Circular No. 06/2011/TT-BTTTT stipulates on the establishment and management of investment costs for information technology applications.

CIRCULAR

Regulations on the establishment and management of investment costs for information technology applications

MINISTER OF INFORMATION AND COMMUNICATIONS

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

Pursuant to Decree No. 64/2007/NĐ-CP dated April 10, 2007 of the Government on the application of information technology in state agency activities;

Pursuant to Decree No. 102/2009/NĐ-CP dated November 6, 2009 of the Government on Management of Investment in Information Technology Applications Using State Budget Funds;

BASED ON THE GOVERNMENT DECREE NO. 187/2007/NĐ-CP OF DECEMBER 25, 2007 ON THE FUNCTIONS, TASKS, POWERS, AND ORGANIZATIONAL STRUCTURE OF THE MINISTRY OF INFORMATION AND COMMUNICATIONS;

At the proposal of the Director of the Planning and Finance Department,

c) Enterprises may be granted permission for no more than one block out of the total three dual-frequency blocks (FDD) B

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Circular stipulates the establishment and management of investment costs for information technology applications (hereinafter referred to as the establishment and management of costs), including: total investment amount, total budget estimates for information technology application projects funded by state budget.

2. For projects using Official Development Assistance (ODA) funds, if international treaties to which Vietnam is a party have provisions regarding the establishment and management of costs that differ from those set forth in this Circular, such provisions shall be implemented according to the relevant international treaty.

Article 2. Applicability

Organizations and individuals related to the investment activities in information technology applications funded by the state budget within the scope regulated by Decree No. 102/2009/NĐ-CP dated November 6, 2009 of the Government on the management of investment in information technology applications using state budget funds (hereinafter referred to as Decree No. 102/2009/NĐ-CP).

It is encouraged for organizations and individuals related to the management of investment in information technology applications using other sources of funding to apply the provisions of this Circular.

Article 3. Principles for the establishment and management of costs

1. Ensuring compliance with project objectives, effectiveness of information technology application projects, and compatibility with market economic mechanisms.

2. The total investment amount and total budget estimates must be forecasted according to the prescribed methods, including all cost items as required.

3. The State performs the function of managing costs through the issuance, guidance, and inspection of the implementation of regulations on cost management.

4. The investor is responsible for managing costs from the investment preparation stage until the completion of the investment and the operation and use of the project's products.

Chapter II
ESTABLISHING INVESTMENT COSTS FOR INFORMATION TECHNOLOGY APPLICATIONS

Section 1
ESTABLISHING THE TOTAL INVESTMENT AMOUNT

Article 4. Contents of the total investment amount

1. The total investment amount is the estimated cost for implementing an information technology application project calculated and determined during the investment project planning phase, consistent with the project content and preliminary design.

2. The total investment amount serves as a basis for evaluating economic efficiency and selecting investment options; it is also a basis for the investor to plan and manage capital when implementing information technology application investments.

3. The contents of the cost items within the total investment amount are specified in Clause 2 of Article 28 of Decree No. 102/2009/NĐ-CP.

Article 5. Methods for establishing the total investment amount

1. The methods for establishing the total investment amount stipulated in Article 29 of Decree No. 102/2009/NĐ-CP are detailed in Appendix 1 of this Circular. The investor and organizations consulting on the establishment of information technology application projects are responsible for selecting an appropriate method for establishing the total investment amount based on the characteristics and requirements of the project.

2. In cases where the total investment amount cannot be determined, the investor prepares a budget estimate for preparatory work for investment. These costs are included in the project management costs within the approved total investment amount.

3. Some cost items within the scope of project management costs, consulting costs, and other project costs, if not yet regulated or calculable, may be supplemented and estimated for inclusion in the total investment amount.

Section 2
ESTABLISHING THE TOTAL BUDGET ESTIMATE

Article 6. Content of the total budget estimate

1. The total budget estimate is calculated and determined based on the volume of work, construction design, tasks to be implemented in the project, and the system of norms.

2. The total budget estimate serves as the basis for determining the bid price, and is the foundation for negotiating, signing contracts, and settling accounts with contractors in cases of direct assignment.

3. The contents of the budget cost items include: construction and installation costs, equipment costs, project management costs, consulting costs, other costs, and contingency costs.

