Decree No. 32/2019/ND-CP bidding for provision of public products and services

DECREE

Prescribing the assignment of tasks, placement of orders, or bidding for provision of public products and services covered by state budget funds for regular expenditures^[1]

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

Pursuant to the June 25, 2015 Law on the State Budget;

Pursuant to the November 26, 2013 Bidding Law;

Pursuant to the June 20, 2012 Law on Price;

At the proposal of the Minister of Finance;

The Government promulgates the Decree prescribing the assignment of tasks, placement of orders, or bidding for provision of public products and services covered by state budget funds for regular expenditures.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Decree prescribes the assignment of tasks, placement of orders, or bidding for provision of public products and services covered by state budget funds for regular expenditures.

Article 2.Subjects of application

1. Ministries, ministerial-level agencies and government-attached agencies (below referred to as ministries and central agencies), People’s Committees of provinces and centrally run cities (below referred to as provincial-level People’s Committees), People’s Committees of urban districts, rural districts, towns and provincial cities (below referred to as district-level People’s Committees), and attached management agencies that are authorized to carry out the assignment of tasks, placement of orders, or bidding for provision of public non-business products and services covered by state budget funds for regular expenditures.

2. Public non-business units established by competent state agencies in accordance with law, having the legal person status, and providing public non-business services serving state management work.

3. Enterprises of all economic sectors, organizations, and units (including public non-business units not attached to agencies that are allocated funds for placement of orders or bidding for provision of public products and services), cooperatives having the legal person status, and individuals conducting independent practice and making business registration under law that have the function to provide public products and services meeting the State’s requirements (below collectively referred to as other public non-business service providers; and public-utility product producers and service providers or contractors in case of bidding under the bidding law); and agencies and organizations involved in the organization and provision of public products and services.

4. The Ministry of National Defense, Ministry of Public Security, political organizations, socio-political organizations, and socio-politico-professional organizations may apply this Decree and relevant regulations on assignment of tasks, placement of orders, or bidding for provision of public products and services covered by state budget funds for regular expenditures as assigned by competent authorities.

5. Ministries, central agencies, localities, enterprises, organizations, agencies, and units that provide public non-business services, or public products and services covered by other financial sources (other than state budget funds) are encouraged to apply this Decree.

Article 3.Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Public products and services means products and services essential to the socio-economic life of the country and residential communities or helping maintain national defense and security the provision of which must be organized by the State in the fields of education and training; vocational education; health; culture, sports and tourism; information and communications; science and technology; natural resources and environment; transport; agriculture and rural development; industry and trade; construction, labor, invalids and social affairs; and justice, and other fields under the Government’s regulations. Public products and services include public non-business services and public-utility products and services.

2. Public products and services covered by state budget funds for regular expenditures (below referred to as public products and services) include public non-business services funded with the state budget and public-utility products and services.

3. Public non-business services funded with the state budget means public non-business services wholly funded by the State or state budget-supported public non-business services not fully inclusive of expenses in prices or charges.

4. Public-utility products and services means products and services the production or provision of which under the market mechanism is hard to offset expenses, or which have special characteristics, and for which the State provides subsidies for the difference between sale prices and cost prices of products and services under the State’s regulations, or for the difference between amounts paid under the State’s regulations by beneficiaries of public-utility products and services and reasonable expenses borne by producers or providers of these products and services for the production or provision of public-utility products and services under orders placed by the State (or by the method of task assignment under specialized laws, if any).

5. Subsidy for public-utility products and services means a fixed money amount from the state budget per unit of public-utility products and services for producers and providers of these products and services for the production and provision of public-utility products and services under orders placed by the State (or by the method of task assignment under specialized laws, if any).

6. Reasonable expenses borne by producers and providers of public-utility products and services means actual expenses arising in relation to the production and provision of public-utility products and services under the Law on Enterprise Income Tax and relevant legal documents.

7. Sale price under the State’s regulations means a price set by the State for a producer or provider of public-utility products and services to sell them in the market.

8. Assignment of tasks for provision of public non-business services funded with the state budget means assignment by state agencies of tasks to public non-business units as suitable to the latter’s functions and tasks to provide public non-business services under decisions of competent authorities.

9. Placement of orders for provision of public products and services means designation by state agencies of public non-business units, other providers of public non-business services, or producers and providers of public-utility products and services that meet the State’s requirements and conditions on placement of orders.

10. Bidding for provision of public products and services means the process of selection of contractors to enter into and perform contracts on provision of public products and services on the basis of ensuring competition, equality, transparency and economic efficiency.

Article 4.Funding sources for provision of public products and services

1. State budget funds covering regular expenditures in non-business fields and economic activities under the Law on the State Budget, specifically as follows:

a/ Central budget funds, covering expenses for assignment of tasks, placement of orders, or bidding for provision of public products and services of ministries and central agencies;

b/ Local budget funds, covering expenses for assignment of tasks, placement of orders, or bidding for provision of public products and services of localities.

2. Funding sources retained to cover expenses for the provision of services and collection of charges under the law on charges and fees.

