Circular No. 31/2014/TT-BGTVT guiding bidding, ordering production and supplying public products and services for management and maintenance of road works using the Central Road Maintenance Fund

CIRCULAR

Guidelines for tendering, ordering production and supplying products, public services for management and maintenance of road works using the Central Road Maintenance Fund

 public services for management and maintenance of road works using

The Central Road Maintenance Fund

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On the basis of Decree No. 86/2012/NĐ-CP dated October 19, 2012, issued by the Government detailing and guiding implementation of certain provisions of the Metrology Law;

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

Pursuant to the Law on Bidding dated November 26, 2013;

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003, promulgated by the Government detailing and guiding the implementation of the Law on State Budget;

Based on Decree No. 130/2013/NĐ-CP dated October 16, 2013 of the Government on production and supply of public goods and services;

Pursuant to Decree No. 18/2012/NĐ-CP dated March 13, 2012 of the Government on the Road Maintenance Fund;

Pursuant to Decree No. 63/2014/NĐ-CP dated June 26, 2014 of the Government detailing implementation of certain provisions of the Law on Bidding regarding selection of contractors;

Pursuant to Decree No. 149/2016/NĐ-CP dated November 11, 2016 of the Government amending and supplementing certain provisions of Decree No. 177/2013/NĐ-CP dated November 14, 2013 of the Government detailing and guiding the implementation of certain provisions of the Law on Prices;

Pursuant to Decree No. 107/2012/NĐ-CP dated December 20, 2012 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Transport;

At the proposal of the Director of the Department of Finance and the Director General of the Vietnam Highway Corporation.

The Minister of Transport issues this Circular guiding tendering, ordering production and supplying products, public services for management and maintenance of road works using the Central Road Maintenance Fund.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the mechanism for tendering, ordering production and supplying products, public services for management and maintenance of road works using the Central Road Maintenance Fund (hereinafter referred to as public services for management and maintenance of road works).

Article 2. Applicability

This Circular applies to organizations and individuals related to tendering, ordering production and supplying products, public services for management and maintenance of road works.

Article 3. Public Services for Management and Maintenance of Road Works

1. Inspection, monitoring, quality testing of road works;

2. Regular maintenance of road works;

3. Repair of road works, including:

a) Repair of damage, replacement of parts of road works, design of road works carried out periodically according to the regulations of the road works maintenance process to restore and improve the technical condition of road works that regular maintenance cannot meet.

b) Emergency repair of road works damaged by sudden impacts such as storms, floods, earthquakes, collisions, explosions, or other sudden natural disasters, or when there are signs that may cause sudden damage affecting the safety of use and operation of the works or have the potential to lead to disasters.

Article 4. Method of supplying products, public services for management and maintenance of road works

1. For public services for management and maintenance of road works prescribed in Clause 1 and Clause 2 of Article 3 of this Circular: implement through tendering, if the conditions for tendering are not met, then implement through ordering.

2. For public services for management and maintenance of road works prescribed in Clause 3 of Article 3 of this Circular:

a) Implement through tendering, except for cases provided for in points b and c of this clause.

b) Implement through ordering in cases where the conditions for tendering are not met for: construction and installation products, goods procurement with a value not exceeding VND 1 billion; advisory public services with a value not exceeding VND 500 million.

c) For emergency repair work to mitigate the aftermath of typhoons, floods, and natural disasters: implement through ordering and in accordance with the provisions of Circular No. 30/2010/TT-BGTVT dated October 1, 2010 of the Minister of Transport on flood and storm prevention and mitigation in the road sector.

3. For the public services prescribed in point b of Clause 2 of this Article, the Director General of the Vietnam Highway Corporation shall base on Decree No. 130/2013/NĐ-CP dated October 16, 2013 of the Government on production and supply of public services (hereinafter referred to as Decree No. 130/2013/NĐ-CP), the special characteristics of management and maintenance of road works, and actual circumstances to stipulate tendering conditions and decide on the implementation method for each specific product and service, and bear legal responsibility for their decisions.

Chapter II

TENDERING FOR PRODUCTION AND SUPPLY OF PUBLIC SERVICES FOR MANAGEMENT AND MAINTENANCE OF ROAD WORKS

Article 5. Organizing bidding to carry out production and supply of products, public services for management and maintenance of road works

1. Based on the budget allocation from the Central Road Maintenance Fund assigned by competent state agencies and based on the tasks specified in Article 6 of this Circular, the tendering agencies select units to carry out production and supply of public services for management and maintenance of road works according to Chapter II of Decree No. 130/2013/NĐ-CP. Tendering for production and supply of public services for management and maintenance of road works can only be conducted when the following conditions are met:

a) The tender plan has been approved;

b) The tender documentation has been approved;

c) Information on tendering has been published in accordance with the law on tendering;

d) Content, list of products, public services for management and maintenance of road works and approved prices: for public services for regular management and maintenance of road works, there must be an approved plan and price; for construction and installation public services, there must be a technical design or construction drawing (for projects with one-step or two-step design requirements) and an approved price; for advisory public services, there must be a scope of work (task) and an approved price; for procurement public services, there must be an approved content and list of goods and an approved price.

2. Package division in management and maintenance of road works must ensure suitability with the characteristics and scale of the road. Establishment, review, and approval of tender plans, invitation to tender, selection of contractors, and other related tendering activities shall be carried out in accordance with Decree No. 130/2013/NĐ-CP and relevant laws on tendering.