Article 7. Method of preparing the total budget estimate

1. Determining construction and installation costs:

a) Direct costs such as material costs, labor costs, and construction machinery costs are determined according to the quantity of materials consumed, labor, and construction machinery, and corresponding price lists. The total consumption quantities of various materials, labor, and construction machinery are determined based on the consumption rates of materials, labor, and construction machinery for each unit of construction and installation work in the project;

b) Common costs are calculated as a percentage (%) of direct costs as guided in Table 3.2 of Appendix 3 of this Circular;

c) Pre-tax income is calculated as a percentage (%) of direct costs and common costs as guided in Table 3.2 of Appendix 3 of this Circular;

d) Value-added tax for construction and installation work is applied according to current regulations.

2. Determining equipment costs:

a) Equipment purchase costs are determined according to one of the following methods:

- For equipment whose prices have been determined, costs can be calculated based on the quantity and type of each piece of equipment;

- For equipment whose prices have not yet been determined (including commercial software), costs can be estimated based on quotations from suppliers, manufacturers, or market prices of similar equipment at the time of calculation or prices of similar equipment that have already been implemented;

- For internal software, the determination of value is carried out according to the provisions of Article 23 of Decree No. 102/2009/NĐ-CP.

b) Training and technology transfer costs are determined by preparing a budget estimate;

c) Installation costs for equipment and software installation, testing, and calibration are determined by preparing a budget estimate.

In cases where equipment has been selected through bidding, the equipment costs include the winning bid price and other costs as specified above recorded in the contract.

3. Determining project management costs

Project management costs are determined based on referring to the cost norm ratios published by the Ministry of Information and Communications or by preparing a budget estimate.

4. Determining consulting costs

Consulting costs are determined based on referring to the cost norm ratios published by the Ministry of Information and Communications or by preparing a budget estimate.

In cases where foreign consultants must be hired to perform certain tasks, consulting costs are prepared according to current regulations consistent with the requirements for using consultants for the project.

5. Determining other costs:

a) Other costs are determined by preparing a budget estimate or by referring to cost norm ratios as directed by specialized management agencies;

b) For projects with special cost factors and using ODA funds, if there are additional related costs, these may be supplemented. The investor decides and is responsible for their decision.

c) Certain review fees such as project review, basic design review, preliminary design review, construction design review, budget estimate review, and other related fees are calculated as percentages as prescribed by the Ministry of Finance.

d) Certain other costs that cannot be immediately calculated are estimated and included in the total budget estimate.

6. Determining contingency costs:

a) Contingency costs for unexpected work volumes are calculated as a percentage (%) of the total construction and installation costs, equipment costs, project management costs, investment consulting costs, and other costs;

b) Contingency costs for inflation factors are calculated over the implementation period of the project (in months, quarters, or years).

The method of preparing the budget estimate using information technology is detailed in Appendix 2 of this Circular.

Section 3
PREPARATION OF INFORMATION TECHNOLOGY APPLICATION STANDARDS

Article 8. Standard System

1. Construction standards include economic-technical standards and cost ratio standards.

2. Economic-technical standards represent the necessary consumption of materials, labor, and construction machinery to complete a unit volume of construction work.

3. Cost ratio standards are used to determine the costs of certain types of work in information technology investment activities, including project management cost standards for information technology applications, consulting costs for information technology investments, common costs, pre-tax income, and other cost ratio standards.

Article 9. Method of Establishing Information Technology Application Standards

1. Economic-technical standards are established according to the following sequence:

a) Prepare a list of tasks, reflecting technical requirements, conditions, and determining appropriate units of measurement;

b) Determine the components of the work from start to completion, consistent with technical requirements, conditions, construction methods, and the scope of implementation;

c) Determine material, labor, and construction machinery consumption;

d) Establish detailed standards based on the comprehensive consumption of materials, labor, and construction machinery.

2. Cost ratio standards are implemented according to the guidelines of the Ministry of Information and Communications.

Article 10. Method of Establishing Construction Unit Prices

1. Construction unit prices serve as the basis for determining construction costs.

2. The method of establishing construction unit prices is based on selecting from the economic-technical construction standards system published by the Ministry of Information and Communications and related cost factors, detailed in Appendix 3 of this Circular.

Chapter III
MANAGEMENT OF INFORMATION TECHNOLOGY APPLICATION INVESTMENT COSTS

Section 1
TOTAL INVESTMENT LIMIT MANAGEMENT

Article 11. Review and Approval of Total Investment Limit

1. When preparing Feasibility Studies, Feasibility Reports, or Investment Reports, investors must determine the total investment limit to calculate the effectiveness of information technology application investments. The total investment limit recorded in the investment decision approved by the investor decision-maker is the estimated cost that the investor is permitted to use for information technology application investments and serves as the basis for planning and managing capital during the implementation of information technology application investments.