3. Revenues from the provision of public non-business services at prices set by the State.

4. Other sources (if any) as prescribed by law.

Article 5.Lists of public products and services

1. The lists of public products and services covered by state budget funds for regular expenditures include:

a/ The list of public non-business services funded with the state budget;

b/ The list of public-utility products and services.

2. The list of public non-business services funded with the state budget which is provided in Appendix I (Forms No. 01 and No. 02) to this Decree consists of:

a/ Form No. 01: sector-based public non-business services funded with the state budget.

Detailed lists of public non-business services funded with the state budget of ministries and central agencies must comply with the Prime Minister’s decisions; and detailed lists of public non-business services funded with the state budget under management by localities must comply with decisions of chairpersons of provincial-level People’s Committees.

b/ Form No. 02: some lists of public non-business services funded with the state budget.

3. The list of public-utility products and services is provided in Appendix II to this Decree.

4. If the list mentioned in Clause 2 or 3 of this Article is modified in a period, ministries and central agencies shall assume the prime responsibility for, and coordinate with the Ministry of Finance, Ministry of Planning and Investment, Ministry of Home Affairs and related agencies in, submitting to the Prime Minister for decision the modification of such list using central budget expenditure estimates; chairpersons of provincial-level People’s Committees shall decide on the modification of such list using local budget expenditure estimates. The modified list of public products and services must comply with this Decree.

Article 6.Methods of assignment of tasks, placement of orders, or bidding for provision of public products and services

1. For public non-business services funded with the state budget, the method of assignment of tasks, placement of orders, or bidding shall apply.

2. For public-utility products and services, the method of placement of orders, or bidding (or assignment of tasks in cases prescribed by specialized laws) shall apply.

3. Ministries, central agencies, provincial-level People’s Committees, district-level People’s Committees or attached management agencies may authorize the selection of appropriate methods of provision of public products and services fully meeting the conditions specified in Chapters II and III of this Decree and specialized laws (if any).

Article 7.Competence to decide on the method of assignment of tasks, placement of orders, or bidding for provision of public products and services

1. Ministries, central agencies or attached management agencies may authorize their attached public non-business units to decide on the assignment of tasks or placement of orders for provision of public products and services; and placement of orders (or assignment of tasks in cases prescribed by specialized laws) to other providers of public non-business services; producers and providers of public-utility products and services or bidding organizations, with the use of central budget funds under regulations.

2. Provincial-level People’s Committees, district-level People’s Committees or attached management agencies may authorize their attached public non-business units to decide on the assignment of tasks or placement of orders for provision of public products and services; and placement of orders (or assignment of tasks in cases prescribed by specialized laws) to other providers of public non-business services; producers and providers of public-utility products and services or bidding organizations, with the use of local budget funds under regulations.

3. The assignment of tasks or placement of orders for special public-utility products and services covered by central budget funds (if any) must comply with the Prime Minister’s decisions.

Article 8.Methods and competence to decide on prices or unit prices of and subsidies for public products and services

1. For public non-business services funded with the state budget

a/ For public non-business services funded with the state budget which are provided by the method of assignment of tasks: Based on the quantity or volume of tasks, and spending regimes, criteria and norms prescribed by competent state agencies, ministries, central agencies, provincial-level People’s Committees, district-level People’s Committees or attached management agencies may authorize public non-business units to approve fund estimates for assignment of tasks for provision of public non-business services;

b/ For public non-business services funded with the state budget which are provided by the method of placement of orders: The method of setting prices, agency competent to set prices, procedures for setting prices, and unit prices must comply with the law on price and other relevant laws.

2. For public-utility products and services

The method of setting prices, agency competent to set prices, procedures for setting prices, unit prices, and price subsidy levels for public-utility products and services must comply with the law on price and other relevant laws.

3. Prices or unit prices of public products and services shall be determined based on techno-economic norms and expense norms issued by competent agencies. Specifically, salary expenses included in prices or unit prices of public-utility products and services shall be calculated based on the base salary, rank-, grade- and position-based salary coefficients, allowances, and salary-based contributions under the State’s regulations for public non-business units, and based on labor norms and expense norms (if any) issued by ministries, central agencies or provincial-level People’s Committees according to their competence. Particularly for salary expenses and labor costs included in prices or units prices of public-utility products and services in Appendix II to this Decree and salary and wage expenses included in unit prices of public non-business services funded with the state budget in Form No. 02 in Appendix I to this Decree for enterprises eligible to enter into contracts on placement of orders, or bidding (or assignment of tasks in cases prescribed by specialized laws) must comply with guidance of the Ministry of Labor, Invalids and Social Affairs.

4. For products and services on the list of public-utility products and services prescribed in the Government’s Decree No. 130/2013/ND-CP of October 16, 2013, on the production and provision of public-utility products and services, which shift to be included in the list of public non-business services funded with the state budget as prescribed in this Decree, the competence to decide on the price of each service must still comply with that prescribed for the list of public-utility products and services prescribed in the Law on Price and guiding documents.