3. The price of tender packages for public services in management and maintenance of road works shall be organized and reviewed by the Road Administration Bureau or Project Management Board under the Vietnam Highway Corporation or the Department of Transport for national highways delegated by the Ministry of Transport to local authorities for management and maintenance (hereinafter referred to as the Department of Transport); the Vietnam Highway Corporation shall approve according to regulations.

4. Contractors participating in tendering for production and supply of public services for road works must meet all conditions stipulated by the law on tendering. The form of tendering shall be implemented in accordance with Decree No. 130/2013/NĐ-CP.

Article 6. Tasks of agencies in organizing bidding for production and supply of public goods and services for management and maintenance of road works

1. The Vietnam Highway Administration shall perform the responsibilities of the authorized person as prescribed by the Bidding Law.

2. The Road Management Agency or the Project Management Board under the Vietnam Highway Administration or the Department of Transport shall be responsible for establishing, reviewing, and submitting to the Vietnam Highway Administration for approval the bidding plan; performing the responsibilities of the investor and the tenderer as prescribed by the Bidding Law.

3. The procedures, formalities, and other related contents concerning the establishment, review, and approval of the bidding plan; the selection process for contractors; negotiation, completion, signing of contracts, and other related tasks must be carried out in accordance with Decree No. 130/2013/ND-CP, the bidding laws, and the provisions of this Circular.

Article 7. Acceptance, payment, and settlement of public goods and services implemented through bidding shall be carried out in accordance with the provisions set forth.

Based on the approved contractor selection results, the Road Management Agency or the Project Management Board under the Vietnam Highway Administration or the Department of Transport shall implement contract signing, supervision, acceptance, and payment to the contractor according to regulations; compile and submit the annual settlement report to the Vietnam Highway Administration for examination and approval as prescribed.

Chapter III

ORDERING PRODUCTION AND SUPPLY OF PUBLIC GOODS AND SERVICES FOR MANAGEMENT AND MAINTENANCE OF ROAD WORKS

Article 8. Organizations placing orders to produce and supply public goods and services for the management and maintenance of road works

1. On the basis of the central road maintenance fund expenditure plan assigned by the competent state agency and the approved price of public goods and services, the Road Management Agency or the Project Management Board under the Vietnam Highway Administration or the Department of Transport shall enter into an ordering contract with organizations or individuals to produce and supply public goods and services for management and maintenance of road works in accordance with Chapter III of Decree No. 130/2013/ND-CP. The ordering contract shall include the following main indicators:

a) Name of public goods product or service;

b) Quantity, volume;

c) Quality and specifications;

d) Price, unit price;

đ) Subsidy level (if any);

e) Quantity, volume of subsidized public goods products and services;

g) Contract value;

h) Completion time;

i) Delivery: time, location, method;

k) Acceptance and payment methods;

l) Responsibilities and obligations between the ordering agency and the producer and supplier of public goods products and services accepting the order;

m) Responsibilities of the parties for breach of contract and procedures for resolution.

The parties may agree to supplement certain other contents in the contract but not contrary to the law and not changing the approved price of public goods and services for management and maintenance of road works.

2. The price of public goods and services for management and maintenance of road works implemented through ordering shall be determined based on the provisions of the law; established by the producer or supplier of public goods and services: reviewed by the Road Management Agency or the Project Management Board under the Vietnam Highway Administration or the Department of Transport; approved by the Vietnam Highway Administration.

3. Organizations or individuals producing and supplying public goods and services for the management and maintenance of road works must meet the following conditions:

a) Having registered business activities, suitable operations, sufficient financial capacity, technical and technological production level, management level, and labor skills meeting the requirements of the ordering contract.

b) Submitting a registration document to the Road Management Agency or the Project Management Board under the Vietnam Highway Administration or the Department of Transport regarding the implementation of production and supply of public goods and services for management and maintenance of road works.

Article 9. Adjustment of ordering contracts

1. Ordering contracts for production and supply of public goods and services for management and maintenance of road works can only be adjusted in the following cases:

a) The State adjusts economic and technical norms; prices, unit prices of public goods products and services;

b) The State changes mechanisms and policies on wages, prices of raw materials, and materials.

c) Force majeure as defined by law affects the production and supply of public goods products and services.

2. The Road Management Agency or the Project Management Board under the Vietnam Highway Administration or the Department of Transport shall adjust the ordering contract after obtaining written approval from the Vietnam Highway Administration. The approval of the contract adjustment must comply with the provisions of Clause 1 of this Article and within the scope of the central road maintenance fund expenditure plan assigned annually by the competent state agency.

Article 10. Acceptance, payment, and settlement of public goods and services for the management and maintenance of road works implemented through procurement

The Road Management Agency or the Project Management Board under the Vietnam Highway Administration or the Department of Transport shall sign the ordering contract to carry out acceptance, payment, and settlement of production and supply of public goods and services for management and maintenance of road works according to the procedures and formalities prescribed by law; compile and submit the annual settlement report of the state budget to the Vietnam Highway Administration for examination and approval as prescribed.

Chapter IV

IMPLEMENTATION

Article 11. Effective Date

1. This Circular takes effect from January 1, 2015.

2. Abolish previous provisions that contradict the provisions of this Circular.

Article 12. Implementation Organization

1. The Director of the Ministry's Office, the Inspector General of the Ministry, the Heads of Departments, the Director of the Vietnam Highway Administration, the Directors of Provincial Transport Departments, the Heads of relevant agencies, organizations, and individuals are responsible for implementing this Circular.

2. The Finance Department shall be responsible for inspecting the implementation of this Circular.

3. In the course of implementation, if any issues arise, please reflect them to the Ministry of Transport for consideration and resolution./.