When Can a Public Service Unit Independently Select a Contractor?
Wed, 30 Apr 2025 15:13:00 | Print | Email Share:
Ms. Tran Kim Hang (from Hung Yen) is currently working at a Group 2 public service unit that is financially self-sufficient in recurrent expenditures. The unit’s financial resources include both State budget allocations for assigned tasks and revenue from its professional service activities.
This revenue is generated from production and business activities through contracts with non-state enterprises to deliver services aligned with the unit’s functions and responsibilities.
In 2024, Ms. Hang’s unit signed a consultancy contract with Company A, valued at VND 500 million. Company A made an advance payment of VND 250 million. The unit used VND 200 million of that to purchase equipment for installation at Company A’s premises.
Based on her research, Ms. Hang believes that, according to Point d, Clause 7, Article 3 of the Law on Bidding No. 22/2023/QH15 and Point 2, Article 4, Chapter II of Circular No. 56/2022/TT-BTC dated September 16, 2022, the VND 250 million does not qualify as lawful revenue of the public service unit. Therefore, the purchase of equipment using VND 200 million is not subject to public bidding procedures.
Ms. Hang asked whether her interpretation is correct.
In response, the Ministry of Planning and Investment (now the Ministry of Finance) stated:
According to Point d, Clause 7, Article 3 of the Law on Bidding, agencies, organizations, and enterprises are allowed to independently decide on contractor selection for the provision of consultancy services, raw materials, fuel, materials, supplies, and non-consulting services that directly serve a bidding package the public service unit has already won, provided that the process ensures transparency, economic efficiency, and accountability.
Accordingly, public service units may independently select contractors for services and supplies that directly support the implementation of bidding packages they have been awarded, as long as the selection process is open, transparent, economically efficient, and accountable.
However, if the procurement involves fixed assets to serve these or other bidding packages, the selection of contractors must comply with the Law on Bidding.
By: Chinhphu.vn /Translator: LeAnh-Bizic
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