Decision No. 08/2016/QD-TTg dated February 26, 2016 of the Prime Minister on prescribing the centralized procurement of state property

DECISION

Prescribing the centralized procurement of state property[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the June 3, 2008 Law on Management and Use of State Property;

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

Pursuant to the November 26, 2013 Bidding Law;

Pursuant to the Government’s Decree No. 52/2009/ND-CP of June 3, 2009, detailing and guiding a number of articles of the Law on Management and Use of State Property;

Pursuant to the Government’s Decree No. 63/2014/ND-CP of June 26, 2014, detailing a number of articles of the Bidding Law regarding contractor selection;

At the proposal of the Minister of Finance,

The Prime Minister promulgates the Decision prescribing the centralized procurement of state property.

Article 1. Scope of regulation

1. This Decision prescribes the centralized procurement of goods and services (below collectively referred to as property).

2. This Decision does not regulate the procurement of property of the following types:

a/ Special property and property for exclusive use in people’s armed forces units; property of overseas representations of the Socialist Republic of Vietnam and other overseas Vietnamese agencies;

b/ Property procured with aid, donations or funding sources under foreign-funded programs or projects for which the donors set procurement requirements different from the provisions of this Decision.

3. The Minister of National Defense and the Minister of Public Security shall, pursuant to the bidding law, the law on management and use of state property and this Decision, issue, and organize the implementation of, a Regulation on centralized procurement of special property and property for exclusive use in people’s armed forces units under their management.

4. Pursuant to the bidding law, the law on enterprises and this Decision, parent companies of state economic groups, parent companies of state corporations and parent companies in parent company-subsidiary groups, and wholly state-owned independent single-member limited liability companies shall issue, and organize the implementation of, their own Regulation on centralized procurement.

Article 2. Subjects of application

1. Centralized procurement units, including:

a/ The national centralized procurement unit, that is the centralized procurement unit at the Ministry of Finance and tasked to procure property on the list subject to national centralized procurement (except preventive and curative drugs for human use, below referred to as drugs);

b/ The national centralized procurement unit for drugs, that is the centralized procurement unit at the Ministry of Health and tasked to procure drugs on the list subject to national centralized procurement;

c/ Centralized procurement units of ministries, central agencies and provinces, that are tasked to procure property on the list subject to ministerial-, central agency- and local-level centralized procurement.

2. State agencies, public non-business units, people’s armed forces units, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations and project management units (below referred to as agencies, organizations and units) under ministries, ministerial-level agencies, government-attached agencies, central agencies of political organizations, socio-political organizations, socio-political-professional organizations, social organizations or socio-professional organizations, other central agencies (below referred to as ministries and central agencies), and provinces and centrally run cities (below referred to as provinces) that directly use property subject to centralized procurement.

3. When procuring property with funds other than those prescribed in Article 3 of this Decision, agencies, organizations and units not defined in Clause 2 of this Article are encouraged to apply this Decision.

Article 3.Funding sources for centralized procurement

1. Funds allocated by competent state agencies within annual budget estimates of agencies, organizations and units.

2. National debenture, government bonds and municipal bonds.

3. Funds under official development assistance (ODA)-funded programs and projects; aid and donations of domestic and overseas organizations and individuals which belong to the state budget and for which the donors set no procurement requirements different from the provisions of this Decision.

4. Non-business activity development funds of public non-business units that cover by themselves part of their current expenditures and public non-business units that have their current expenditures covered by the State; and non-budgetary state financial funds.

5. Health insurance funds, revenues from medical examination and treatment services, and other lawful revenues of public health establishments.

Article 4.Centralized procurement methods

1. Centralized procurement shall be conducted through signing of framework agreements, except the cases specified in Clause 2 of this Article.

2. Centralized procurement through direct signing of contracts must apply in the following cases:

a/ Procurement of property under programs and projects using ODA loans or aid and donations of domestic and foreign organizations and individuals which belong to the state budget and for which the donors require direct signing of contracts;

b/ Procurement of vaccines for vaccination.