Chapter II

ASSIGNMENT OF TASKS, PLACEMENT OF ORDERS, OR BIDDING FOR PROVISION OF PUBLIC NON-BUSINESS SERVICES FUNDED WITH THE STATE BUDGET

Section 1

ASSIGNMENT OF TASKS OF PROVIDING PUBLIC NON-BUSINESS SERVICES FUNDED WITH THE STATE BUDGET

Article 9.Conditions for assignment of tasks of providing public non-business services funded with the state budget

1. The assignment of tasks of providing public non-business services funded with the state budget applies only to public non-business units attached to superior management agencies that are allocated with funds for the provision of public non-business services.

2. A public non-business unit shall be assigned the task of providing public non-business services funded with the state budget when fully meeting the following conditions:

a/ It has the function and task to provide public non-business services as suitable to the task of providing public non-business services as assigned under a competent authority’s decision. In addition, a public non-business unit assigned tasks in the fields subject to the State’s licensing must be a unit already licensed by a competent agency under the relevant specialized law.

b/ It has financial autonomy granted by a competent authority based on its autonomy mechanism in each field;

c/ The provision of public non-business services is its annual regular task as assigned by its superior management agency;

d/ The list of public non-business services has not yet been accompanied by techno-economic norms and unit prices, with their quantity, volume and reasonable expenses compliant with estimates approved by competent authorities.

3. Conditions for assignment of the task of providing special public non-business services (if any) funded with the state budget as prescribed in Clause 3, Article 7 of this Decree must comply with the Prime Minister’s decision.

Article 10.Assignment of tasks of providing public non-business services funded with the state budget

1. Public non-business services to be provided by the method of assignment of tasks are specified in the list of public non-business services in Form No. 01 in Appendix I to this Decree.

2. Bases for task assignment:

a/ Revenue and expenditure estimates assigned by a competent authority;

b/ A competent authority’s decision to issue the list of public non-business services funded with the state budget to be provided by the method of task assignment.

3. Contents of task assignment:

a/ Quantity or volume of public non-business services (if they can be specified), or detailed tasks;

b/ Quality of public non-business services (based on criteria and standards issued by competent state agencies);

c/ Time of commencement and time of completion of the provision of services;

d/ Fund estimates for the provision of public non-business services based on the quantity, volume and tasks of these services, current spending regimes approved by a competent authority. The fund estimates shall be detailed by the following sources:

- State budget funds;

- Charges retained to cover expenses for service provision and charge collection activities under the law on charges and fees;

- Revenues from public non-business services at prices set by the State.

dd/ Advance payment, payment, and finalization of funds for task assignment;

e/ Acceptance test and handover of products (if any);

g/ Responsibilities of public non-business units performing the tasks;

h/ Responsibilities of superior management agencies assigning the tasks;

i/ Other contents as prescribed by specialized laws (if any).

4. Form of task assignment: decision of a superior management agency assigning a public non-business unit to provide public non-business services funded with the state budget.

Article 11.Cases of adjustment of funds for assignment of tasks of providing public non-business services funded with the state budget

1. The State changes wage mechanisms and policies.

2. A superior management agency adjusts the task already assigned to a public non-business unit as a result of change in the quantity or volume of public non-business services or due to an objective reason.

Section 2

PLACEMENT OF ORDERS FOR PROVISION OF PUBLIC NON-BUSINESS SERVICES FUNDED WITH THE STATE BUDGET

Article 12.Conditions for placement of orders for the provision of public non-business services funded with the state budget

1. The placement of orders for provision of public non-business services funded with the state budget for public non-business units attached to superior management agencies that place orders for provision of public non-business services on the list provided in Appendix I to this Decree applies when the following conditions are fully met:

a/ The conditions prescribed at Points a, b and c, Clause 2, Article 9 of this Decree;

b/ The list of public non-business services is accompanied by techno-economic norms and unit prices or prices issued by competent agencies as bases for the placement of orders;

c/ Other conditions (if any) as prescribed by relevant laws.

2. The placement of orders for provision of public non-business services funded with the state budget for other providers of public non-business services on the list provided in Appendix I to this Decree applies when the following conditions are fully met:

a/ Other providers of public non-business services have registered the business lines relevant to the public non-business services for which orders are placed; have financial capacity, physical foundations, equipment, machinery, technical level, production technology, management experience, and employees meeting the requirements for placement of orders. In addition, other providers of public non-business services eligible to place orders in the fields subject to the State’s licensing must be service providers already licensed by competent agencies under specialized laws;

b/ Public non-business services are of special nature as they are related to intellectual property or only one provider registers to provide the services;

c/ The list of public non-business services is accompanied by techno-economic norms and unit prices or prices issued by competent agencies as bases for the placement of orders.

3. Conditions for placement of orders for provision of special public non-business services (if any) funded with the state budget as prescribed in Clause 3, Article 7 of this Decree shall be decided by the Prime Minister.

4. In case of placement of orders for the provision of other public non-business services funded with the state budget already regulated by specialized laws, such specialized laws shall apply.

