basic requirements of the bidding documents and to eliminate invalid bidding documents that do not meet important requirements of the bidding documents. + For procurement packages for goods, construction, and EPC, the bid solicitor will first determine the cost of each proposal on the same level of technical, financial, and commercial aspects. This is done to ensure that the proposals are comparable and that the winning bidder is the one that offers the best value for money. + For procurement packages for consulting services, the bid solicitor will use an overall evaluation to compare and rank the proposals. This evaluation will consider a variety of factors, including the qualifications and experience of the contractor, the quality of the proposal, and the price. + For procurement packages for consulting services with high technical requirements, the bid solicitor will first rank the proposals based on their technical merits. The financial proposal of the contractor that is ranked first in terms of technical merits will then be considered. This is done to ensure that the winning bidder has the necessary qualifications and experience to complete the contract. - The maximum time for evaluating bidding documents is 45 days for domestic bidders and 60 days for international bidders from the time of bid closing to the time of submitting the results for approval by the owner. 2.7. Submit, Appraise, Approve, and Public Disclosure of the Results of the Selection of Bidders Step 1: Submit and appraise the bidding The conditions for reviewing and approving the winning bidder are stipulated in Articles 42 and 43 of the Public Procurement Law No. 43/2013: - For the bidding of consulting services, a consulting contractor is considered for recommendation as the winning bidder when it meets all of the following conditions: + A valid bidding document; + A technical proposal that includes the capacity, experience, solutions, and personnel that are evaluated as meeting the requirements; + The highest combined score in terms of both technical and financial aspects; + In the case of a tender with high technical requirements, the highest score in terms of technical aspects + The winning bid price does not exceed the approved tender package price. - For the bidding of goods procurement, construction, and EPC, a contractor that provides goods, constructs, or carries out an EPC package will be considered for recommendation as the winning bidder when it meets all of the following conditions: + A valid bidding document; + Meets the requirements for capacity and experience; + The technical proposal is evaluated as meeting the requirements according to a point system or the criteria "pass" or "fail"; + The lowest cost on the same level; + The winning bid price does not exceed the approved tender package price. Step 2: Approve the Results of the Bidding - The bid solicitor must prepare a report on the results of the bidding for the owner to review and decide on, and send it to the agency or organization responsible for approving. The agency or organization assigned the task of review is responsible for preparing a report on the review of the results of the bidding based on the report submitted by the bid solicitor and submitting it back to the owner for review of the results. - The maximum time for approving is 20 days from the date of receiving the complete submission documents. Step 3: Notification of the Results of the Bidding - The notification of the results of the bidding is carried out immediately after the decision to approve the results of the bidding is issued by the competent authority. The notification of the results of the bidding does not need to explain the reasons for the unsuccessful bidders. - The bidding information must be posted on the national bidding website and the bidding newspaper in accordance with the provisions of Article 8 of the Public Procurement Law. - The deadline for sending the notification of the results of the selection of contractors to the bidding contractors by post or fax is 5 working days from the date of the approval results of the selection of contractors. 3. Stage 3: Contract Signing 3.1. Negotiation and contract signing: - Notify the contractor of the schedule stating the requirements for the time to negotiate, complete the contract, submit the performance bond, and sign the contract. 3.2. Implement the actions to adjust the contract and proceed with the steps after signing the contract: - This phase marks the official beginning of project work and encompasses the entirety of the project lifecycle - No responsibility of the bid solicitor Example: Hoa Binh Hydropower Expansion Project Over 3,000 billion dong construction package organized through online bidding According to the National Public Procurement Network, a construction package with a budget of 3,108.5 billion dong has been successfully organized through online bidding. This is Package No. 1XL-HB Construction and installation of the Hòa Bình hydropower expansion project under the Hòa Bình hydropower expansion project, with the tender documents issued online from October 8 to November 16, 2020. The package was organized to select contractors through the form of open bidding in Vietnam, one-stage two-envelope method. The bid solicitor is the Power Project Management Unit 1, a branch of the Vietnam Electricity Group. The