Decision No. 179/2007/QD-TTg dated November 26, 2007 of the Prime Minister promulgating the Regulation on concentrated procurement of assets and goods with the state budget

DECISION

PROMULGATING THE REGULATION ON CONCENTRATED PROCUREMENT OF ASSETS AND GOODS WITH THE STATE BUDGET

THE PRIME MINISTER

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

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

Pursuant to the November 29, 2005 Law on Thrift Practice and Waste Combat:

Pursuant to the November 29, 2005 Anti Corruption Law;

At the proposal of the Minister of Finance,

DECIDES:

Article 1. To promulgate together with this Decision the Regulation on concentrated procurement of assets and goods with the state budget.

Article 2. This Decision takes effect 15 days after its publication in CONG BAO.

Article 3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, heads of other central agencies, and presidents of provincial/municipal Peoples Committees shall organize, and guide their attached agencies and units in, the implementation of this Decision.

REGULATION

ON CONCENTRATED PROCUREMENT OF ASSETS AND GOODS WITH THE STATE BUDGET
(Promulgated together with the Prime Ministers Decision No. 179/2007/QD-TTg of November 26, 2007)

Chapter 1

GENERAL PROVISIONS

Article 1. Purposes and requirements

Concentrated procurement of assets and goods aims to:

1. Ensure thrill and prevem waste and corruption in the use of the state budget;

2. Ensure that synchronous and modern assets and goods are equipped suitably to operation requirements and contents, state administrative reform, public finance reform to raise the effectiveness and efficacy in the operation of state agencies;

3. Ensure publicity and transparency in the procurement, equipping and use of state assets.

Article 2. Principles

1. To observe the provisions of the bidding law in the procurement and equipping of assets and goods with the state budget.

2. To abide by regulations on management of finance and state assets of state budget-funded agencies and units; as well as regulations on publicity and transparency in the procurement of assets and goods.

3. To procure assets and goods according to annual state budget estimates.

Article 3. Scope and objects of application

1. Scope of application:

a/ Concentrated procurement of assets and goods applies to ministries, ministerial-level agencies, government-attached agencies and other central agencies (below collectively referred to as ministries and central agencies) and provinces and centrally run cities.

b/ The Minister of Defense and the Minister of Public Security shall, based on the provisions of law on management of state budget and assets and this Regulation, specify the concentrated procurement and equipping of assets and goods for defense or security purposes.

2. This Regulation applies to synchronous and modern assets and goods to be procured in large volumes and values, including:

a/ Cars, special-use means of transport, special-use equipment and computer equipment used in agencies of the same system from the central to iocal level;

b/ Assets and goods other than those defined at Point a of ihis Clause, which shall be procured under the lists specified by ministers, heads of central agencies or presidents of provincial/municipal Peoples Committees based on characteristics, organizational apparatuses, needs and actual situation of their agencies and units, and in accordance with this Regulation.

3. Investment in construction of houses, architectural works or other assets attached to land is not governed by this Regulation.

Article 4. Forms of procurement

Based on procurement and equipping requirements and characteristics of each type of asset and goods, each ministry, central agency or provincial/municipal Peoples Committee shall assign one of its attached units to procure assets and goods and deliver those assets and goods to agencies and units for direct management and use.

Chapter 2

PROCESS OF CONCENTRATED PROCUREMENT OF ASSETS AND GOODS

Article 5. Planning

Based on competent state agencies regimes, criteria and norms on the use of assets, allocated slate budget estimates, actual needs and requests of attached agencies and units for use of assets and goods, ministries, central agencies, provinces and centrally run cities shall draw up and approve plans on concentrated procurement and equipping of assets and goods specified in Clause 2, Article 3 of this Regulation.

Article 6. Procurement process

1. Based on approved plans on concentrated procurement of assets and goods, ministers, heads of central agencies and presidents of provincial/ municipal Peoples Committees shall allocate procurement estimates to units assigned to procure assets and goods. Those units shall assume the prime responsibility for, and coordinate with asset-using agencies and units in, formulating specific procurement plans and submitting them to ministers, heads of central agencies or presidents of provincial/ municipal Peoples Committees for approval. Such a plan has the following principal contents:

a/ Types, quantities and technical regulations of assets and goods:

- The determination of quantities, types and unit prices complies with the mechanisms, criteria and norms on the use of assets and goods under regulations of competent state agencies.

- For hi-tech, synchronous and modern assets and goods, written opinions of concerned professional agencies or units are required before procurement bidding plans are submitted to competent authorities for decision.

b/ A specific plan on the price of each type of asset and goods.

