Decision No. 179/2007/QĐ-TTg Issuing the Procurement Regulation for Assets and Goods from the State Budget through Centralized Procurement Methods

Pursuant to …;

BIssuing the Procurement Regulation for Assets and Goods from the State Budget through Centralized Procurement Methods

goods from the State budget through centralized procurement

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PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on State Budget dated December 16, 2002;

Pursuant to the Law on Thrift and Combating Wastefulness dated November 29, 2005;

Pursuant to the Anti-Corruption Law dated November 29, 2005;

Considering the proposal of the Minister of Finance,

DECISION:

Article 1. This Decision promulgates the Procurement Regulation for Assets and Goods from the State Budget through Centralized Procurement Methods.

Article 2. This Decision shall take effect fifteen days after its publication in the Official Gazette.

Article 3. The Ministers, Heads of Ministries equivalent to ministries, Heads of central agencies under the Government, Heads of other central agencies, Chairpersons of People's Committees of provinces and centrally governed cities are responsible for organizing the implementation and guiding subordinate agencies and units to implement this Decision.

REGULATIONS

Procurement Regulation for Assets and Goods from the State Budget through Centralized Procurement Methods

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(Issued together with Decision No. 179/2007/QĐ-TTg dated November 26, 2007 of the Prime Minister)

PART I

GENERAL PROVISIONS

Article 1. Purpose and Requirements

Centralized procurement of assets and goods aims at:

1. Implementing thrift, preventing waste and corruption in the use of the state budget;

2. Ensuring that assets and goods equipped are modern and synchronized with the requirements, content of activities, and the process of administrative reform, financial reform, and enhancing efficiency and effectiveness in the operations of state agencies;

3. Ensuring transparency and fairness in procurement, equipping, and using state assets.

Article 2. Principles

1. Strictly comply with the provisions of the law on bidding in the procurement and equipping of assets and goods from the state budget.

2. Strictly comply with the financial management system and asset management regulations of agencies and units using the state budget; while implementing the provisions on transparency and fairness in the procurement of assets and goods.

3. Conduct procurement within the annual budget allocation.

Article 3. Scope and Applicability

Article 1. Scope of Application:

a) The organization of centralized procurement of assets and goods applies to Ministries, agencies equivalent to ministries, agencies under the Government, and other central agencies (hereinafter referred to as Ministries and central agencies) and centrally governed provinces and cities.

b) The Minister of National Defense and the Minister of Public Security shall base their specific regulations on centralized procurement and equipping of assets and goods for defense and security purposes on the provisions of the law on state budget management, state asset management, and the provisions of this Regulation.

2. The objects subject to the centralized procurement regulation include assets and goods with large quantities purchased, high total value, and requiring synchronized and modern equipment, specifically:

a) Types of assets and goods that must be procured and equipped through centralized methods include: cars, specialized transportation vehicles, specialized equipment, information technology equipment used in vertical systems from central to local levels;

b) For assets and goods not covered by point a of this clause, based on characteristics, organizational structure models, usage needs, and actual conditions of the agency or unit, the Minister, Head of a central agency, and the Chairman of the People's Committee of a province or centrally governed city shall specify the list of assets and goods to be procured through centralized methods according to this Regulation.

3. Investment in new construction of houses, architectural works, and other assets attached to land does not fall within the scope of this Regulation.

Article 4. Organizational Form

Based on the procurement needs, equipment requirements, and characteristics of each type of asset and goods, ministries, central agencies, provincial people's committees, and centrally governed city people's committees shall assign a subordinate unit to organize centralized procurement of assets and goods and allocate such assets and goods to directly managing and using agencies and units.

Chapter II

PROCEDURE FOR ORGANIZING THE PROCUREMENT OF ASSETS AND GOODS IN A CENTRALIZED MANNER

Article 5. Plan Preparation

Based on the usage standards and quotas for assets prescribed by competent state authorities and the budget estimates allocated; actual needs and requests from subordinate agencies and units regarding the use of assets and goods, ministries, central agencies, and centrally governed provinces and cities shall prepare and approve plans for the procurement and equipping of assets and goods within the scope of centralized procurement as stipulated in Clause 2, Article 3 of this Regulation.

Article 6. Implementation Procedure

1. Based on the approved centralized procurement plan, the Minister, Head of Central Agencies, and Chairman of Provincial People's Committees or Centrally Governed City People's Committees shall allocate the procurement budget to the assigned unit responsible for organizing centralized procurement of assets and goods. The unit responsible for organizing centralized procurement of assets and goods shall take the lead and coordinate with using agencies and units to develop specific procurement organization plans to be submitted for approval by the Minister, Head of Central Agencies, or Chairman of Provincial People's Committees or Centrally Governed City People's Committees. The centralized procurement plan includes the following main contents:

a) Types, quantities, technical standards of assets and goods:

- Determining quantities, types, and unit prices must comply with the usage standards and quotas prescribed by competent state authorities.

