M9 4 Dang Huy Dong

PUBLIC PROCUREMENT SYSTEM AND E-PROCUREMENT: 

PUBLIC PROCUREMENT SYSTEM AND E-PROCUREMENT By: Dang Huy Dong (Mr.) Department for Management of Public Procurement Ministry of Planning and Investment (MPI) Viet Nam Incheon, 7 - 9 March 2007

Slide2: 

- Part 1- Public Procurement System

Legal System on Public Procurement: 

Legal System on Public Procurement 1. Law on Procurement Approved: November 29, 2005 Came into effect: April 1, 2006 2. Government Decree 111/2006/ND-CP guiding implementation of Law on Procurement and selection of contractor bidder in accordance with Law on Construction Approved: September 29, 2006 Came into effect: November 4, 2006

Legal System on Public Procurement: 

3. Decision by Minister of MPI 1323/2006/QD-BKH on certification of attendance of procurement courses 4. Circular No. 13/2006/TT-BTM by MOT guiding import and export of goods for successful bidders Standard Bidding Documents shall be issued in 2007. Legal System on Public Procurement

Transaction Value: 

Transaction Value Total: 5,936.70 million USD

Savings: 

Savings

Publicity and Transparency: 

Publicity and Transparency Integrate all procurement information publicly, and freely-accessible into procurement newspaper and website Publicize bid evaluation criteria in bidding documents Forbid the specific requirement of trademark, origin in bidding documents Publicly open of bids right after the deadline for bid submission Not require joint-venture between foreign bidders and Vietnamese bidders Apply e-procurement: through national procurement network established and managed by MPI File complaint (by bidders) on affected right / interest Establish Consulting Council on Complaint Settlement

Professionalization: 

Professionalization May hire a consulting organization or a professional procuring agency to work as Procuring Entity Individuals of Procuring Entity shall : (1) be knowledgeable about procurement legislation (2) be knowledgeable about project management (3) possess appropriate expertise matching requirements of the package (4) have appropriate foreign language level

Conflict of Interest: 

Conflict of Interest Consultant prepared FS  NOT BID FOR Technical Design, Consultant prepared Technical Design  NOT BID FOR the following stages (except for EPC); Following 3 types of relation: (1) Participating bidder and consultant bidders who prepare bidding document / evaluate bids ; (2) Supervising consultant bidder and contract implementing bidder; (3) Participating bidders and investment owner SHALL BE institutionally independent and not subject to the same managing body financial independent

Restricted use of less competitive methods: 

Restricted use of less competitive methods 1) Open bidding : is compulsory except for special cases that present sufficient conditions for application of other selection methods 2) Other selection methods : only be applied when meet in full the conditions for each method: Limited bidding Direct appointment Repeat order Shopping Force account Bidder selection in special cases

Decentralization (right and duty): 

Decentralization (right and duty) Responsibilities of all parties in procurement process defined clearly Person who makes decision on investment (Competent Person) only determine (i) procurement plan, (ii) bidding documents, (iii) bidder selection result; Other jobs are delegated for the decision of Investment Owner

Post-review: 

Post-review Regular and irregular oversight and inspection on procurement activities By MPI, line ministries and localities

Dealing with violations: 

Dealing with violations Warning: violations other than forbidden acts Monetary fine: causing damage Blacklisting: act listed under Article 12 All violations shall be listed on the procurement newspaper and on the procurement website. BACK

Procurement complaints: 

Procurement complaints 2 types: Group 1: Issues relating to procurement process (not bidding results) File the complaint first with the Procuring Entity (5 days), next with the Investment Owner (7 days) and finally with the Competent Person (10days). Group 2: Bidding results (within 10 days) File the complaint first with the Procuring Entity, next with the Investment Owner and finally with the Competent Person together with the Consulting Council on Complaint Settlement.

Slide15: 

- Part 2 - E-PROCUREMENT

Legal foundation: 

Legal foundation Article 30 – Law on Procurement Implement online through National Procurement Network: publish bid announcements issuance of bidding documents bid submission bid evaluation notification of the bidder selection results Development and management of National Procurement Network system (e-procurement system): by MPI Law on Electronic Transaction Government Decree 26/2007/ND-CP on digital signature and authorization

Preparation stage: 

Preparation stage Procurement Bulletin  Procurement Newspaper Procurement website: http://dauthau.mpi.gov.vn

Preparation stage (Bulletin+Web): 

Preparation stage (Bulletin+Web) Info Components: Procurement plans Pre-qualification announcement and results Bid announcements List of participating bidders Bidder selection results Basic information of bidders Additional on the web: Information of procurement training institutions Registration of Procuring Entities and Bidders

Preparation stages (cont.): 

Preparation stages (cont.) Benefits to Government Improve transparency in government procurement Increase competition Reduce newspaper advertising costs

Preparation stages (cont.): 

Preparation stages (cont.) Benefits to Bidders Provide bidders easy access to government procurements 24/7 Provide bidders sufficient and accurate information (10,500 bid announcements in 2006) Able to search for appropriate opportunities

Preparation stage (cont.): 

Preparation stage (cont.) Further developments Integrate all procurement information (plan, announcements, etc.,) Upgrade website into a dynamic website (portal) for online info posting Provide tailored info to bidders and other concerning agencies Value-added services: FAQ, statistics Procurement experts database

Plan for e-procurement: 

Plan for e-procurement Pilot e-procurement (2 years) Full scale implementation (to 2010)

Pilot e-procurement: 

Pilot e-procurement Proposing co-operation with Government of Republic of Korea Piloting agencies: EVN, VNPT, Hanoi Applied Fields: Procurement of Goods Civil Works Consulting Services

Slide24: 

Creates the one-stop e-Procurement market for frictionless operation where national e-Procurement takes a firm root. Helps relevant parties conduct e-Procurement without limits and forms a virtual community for virtual integration of national procurement networks. Realizes e-Transformation in full. Expands the scale and scope of e-Procurement. - Secures critical mass of e-Procurement market via the expansion of participating organizations - Achieves end-to-end e-Process based on the To-Be national procurement process Focuses on building basic conditions to build the e-Procurement system like as Integrated Bid Notice - Achieves many e-Procurement users and gains big benefit through e-Procurement Builds basic electronic processes for e-Procurement  PILOT E-BIDDING Scale Scope Phase 3 : Value added services Phase 2 : Full coverage of whole processes Phase 1 : Integrated bid notice Benefit 2.2 From Core to Sub Pilot e-procurement:

Pilot e-procurement: 

Pilot e-procurement Start with: Electronic bidding documents download Electronic bid submission E-BIDDING Online opening of bids Expectations: Increase number of pariticipating bidders Greater savings from improved competition Improve efficiency through saving cost and time Prove benefits of e-procurement

E-procurement Implementation: 

E-procurement Implementation Road-map to increase the use of e-procurement Preparation and Approval of Feasibility Study for implementation Full-scale implementation: Cover whole procurement process Expand with additional modules: e-payment, e-guarantee, suppliers’ performance

Slide27: 

Thank you!