5. The method of placement of orders shall be applied to public non-business services funded with the state budget on the list provided in Appendix I to this Decree while the method of bidding is still encouraged.

Article 13.Bases for placement of orders for provision of public non-business services funded with the state budget

1. Revenue-expenditure estimates assigned by competent authorities.

2. A competent authority’s decision to issue the list of public non-business services funded with the state budget to be provided by the method of placement of orders.

3. Unit prices or prices of public non-business services funded with the state budget put for the placement of orders shall be determined on the basis of techno-economic norms and current expense norms prescribed by the State, and decided by competent authorities under the law on price and other relevant laws. Particularly for placement of orders for provision of public non-business services by public non-business units, the bases for placement of orders include prices fully inclusive or not fully inclusive of expenses according to the autonomy mechanism applicable to public non-business units in relevant fields (education and training; vocational education; health; culture, sports and tourism; information and communications; science and technology; economic non-business activities, and other non-business activities).

4. For charge-liable public non-business services, the charge rates must comply with the law on charges and fees.

5. Other bases for placement of orders as prescribed by specialized laws (if any).

6. Based on the assigned estimates, list of public non-business services put for placement of orders, unit prices or prices of public non-business services decided by competent agencies, and other bases (if any) for placement of orders, superior management agencies shall determine the quantity or volume of public non-business services in order to place orders for related units to implement. In case of placement of orders for public non-business units at prices or charges not fully inclusive of expenses, state budget funds shall cover the expenses not yet included in such prices or charges.

Article 14.Placement of orders for provision of public non-business services funded with the state budget

1. Forms of placement of orders

a/ Placement of orders for public non-business units may take the form of a superior management agency’s decision placing orders for its attached public non-business unit to provide public non-business services funded with the state budget (made according to Form No. 01 in Appendix II to this Decree);

b/ Placement of orders for other providers of public non-business services may take the form of contract on placement of orders for the provision of public non-business services funded with the state budget (made according to Form No. 03 in Appendix II to this Decree).

2. The list of public non-business services put for placement of orders is provided in Appendix I to this Decree.

3. Contents of placement of orders

a/ Quantity or volume of public non-business services put for placement of orders, for public non-business services funded with the state budget;

b/ Quality of public non-business services (based on the criteria or standards issued by competent state agencies);

c/ Time of commencement and time of completion of the placement of orders;

d/ Unit prices or prices for placement of orders under a competent agency’s decision as prescribed by the law on price and other relevant laws;

dd/ Expense estimates for placement of orders (in case of placement of orders for public non-business units to provide services) or contract value (in case of signing of contracts on placement of orders with other providers of public non-business services), which shall be detailed by the following sources:

- State budget funds for placement of orders (at prices fully inclusive of expenses), or state budget funds covering the expenses not included in service prices or charges (in case service prices are not fully inclusive of expenses).

- Charges retained to cover expenses for the service provision and charge collection under the law on charges of fees.

- Revenues from public non-business services at prices set by the State.

- Other sources (if any).

e/ Methods of payment and finalization;

g/ Methods of product acceptance-test and handover;

h/ Rights and obligations of public non-business service providers;

i/ Rights and obligations of agencies placing orders;

k/ Other contents not contrary to law.

4. In addition to the contents specified in Clause 3 of this Article, ministries, central agencies and localities may add other contents to meet the management requirements in each field or as prescribed by specialized laws (if any).

Article 15.Cases of adjustment of expenses for placement of orders for provision of public non-business services funded with the state budget

1. The State changes salary mechanisms or policies.

2. The State adjusts techno-economic norms, expense norms, prices or unit prices, quantity or volume of public non-business services put for placement of orders.

3. Due toforce majeureevents as prescribed by law which affect the provision of public non-business services.

Section 3

BIDDING FOR PROVISION OF PUBLIC NON-BUSINESS SERVICES FUNDED WITH THE STATE BUDGET

Article 16.Bidding for provision of public non-business services funded with the state budget

1. Based on the functions and registered business lines suitable to public non-business services put for bidding; specialized laws for contractors providing services in the fields subject to the State’s licensing, and other conditions for participation in biding prescribed in relevant laws (if any), contractors may participate in bidding to provide public non-business services on the list provided in Appendix I to this Decree in the following forms:

a/ Open bidding as prescribed in Article 20 of the Bidding Law, except the case specified at Point b, Clause 1, Article 16 of this Decree;

b/ Restricted bidding as prescribed in Article 21 of the Bidding Law.

2. Bidding and contents related to bidding for provision of public non-business services funded with the state budget must comply with the Bidding Law, 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, and revising documents (if any), and relevant laws.