- For assets and goods requiring high technical specifications, comprehensive modern equipment, there must be written opinions from relevant specialized agencies before submitting to the competent authority for decision-making on tender procurement plans.

b) Specific pricing schemes for each type of asset and good.

In cases where centralized procurement of assets and goods applies the designated tender form as prescribed by laws on bidding, price evaluation must be conducted according to legal provisions.

c) Requirements for warranty and maintenance systems provided by suppliers;

d) Estimated time for organizing the procurement of assets and goods;

đ) Asset acceptance plans and plans for transferring assets to directly using agencies and units;

e) Payment timeframes, methods, and other related issues.

2. Based on the approved procurement plan, the unit responsible for organizing centralized procurement of assets and goods shall implement procurement in accordance with legal provisions on bidding.

3. The unit responsible for organizing centralized procurement of assets and goods shall notify the plan and organize the transfer of assets and goods to agencies and units assigned to manage and use them according to the approved asset allocation and usage plan.

4. Agencies and units assigned to manage and use assets have the responsibility to accept, manage, and use the allocated assets in accordance with prescribed regulations.

5. State Treasury shall conduct expenditure control in accordance with current regulations for asset procurement funded from the state budget.

6. During the warranty and maintenance period, if assets and goods experience malfunctions or damage not due to user error, the unit responsible for organizing centralized procurement of assets and goods shall have the responsibility to request the supplier to fulfill warranty and maintenance obligations in accordance with the signed contract.

Article 7. Consultation and Support

1. In cases where necessary, the unit entrusted with organizing centralized procurement of assets and goods may establish a specialized expert team to advise on selecting types and quality of assets and goods; developing pricing plans, bidding and tendering plans; and asset and goods handover plans to agencies and units directly using them. Additionally, representatives from agencies and units directly using the assets may be invited to join the specialized expert team.

2. If the unit entrusted with organizing centralized procurement of assets and goods does not have sufficient personnel or if the personnel do not meet the prescribed conditions, it may select a professional bidding organization with adequate capacity and experience to act as the tenderer on its behalf in accordance with Clause 3, Article 9 of the Bidding Law.

Chapter III

INSPECTION, SUPERVISION AND HANDLING OF VIOLATIONS IN CENTRALIZED PROCUREMENT OF ASSETS AND GOODS

Article 8. Inspection and Supervision

1. The head of the unit entrusted with organizing centralized procurement of assets and goods shall be responsible for organizing such procurement in accordance with this Regulation and relevant laws; they shall be subject to inspection and supervision by higher-level management agencies, specialized management agencies, auditing bodies, and state inspection agencies.

2. Ministers, heads of central agencies, and Chairpersons of provincial and municipal People's Committees under the Central Government shall be responsible for inspecting the implementation of centralized procurement of assets and goods in compliance with legal provisions.

3. Organizations and mass associations within agencies and units, and people's inspection organizations shall monitor the public disclosure of results of centralized procurement of assets and goods in accordance with this Regulation.

Article 9. Public Disclosure of Results

Ministries, central agencies, provincial and municipal People's Committees under the Central Government, and units entrusted with organizing centralized procurement of assets and goods must disclose the following contents:

1. Procurement plans for assets and goods that have been approved by competent authorities;

2. Tendering results: list of successful bidders, winning bid prices; types and quantities of assets and other related contents;

3. List of agencies and units entrusted with managing and using centrally procured assets and goods;

4. Management and use of commission fees from the procurement of assets and goods in accordance with government regulations.

Article 10. Forms and Timing of Public Disclosure

The public disclosure of contents stipulated in Article 9 of this Regulation shall be conducted semi-annually and annually through the following forms: publication of printed materials; public posting; announcement at staff meetings; and public disclosure on electronic information websites.

Article 11. Handling Violations

Agencies, units, and individuals violating the provisions on centralized procurement of assets and goods in this Regulation shall be subject to disciplinary action or criminal prosecution according to the law depending on the nature and severity of the violation; in cases causing material damage, compensation must be provided according to the law.

Chapter IV

IMPLEMENTATION

Article 12. Implementation Organization

1. Effective Date:

a) As of January 1, 2008: pilot application for the Ministry of Finance and central ministries and localities that have registered to implement;

b) In the first quarter of 2009, the Ministry of Finance shall take the lead and coordinate with central ministries and localities to summarize the pilot implementation of this Regulation, based on which, propose amendments and supplements (if deemed necessary); simultaneously report to the Prime Minister to implement for all central ministries and provincial and municipal People's Committees under the Central Government no later than July 1, 2009.

2. Ministers, heads of central agencies, and Chairpersons of provincial and municipal People's Committees under the Central Government shall proactively register with the Ministry of Finance for pilot implementation, bear responsibility for directing and implementing centralized procurement of assets and goods as prescribed by this Regulation; and comply with reporting requirements for procurement of assets and goods from state budget funds according to the law.

4. The Ministry of Finance shall take the lead and coordinate with relevant agencies to provide detailed guidance on the implementation of this Regulation, and regularly organize inspections at central ministries and provincial and municipal People's Committees under the Central Government./.