Circular No. 22/2008/TT-BTC guiding the implementation of certain contents of the Regulation on organizing procurement of assets and goods from the State budget under centralized procurement methods issued pursuant to Decision No. 179/2007/QĐ-TTg dated November 26, 2007 of the Government Prime Minister.

CIRCULAR

Guidelines for implementing certain contents of the Procurement Regulation for purchasing assets and goods from the state budget through centralized procurement issued together with Decision No. 179/2007/QĐ-TTg dated November 26, 2007 of the Prime Minister

Implementing Decision No. 179/2007/QĐ-TTg dated November 26, 2007 of the Prime Minister on the issuance of the Procurement Regulation for purchasing assets and goods from the state budget through centralized procurement, the Ministry of Finance provides guidelines for implementing certain contents of the Regulation as follows:

I. Scope of Application:

______________

This Circular applies to Ministries, agencies at the level of ministries, government agencies, other central agencies, and provinces and centrally-administered cities (hereinafter referred to collectively as Ministries, central agencies, and localities) that pilot centralized procurement of assets and goods from the state budget in accordance with the Procurement Regulation for purchasing assets and goods from the state budget through centralized procurement issued together with Decision No. 179/2007/QĐ-TTg dated November 26, 2007 of the Prime Minister (hereinafter referred to as the Regulation issued together with Decision No. 179/2007/QĐ-TTg), including: Ministry of Justice, Ministry of Foreign Affairs, Ministry of Finance, Ministry of Natural Resources and Environment, State Bank, Vietnam Institute of Social Sciences, Thai Nguyen Province, Gia Lai Province, Ha Tay Province, Can Tho City, Dak Lak Province, Ca Mau Province, Bac Giang Province.

II. Sources of Funding for Centralized Procurement of Assets and Goods:

1. Budget funds allocated by competent authorities within the annual budget estimates for agencies and units.

2. Capital from foreign aid projects managed by the state allocated to units for procurement of assets and goods. In cases where foreign donors have different regulations regarding procurement from aid project funds, such regulations shall be followed.

3. Other sources of funding of units approved by competent authorities for investment in new asset acquisition.

III. Objects Subject to Centralized Procurement:

The objects of assets and goods subject to centralized procurement shall be implemented in accordance with Clause 2, Article 3 of the Regulation issued together with Decision No. 179/2007/QĐ-TTg; specific details are as follows:

1. Types of assets and goods used in vertical systems from central to local levels must be procured and equipped through centralized procurement, including:

a) Various types of automobiles (automobiles from 4 to 16 seats for work purposes, specialized automobiles, trucks, automobiles over 16 seats);

b) Specialized transportation equipment and specialized equipment which are means of transportation and equipment specifically used to serve special activities of a particular industry or field such as medical equipment, educational equipment, anti-smuggling boats, geological and mineral survey equipment, etc.;

c) Computer equipment (computers, printers, etc.).

2. For types of assets and goods not included in the provisions of Point 1 of this Section, the specific list of centralized procurement items shall be decided by the Minister, Head of Central Agencies, Chairman of Provincial People's Committees (hereinafter referred to as Provincial People's Committee); including:

- Medicines, medical instruments, office supplies, textbooks, uniforms for industries;

- Fax machines, photocopiers, telephones, working equipment;

- Automobiles, specialized transportation equipment, specialized equipment, computer equipment for localities and central agencies without vertical systems from central to local levels;

- Other assets and goods with large quantities purchased, high total purchase value, and requirements for uniform and modern equipment.

IV. Organizational Forms:

1. Based on procurement needs and characteristics of each type of asset and good, Ministries, central agencies, and provincial people's committees assign subordinate units (Department of Finance and Administration, Department of Planning and Finance, Department of Finance, public service units with functions of state asset procurement, etc.) to organize centralized procurement of assets and goods and allocate them to directly managing and using agencies and units under and subordinate to those Ministries, central agencies, and localities in accordance with Article 4 of the Regulation issued together with Decision No. 179/2007/QĐ-TTg.

Where a Ministry has General Departments, Class I Bureaus, and equivalent organizations (hereinafter collectively referred to as General Departments) organized vertically from central to local levels, the Minister shall consider and decide on assigning the heads of each General Department to organize procurement of assets and goods suitable for centralized procurement to serve the operations of units under the General Departments.