Chapter III

PLACEMENT OF ORDERS OR BIDDING FOR PRODUCTION OR PROVISION OF PUBLIC-UTILITY PRODUCTS AND SERVICES

Section 1

PLACEMENT OF ORDERS FOR PRODUCTION OR PROVISION OF PUBLIC-UTILITY PRODUCTS AND SERVICES

Article 17.Conditions for placement of orders for production or provision of public-utility products and services

1. Placement of orders for production or provision of public-utility products and services on the list provided in Appendix II to this Decree applies when the following conditions are fully met:

a/ Producers or providers of public-utility products and services have registered the business lines relevant to the fields in which placement of orders may be made; have financial capacity, physical foundations, equipment, machinery, technical level, production technology, management experience, and employees meeting the requirements of the production or provision of public-utility products and services under contracts. In addition, producers or providers of public-utility products and services eligible for placement of orders in the fields subject to the State’s licensing must be those already licensed by competent agencies under specialized laws;

b/ Public-utility products and services are of special nature as they are related to intellectual property or only one provider registers to provide  services;

c/ Sale prices, cost prices or price subsidy levels of public-utility products and services are decided by competent authorities under the law on price and other relevant laws.

2. Conditions for placement of orders for public-utility products and services prescribed in Clause 1, Section I, and Clause 2, Section II, of Appendix II to this Decree must comply with specialized laws, other relevant laws, and this Decree’s provisions on placement of orders.

3. Conditions for placement of orders for the production or provision of special public-utility products and services (if any) prescribed in Clause 3, Article 7 of this Decree must comply with the Prime Minister’s decision.

4. In case of placement of orders for production or provision of other public-utility products and services already regulated by specialized laws, such specialized laws shall apply.

5. For public-utility products and services specified in Clause 1, Section I of Appendix II to this Decree, in case a specialized law prescribes the method of task assignment, this method shall apply while the method of placement of orders is encouraged. Conditions for task assignment and other related provisions must comply with specialized laws, the Law on the State Budget, and other relevant laws; and the provisions on assignment of tasks of providing public non-business services funded with the state budget in Section I, Chapter II of this Decree may apply.

6. In case the method of placement of orders applies to public-utility products and services on the list provided in Appendix II to this Decree, it is also encouraged to apply the method of bidding.

Article 18.Bases for placement of orders for production or provision of public-utility products and services

1. Estimates assigned by competent authorities for placement of orders for production or provision of public-utility products and services.

2. Indicators on production or provision of public-utility products and services; estimates on reasonable expenses for the production or provision of public-utility products and services.

3. Unit prices or prices for placement of orders; price subsidy levels, which shall be determined based on techno-economic norms and current expense norms prescribed by the State, and decided by competent agencies in accordance with the law on price and other relevant laws. For charge-liable public-utility products and services, the charge rates shall be prescribed by the State.

4. Sale prices; unit prices or prices of public-utility products and services as prescribed by the State, or amounts paid by beneficiaries of public-utility products and services under the State’s regulations.

5. Based on assigned estimates, unit prices or prices for placement of orders, reasonable expenses, sale prices or prices of public-utility products and services, price subsidy levels, and other bases for placement of orders under relevant laws (if any), order-placing agencies shall determine the quantity or volume of public-utility products and services eligible for price subsidy to enter into order placement contracts. In case sale prices; unit prices or prices of public-utility products and services prescribed by the State or amounts paid by beneficiaries of public-utility products and services under the State’s regulations as mentioned in Clause 4 of this Article are lower than reasonable expenses borne by producers or providers of public-utility products and services, such producers or providers may be entitled to price subsidy based on the quantity or volume of public-utility products and services put for placement of orders.

Article 19.Contents of contracts on placement of orders for production or provision of public-utility products and services

1. Contents of a contract on placement of orders for production or provision of public-utility products and services:

a/ Names, and quantity or volume of public-utility products and services put for placement of orders;

b/ Quality of public-utility products and services (based on the criteria or standards issued by competent state agencies);

c/ Prices, unit prices, or price subsidy levels;

d/ Quantity or volume of public-utility products and services eligible for price subsidy;

dd/ Contract value;

e/ Time of commencement and time of completion of the production or provision of public-utility products and services;

g/ Revenues from and expenses for the production or provision of public-utility products and services (if necessary);

h/ Sale prices of public-utility products and services;

i/ Reasonable expenses for the production or provision of public-utility products and services;

k/ Delivery of products and services: time, location and method;

l/ Methods of payment and finalization;

m/ Methods of acceptance test and liquidation of the contract;

n/ Rights and obligations of the order-placing agency and producer or provider of public-utility products and services;

o/ Responsibilities of the contracting parties for contract breaches, and procedures for handling of breaches;

p/ Other contents which are not contrary to law and do not change prices of public-utility products and services.

2. In addition to the contents specified in Clause 1 of this Article, ministries, central agencies and localities may add other contents to meet management requirements in each field or as specified in the model contract prescribed by a specialized law (if any).

3. A contract on placement of orders for production or provision of public-utility products and services shall be made according to Form No. 03 in Appendix II to this Decree.

Article 20.Modification of contracts on placement of orders for production or provision of public-utility products and services

1. A contract on placement of orders for production or provision of public-utility products and services may be modified only when such is approved by a competent agency.

