Nghị định 32/2019/NĐ-CP đấu thầu cung cấp sản phẩm dịch vụ công sử dụng ngân sách nhà nước

DECREE

COMMISSIONING, ORDERING AND TENDERING FOR PUBLIC-SECTOR GOODS AND SERVICES FUNDED BY THE STATE BUDGET'S REGULAR EXPENDITURES

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

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

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

Pursuant to the Law on Prices dated June 20, 2012;

Upon the request of the Minister of Finance;

The Government herein promulgates the Decree on commissioning, ordering and tendering for public-sector goods and services funded by the state budget's regular expenditures.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Decree prescribes the act of commissioning, ordering and tendering public-sector goods and services funded by the state budget's regular expenditures.

Article 2. Subjects of application

1. Ministries, quasi-ministerial agencies, Governmental bodies (hereinafter referred to as central authorities), People’s Committees of provinces and centrally-affiliated cities (hereinafter referred to as provincial People’s Committees), People’s Committees of urban/rural districts, towns and provincial cities (hereinafter referred to as district People‘s Committees) and other directly-affiliated managing bodies that are authorized to commission, order and seek tenders for provision of public goods and services funded by the state budget’s regular expenditures.

2. State-owned public service units that are established by competent state agencies under regulatory provisions; have legal personality; supply public services; help in implementing state management mandates.

3. Enterprises from all economic sectors, entities, units (including state-owned public service units not directly under agencies allocated the budget for ordering and tendering for public goods and services); cooperatives having legal personality; persons practising independently and registering their business under law who perform the functions of supplying public goods and services subject to regulatory requirements for provision of public goods and services (hereinafter referred to as other public service providers; producers and suppliers of public utilities, or as bidders or contractors involved in the tendering and bidding process prescribed in bidding law); agencies and entities related to rendering of public goods and services.

4. Ministry of National Defense; Ministry of Public Security; political organizations; social-political organizations; social – political – professional organizations that are entitled to apply regulatory provisions of this Decree and other regulatory provisions of relevant law regarding the act of commissioning, ordering and seeking tenders for public goods and services funded by the state budget's regular expenditures authorized for use by competent authorities.

5. Ministries, central and local authorities, enterprises, entities, agencies and units administering public services; public utilities by using other financial resources (other than state budget funding) that are encouraged to apply regulatory provisions of this Decree.

Article 3. Interpretation

For the purposes of this Decree, terms used herein shall be construed as follows:

1. Public-sector good and service (hereinafter referred to as public good and service) refers to a commodity or service vital for the socio-economic life of the nation, public or maintenance of peace and security that the government administers in the following sectors: Education and training; vocational training; healthcare; culture, sports and tourism; information and communication; science and technology; natural resources and environment; traffic and transport; agriculture and rural development; industry and trade; construction; labor, war invalids and social affairs; justice and other fields prescribed in the government's regulations. It is composed of public services (also known as governmental services) and public utilities (also known as public goods).

2. Public-sector good and service funded by the state budget's regular expenditure (hereinafter referred to as public good), is composed of: Public services funded by the state budget and public utilities.

3. Public service funded by the state budget (hereinafter referred to as state-funded public service) refers to a public service of which costs are covered in full by the government, or a public service of which costs have not yet been fully charged into prices or fees or are covered by state grants.

4. Public utility refers to a commodity or service of which production and supply according to the market mechanism can hardly offset any cost incurred; or which is a particular commodity or service that has access to the Government’s subsidy against the spread between the selling price, the market or selling price or value under the Government's regulations; or between the sum that a beneficiary of a public utility pays as per the Government's regulations and total reasonable production cost that a producer or supplier thereof incurs to production or supply of any public utility ordered by the Government (or commissioned under regulatory provisions of relevant industry-specific law (if any)).

5. Subsidy on public utility refers to financial aid that the state budget grants at a fixed rate per a unit of public utility to a producer or supplier thereof so that they can produce or supply the public utility that the Government orders (or commissions according to regulatory provisions of applicable industry-specific law (if any)).