2. The content of reviewing the total investment limit is stipulated in Article 30 of Decree No. 102/2009/NĐ-CP. The investor decision-maker assigns the lead unit to organize the review of the total investment limit before approval.

3. In cases where organizations or individuals with sufficient qualifications and expertise are hired to review the total investment limit, the content of the review is the same as the content of the review; the review cost is determined based on cost ratio standards or by preparing a budget estimate according to the guidelines of the Ministry of Information and Communications.

Article 12. Adjustment of Total Investment Limit

1. The total investment limit may be adjusted in any of the following cases:

a) When new factors arise that significantly enhance the project's effectiveness;

b) When unforeseen factors such as earthquakes, typhoons, floods, tsunamis, landslides, wars, or other force majeure events directly impact the project;

c) When the information technology application plan is adjusted by the competent authority, affecting the scale and objectives of the project.

2. If changes in the structure of cost items within the total investment limit, including using contingency funds for adjustments without altering the initial technical solutions, technology, scale, or investment objectives and not exceeding the approved total investment limit, the investor has the right to decide on the adjustment. Any changes must be reviewed before making a decision.

3. The adjusted total investment limit is determined by adding (or subtracting) the additional total investment limit to the previously approved total investment limit. The value of the additional total investment limit is determined as a separate cost item and must be reviewed or audited before approval.

Section 2
INFORMATION TECHNOLOGY APPLICATION BUDGET MANAGEMENT

Article 13. Examination and Approval of the Total Budget Estimate

1. The content of examination, the authority to examine and approve the total budget estimate is stipulated in Clause 1, Article 35 and Clause 2, Article 37 of Decree No. 102/2009/NĐ-CP.

2. The project owner shall organize the examination of the total budget estimate. In cases where the project owner hires organizations or individuals with sufficient conditions of capacity and professional experience to examine the total budget estimate, the content of such examination shall be the same as the content of the project owner's examination; the examination costs shall be determined based on cost standards or by preparing a budget according to the guidelines of the Ministry of Information and Communications.

Article 14. Adjustment of the Total Budget Estimate

1. The total budget estimate for information technology application projects may be adjusted in any of the following cases:

a) The cases prescribed in Clause 1, Article 12 of this Circular;

b) Cases permitted to change or supplement design without contravening the preliminary design or to adjust the cost structure within the approved total investment limit, including contingency costs.

2. The adjusted total budget estimate for information technology application projects shall be determined by adding (or subtracting) the supplementary budget estimate to/from the previously approved total budget estimate for information technology application projects.

3. The project owner shall be responsible for organizing the examination and approval of the adjusted total budget estimate for information technology application projects.

4. The adjusted total budget estimate for information technology application projects serves as the basis for adjusting contract prices and tender package prices.

5. The method for determining supplementary cost estimates is guided in Appendix 4 of this Circular.

Section 3
MANAGEMENT OF STANDARDS

Article 15. Management of Information Technology Application Standards

1. The Ministry of Information and Communications shall publish information technology application standards for relevant agencies, organizations, and individuals to refer to and use in establishing and managing investment costs for information technology applications.

2. The project owner may hire consulting organizations with sufficient conditions of capacity and professional experience to implement the establishment, adjustment, and examination of standards, and such consulting organizations shall be responsible for the rationality and accuracy of the implemented standards.

The project owner decides on the application and implementation of published or adjusted information technology application standards, or the construction of new standards, to establish and manage investment costs for information technology applications.

3. For international bidding packages using ODA funds, if foreign standards are used for certain specific tasks to establish unit prices and total budget estimates for information technology applications, these standards must comply with the technical requirements, construction methods, and construction conditions of the project and must be accepted by the project owner beforehand.

Section 4
SETTLEMENT AND AUDIT

Article 16. Capital Investment Payment

The payment of capital investment for information technology application projects funded by state budget is carried out in accordance with the provisions of government decrees and circulars issued by the Ministry of Finance guiding the management and payment of capital investment and state-funded investment and construction projects from state budget sources.

Article 17. Capital Investment Settlement

The settlement of capital investment for information technology application projects funded by state budget is carried out in accordance with the circulars issued by the Ministry of Finance regarding the settlement of basic construction investment capital from state budget sources on an annual fiscal year basis and the guidance on the settlement of completed projects funded by state sources.

Chapter IV
IMPLEMENTING PROVISIONS

Article 18. Effective Date

1. This Circular takes effect from April 15, 2011.

2. During the implementation process, if there are difficulties, organizations and individuals should send their opinions to the Ministry of Information and Communications for consideration and resolution./.