contract execution time is 45 months. The package was opened with technical proposal documents online with the participation of 3 contractors including: ● The consortium of the Song Da Corporation - the Joint Stock Company of Import and Export Construction and Construction of Vietnam - the Vietnam Mechanical Corporation ● The consortium of the Truong Son Construction Corporation - the Lilama 10 Joint Stock Company - the Construction 47 Joint Stock Company ● The consortium of the Construction and Investment Company No. 18 - the Licogi 10 Joint Stock Company - the Lilama 45.1 Joint Stock Company - the Licogi 13 Joint Stock Company As a result, the consortium of the Truong Son Construction Corporation - the Lilama 10 Joint Stock Company - the Construction 47 Joint Stock Company won the bid with a price of 2,923.4 billion dong, a discount rate of 1.25% - a significant amount of savings for a large-value construction package. On January 10, 2021, the Hòa Bình hydropower expansion project was inaugurated under the witness of Prime Minister Nguyen Xuan Phuc. The construction progress proposed by the winning contractor consortium is 44 months from the date of commencement, scheduled to be completed in September 2024. Analysis of the example: - Bid solicitor: Power Project Management Unit 1, a branch of the Vietnam Electricity Group - Bidding entities: Consortium of the Song Da Corporation - the Joint Stock Company of Import and Export Construction and Construction of Vietnam - the Vietnam Mechanical Corporation; Consortium of the Truong Son Construction Corporation - the Lilama 10 Joint Stock Company - the Construction 47 Joint Stock Company; Consortium of the Construction and Investment Company No. 18 - the Licogi 10 Joint Stock Company - the Lilama 45.1 Joint Stock Company - the Licogi 13 Joint Stock Company - Winning bidder: Consortium of the Truong Son Construction Corporation - the Lilama 10 Joint Stock Company - the Construction 47 Joint Stock Company - Bidding form: The package was organized to select contractors through the form of open bidding in Vietnam, one-stage two-envelope method. - Bidding process: + Power Project Management Unit 1, a branch of the Vietnam Electricity Group, announced in the mass media. + Consortium of the Song Da Corporation - the Joint Stock Company of Import and Export Construction and Construction of Vietnam - the Vietnam Mechanical Corporation; Consortium of the Truong Son Construction Corporation - the Lilama 10 Joint Stock Company - the Construction 47 Joint Stock Company; Consortium of the Construction and Investment Company No. 18 - the Licogi 10 Joint Stock Company - the Lilama 45.1 Joint Stock Company - the Licogi 13 Joint Stock Company purchased the documents and submitted the bidding documents. + Power Project Management Unit 1, a branch of the Vietnam Electricity Group, opened the bidding. + Power Project Management Unit 1, a branch of the Vietnam Electricity Group, and the expert team evaluated and compared the bidding documents of the 03 contractors. + Power Project Management Unit 1, a branch of the Vietnam Electricity Group, and the expert team ranked and selected the contractor and signed the contract. III. COMPARISON 1. Process comparison Self-bidding Identify a project of interest through Project Identificat research or direct solicitation. ion Preparati on Hired to organize the bidding Receive project information from client and understand their needs. Determine Capital Owner Needs - Analyze own capabilities & resources. - Facilitate communication between Capital Owner & potential bidders. - Interact directly with Capital Owner - Gather & clarify needs, to understand needs & expectations. specifications, & budget constraints from Capital Owner. - Translate needs into a concrete project vision & scope - Develop a clear & detailed project brief based on Capital Owner's input. Prepare personnel The bid solicitor is an existing specialized department in the investor's organizational structure, established by the investor into project management boards. The bid solicitor is a professional consulting group hired by the investor to help the investor select a contractor. Planning for Bidding Projects Pre-qualification of Contractors & Investors Enterprises themselves approve and notify prequalification results to contractors and investors + The bid solicitor will present the results to the investor for approval and appraisal + After the investor approves the prequalification results, the bid solicitor is responsible for notifying in writing the pre-qualification results to the contractors and investors participating in the pre-qualification to invite them to participate in the bidding. + Shortlist qualified contractors/ investors for the bidding process. Prepare Bidding Documents The project management board can approve it itself or submit it to the investor for approval. Bidding organizati on After completing the documents, the bidding party prepares a proposal to approve the Bidding Documents to the investor for approval. Step 1: Bidding organization a. Notice of Bid Invitation b. Issuing the bid invitation dossiers c. Meet with contractors (if necessary d. Receive bid documents e. Bid opening Step 2: Bidding Document Evaluation a. Bidding Document Evaluation The investor preliminarily evaluates bid documents to eliminate invalid bids that do not meet important