6. Reasonable cost incurred by a producer or supplier of public utility refers to any actual cost associated with the act of production and supply of a public utility that is proved to be appropriate according to the Law on Corporate Income Tax and other related legal normative documents.

7. Selling price regulated by the Government refers to any price set by the Government at which a producer or supplier sells their public utility on the market.

8. to commission a state-funded public service refers to a state agency assigning a state-owned public service unit to administer its public service under a competent authority’s decision according to its functions and duties.

9. to order a public good or service refers to a state agency’s act of designating a state-owned public service unit; other public service provider; a public utility producer or supplier that meets the Government’s regulatory requirements and conditions concerning placement of orders.

10. to seek tenders/tendering for a public good and service (also to put a public good and service out to tender) refers to the process of selecting a bidder or contractor to award them a contract for provision, supply or administration of a public good and implement that contract in a competitive, fair, transparent and economically effective manner.

Article 4. Budget or funding for supply of public goods

1. State budget’s regular expenditures available for use in public and economic activities prescribed in the Law on State Budget, including:

a) The central government’s budget expenditures used as funding for the process of commissioning, ordering or tendering for public goods by Ministries and central authorities;

b) The local government’s budget expenditures used as funding for the process of commissioning, ordering or tendering for public goods by local authorities.

2. Amounts retained to pay for service provision and fee or charge collection according to law on fees and charges.

3. Revenue gained from public services at the public service prices regulated by the Government.

4. Other financial sources stipulated in law (if any).

Article 5. Classification of public-sector goods and services

1. Public goods funded by the state budget's regular expenditures are classified into the following lists:

a) List of public services financed by the state budget;

b) List of public utilities.

2. Public services financed by the state budget that are shown in Appendix I (Chart 01 and Chart 02) to this Decree are classified into the followings:

a) Chart 01. Industry- or sector-specific state-funded public services.

Details about classification of governmental state-funded public services of Ministries and central authorities shall be given according to the Prime Minister's decisions; details about classification of state-funded public services within the local government jurisdiction shall be given according to decisions of Presidents of provincial People’s Committees.

b) Chart 02. Several lists of state-funded public services.

3. Public utilities are classified as shown in Appendix II hereto.

4. If there is any modification or supplement to classifications of public-sector goods and services shown in clause 2 and 3 of this Article over time, Ministries and central authorities shall take charge of and cooperate with the Ministry of Finance, the Ministry of Planning and Investment, Ministry of Home Affairs or any relevant agency on seeking the Prime Minister's decision to approve the central government budget’s estimated funding for such modification or supplement; the decisions of Presidents of provincial People’s Committees to approve the local government budget’s estimated funding for such modification or supplement. The updated classifications of public-sector goods and services shall be subject to regulatory provisions of this Decree.

Article 6. Methods for commissioning, ordering and tendering for public-sector goods and services

1. With regard to state-funded public services, the commissioning, ordering or tendering methods shall be employed.

2. With regard to public utilities, the ordering and tendering (or commissioning, once permitted by specialized law) methods shall be put to use.

3. Ministries, central authorities, provincial People’s Committees, district People’s Committees or directly-affiliated managing or regulatory agencies can be given the freedom of choice of any appropriate method for administering public-sector goods and services if the chosen method fully meets the conditions set forth in Chapter II and Chapter III and any applicable specialized law.

Article 7. Authority to decide on the method of commissioning, ordering and tendering for public goods and services

1. Ministries, central authorities or directly-affiliated managing bodies may delegate the authority to make decisions to commission or order public goods and services to their directly-controlled public service units; may assign the authority to make decisions to order (or commission, once permitted by specialized law) public goods and services to other public service providers; producers or suppliers of public utilities; or put public goods and services out to tender as allowed according to regulatory provisions by using the central government budget’s funds.