2. Units assigned to organize centralized procurement of assets and goods have the following responsibilities:

a) Develop centralized procurement plans for assets and goods, submit them to the Minister, Head of Central Agencies, Chairman of Provincial People's Committees, or the head of the unit authorized to approve;

b) Organize the procurement of assets according to the plan approved by the competent authority and in accordance with the Law on Bidding, Decree No. 111/2006/NĐ-CP dated September 29, 2006 of the Government guiding the implementation of the Law on Bidding, and select construction contractors in accordance with the Construction Law and current guiding documents;

c) Organize the acceptance and handover of purchased assets and goods and related documents to the direct user agencies and units according to the plan approved by the competent authority.

When handing over assets and goods to the direct user units, a Property Handover Record must be established in accordance with the model specified in Circular No. 122/2007/TT-BTC dated October 18, 2007 of the Ministry of Finance amending certain contents of Circular No. 43TC/QLCS dated July 31, 1996 of the Ministry of Finance guiding the receipt and handover of property between administrative and economic organizations according to the decision of the competent authority.

Related documents handed over to the direct user units include:

- Purchase and sale contracts for assets and goods (copies).

- Contract for the purchase and sale of assets, goods (copy);

- Invoice issued by the seller to the unit responsible for centralized procurement (copy);

- Warranty card, technical documentation, user guide (original - if available).

d) Implement public procurement of assets and goods in accordance with the centralized method prescribed in Article 9 and Article 10 of the Regulation promulgated together with Decision No. 179/2007/QĐ-TTg;

e) Sign contracts with suppliers; contact suppliers to implement warranty regimes for products in accordance with signed contracts.

V. Establishment and approval of the Centralized Procurement Plan for Assets and Goods in accordance with Article 5 of the Regulation promulgated together with Decision No. 179/2007/QĐ-TTg shall be carried out as follows:

1. Each year, state agencies, public service units, project management boards propose procurement needs for assets and goods to serve their activities along with the annual budget estimate submitted to the competent state authority for approval in accordance with the State Budget Law; specifically identifying types and quantities of assets and goods subject to centralized procurement.

2. Based on usage standards and norms for assets set by the competent state authority; actual needs of subordinate agencies and units regarding asset and good usage; approved procurement plans for asset and good provision for the entire sector by the competent authority (if applicable); the list of assets and goods to be procured through centralized methods and the state budget allocation plan assigned by the competent authority; the Minister, Head of Central Agencies, and Chairman of Provincial People's Committees approve procurement plans for assets and goods under centralized procurement objects as stipulated in Clause 2, Article 3 of the Regulation promulgated together with Decision No. 179/2007/QĐ-TTg.

3. The contents of the centralized procurement plan for assets and goods include the following main items:

a) Types and quantities of assets and goods to be procured through centralized methods;

b) Timeframe for implementing procurement of assets and goods;

c) Agencies and units directly using the assets;

d) Funding for procurement of assets and goods.

4. Based on the approved centralized procurement plan for assets and goods, the Minister, Head of Central Agencies, and Chairman of Provincial People's Committees allocate procurement budgets to units responsible for organizing centralized procurement of assets and goods in accordance with the State Budget Law; simultaneously informing agencies and units directly using the assets to coordinate implementation.

In the case of 2008, administrative agencies, public service units, and project management boards have been allocated state budget estimates for procurement of assets and goods within the centralized procurement list, the Minister, Head of Central Agencies, and Chairman of Provincial People's Committees decide on adjusting the procurement budget for assets and goods within the centralized procurement list of those units that have been allocated budgets to allocate procurement budgets to units responsible for organizing centralized procurement of assets and goods in accordance with the State Budget Law.

VI. Centralized Procurement Scheme for Assets and Goods:

The contents of the centralized procurement scheme for assets and goods are implemented in accordance with Clause 1, Article 6 of the Regulation promulgated together with Decision No. 179/2007/QĐ-TTg; some specific contents are as follows:

1. For assets and goods requiring high technical specifications, modern and synchronized equipment, written opinions from relevant specialized agencies must be obtained before submitting to the competent authority for decision-making on tendering procurement plans including:

a) For information technology equipment, written opinions from specialized agencies on information technology under Ministries, central agencies, and localities must be obtained; in cases where central ministries and agencies do not have specialized information technology agencies, the Ministry of Information and Communications' opinion must be obtained;

b) For medical equipment, the Ministry of Health's opinion (for central agencies) and the Department of Health's opinion (for local agencies) must be obtained;

c) For educational equipment, the Ministry of Education and Training's opinion (for central agencies) and the Department of Education and Training's opinion (for local agencies) must be obtained.

Obtaining opinions from specialized agencies can be done through written consultation or inviting authorized representatives of specialized agencies to participate in the Tender Board and tender consulting team.