2. Cases of contract modification:

a/ The State changes salary mechanisms or policies;

b/ The State adjusts techno-economic norms; expense norms, prices, unit prices, or price subsidy levels of public-utility products and services;

c/ Due toforce majeureevents as prescribed by law which affect the production or provision of public-utility products and services.

Section 2

BIDDING FOR PRODUCTION OR PROVISION OF PUBLIC-UTILITY PRODUCTS AND SERVICES

Article 21.Bidding for production or provision of public-utility products and services

1. Based on the functions and registered business lines relevant to the production or provision of public-utility products and services put for bidding; specialized laws for contractors providing services in the fields subject to the State’s licensing, and other conditions for participation in biding prescribed in relevant laws (if any), contractors may participate in bidding for production or provision of public-utility products and services on the list provided in Appendix II to this Decree in the following forms:

a/ Open bidding as prescribed in Article 20 of the Bidding Law, except the case specified at Point b, Clause 1, Article 21 of this Decree;

b/ Restricted bidding as prescribed in Article 21 of the Bidding Law.

2. The provisions on bidding and contents related to bidding for production or provision of public-utility products and services must comply with the Bidding Law, 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, and revising documents (if any), and relevant laws.

Chapter IV

MANAGEMENT OF STATE BUDGET FUNDS FOR ASSIGNMENT OF TASKS, PLACEMENT OF ORDERS OR BIDDING FOR PROVISION OF PUBLIC PRODUCTS AND SERVICES

Article 22.Estimation

1. The estimation of state budget funds for assignment of tasks, placement of orders or bidding for provision of public products and services must comply with the Law on the State Budget and guiding documents, other relevant laws, and this Decree.

2. Estimation

a/ Annually, based on the list of public products and services detailed by quantity, volume, unit price or price, estimates of the preceding year (in case of assignment of tasks or placement of orders), bidding results of the preceding year (in case of bidding), and expected changes in input expense elements, and guidance of ministries, central agencies and provincial-level People’s Committees, estimation units at all levels shall make estimates for the provision of public products and services simultaneously with the estimation of state budget funds and include such estimates in their state budget estimates, then send them to superior management agencies under regulations;

b/ Superior management agencies shall consider and summarize estimates and send them to same-level finance agencies and related agencies in accordance with the Law on the State Budget. For public non-business services for which the State places orders or assigns tasks at prices not fully inclusive of expenses, estimates shall be made also for the state budget funds covering expenses not yet included in public non-business service prices; for public-utility products and services, estimates shall be made for the state budget funds provided as price subsidies.

For charge-liable public products and services, estimation units shall make deductions from charge revenues retained for the service provision or charge collection under the law on charges and fees.

Article 23.Allocation and assignment of estimates

1. The allocation and assignment of estimates for assignment of tasks and placement of orders by superior management agencies for public non-business units; or estimates for placement of orders or bidding for other providers of public non-business services; or producers or providers of public-utility products and services (or estimates for assignment of tasks in cases specified by specialized laws) must comply with the Law on the State Budget and guiding documents, other relevant laws, and this Decree.

2. Based on estimates assigned by competent authorities, superior management agencies shall allocate and assign them to their attached units, clearly stating estimates for assignment of tasks, placement of orders, or bidding for provision of public non-business services funded with the state budget, and estimates for price subsidies for public-utility products and services.

Ministries, central agencies and localities or their attached management agencies may authorize the assignment of tasks, placement of orders, or bidding for provision of public products and services for public non-business units; other providers of public non-business services; or producers or providers of public-utility products and services within the assigned state budget estimates.

3. The assignment of estimates for placement of orders for provision of public non-business services funded with the state budget for public non-business units must comply with the schedule for calculating prices of public non-business services under current regulations.

Article 24.Implementation of estimates

1. Payment of expenses for task assignment

Based on the estimates assigned by competent authorities, current spending regimes, records of acceptance test of assigned tasks, and other related documents (if any), public non-business units shall make advance payment and payment in accordance with the Law on the State Budget and current regulations.

In case a specialized law has provisions on assignment of tasks for production or provision of public-utility products and services, the payment of expenses for task assignment must comply with the Law on the State Budget, such specialized law, other relevant laws, and current regulations.

2. Payment of expenses for placement of orders or bidding

a/ For expenses for placement of orders to public non-business units: Based on the estimates assigned by competent authorities; superior agencies’ decisions on placement of orders to public non-business units; unit prices or prices of placement of orders; records of acceptance test of products under regulations of competent authorities; records of annual acceptance test of placement of orders (made according to Form No. 02 in Appendix II to this Decree); and other related documents (if any), public non-business units shall make advance payment or payment in accordance with the Law on the State Budget and current regulations;

b/ For expenses for contracts on placement of orders or bidding for other providers of public non-business services; or for producers or providers of public-utility products and services: Based on the estimates assigned by competent authorities; contracts signed between order-placing agencies and other providers of public non-business services, or producers or providers of public-utility products and services; unit prices or prices for placement of orders, price subsidy levels, and sale prices; records of acceptance test of products under regulations of competent authorities; records of annual acceptance test and liquidation of contracts (made according to Form No. 04 in Appendix II to this Decree); and other related documents (if any), contract-signing agencies shall make advance payment or payment of expenses to providers in accordance with the Law on the State Budget, specialized laws, relevant laws, and current regulations.