requirements of the bidding documents according to regulations. The bid solicitor provides bidders with information on the bid evaluation method that will be applied to the bidding package. Preliminary evaluation of bidding documents according to bidding packages b. Approving the winning bid Step 3: Submit, Appraise, Approve & Publicize Contractor Selection Results a. Submit and appraise the bidding The representative of the investor who invites bids must prepare a report on the bidding results for the investor to consider, decide and send to the agency or organization responsible for appraisal. The bid solicitor must prepare a report on the bidding results for the investor to consider, decide and send to the agency or organization responsible for appraisal. The agency or organization assigned the task of appraisal is responsible for preparing a report on appraisal of bidding results on the basis of the report submitted by the bid solicitor and submitting it to the investor to review the results. b. Approve the Results of the Bidding The investor will be responsible for reviewing and approving the bidding results on the basis of the bidding results report and bidding results appraisal report. c. Notification of the Results of the Bidding Sign the Contract - Negotiate & finalize contract terms with the Capital Owner. - Sign the formal contract, marking the project commencement. After Signing the Contract - Assist the Capital Owner & winning bidder in finalizing & signing the contract. - Ensure all contractual terms are aligned with the bidding documents & evaluation results. - After both parties sign the contract, they will begin implementing the project. The business will appoint a manager to monitor the project implementation steps of the bidding party to see if they are in accordance with the contract and what was previously discussed. - There is no responsibility of the bid solicitor. 2. Feature comparison Factor Self-bidding Hired to organize the bidding Type The company participates in a bidding process to win a project The company is hired by the client to organize the bidding process Entity Company Client Function Participates in bidding to win the right to execute the project Organizes the bidding process to help the client select a contractor Can participate in the bidding process, and if awarded, will be able to execute the project and enjoy the profits Earns a fee for organizing the bidding process, regardless of who wins Responsi Must meet the requirements of the bidding documents, and if awarded, bilities must execute the project according to the contract Must organize the bidding process according to legal regulations and ensure that the best contractor is selected - Potentially higher profit: If the business wins the bid, they keep all the project profits. - Guaranteed income: Earns a fee for managing the bidding process, regardless of winner. Benefits Pros - Direct control: The business has full - Network building: Connects with control over the project scope, timeline, various companies and expands and budget. industry network. - Faster process: No need to manage other bidders, streamlining the process. - Showcase expertise: Submitting a strong bid demonstrates the business's capabilities to potential clients. Cons - Neutral role: Ensures a fair and transparent bidding process, avoiding bias. - Multiple projects: Works on multiple projects concurrently, diversifying income stream. - Time and resource investment: Preparing a competitive bid requires significant time and resources. - Lower profit: Income limited to the bidding fee, not the full project profit. - Lower success rate: The business competes against established players and may not win. - Less control: No direct control over project execution or outcome. - Bias risk: Evaluators may subconsciously favor the self-bid, raising ethical concerns. - Limited exposure: Only competes for one project, missing out on other opportunities. Choose if The business has strong confidence in winning, prioritizes maximizing profit, and has the resources to prepare a competitive bid. - Time commitment: Managing the bidding process can be timeconsuming. - Reputation risk: Responsible for ensuring a fair and ethical bidding process. The business prefers guaranteed income, wants to build industry connections, values neutrality and fairness, and seeks diverse project opportunities. References 1. Bidding Law 2013, 2023 2. Faculty of Investment (2018). Bidding Textbook, National Economics University Publishing House Bảng đánh giá thành viên Họ và tên MSV Phân công công việc Điểm đánh giá Doãn Phương Linh 11213121 Phân công công việc, làm slide, hoàn thiện phần 1 situation 2, thuyết trình, tổng hợp word. 5 Vũ Hoài Thương 11215615 Làm slide, hoàn thiện phần 3 situation 1, phần so sánh, thuyết trình, tổng hợp word. 5 Võ Tường Vy 11216344 Làm slide, hoàn thiện phần 2 situation 1, thuyết trình, tổng hợp word. 5 Phạm Quốc Bảo 11210929 Làm slide, hoàn thiện phần 2 situation 2, thuyết trình, tổng hợp word. 5 Chu Hải Anh 11210285 Làm slide, hoàn thiện phần 1 situation 1, thuyết trình, tổng hợp word. 5 Đinh Hà Mi 11213753 Làm slide, hoàn thiện phần 3 situation 2, thuyết trình, tổng hợp word. 5 Thang điểm đánh giá 1. Không tham gia đóng góp 2. Tham gia không tích cực 3. Tạm chấp nhận được 4. Tham gia tốt theo đúng cam kết của nhóm 5. Tham gia rất tích cực