Article 5.Lists of property subject to centralized procurement

1. To be included in the lists of property subject to centralized procurement, property must satisfy the conditions specified in Clause 1, Article 71 of the Government’s Decree No. 63/2014/ND-CP of June 26, 2014, detailing a number of articles of the Bidding Law regarding contractor selection.

2. Based on the result of centralized procurement, the Party’s and State’s requirements on thrift practice, waste combat and corruption control, capacity of centralized procurement units, development conditions of the property supply market, and the conditions specified in Clause 1 of this Article, the Ministry of Finance, the Ministry of Health, other ministries, central agencies and provincial-level People’s Committees shall issue lists of property subject to centralized procurement, specifically as follows:

a/ The Ministry of Finance shall announce the list of property subject to national centralized procurement (except drugs);

b/ The Ministry of Health shall announce the lists of drugs subject to centralized procurement (including the list of drugs subject to national centralized procurement and lists of drugs subject to local centralized procurement);

c/ Other ministries, central agencies and provincial-level People’s Committees shall issue the lists of property subject to ministerial-, central agency- and local-level centralized procurement (except drugs).

3. Principles of making and applying lists of property subject to centralized procurement:

a/ The lists of property subject to national centralized procurement must apply to all ministries, central agencies and localities;

b/ The lists of property subject to ministerial-, central agency- and local- level centralized procurement must apply to agencies, organizations and units managed by ministries, central agencies and localities; particularly, the lists of drugs subject to local centralized procurement must apply to central and local health establishments based in localities;

c/ The lists of property subject to ministerial-, central agency- and local- level centralized procurement must not coincide with the lists of property subject to national centralized procurement issued and announced by the Ministry of Finance and the Ministry of Health.

4. Lists of property subject to centralized procurement shall be publicized in accordance with law.

Article 6.Responsibilities of centralized procurement units

1. To summarize procurement demands and plan the selection of procurement contractors.

2. To select contractors for supply of property subject to centralized procurement in accordance with the bidding law.

3. To sign framework agreements with contractors selected to supply property, and issue documents describing in detail the selected property; to set a form of procurement contract as a basis for property users to sign procurement contracts with suppliers in case of centralized procurement through signing of framework agreements; to sign contracts directly with contractors selected to supply property in case of centralized procurement through direct signing of contracts.

4. To organize or participate in the handover and receipt of property obtained from centralized procurement.

5. To publicize property procurement in accordance with the law on management and use of state property.

6. To apply information technology for e-procurement under regulations.

7. The national centralized procurement units shall provide centralized procurement services for ministries, central agencies, localities and state enterprises that have not yet formed their centralized procurement units, or provide property procurement counseling and support services for agencies, organizations, units and enterprises in need.

8. To supervise selected contractors in implementing framework agreements and contracts.

9. To perform the responsibilities of project owners and bid solicitors in accordance with the 2013 Bidding Law and relevant legal documents.

Article 7.Roadmap for application of centralized procurement

1. Centralized procurement applies from 2016.

2. The roadmap for central procurement of drugs must comply with Point c, Clause 1, Article 77 of the Government’s Decree No. 63/2014/ND-CP of June 26, 2014, detailing a number of articles of the Bidding Law regarding contractor selection.

Article 8.Management and use of revenues from and funds saved through centralized procurement

1. The Ministry of Finance shall specifically guide revenues from, expenditures for, and management and use of the proceeds from, centralized procurement.

2. The management and use of funds saved through centralized procurement (the differences between the allocated cost estimates and actual amounts for property procurement) must comply with the law on the state budget.

Article 9.Publicization of centralized procurement

1. Ministries, central agencies, provincial-level People’s Committees, agencies, organizations and units shall publicize centralized procurement under regulations of the Ministry of Finance.

2. Centralized procurement units shall publicize centralized procurement demands and plans to select contractors for centralized procurement; results of centralized procurement; plans on property handover, and other contents subject to publicization in accordance with the law on management and use of state property.