2. In cases where centralized procurement of assets and goods applies the direct award method as prescribed in the Bidding Law, Decree No. 111/2006/NĐ-CP dated September 29, 2006 guiding the implementation of the Bidding Law, and selecting construction contractors according to the Construction Law and Point 3, Section III, Part II of Circular No. 63/2007/TT-BTC dated June 15, 2007 guiding the implementation of bidding for asset procurement to maintain the regular operation of state agencies with state funds, the unit responsible for centralized procurement of assets and goods hires an organization with appraisal functions to appraise the price of assets and goods, submit it to the Minister, Head of Central Agencies, and Chairman of Provincial People's Committees for decision together with the approval of the centralized procurement plan for assets and goods.

3. Payment for purchased assets and goods to suppliers is carried out in accordance with the law on payment of state budget expenditures and the signed contract with suppliers. For assets and goods that require warranty and maintenance, depending on their value and type, the unit responsible for centralized procurement of assets and goods agrees on the amount retained to ensure the supplier's warranty and maintenance obligations; at the end of the year (December 31), the unit transfers the retained amount for the year to the Treasury account for monitoring and accounting, finalizing the state budget expenditure for the year. When the warranty and maintenance period expires and the supplier fulfills its warranty and maintenance obligations, payment is made to the supplier.

VII. Forms of Procurement for Assets and Goods:

1. The head of the unit entrusted with organizing the procurement of assets and goods through centralized selection shall choose the form of asset and goods procurement in accordance with the provisions of the Bidding Law, Decree No. 111/2006/NĐ-CP dated September 29, 2006 of the Government, Section III Part II Circular No. 63/2007/TT-BTC dated June 15, 2007, and Point 1 of Circular No. 131/2007/TT-BTC dated November 5, 2007 amending and supplementing Circular No. 63/2007/TT-BTC dated June 15, 2007 of the Ministry of Finance guiding the implementation of bidding for the procurement of assets to maintain the regular operation of state agencies with state capital.

2. The division of assets and goods procured into tender packages must be based on their technical characteristics, implementation sequence, ensuring synchronization in procurement, reasonable scale of tender packages, and ensuring the warranty capability and post-sale services of suppliers. Strictly prohibit the splitting of tender packages to apply non-bidding procurement methods.

VIII. Funding for organizing the procurement of assets and goods through centralized methods:

1. The unit entrusted with organizing the procurement of assets and goods through centralized methods may collect the following amounts:

a) Revenue from selling tender documents in accordance with Subpoint a, Point 3, Section VII, Part II, Circular No. 63/2007/TT-BTC dated June 15, 2007 of the Ministry of Finance;

b) Revenue from contractors in cases where there are requests for review of the contractor selection results in accordance with Subpoint b, Point 3, Section VII, Part II, Circular No. 63/2007/TT-BTC dated June 15, 2007 of the Ministry of Finance;

c) Revenue from bid security deposits in accordance with Article 27 of the Bidding Law, and revenue from contract performance security deposits in accordance with Article 55 of the Bidding Law;

d) Commission from the procurement of assets and goods; gifts and promotional items from suppliers (if any).

2. Sources of funding to ensure the organization of the procurement of assets and goods:

The unit entrusted with organizing the procurement of assets and goods through centralized methods may use the revenues specified in Point 1 of this Section to cover the costs of the procurement process, resolving contractor complaints (if any). Specifically, the revenue specified in Subpoint c of Point 1 of this Section can only be used when the contractor violates the provisions of Clause 6, Article 27 and Clause 4, Article 55 of the Bidding Law. If the funding sources specified in Point 1 of this Section are insufficient to cover the bidding process costs, the unit may use its regular operational funds to make up the difference. Any unused portion of the funding sources specified in Point 1 of this Section that is not utilized for the bidding process will be supplemented to the unit's operational funds.

IX. Implementation Organization:

1. Ministries, central agencies, and People's Committees at provincial level are responsible for directing the implementation of the procurement of assets and goods within the scope of centralized procurement; inspecting the implementation of centralized procurement of assets and goods in accordance with the regulations set out in the Regulation issued together with Decision No. 179/2007/QĐ-TTg and the guidance provided in this Circular.

2. The unit entrusted with implementing the procurement of assets and goods through centralized methods is responsible for reporting the situation and results of the procurement to the Ministry, central agency, or provincial-level People's Committee for consolidation and submission to the Ministry of Finance before January 31, 2009. This Circular takes effect fifteen days after its publication in the Official Gazette. During the implementation period, if any issues arise, please report them to the Ministry of Finance for research and coordinated resolution.

This Circular takes effect fifteen days after its publication in the Official Gazette. During the implementation period, if any issues arise, please report them to the Ministry of Finance for research and coordinated resolution./.