What bidding packages does price negotiation in bidding apply to?

Price negotiation in bidding is a form of contractor selection. This form allows the bidding party to directly negotiate with selected contractors to reach consensus on price and contract terms. So which bidding packages is price negotiation applied to? The article below by Long Phan will specifically answer this issue.

What is price negotiation in bidding?

Price negotiation in bidding is a form of contractor selection, in which the bidding party conducts direct negotiations with selected contractors to agree on prices and contract terms for the bidding package.

The purpose of price negotiation is to achieve the best price for the bidding package, while ensuring that the selected contractor has enough capacity and experience to perform the contract. Price negotiations must be carried out publicly, transparently and in compliance with the law on bidding.

Which bidding packages apply price negotiation?

Pursuant to Clause 1, Article 28 of the Law on Bidding 2023, the following bidding packages will apply price negotiation in bidding:

• Buy original brand-name drugs and reference biological products;
• Buy drugs, medical equipment, and testing supplies from only 01 or 02 manufacturers.

Procedures for applying price negotiation to select contractors

According to regulations in Circular 05/2024/TT-BYT, price negotiation procedures to select contractors include the following steps:

Step 1: Identify bidding packages that are eligible for price negotiation.

Step 2: Select contractors that meet capacity and experience requirements.

Step 3: Establishment of Price Negotiation Committee.

Step 4: Develop a price negotiation plan.

Step 5: Conduct price negotiations.

Step 6: Prepare price negotiation minutes.

Step 7: Submit to competent authority for approval of price negotiation results.

The information serves as a basis for developing a price negotiation plan for drugs

Pursuant to Clause 1, Article 5 of Circular 05/2024/TT-BYT, to develop a price negotiation plan for the subject, it is necessary to base on the following information:

• Number of circulation registration certificates of group 1 generic drugs or other technical group generic drugs in case there are no group 1 generic drugs;
• Winning bid price for generic drugs of group 1 or other technical groups in case there are no generic drugs of group 1;
• Substitution ability of drug price negotiation (in case necessary);
• Time of circulation in Vietnam;
• Information on the value of used drug price negotiations provided by Vietnam Social Insurance (if any);
• Value and planned quantity of drug price negotiation;
• Reference price of drug price negotiation in countries belonging to the Association of Southeast Asian Nations (ASEAN) (if any). In case there is no reference price in ASEAN, refer to other countries (if any);
• Processing and technology transfer roadmap for original brand name drugs and reference biological products announced by the Ministry of Health for processing and technology transfer in Vietnam;
• Contractor’s proposal dossier, proposal evaluation report and summary of drug information for price negotiation by the expert group;
• Other relevant information (if any).

Consulting services and support for effective price negotiation in bidding

To ensure the negotiation process goes smoothly and achieves the best results, customers can use Long Phan’s consulting and support services on price negotiation in bidding.

Our services include:

• Consulting on bidding packages applying price negotiation in bidding;
• Consulting on information as a basis for developing price negotiation plans and construction support;
• Participate in price negotiations as an advisor;
• Draft price negotiation minutes and related documents;
• Consulting and guiding the order and procedures of price negotiation in bidding;
• Consulting and answering other issues related to price negotiations in bidding.

Price negotiation in bidding is an important form of contractor selection, applied to specific bidding packages to ensure efficiency and transparency. Mastering the legal provisions on price negotiation is a prerequisite for bidding parties to protect their legal rights. For detailed advice on price negotiation in bidding, please contact the hotline: 0906735386 for the best support from Long Phan.