3. Expenses for placement of orders, contracts on provision of public products and services; positive difference (if any) between revenues from and expenses for placement of orders or contracts are prescribed as follows:

a/ Providers being public non-business units with financial autonomy under the Government’s Decree No. 16/2015/ND-CP of February 14, 2015, prescribing the autonomy mechanism applicable to public non-business units, Decree No. 141/2016/ND-CP of October 10, 2016, prescribing the autonomy mechanism applicable to public non-business units in economic non-business activities and other non-business activities, Decree No. 54/2016/ND-CP of June 14, 2016, prescribing the autonomy mechanism applicable to public science and technology organizations, and the decrees prescribing the autonomy mechanism applicable to public non-business units in the fields of health, education and training, vocational education, culture, sports and tourism, and information and communications, and revising documents (if any), shall themselves make decisions under relevant regulations.

b/ Other providers of public non-business services, or producers or providers of public-utility products and services shall themselves make decisions under current regulations and specialized laws (if any), and perform financial obligations toward the State.

4. Upon completion of the assignment of tasks, placement of orders, or bidding for provision of public products and services, superior management agencies shall test products which do not satisfy requirements on quality, quantity or volume or which, for a certain reason, must be stopped; residual expenses shall be adjusted or estimates shall be cancelled under the Law on the State Budget and guiding documents.

Article 25.Finalization of expenses

1. Public non-business units shall make finalization of expenses for assignment of tasks or placement of orders for provision of public products and services in their annual finalization reports and send them to superior management agencies for approval or appraisal under the Law on the State Budget and current regulations.

2. Finalization of expenses for contracts on placement of orders or bidding signed with other providers of public non-business services, or producers or providers of public-utility products and services (or expenses for assignment of tasks in cases specified by specialized laws): At the end of a fiscal year, order-placing agencies and providers shall conduct acceptance test and liquidate contracts, and make finalization of expenses under the Law on the State Budget, specialized laws, relevant laws, and current regulations.

Based on signed contracts, estimates assigned by competent authorities, competent authorities’ decisions on unit prices or prices for placement of orders (or assignment of tasks), sale prices set by the State, price subsidy levels, records of acceptance test and liquidation of contracts, and other related documents (if any), agencies conducting placement of orders or bidding (or assignment of tasks) shall make payment or finalization of expenses for other providers of public non-business services, or producers or providers of public-utility products and services, and make finalization of expenses with the state budget under current regulations.

Chapter V

ORGANIZATION OF IMPLEMENTATION

Article 26.Responsibilities of ministries, central agencies and People’s Committees at all levels

1. Responsibilities of ministries and central agencies

a/ To submit to the Prime Minister for promulgation or revision the list of public non-business services funded with the state budget under their management; and the list of public-utility products and services under their management as prescribed in Article 5 of this Decree to make them suit reality in each period;

b/ To promulgate or revise according to their competence:

- Techno-economic norms, and expense norms (if any) applicable to public products and services as a basis for issuance of unit prices or prices of public products and services.

- Unit prices or prices of public products and services; price subsidy levels for public-utility products and services under their management in accordance with the law on price and other relevant laws.

- Quality criteria and standards for public products and services; mechanisms for quality supervision, evaluation and testing, and regulations on inspection and acceptance test of public products and services under their management.

c/ To submit to the Prime Minister for promulgation or revision the list of special public products and services (if any) funded with the central budget as prescribed in Clause 3, Article 7 of this Decree.

2. Responsibilities of provincial-level People’s Committees

a/ To promulgate or revise the list of public non-business services funded with the state budget, and the list of public-utility products and services under local management as prescribed in Article 5 of this Decree to make them suit reality in each period;

b/ To promulgate or revise techno-economic norms, and expense norms (if any) applicable to public products and services as a basis for issuance of unit prices or prices of public products and services; quality criteria and standards for public products and services; and mechanisms for quality supervision, evaluation and testing, and regulations on inspection and acceptance test of public products and services under local management;

c/ To promulgate unit prices or prices of public products and services; and price subsidy levels for public-utility products and services under local management in accordance with the law on price and other relevant laws.

3. The Ministry of Labor, Invalids and Social Affairs shall assume the prime responsibility for, and coordinate with the Ministry of Home Affairs, Ministry of Finance, and related ministries and agencies in, providing guidance on salary expenses and labor costs included in prices or unit prices of public-utility products and services in Appendix II, and salary and wage expenses included in unit prices of public non-business services funded with the state budget in Form No. 02 in Appendix I, to this Decree, for enterprises signing contracts on placement of orders or bidding (or assignment of tasks in cases specified by specialized laws).