When assets and goods are procured in the form of designated bidding under the provisions of the bidding law, price appraisal is required in accordance with law.

c/ Requirements on suppliers warranty and maintenance of products.

d/ Projected time of procuring assets and goods.

e/ A plan on the receipt of assets and a plan on the hand-over of assets to agencies or units that will directly use them.

f/ Payment time and mode and other relevant matters.

2. Based on approved procurement plans, units assigned to procure assets and goods shall organize the procuremenlin accordance with the bidding law.

3. Units assigned to procure assets and goods shall notify procurement plans and hand over assets and goods to agencies or units assigned to manage and use rhem according to approved plans on equipping and use of assets and goods.

4. Agencies and units assigned to manage and use assets shall receive, manage and use equipped assets according to regulations.

5. State treasuries shall control expenditures according to current regulations on the procurement of assets with the state budget.

6. In the warranty and maintenance duration, if problems or breakdowns occur to goods or assets not at users fault, units assigned to procure assets and goods shall request suppliers to fulfill warranty and maintenance obligations under signed contracts.

Article 7. Advice, support

1. When necessary, units assigned to procure assets and goods may set up advisory teams for selecting types and quality of assets and goods: and making price plans, bid invitation and consideration plans, and plans on the hand-over of assets and goods to agencies or units that will directly use them. Those units may also invite representatives of agencies or units that will directly use assets to take part in the advisory teams.

2. When a unit assigned to procure assets and goods does not have enough staff members or its staff members fail to meet prescribed conditions, it may select a capable and experienced professional bidding organization to act as a bid solicitor on its behalf under the provisions of Clause 3, .Article 9 of the Bidding Law.

Chapter 3

INSPECTION, SUPERVISION, AND HANDLING OF VIOLATIONS IN THE CONCENTRATED PROCUREMENT OF ASSETS AND GOODS

Article 8. Inspection and supervision

1. Heads of units assigned to procure assets and goods shall take responsibility for the procurement of assets and goods according to this Regulation and relevant laws: are subject to inspection and supervision by superior managing agencies, specialized managing agencies, audit agencies and state inspection agencies.

2. Ministers, heads of central agencies and presidents of provincial/municipal Peoples Committees shall inspect the concentrated procurement of assets and goods in accordance with law.

3. Mass organizations in agencies and units and peoples inspection organizations shall supervise the publicization of asset and goods procurement results in accordance with this Regulation.

Article 9. Publicization of procurement results

Ministries, central agencies, provincial/municipal Peoples Committees and units assigned to procure assets and goods must publicize the following:

1. Plans on the procurement and equipping of assets and goods, approved by competent authorities;

2. Procurement bidding results: lists of successful bidders, successful bids; types and quantities of assets; and other relevant matters;

3. Lists of agencies and units assigned to manage and use procured assets and goods;

4. Management and use of commissions from the procurement of assets and goods according to the Governments regulations.

Article 10. Forms and time of publicization

The contents specified in Article 9 of this Regulation shall be publicized biannually and annually in the form of issue of publications; public listing; announcement at conferences of officials, workers and employees; or on websites.

Article 11. Handling of violations

Agencies, units or individuals that violate this Regulations provisions on the concentrated procurement of assets and goods shall, depending on the nature and severity of their violations, be disciplined or examined for penal liability in accordance with law; if causing material damage, they shall pay compensation tr.erefor according to law.

Chapter 4

ORGANIZATION OF IMPLEMENTATION

Article 12. Organization of implementation

1. Time of application:

a/ From January 1, 2008: This Regulation will apply on a pilot basis to the Ministry of Finance and ministries, central agencies and localities that register to apply it;

b/ In the first quarter of 2009, the Ministry of Finance shall assume the prime responsibility for. and coordinate with ministries, central agencies and localities in, reviewing the pilot implementation of this Regulation and, on that basis, propose amendments or supplements (if deeming it necessary); at the same time, report thereon to the Prime Minister for application of this Regulation to all ministries, central agencies, provinces and centrally run cities from July 1, 2009, at the latest.

2. Ministers, heads of central agencies and presidents of provincial/municipal Peoples Committees shall take the initiative in registering with the Ministry of Finance the pilot implementation of this Regulation; direct and conduct the concentrated procurement of assets and goods according to the provisions of this Regulation: and report on the procurement of assets and goods with the state budget in accordance with law.

3. The Ministry of Finance shall assume the prime responsibility for, and coordinate with concerned agencies in, detailing the implementation of this Regulation and. at the same time, periodically inspect the implementation at ministries, central agencies, provinces and centrally run cities.