2. Provincial People’s Committees, district People’s Committees or managing bodies under their direct control may delegate the authority to make decisions to commission or order public goods and services to their directly-controlled public service units; may assign the authority to make decisions to order (or commission, once permitted by specialized law) public goods and services to other public service providers; producers or suppliers of public utilities; or put public goods and services out to tender as allowed according to regulatory provisions by using the local government budget’s funds.

3. In case of commissioning or ordering any particular public goods and services by using the central government budget’s funds, the Prime Minister’s decisions shall be applied.

Article 8. Methods and authorization for issuance of decisions on costs or values, unit prices of or subsidies on public goods and services

1. For state-funded public services

a) In case of carrying out the process of commissioning state-funded public services, based on commissioned amounts and quantities; spending regimes, levels and limits subject to competent state agencies’ regulations; Ministries, central authorities, provincial People’s Committees, district People’s Committees or their directly-controlled managing bodies may delegate authority to approve the budget proposals for commissioning public services to state-owned public service units.

b) In case of carrying out the process of ordering state-funded public services, the pricing method, agencies having jurisdiction over appraisal or valuation, pricing procedures and unit prices thereof shall be subject to regulatory provisions of price and other relevant law.

2. For public utilities

Pricing methods, agencies having jurisdiction over appraisal or valuation, pricing procedures, unit prices and subsidies on public goods and services shall be subject to price and other relevant law.

3. Selling prices, costs or values and unit prices of public goods and services shall be determined according to economic – technical norms or cost norms adopted by competent agencies. As part of the aforesaid, personnel wages or salaries included in selling prices, costs or values and unit prices of public goods and services calculated according to statutory base pay rates; pay coefficients arranged by specific professional ranks, grades, titles, and salary-based benefits and contributions shall be subject to state policies and regulations to be applied to state-owned public service units and labor or cost norms (where available) issued by Ministries, central authorities or provincial People's Committees according to jurisdiction. In particular, personnel wages or salaries included in costs or values and unit prices of public goods and services shown in Appendix II to this Decree; personnel wages or salaries included in unit prices of state-funded public goods and services shown in Chart 02 of Appendix I to this Decree that businesses are awarded contracts through the process of ordering or tendering for (or commissioning, once provided in specialized law) public goods and services shall follow the instructions of the Ministry of Labor, War Invalids and Social Affairs.

4. For goods and services on the classification list of products and services of public interest given in the Government's Decree No. 130/2013/ND-CP dated October 16, 2013 on production and supply of products and services of public interest, if they are shifted to the classification list of state-funded public services prescribed herein, authority to decide prices of respective services shall be the same as authority to decides prices of goods and services on the classification list of public utilities stipulated in the Law on Prices and its instructional documents.

Chapter II

COMMISSIONING, ORDERING OR TENDERING FOR STATE-FUNDED PUBLIC SERVICES

Section 1: COMMISSIONING STATE-FUNDED PUBLIC SERVICES

Article 9. Conditions for commissioning state-funded public services

1. Only state-owned public service units under immediate superiors that are allocated the budget for provision of public services can receive commissions to provide such public services.

2. A commission to administer a state-funded public service can be assigned to a state-owned public service unit when all of the following conditions are satisfied:

a) Functions and duties of the state-owned public service unit receiving the commission that involve provision of public services must be conformable to the commission to administer the public service that is assigned under a competent authority’s decision. In addition, if it receives a commission to administer any type of public service eligible for licenses or permits granted by the Government, another condition that it must satisfy is that it has successfully sought the permit or license from a competent authority as per regulatory provisions of applicable specialized law.

b) The state-owned public service unit receiving the commission has been given the financial freedom according to the autonomy mechanism applied to state-owned public service units in specific sectors;

c) Administering the public service is deemed as one of its annual regular assignments of the state-owned public service unit receiving the commission; and has been being commanded by the superior body;

d) The public service to be commissioned is on the list of public services of which economic - technical norms and unit prices have not yet been set; of which amounts, quantities and reasonable costs are consistent with the budget proposals approved by competent authorities.