4. Ministers, heads of central agencies, and chairpersons of provincial-level People’s Committees shall, pursuant to general provisions on assignment of tasks, placement of orders or bidding for provision of public non-business services funded with the state budget; or public-utility products and services mentioned in Chapters II and III of this Decree (including the contents in the forms provided in the appendices to this Decree), prescribe in detail or add contents on assignment of tasks, placement of orders, or bidding (if necessary) to meet the management requirements and special characteristics of every field and comply with relevant laws.

5. The Ministry of Health shall submit to the Prime Minister for decision the placement of orders for provision of medical examination and treatment services and preventive medicine services funded with the state budget by competent state agencies in the health sector for health units in the armed forces that are located in border or island areas where civilian health is hardly accessible and health units of the armed forces have to operate after the model of military-civilian health units.

6. Ministries, central agencies and People’s Committees at all levels shall direct and organize, or authorize their attached management agencies to conduct, assignment of tasks, placement of orders, or bidding for provision of public products and services; take responsibility for the use efficiency of state budget funds for such task assignment, order placement or bidding under management by ministries, central agencies and localities and for contractor selection results in accordance with the Bidding Law.

Article 27.Responsibilities of public non-business units, other providers of public non-business services, and producers or providers of public-utility products and services

1. Public non-business units that are assigned by their superior management agencies to conduct assignment of tasks, placement of orders, or bidding for provision of public products and services funded with the state budget shall:

a/ Fulfill their tasks as assigned under decisions of competent authorities;

b/ Take responsibility before superior management agencies for public non-business products and services they have provided; refrain from placing orders to other units for public non-business services which superior management agencies have placed to them;

c/ Take responsibility before law for the validity and legality of dossiers and plans upon the provision of public non-business products and services.

2. Other providers of public non-business services, and producers or providers of public-utility products and services have the following rights and obligations:

a/ To sign contracts in accordance with law (or as assigned in cases specified by specialized laws);

b/ To receive payments based on unit prices, prices or charges, or receive price subsidies under signed contracts, specialized laws or other relevant laws;

c/ To offset expenses based on bid-winning prices when providing public products and services by the method of bidding;

d/ To take responsibility before agencies conducting placement of orders, bidding (or assignment of tasks) for public products and services they have provided;

dd/ To take responsibility before law for the validity and legality of dossiers and plans for the provision of public products and services.

Article 28.Organization of inspection and supervision of implementation

1. For ministries, central agencies and People’s Committees at all levels

a/ Heads of central agencies shall direct, inspect, monitor and supervise ministries and central agencies in the assignment of tasks, placement of orders or bidding for provision of public products and services funded with the central budget;

b/ Chairpersons of People’s Committees at all levels shall direct, inspect, monitor and supervise localities in the assignment of tasks, placement of orders or bidding for provision of public products and services funded with local budgets.

2. For finance agencies

a/ The Ministry of Finance shall coordinate with ministries and central agencies in inspecting the assignment of tasks, placement of orders or bidding for provision of public products and services to be funded by the central budget;

b/ Local finance agencies at all levels shall coordinate with local specialized agencies in inspecting the assignment of tasks, placement of orders or bidding for provision of public products and services to be funded by local budgets;

c/ Based on decisions on assignment of tasks, placement of orders or bidding; estimates assigned by competent authorities; decisions or contracts on placement of orders or bidding; records on acceptance test of products; records of acceptance test of placement of orders; records on acceptance test and contract liquidation; and other relevant documents as prescribed in this Decree, specialized laws and other relevant laws, State Treasury offices at all levels shall control the spending and payment of expenses for assignment of tasks or placement of orders for provision of public products and services for public non-business units; contracts on placement of orders or bidding (or assignment of tasks) for other providers of public non-business services; and producers or providers of public-utility products and services in accordance with the Law on the State Budget and current regulations.

Article 29.Transitional provisions

Public non-business services funded with the state budget; and public-utility products and services for which assignment of tasks, placement of orders or bidding is conducted by superior management agencies before the effective date of this Decree must comply with the Government’s Decree No. 130/2013/ND-CP of October 16, 2013, on production and provision of public-utility products and services; and the Prime Minister’s Decision No. 39/2008/QD-TTg of March 14, 2008, promulgating the Regulation on bidding, placement of orders and assignment of tasks for provision of public non-business services funded with the state budget, until the completion of the assigned tasks or liquidation of contracts on placement of orders or bidding for provision of public products and services.

Article 30.Effect

1. This Decree takes effect on June 1, 2019, and applies from the 2019 fiscal year.

2. This Decree replaces the Government’s Decree No. 130/2013/ND-CP of October 16, 2013, on production and provision of public-utility products and services; and the Prime Minister’s Decision No. 39/2008/QD-TTg of March 14, 2008, promulgating the Regulation on bidding, placement of orders and assignment of tasks for provision of public non-business services funded with the state budget.

3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, and chairpersons of provincial-level People’s Committees shall implement this Decree.-

For the Prime Minister
Deputy Prime Minister
NGUYEN XUAN PHUC

* The appendices to this Decree are not translated.