Procurement of machinery and equipment must not exceed the approved estimate and price

Tue, 28 Mar 2023 13:55:00  |  Print  |  Email   Share:

Mr. Phan Van Phuc (Ca Mau) works at the City Construction Investment Project Management Board. The Project Management Board is assigned to administer the construction project of the administrative headquarters of a commune.

In the project, there is a bidding package for equipment procurement. The process of making equipment estimates, the number of equipment lists and the unit prices are made according to Decision No. 50/2017/QD-TTg dated December 31, 2017 of the Prime Minister.

On the basis of the above quantity and price, the Construction Investment Project Management Board conducts price appraisal, makes an estimate, submits it to appraisal for approval as a basis for conducting online bidding (E-HSMT). When the bidder participates in the bid (E-HSDT), the bidder that meets the price requirements and other criteria in the bidding documents, should be invited to negotiate the contract and submit to the appraisal and approval of the selection results. Select a contractor according to regulations and sign the contract.

In the bid unit price, the contractor bids each type of equipment not according to the unit price of Decision No. 50/2017/QD-TTg, with higher unit price of equipment and lower unit price of equipment compared to the unit price. Decision No. 50/2017/QD-TTg, but the total bid package price offered by the contractor is satisfactory. 

When submitting the application for advance payment through the State Treasury, this unit did not accept the payment and believed that there were many types of equipment offered at a price higher than Decision No. 50/2017/QD-TTg.

Mr. Phuc asked, is the application for payment according to the above-mentioned contractor's unit price valid or not? Does the State Treasury have the right to control the bid price offered by the bidder?

The Ministry of Finance responded to this issue as follows:

Pursuant to the Circular No. 62/2020/TT-BTC dated June 22, 2020 of the Ministry of Finance guiding the control and payment of recurrent expenditures from the state budget through the State Treasury, according to which The State Treasury shall inspect, control and compare to ensure the following contents:

- At Item đ, Clause 1, Article 6, Chapter II: Comply with the regimes, standards, and norms (expenditure levels) prescribed by competent state agencies.

At Item g, Clause 1, Article 6, Chapter II: "For expenses that must be sent to the State Treasury, the State Treasury shall, based on the payment request file of the budget-using unit, payment terms specified in the contract, assignment document or internal contract (in case of self-implementation), number of payments, payment period, time of payment, payment conditions, advance, payment account, and value of each payment, for advance payment, payment to beneficiaries".

In the first bullet point, Item b, Clause 2, Article 6 of Chapter II stipulates for expenditures on procurement of machinery and equipment:

“For expenditures on procurement of common office machinery and equipment: the State Treasury controls to ensure that detailed estimates and maximum unit prices are not exceeded as prescribed in Decision No. 50/2017/QD-TTg dated 31 December 2017 of the Prime Minister stipulating standards and norms for use of machinery and equipment (Decision No. 50/2017/QD-TTg); in case of price adjustment, it must comply with regulations in Article 6 of Decision No. 50/2017/QD-TTg.

For the procurement of machinery and equipment for general operations of agencies, organizations and units: The State Treasury controls to ensure that detailed estimates and prices approved by competent authorities are not exceeded.

For specialized machinery and equipment: The State Treasury controls to ensure that they are included in the list of specialized machinery and equipment (types) specified in the standard promulgation document, cost norms for use of specialized machinery and equipment promulgated by competent authorities (promulgated by competent authorities as prescribed in Clauses 1 and 2, Article 8 of Decision No. 50/2017/QD-TTg) and must not exceed detailed cost estimates and price levels approved by competent authorities".

Thus, from the above provisions, Ca Mau State Treasury's basis for contracts and related documents sent by the unit to control payment is consistent with the provisions of Circular No. 62/2020. /TT-BTC dated June 22, 2020 of the Ministry of Finance.

Accordingly, the detailed estimate and unit price of each type of equipment and machinery approved by the competent authority specified in the contract must conform to the standards and norms detailed in Decision No. 50/2017. /QD-TTg dated December 31, 2017 of the Prime Minister and the attached Appendices.


By: Government newspaper/Translator: LeAnh-Bizic


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