3. Conditions for commissioning any particular state-funded public service prescribed in clause 3 of Article 7 herein shall be subject to the Prime Minister's decisions.

Article 10. Commissioning state-funded public services

1. Commissioning public services shall be based on the classification list of public services shown in Chart 01 of Appendix II hereto.

2. References to commissioning of public services:

a) Budget revenues and expenditures authorized by competent authorities;

b) Decisions of competent authorities regarding classification lists of state-funded public services administered according to the commissioning method.

3. Information about commissioning of public services to be clarified:

a) Amount and quantity of public services to be commissioned (declared in detail if possible) or details about public services to be commissioned;

b) Quality of public services (according to the criteria and standards set by competent state agencies);

c) Start date and completion deadline;

d) Budget proposal for commissioning public services, based on the amount, quantity of public services to be commissioned; requirements of public services to be commissioned; spending mechanism currently in use and approved by the competent authority. The budget proposal is composed of the following funds:

- State budget funding.

- Amounts retained to pay for service provision and fee or charge collection according to law on fees and charges.

- Revenue gained from public services at the public service prices regulated by the Government.

dd) Amounts paid in advance; amounts paid to pay or settle costs of commissioning of public services;

e) Product testing and transfer (if any);

g) Responsibilities of the state-owned public service unit receiving the commission;

h) Responsibilities of the superior body assigning the commission;

i) Other information specified in specialized law (if any).

4. Commissioning method: Decision of the superior body assigning the commission to administer the state-funded public service to the state-owned public service unit.

Article 11. Adjustment to the budget for commissioning state-funded public services

1. Any adjustment to the budget for commissioning state-funded public services shall be made when the Government changes pay systems and policies.

2. Superior bodies commissioning public services can adjust commissions assigned to state-owned public service units due to any change in the amount or quantity to be commissioned or objective causes.

Section 2: ORDERING STATE-FUNDED PUBLIC SERVICES

Article 12: Conditions for ordering state-funded public services

1. Ordering state-funded public services from state-owned public service units under immediate superiors that order public services according to the list specified in Appendix I hereto is permitted when all of the following conditions are satisfied:

a) Satisfying the conditions specified in point a, point b and point c of clause 2 of Article 9 herein;

b) These services are on the list of public services of which economic - technical norms and unit prices; costs or values are already determined when such list is issued by the competent authority as a basis to place orders;

c) Satisfying other order placement conditions prescribed in relevant regulations of law (if any).

2. State-funded public services specified in the list specified in Appendix I hereto may be ordered from other public service providers when all of the following conditions are satisfied:

a) Other public service providers have already registered their scope of activities involving provision of public services to be ordered; have full financial capacity and ensure that their infrastructure, equipment, machinery, engineering, production technology level, management and personnel qualification conform to ordering requirements. In addition, with respect to other public service providers that are entitled to order any type of public service eligible for licenses or permits granted by the Government, another condition that it must satisfy is that they must successfully obtain permits or licenses from competent authorities as per regulatory provisions of applicable specialized law;

b) The public services to be ordered are on the list of particular public services because they are related to intellectual property, or are tendered for by only one supplier;

c) The public services to be ordered are on the list of the public services of which economic - technical norms and unit prices; costs or values are determined when such list is issued by the competent authority as a basis to place orders;

3. Conditions for ordering any particular state-funded public service prescribed in clause 3 of Article 7 herein shall be subject to the Prime Minister's decisions.

4. In case of ordering other state-funded public services specified in relevant specialized law, such ordering shall be subject to specialized law (if any).

5. Though state-funded public services shown in Appendix I hereto can be procured according to the ordering method, using the tendering method to procure these services is encouraged.

Article 13. Basis for ordering of state-funded public services

1. Budget revenues and expenditures authorized by competent authorities.

2. Decisions of competent authorities regarding classification lists of state-funded public services administered according to the ordering method.

