04 Contractor selection methods according to current regulations

Article overview

Contractor selection methods play an important role in bidding activities, directly affecting the efficiency and transparency of choosing project implementation partners. With the Law on Bidding 2023, these contractor selection methods have been regulated in more detail, ensuring competitiveness and objectivity in the bidding process in Vietnam. Follow Long Phan’s article to better understand contractor selection methods and how to apply them most effectively!

Regulations on current contractor selection methods
Regulations on current contractor selection methods

What is the contractor selection method?

Contractor selection method is the way to organize and carry out the process of selecting a contractor to carry out a specific bidding package. This is an important part of bidding work, to ensure transparency, competition, economic efficiency and legal compliance.

Forms of contractor selection

According to regulations Law on Bidding 2023, there are 09 forms to select contractors. Specifically, including:

  • Open bidding;
  • Limited bidding;
  • Appointing contractors;
  • Competitive offers;
  • Direct shopping;
  • Self-realization;
  • Participate in community implementation;
  • Price negotiation;
  • Select contractors in special cases.

Method of selecting contractors according to the latest current regulations

One-stage, one-envelope contractor selection method

According to Article 30 of the Law on Bidding 2023, this method is applied in the following cases:

  • Open bidding, limited bidding for bidding packages providing non-consulting services, procurement of goods, construction and installation, mixed services.
  • Competitive offers for bidding packages for providing non-consulting services, procurement of goods, construction and installation, and mixed bidding packages for providing goods and construction and installation.
  • Appointing contractors for bidding packages providing consulting services, non-consulting services, procurement of goods, construction and installation, mixed services.
  • Direct procurement for goods procurement packages.

Contractors submit bid documents and proposal documents, including technical proposals and financial proposals according to the requirements of the bidding documents and request documents. The bid opening is conducted once for all Bidding documents and proposal documents.

One-stage, two-envelope contractor selection method

According to Article 31 of the Law on Bidding 2023, this method applies in the following cases:

  • Open bidding, limited bidding for bidding packages to provide consulting services
  • Open bidding for mixed bidding packages organized by international bidding, limited bidding for bidding packages with high technical requirements or specific techniques where only a few contractors meet the requirements of the bidding package.

The bid opening is conducted twice. Technical proposals will be opened immediately after the bid closing time. Contractors that meet technical requirements will have their financial proposals opened for evaluation.

>>> Reference: Documents for inviting bids in a single-stage process with two envelopes.

Two-stage, one-envelope contractor selection method

According to Article 32 of the Law on Bidding 2023, this method applies in cases of: open bidding, limited bidding for procurement packages of goods, construction and installation, mixed items where the exact requirements have not been determined. Specific and complete technical requirements for the bidding package at the time of bidding.

The contractor selection process is carried out as follows:

Phase one:

  • The contractor submits technical proposals (excluding bid price) as required in the bidding documents, based on the basic design or technical specifications of the bidding package.
  • Contractors are allowed to propose alternative technical plans, but must simultaneously submit the alternative plan and the main plan in accordance with the requirements of the bidding documents.
  • Technical proposals are opened immediately after the bid closing time.
  • Contractors with technical documents that meet the requirements will be invited to participate in phase two.

Phase two:

  • Bidders who pass stage one will be asked to clarify and adjust their technical proposals.
  • Based on the clarified contents, the bidding documents for phase two were adjusted and supplemented. Technical deviations or alternative options accepted in phase one will be included in the bidding documents for phase two.
  • Contractors submit bid documents for phase two, including technical proposals, financial proposals, bid prices and bid guarantees as required by phase two bidding documents.
  • Bids are opened once for comprehensive evaluation.
Invest in a two-stage, one-envelope method
Invest in a two-stage, one-envelope method

The method of selecting a contractor is two stages and two envelopes of documents

According to Article 33 of the Law on Bidding 2023, this method is applied to the following cases: open bidding, limited bidding for procurement packages of goods, construction and installation, mixed with new techniques and technologies, complex and specific, but the specific and complete technical requirements for the bidding package have not been accurately determined at the time of organizing the bidding.

The contractor selection process is carried out as follows:

  1. Contractors on the list that meet the requirements of phase one are invited to clarify their technical proposals.
  2. Based on the clarification of technical proposals for each bidder, the first phase bidding documents are adjusted and supplemented with instructions for bidders, evaluation criteria, technical requirements, contract conditions and other contents to form the second phase bidding documents, including technical deviations of accepted bidders and proposals in the accepted bidder’s alternative plan.
  3. Contractors submit bid documents including separate technical proposals and financial proposals according to the requirements of the second stage bidding documents, including bid price and bid security. Financial proposals are offered according to the main technical proposal of the contractor; In case the contractor offers an alternative technical plan, it must include a financial proposal for this alternative plan.

The bid opening is conducted twice. Technical proposals will be opened immediately after the bid closing time. Contractors that meet technical requirements will have their financial proposals opened for evaluation.

In-depth consulting services on contractor selection methods in bidding at Long Phan

Long Phan provides comprehensive bidding consulting services with optimal solutions, supporting customers to ensure transparency, efficiency and compliance with regulations in all bidding stages. Specifically, our professional bidding support and consulting services include:

  • Consulting on choosing appropriate bidding methods and to propose optimal bidding methods.
  • Consulting on appropriate contractor selection methods.
  • Support in drafting and developing detailed, clear bidding documents that meet technical, financial and requirements.
  • Consulting on relevant conditions and regulations during the bidding process to ensure a transparent, fair bidding process and avoid risks.
  • Consulting on developing an effective contractor selection plan for the project.
  • Detailed instructions on the contractor selection process for the project.
  • Support to answer and resolve problems that arise during the contractor selection process.
  • Support in evaluating the capacity of contractors, ensuring the selection of the best partner.
Our professional and effective consulting and support services
Our professional and effective consulting and support services

The method of contractor selection is one of the indispensable factors in determining the success of the project. Choosing the right method and appropriate contractor not only ensures transparency and economic efficiency but also helps the project strictly comply with regulations. Please contact Long Phan immediately via the hotline 0906735386 to receive professional support and provide effective, time-saving solutions for you.