Circular No. 03/2020/TT-BTTTT promulgates the Circular on the preparation of outlines and detailed budgets for information technology application activities funded by regular operating expenses from state budget funds.

CIRCULAR

Regulations on drafting outlines and detailed budgets for information technology application activities
using regular operating funds
from state budget capital

Pursuant to the Law on Information Technology dated June 29, 2006;

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to Decree No. 73/2019/NĐ-CP dated September 5, 2019 of the Government on management of investment in application of information technology using state budget funds;

Pursuant to Decree No. 17/2017/NĐ-CP dated February 17, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Information and Communications:

At the request of the Director of the Information Technology Agency,

The Minister of Information and Communications issues this Circular regulating the drafting of outlines and detailed budgets for information technology application activities using regular operating funds from state budget capital.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular regulates the drafting of outlines and detailed budgets for information technology application activities using regular operating funds from state budget capital with a budget amount exceeding VND 200 million up to VND 15 billion to establish new, expand, or upgrade technical infrastructure systems, software, and databases according to Clause 2, Article 51 of Decree No. 73/2019/NĐ-CP dated September 5, 2019 of the Government stipulating management of investment in information technology applications using state budget capital (hereinafter referred to as Decree No. 73/2019/NĐ-CP).

Article 2. Applicability

This Circular applies to agencies, organizations, and individuals implementing information technology application activities using regular operating funds from state budget capital that must draft outlines and detailed budgets.

Chapter II
SPECIFIC PROVISIONS

Article 3. Principles for Drafting Outlines and Detailed Budgets

1. Ensuring compliance with requirements for implementing information technology application activities.

2. Ensuring adherence to technical standards applicable to the contents of expenditures listed in the outline and detailed budget.

3. Ensuring that the explanations in the outline and detailed budget clearly describe the contents of the detailed budget forms and other forms that cannot be fully expressed.

Article 4. Drafting Outlines and Detailed Budgets

1. The budget-using entity shall either implement itself or engage an organization or individual to draft the outline and detailed budget (referred to hereafter as the entity drafting the outline and detailed budget).

2. Contents of the outline and detailed budget

a) General information:

- Legal basis.

- Name of the information technology application activity being outlined and budgeted.

- Budget-using entity.

- Location of implementation.

- Time frame for implementation.

- Organization or entity drafting the outline and detailed budget.

- Type of funding source.

- Anticipated outcomes.

b) Necessity of implementation

- Current status of information technology application; current technical infrastructure diagram and other conditions.

- Objectives, scale, requirements, needs, and necessity of implementing the information technology application activity.

c) Explanation of proposed technical solutions and methods:

- Analysis and selection of technical solutions and methods, equipment selected, including analysis and selection of solutions ensuring connectivity, interoperability, and data sharing with related technical infrastructure systems, software, and databases (if applicable).

- List of technical standards applied.

- For internal software: Description of technical requirements that the internal software must meet according to Article 18 of Decree No. 73/2019/NĐ-CP and other contents stipulated at Point c, Clause 1, Article 27 of Decree No. 73/2019/NĐ-CP.

- For network installation, IT equipment installation, and accessories: Technical specifications, standards applied in procurement, installation, setup, testing, and calibration of equipment; Equipment procurement list, installation, setup, and technical parameters of equipment; Explanation of network design, transmission path, technical infrastructure, information security, power supply, lightning protection, cooling system, bandwidth calculation (with diagrams if applicable); Statistics of construction work volume, main and auxiliary equipment of key items; Other relevant explanations (if necessary).

- Requirements for training, guidance on use, management, operation, and other related tasks.

- Requirements (if necessary) for testing or trial operation, warranty.

d) Detailed budget according to Article 5 of this Circular;

đ) Anticipated milestones and progress schedule;

e) Implementation management plan, operation, and exploitation;

g) Proposals and recommendations: State proposals and recommendations to ensure effective implementation of the approved outline contents.

3. Documents submitted by the budget-using entity to the competent authority for approval of the outline and detailed budget are as follows:

a) Contents of the dossier

- Request for approval of the outline and detailed budget according to the form attached to this Circular;

- Outline and detailed budget.

b) Number of sets of documents: 03 sets.