3. Unit prices, costs or values of state-funded public services to be ordered are determined according to economic – technical norms or cost norms adopted by the Government and are subject to the decisions issued by competent authorities in accordance with price and other relevant law. Especially for ordering of public services administered by public service units, they are determined according to the schedule of all-inclusive prices or prices not including all costs calculated according to the autonomy mechanism of state-owned public service units in specific sectors (e.g. education and training; vocational education; health; culture, sports and tourism; information and communication; science and technology; economic and other sectors).

4. Where public services are on the list of paid public services, fees and charges for these public services shall be subject to regulatory provisions regarding fees and charges.

5. Other basis for placement of orders shall be subject to specialized law (if any).

6. Based on allocated funds; the list of public services to be ordered; unit prices, costs or values of public services that are decided by competent authorities; and on other ordering bases (if any) superior bodies can determine the amount and quantity of public services to be ordered from service providers. In case of ordering public services administered by public service units at non-inclusive prices or rates, the state budget shall offer grants to offset part of the costs that have not yet been included in public service prices or charges.

Article 14. Ordering state-funded public services

1. Order forms

a) Ordering public services to be administered by state-owned public service units by using decisions issued by superior bodies that order public services from their directly-controlled public service units providing state-funded public services (according to Form No. 01 given herein);

b) Ordering public services to be administered by other public service providers by entering into agreements to purchase state-funded public services (according to Form No. 03 given herein).

2. Public services to be ordered are those on the list shown in Appendix I hereto.

3. Order information

a) When ordering state-funded public services, the amount and quantity of public services to be ordered must be clarified;

b) Quality of public services (according to the criteria and standards set by competent state agencies);

c) Start date and completion deadline;

d) Unit prices, costs or values of public services to be ordered under decisions issued by competent authorities according to regulatory provisions on prices and other relevant law;

dd) Budget proposal for ordering public services (in case of placing orders for public services to be administered by state-owned public service units) or value of the ordered public services (in case of entering into agreements to purchase public services from other public service providers), including the following specific funds:

- State budget funding for placement of orders (at the all-inclusive price) or state grants used for offsetting part of the costs not yet included in the to-be-ordered public service price or charge (at the non-inclusive rate).

- Fees or charges retained to pay for service provision or fee or charge collection according to law on fees and charges.

- Revenues earned from administering public services at the prices set by the Government.

- Other funding sources (if any).

e) Payment and accounting method;

g) Product testing and transfer method;

h) Rights and obligations of the supplier;

i) Rights and obligations of the client;

k) In addition, interested parties may add several other information provided that such information do not violate law.

4. Apart from the order information specified in clause 3 of this Article, Ministries, central and local authorities may add several other information to orders that they place in order to conform to managerial requirements in specific sectors or details about orders prescribed in specialized law (if any).

Article 15. Adjustments in budgets for ordering state-funded public services

1. Budget adjustments can be made when the Government changes pay systems and policies.

2. Budget adjustments can be made when the government adjusts economic – technical norms, cost norms, prices, costs, values or unit prices of public services; or changes amounts and quantities of public services to be ordered.

3. Budget adjustments can be made when any force majeure event that occurs as prescribed by law causes impacts on provision of public services.

Section 3. TENDERING FOR PROVISION OF STATE-FUNDED PUBLIC SERVICES

Article 16. Regulations on tendering for provision of state-funded public services

1. Based on registered functions and business activities relevant to public services involved in the tendering process; based on regulatory provisions of specialized law that are applied to service supply bidders or contractors in the sectors eligible for licenses or permits granted by the Government and other bidding conditions prescribed in relevant law (if any), bidders or contractors can bid for contracts to administer public services according to the list shown in Appendix I hereto by employing the following bidding methods:

a) Method of open tendering for provision of public services that is prescribed in Article 20 in the Law on Bidding, except as provided in point b of clause 1 of Article 16 herein;

b) Method of restricted tendering for provision of public services that is prescribed in Article 21 in the Law on Bidding.