3. The Minister of Finance shall specify the contents and forms of publicization of centralized procurement and organize the publicization of centralized procurement.

Article 10.Organization of implementation

1. The Ministry of Finance shall:

a/ Announce the list of property subject to national centralized procurement, except the list of drugs subject to centralized procurement; decide, within its competence, on the national centralized procurement unit to procure property subject to national centralized procurement on the basis of reorganizing, and additionally assigning tasks to, one of its existing public non-business units (without establishing new one or adding payroll).

Pending the reorganization as mentioned above, the Ministry of Finance shall assign one of its units to perform the national centralized procurement task on a part-time basis.

b/ Collect market information, summarize and analyze procurement demands and results of property procurement of its agencies, units and organizations; organize reporting on and publicization of centralized procurement;

c/ Develop a database on centralized procurement and apply information technology for implementation and publicization of centralized procurement of property;

d/ Inspect, examine, settle complaints and denunciations, and handle violations in the field of centralized procurement within its competence;

dd/ Direct state treasuries at all levels in controlling state budget expenditures for centralized procurement; refrain from paying expenses for procurement of property subject to centralized procurement for which no centralized procurement is conducted or when property procurement contracts do not comply with framework agreements and law;

e/ Perform other tasks in accordance with this Decision and relevant laws.

2. The Ministry of Planning and Investment shall:

a/ Submit to the Prime Minister for approval a roadmap for organizing online bidding for centralized procurement;

b/ Perform other tasks in accordance with this Decision and relevant laws.

3. The Ministry of Health shall:

a/ Promulgate within its competence or submit to a competent authority for promulgation of legal documents guiding centralized procurement of drugs;

b/ Publicize the list of drugs subject to centralized procurement; decide, within its competence, on the national centralized procurement unit to procure drugs subject to national centralized procurement on the basis of reorganizing, and additionally assigning tasks to, one of its existing public non-business units (without establishing new one or adding payroll).

Pending the reorganization as mentioned above, the Ministry of Health shall assign one of its units to perform the national centralized procurement task on a part-time basis.

c/ Perform other tasks in accordance with this Decision and relevant laws.

4. Ministries, central agencies and provincial-level People’s Committees shall:

a/ Organize the procurement of property subject to ministerial-, central agency- and local- level centralized procurement in accordance with this Decision and guidance of the Ministry of Finance; direct the full and prompt summarization of centralized procurement demands for centralized procurement units to organize effective implementation;

b/ Announce the lists of property subject to centralized procurement under their management and notify such lists to the Ministry of Finance; decide, within their competence, on a centralized procurement unit to procure property or drugs subject to centralized procurement of ministries, central agencies and localities on the basis of reorganizing one of their existing public non-business units functioning to provide public services on finance, property or health (without establishing new one or adding payroll).

Pending the reorganization as mentioned above or if there is no public non-business unit functioning to provide public services on finance, property or health, ministries, central agencies and provincial-level People’s Committees shall assign one of their units to perform the centralized procurement task on a part-time basis on the principles prescribed in this Decision;

c/ Perform other tasks in accordance with this Decision and relevant laws.

5. Ministries, central agencies and provincial-level People’s Committees defined in Clauses 1, 3 and 4 of this Article shall decide on, or submit to competent authorities for decision, a specific model of centralized procurement units without establishing new organizations or units or adding payrolls of civil servants and employees in their apparatuses.

6. Organizations, individuals, agencies and units that violate this Decision shall, depending on the nature and severity of their violations, be disciplined, administratively sanctioned or examined for penal liability in accordance with law.

Article 11.Implementation provisions

1. This Decision takes effect on April 10, 2016.

To annul the Prime Minister’s Decision No. 179/2007/QD-TTg of November 26, 2007, on pilot centralized procurement of assets and goods with state budget funds.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and heads of related agencies, organizations and units shall implement this Decision.-

Prime Minister
NGUYEN TAN DUNG