Bidding is an important process in the field of business and investment. It allows businesses and organizations the opportunity to win contracts with other agencies, organizations, or individuals to provide products or services. However, to participate in the bidding, businesses need to understand the process and necessary steps to ensure your participation in bidding is carried out effectively and successfully.
1. Definition
According to the definition in the Law on Bidding 2013, bidding is the process of selecting a contractor to sign and perform a contract for the provision of consulting services, non-advisory services, procurement of goods, and construction and installation; select investors to sign and perform contracts on investment projects using land on the basis of ensuring competition, fairness, transparency and economic efficiency.
In other words, about bidding, the person who wants to buy the works, goods, services, etc. (the Investor) chooses the seller of the works, goods, services… (the Contractor) that is most suitable for them among a lot of people offering to sell.
2. Procedure to participate in the bidding
Conditions for organizations and individuals to participate in bidding are specified in the current Bidding Law.
Bidding information must be posted on the national bidding network system, the Procurement Newspaper of the state management agency in charge of bidding.
The bidding process includes the following steps:
- Preparing for contractor selection;
- Organize contractor selection;
- Evaluate bids and negotiate contracts;
- Submit, appraise, approve, and publicize contractor selection results;
- Finalize the contract and sign the contract.
According to current regulations, there are the following main forms of contractor selection: open bidding, limited bidding, appointment of contractors, direct procurement, competitive offers, self-executing, contractor selection in special cases and participation in the implementation of the community.
Depending on the specific nature and conditions of each bidding package, bidding documents are issued to bidders participating in the bidding in different ways.
3. Bidding methods
3.1 One-stage, one-envelope bidding
Applicable to the following forms:
- Open bidding, limited bidding for bidding packages to provide non-consulting services; bidding packages for goods procurement, construction, and installation, mixed with small scale;
- Competitive offers for bidding packages of non-consulting service provision, goods procurement, construction and installation;
- Appointing contractors for bidding packages for the provision of consulting services, non-advisory services, procurement of goods, construction and installation, and mixtures;
- Direct procurement of goods procurement bidding packages;
- Appointment of contractors for investor selection.
Bidders submit bids including technical proposals and financial proposals at the request of the bidding documents and requirements. Bid opening is conducted once.
3.2 One-stage, two-envelope bidding
- Applicable to open bidding, limited bidding to bidding packages providing consulting services, non-consulting services, procurement of goods, construction and installation, and mixtures; open bidding for investor selection.
- Bidders submit separate technical and financial proposals as required in the bidding documents.
- Bid opening is conducted twice. Technical proposals will be opened immediately after the bid closing time. Contractors and investors that meet technical requirements will be allowed to open financial proposals for evaluation.
3.3 Bidding in two stages, one-envelope bidding
Applied to the form of open bidding, limited bidding with large-scale and complex procurement, construction and installation, and mixed bidding packages.
- In the first stage, the contractor submits the technical proposal, and the financial plan as required by the bidding documents, but the bid price is not yet available. Based on discussions with each bidder participating in this phase, the bidding documents for the second phase will be determined.
- In phase two, bidders who participated in phase one are invited to submit bids. Bid documents include technical proposals and financial proposals as required by the second stage of bidding documents, including bid prices, and bid security.
3.4 Bidding in two stages with two-envelope bidding
Applicable to the form of open bidding, limited bidding to bidding packages of goods procurement, construction, and installation, mixed with new and complex techniques and technologies, has specificity.
- In the first stage, the contractor submits a separate technical proposal and a separate financial proposal at the same time, as required by the bidding documents. Technical proposals will be opened immediately after the bid closing time. Based on the evaluation of the technical proposals of the contractors in this phase, the technical correction contents compared with the bidding documents and the list of contractors meeting the requirements to be invited to participate in the bidding phase will be determined. Paragraph two. Financial proposals will be opened in the second phase.
- In phase two, bidders that meet the requirements in phase one are invited to submit bids. The bid dossier includes the technical proposal and the financial proposal, as required by the second-stage bidding documents corresponding to the technical correction. During this phase, financial proposals submitted in phase one will be opened concurrently with stage two bids for evaluation.
After that, the winning party and the bid solicitor enter the contract. The contract must conform to the provisions of the Bidding Law and relevant laws.