Article 5. Detailed Budget Estimate

1. Basis for Preparing Detailed Budget Estimates

a) Guidelines for preparing budget estimates: Annual budget estimate construction guidelines issued by the Ministry of Finance and financial agencies at various levels;

b) Regulations on standard rates, unit prices, and expenditure limits:

- Standard rates, unit prices, and expenditure limits applicable during each period as stipulated and guided by the Ministry of Finance and the Ministry of Information and Communications;

- Standard rates and unit prices established by the Ministry of Information and Communications, specialized management ministries, and localities pursuant to Decree No. 73/2019/NĐ-CP;

- For items without standard rates or unit prices: The entity preparing the budget estimate shall base its work on technical requirements, technology conditions, and actual circumstances to explain, establish standard rates and unit prices, or refer to market prices, price appraisals conducted by organizations with appraisal functions as prescribed, or apply similar standard rates and unit prices from other approved projects or tasks within twelve months (from the date the authority approved the other project or task to the date the budget-using entity submits the detailed project outline and budget estimate for approval according to Clause 3, Article 4 of this Circular) to prepare the detailed project outline and budget estimate and must provide clear explanations of the calculation basis.

The explanation of the calculation basis for standard rates and detailed unit prices shall be in accordance with the model attached to this Circular.

c) Provisions and guidelines on managing investment costs for applying information technology as prescribed in Decree No. 73/2019/NĐ-CP;

d) Price announcements, quotations, or other bases and methods for determining cost estimates.

2. Detailed Budget Estimate

The detailed budget estimate content is presented according to the model attached to this Circular, including the following costs:

a) Installation Costs: Costs for purchasing and installing network equipment, network accessories, and other costs related to installation; other direct installation costs;

b) Equipment Costs

- Costs for purchasing information technology equipment: Equipment requiring installation and setup, equipment not requiring installation and setup, auxiliary equipment, peripheral devices, commercial software, internal software, and other equipment; transportation and insurance costs for equipment; taxes and fees related to purchasing equipment;

- Costs for establishing databases, standardizing data entry, and performing data entry for databases;

- Costs for installing equipment, setting up software, testing, and adjusting equipment and software;

- Training and guidance costs for using the system; training costs for system administrators and operators (if applicable);

- Deployment, support, management, and operation costs for products or tasks before acceptance and handover (if applicable).

c) Management Costs: Costs necessary for organizing and managing the implementation of information technology application activities from preparation to completion, acceptance, and handover of products for exploitation and use;

d) Consulting Costs: Costs for preparing the detailed project outline and budget estimate and for implementing other related consulting works;

đ) Other Related Costs: Fees and charges; installation and leased line rental costs; domain registration and maintenance fees; costs for leasing related information technology services; price appraisal costs and other related costs;

e) Contingency Costs: Reserve for unforeseen work volumes when preparing the detailed project outline and budget estimate. Contingency costs shall not exceed 10% of the total costs specified in points a, b, c, d, and đ of this clause.

In cases where information technology application activities are implemented across multiple locations or overseas, the costs specified in points a, b, c, d, đ, and e of this clause shall include additional costs for moving equipment and labor forces.

Article 6. Competence to review and approve the outline and detailed budget estimate

1. Competence to approve the outline and detailed budget estimate.

The competence to approve the outline and detailed budget estimate is determined based on the provisions of laws concerning the authority and grading and classification of decision-making powers for procurement of assets, goods, and services to maintain regular operations of agencies and units.

2. Competence to review the outline and detailed budget estimate.

a) The person with the authority to approve the outline and detailed budget estimate establishes a review board or assigns a specialized unit under their jurisdiction to conduct the review (referred to collectively as the lead review unit);

b) For the outline and detailed budget estimate within the approval authority of the Chairman of the People's Committee at various levels or according to the delegated decision-making power for procurement of assets, goods, and services at localities, the reviewing unit regarding the technical solutions and technological methods is the specialized unit on information technology directly under the provincial People's Committee;

c) For the outline and detailed budget estimate within the approval authority of the person with the authority at ministries, central agencies, the reviewing unit regarding the technical solutions and technological methods is the specialized unit on information technology directly under the person with the authority to approve the outline and detailed budget estimate;

d) In cases where the reviewing unit specified in points b and c of this clause is simultaneously a budget-using unit, the reviewing unit specified in points b and c of this clause may establish a review board or the person with the authority to approve the outline and detailed budget estimate may assign a specialized unit under their jurisdiction to conduct the review.

Article 7. Procedure for reviewing and approving the outline and detailed budget estimate

1. Time limit for reviewing the outline and detailed budget estimate

a) The maximum time for reviewing the outline and detailed budget estimate is fifteen working days from the date the lead review unit receives all valid documents and does not include the time for supplementing and completing the documents;

b) The time for reviewing the outline and detailed budget estimate includes the time for obtaining the review opinions of the specialized unit on information technology as stipulated in Clause 2 of Article 6 of this Circular and the time for obtaining the opinions of relevant agencies, organizations, and individuals as stipulated in point c of Clause 2 of this Article (if applicable);

c) In case additional supplementation or explanation is required regarding the contents of the outline and detailed budget estimate, within five working days from the date of receiving the documents, the lead review unit shall issue a written request for the budget-using unit to provide supplementation or explanation. The review period will be calculated from the date when all valid documents are received.