2. Tendering and other relevant regulations on supply of state-funded public services shall be aligned with regulations laid down in the Law on Bidding, the Government’s Decree No. 63/2014/ND-CP dated June 26, 2014, elaborating on implementation of several Articles of the Law on Bidding regarding selection of contractors and regulatory documents prescribing amendments or supplements thereto (if any); other relevant law.

Chapter III

ORDERING AND TENDERING FOR PUBLIC UTILITIES

Section 1. ORDERING PUBLIC UTILITIES

Article 17. Conditions for placement of orders for public utilities

1. Ordering the public utilities indicated in the Appendix II hereto shall be permitted when all of the following conditions are satisfied:

a) The producer or supplier of public utility has obtained registration for business activities relevant to the sectors or industries involving the public utility on order; has full financial capacity and ensure that their infrastructure, equipment, machinery, engineering, production technology level, management and personnel qualification conform to requirements concerning production and supply of public utilities that are set forth in a purchase agreement. In addition, the public utility producer or supplier that is entitled to receive any order in the sectors eligible for licenses or permits granted by the Government must be subject to another condition whereunder they must successfully obtain the permit or license from the agency having jurisdiction to grant licenses or permits according to specialized law;

b) The public utility on order is on the list of particular public utilities because it is related to intellectual property, or is tendered for by only one supplier.

c) Selling price, market price or value of and subsidy on the public utility on order are subject to the competent authority’s decision issued according to price and other relevant law.

2. Conditions for ordering public utilities specified in clause 1 of Section I and clause 2 of Section II of Appendix II hereto shall be subject to specialized and other relevant law; regulatory provisions regarding placement of orders that are laid down in this Decree.

3. Conditions for ordering any particular public utility prescribed in clause 3 of Article 7 herein shall be subject to the Prime Minister's decisions.

4. In case of ordering other public utilities specified in relevant specialized law, such ordering shall be subject to specialized law (if any).

5. With regard to the public utilities stated in clause 1 of Section I of Appendix II hereto, where any public utility on order is subject to the specialized law prescribing the commissioning method, that public utility can be procured by applying that commissioning method; notwithstanding, the ordering method is recommended to purchase this type of public utility. Commissioning conditions and other matters related to the commissioning process shall be carried out according to regulatory provisions of specialized law, Law on State Budget and other relevant law; shall be subject to regulatory provisions on commissioning state-funded public services that are laid down in Section I of Chapter II herein.

6. Though public utilities shown in Appendix II hereto can be procured by applying the ordering method, the tendering method is recommended.

Article 18. Basis for placing orders for public utilities

1. Budget permitted by the competent authority for ordering public utilities.

2. Targets pertaining to production and supply of public utilities; estimate of reasonable costs of production and supply of public utilities.

3. Unit price, cost or value of, or subsidy on the public utility on order that is determined according to economic – technical norms or cost norms adopted for use by the Government and are subject to the decisions issued by competent authorities in accordance with price and other relevant law. Fees and charges for paid public utilities shall be subject to the Government’s regulations.

4. Selling price; unit price, market price or value of the public utility that is subject to the Government's regulations or the sum that the beneficiary of the public utility pays in accordance with the Government’s regulations.

5. Based on the permitted budget, unit price, quoted price, reasonable cost, selling price, market price or value of the public utility, subsidy and other order factors prescribed in other relevant law (if any), the order-placing agency shall determine the amount and quantity of public utilities qualified for the subsidy to enter into a purchase agreement. If the selling price; unit price or market or selling price or value of the public utility regulated by the Government or the sum that the beneficiary of the public utility pays in accordance with the Government’s regulations as stated in clause 4 of this clause is lower than total reasonable cost of production and supply of the public utility, the producer or supplier can be given subsidies varying according to the amount or quantity of public utilities on order.

