Procurement activities for goods and services play an important role in creating competition, fairness and efficiency in the procurement of goods and services. The activities of bidding for goods and services are aimed at selecting contractors that are suitable to the criteria of the bid solicitor. In addition, this activity also helps to save costs, minimize risks and increase transparency in bidding activities. Hereafter, Bi Law Firm will present an overview of the bidding activities for goods and services in accordance with current law.
1. Theoretical basis of bidding activities
1.1 Concept
According to Clause 1, Article 214 of the Commercial Law 2005 stipulates: Bidding for goods and services is a commercial activity whereby a party purchases goods or services through invitation for bids (referred to as bid solicitors) to select in the number of traders participating in the bidding (referred to as bidders) the trader that best meets the requirements set forth by the bid solicitor and is selected to sign and perform the contract (referred to as the winning bidder)
1.2 Features
First, bidding for goods and services is a commercial activity. Procurement of goods and services for profit purposes. This activity is not simply looking for profit but also other economic and social benefits in a positive direction. Bidding for goods and services is usually on a large scale and is aimed at selecting suitable contractors for the bid solicitor. Therefore, the aim of the parties in commercial activities is usually profit-oriented.
Second, in the relationship of bidding for goods and services, the bidder is required to be a trader. Traders include individuals who conduct commercial activities, independently, regularly and have business registration or legally established economic organizations. If the bidder fails to satisfy the conditions of being a trader, this is not a bidding for goods or services.
Third, the object in the bidding activities is the goods or services that are allowed to be traded. The object that the bid solicitor aims at are the goods and services of the bidder. These goods and services must be in accordance with the criteria of the bid solicitor. Except for the case of some goods and services banned from trading. In addition, some objects such as real estate or securities cannot be the subject of auctions for goods.
2. Bidding form and bidding method
2.1 Form of bidding
Procurement forms include: Open bidding and limited bidding
Open bidding is a form of bidding in which the bid solicitor does not limit the number of bidders;
Restricted bidding is a form of bidding in which the bid solicitor invites only a certain number of contractors to bid.
2.2 Bidding Methods
Bidding methods include: Bidding for one bag of documents and bidding for two bags of documents
Bidding in one envelope: Bidders submit a bid including technical and financial proposals in one envelope according to the requirements of the bidding documents, and bid opening is conducted once.
Bidding in two envelopes: Bidders submit their bids including technical proposals and financial proposals in separate envelopes submitted at the same time and bid opening is conducted twice. . The technical proposals will be opened first.
3. Another law relating to bidding activities
Public procurement will follow the provisions of the Law on Procurement 2013 and other relevant legal documents.
The bid solicitor may require the bidders to pay a deposit, deposit or bid guarantee upon submission of the bid. The rate of deposit and bid deposit shall be specified by the bid solicitor, but not exceeding 3% of the total estimated value of the goods and services for bidding.
The parties may agree that the winning bidder must deposit, deposit or be guaranteed to secure the contract performance. The amount of the deposit or deposit shall be specified by the bid solicitor, but not exceeding 10% of the contract value. The winning party is not entitled to receive back the deposit or security deposit for contract performance if it refuses to perform the contract after the contract is signed.
The re-bidding shall be held when there is one of the following cases: There is a violation of the regulations on bidding; Bidders failed to meet the bidding requirements.
The above is an overview of goods and service bidding activities. Contact Bi Law Firm for more details.