2. Procedure for reviewing the outline and detailed budget estimate

a) The lead review unit organizes the review of the outline and detailed budget estimate according to the contents stipulated in Clause 3 of this Article;

b) The lead review unit obtains the review opinions on the technical solutions and technological methods from the competent unit as stipulated in Clause 2 of Article 6 of this Circular;

c) During the review process, depending on the complexity of each task and the nature of the expenditure, the lead review unit may obtain opinions in writing or organize consultation meetings to obtain the opinions of related agencies and experts (if necessary).

3. Contents of the review of the outline and detailed budget estimate

a) Review contents on technical solutions and technological methods.

-The appropriateness of selecting technical solutions and technological methods;

-The appropriateness of technical solutions and technological methods in accordance with applicable technical standards and basic requirements for functions and technical features;

-The appropriateness of technical solutions and technological methods in terms of connectivity, interoperability, and data sharing with related technical infrastructure systems, software, and databases (if applicable).

b) The appropriateness of applying and utilizing the prescribed norms, unit prices, relevant regulations, and cost items related to the detailed budget estimate costs;

c) The consistency between the volume described in the outline and the volume in the detailed budget estimate;

d) Other contents of the outline and detailed budget estimate as stipulated in Articles 4 and 5 of this Circular.

4. The lead review unit is permitted to hire organizations or individuals with capability and experience to conduct a detailed examination of the outline and detailed budget estimate as a basis for the review. The review results are expressed in writing according to the form attached to this Circular. The review result document serves as the basis for the step of considering and approving the outline and detailed budget estimate. The decision to approve the outline and detailed budget estimate follows the form attached to this Circular.

5. The approval of the outline and detailed budget estimate is carried out simultaneously, without separating the outline from the detailed budget estimate. The approval time for the outline and detailed budget estimate shall not exceed three working days from the date the person with the authority to approve the outline and detailed budget estimate receives all valid documents.

Article 8. Adjustment of the outline and detailed budget estimate

1. When adjusting the outline and detailed budget estimate does not change the technical solution, technology to be followed, scale, initial objectives, and does not exceed the approved detailed budget estimate, the budget using entity is permitted to adjust the outline and detailed budget estimate on its own.

2. In cases where adjusting the outline results in changes to the technical solution, technology to be followed, scale, initial objectives, or exceeds the approved detailed budget estimate, the budget using entity must submit the outline and detailed budget estimate for adjustment to the authorized approver for review and decision.

3. The person deciding on the adjustment of the outline and detailed budget estimate shall bear legal responsibility for their decision.

4. The dossier, procedures, time for submission for examination and approval of adjustments shall be carried out as with the examination and approval steps for the outline and detailed budget estimate.

5. In cases where adjusting the outline and detailed budget estimate leads to a funding increase exceeding 15 billion VND, the investment procedures must be re-conducted in accordance with Clause 3 of Article 51 of Decree 73/2019/NĐ-CP.

Chapter III

IMPLEMENTING PROVISIONS

Article 9. Effectiveness and transitional provisions

1. This Circular takes effect from April 9, 2020, and replaces Circular No. 21/2010/TT-BTTTT dated September 8, 2010, issued by the Minister of Information and Communications, which stipulates the preparation of the outline and detailed budget estimate for information technology application activities but does not require the establishment of a project.

2. Information technology application activities that have been approved for the outline and detailed budget estimate before this Circular takes effect shall continue to be implemented according to the regulations at the time of approval until the completion of the task, acceptance, and settlement of the signed contract.

Article 10. Responsibility for Implementation

1. The E-Government Department of the Ministry of Information and Communications shall be responsible for promoting, organizing guidance, and monitoring the implementation of this Circular.

2. Budget using entities, persons with authority as prescribed, and related agencies, organizations, and individuals involved in implementing information technology application activities using regular expenditure funds from the state budget, which require the preparation of the outline and detailed budget estimate, shall be responsible for implementing the provisions of this Circular.

3. During the implementation of this Circular, if there are any issues, agencies, organizations, and individuals shall promptly report them to the Ministry of Information and Communications (Information Technology Department) for consideration and resolution./.