Article 19. Details or terms and conditions of the purchase agreement

1. The details shall include:

a) Name of the ordered public utility: Amount and quantity of the public utility on order;

b) Quality of the public utility on order (according to the criteria and standards set by competent state agencies);

c) Price, unit price, subsidy;

d) Amount and quantity of the subsidized public utility;

dd) Contract value;

e) Start date and completion deadline;

g) Sales and expenses arising from production and supply of the public utility (where necessary);

h) Selling price of the public utility;

i) Reasonable costs of production and supply of the public utility;

k) Delivery time, location, method;

l) Payment and accounting method;

m) Contract acceptance testing and discharge method;

n) Rights and obligations of the purchaser and the producer or supplier of the ordered public utility;

o) Responsibilities of the contracting parties in case of breach of the agreement and settlement mechanism.

p) Contracting parties may add several details or terms and conditions to the agreement on condition that they neither violate law and cause any change in the price of the public utility on order.

2. Apart from the order information specified in clause 1 of this Article, Ministries, central and local authorities may add several other information to purchase agreements in order to ensure conformity to managerial requirements in specific sectors or consistency with details given in the sample agreement prescribed in specialized law (if any).

3. Each purchase agreement used for ordering a public utility is made by adopting the sample Agreement (Form No. 03) shown in this Decree.

Article 20. Adjustments in the purchase agreement

1. Any adjustment in a purchase agreement used for ordering a public utility can be made only when it is permitted by the competent authority.

2. An adjustment is made in the following cases:

a) The Government changes pay systems and policies;

b) The Government changes economic - technical norms; cost norms, prices, unit prices of or subsidies on the public utility on order;

c) Any force majeure event prescribed by law that causes impacts on production and provision of public utilities occurs.

Section 2. TENDERING FOR PUBLIC UTILITIES

Article 21. Regulations for tendering for public utilities

1. Based on registered functions and business activities relevant to public utilities involved in the tendering process; based on regulatory provisions of specialized law that are applied to service supply bidders or contractors in the sectors eligible for licenses or permits granted by the Government and other bidding conditions prescribed in relevant law (if any), bidders or contractors can bid for contracts to administer public utilities according to the list shown in Appendix II hereto by employing the following bidding methods:

a) Method of open tendering for contracts to produce and supply public utilities that is prescribed in Article 20 in the Law on Bidding, except as provided in point b of clause 1 of Article 21 herein;

b) Method of restricted tendering for contracts to produce and supply public utilities that is prescribed in Article 21 in the Law on Bidding.

2. Tendering and other relevant regulations regarding production and supply of public utilities shall be aligned with the regulations laid down in the Law on Bidding, the Government’s Decree No. 63/2014/ND-CP dated June 26, 2014, elaborating on implementation of several Articles of the Law on Bidding regarding selection of contractors and regulatory documents prescribing amendments or supplements thereto (if any); other relevant law.

Chapter IV

MANAGEMENT OF STATE BUDGET FOR COMMISSIONING, ORDERING OR TENDERING FOR PUBLIC GOODS AND SERVICES

Article 22. Setting the budget

1. Setting budget expenditures on commissioning, ordering or tendering for public goods and services shall be subject to regulations of the Law on State Budget, regulatory documents on instructions for implementation of the Law on State Budget, regulatory provisions of other relevant law and this Decree.

2. Setting budget expenditures

a) Every year, based on public services classified in detail by their amount, quantity, unit price, price, budget for the preceding year (in case of commissioning or ordering the public good or service), tendering in the preceding year (in case of tendering the public good or service) and anticipated changes in input cost elements; according to the guidelines of Ministries, central authorities and provincial People's Committees, all-level budgetary units estimate expenditures on supply of public services while their budgets are set; shall include these expenditures in their budget proposals submitted to superior managing bodies in accordance with regulations;

b) Superior managing bodies review these submitted budget proposals before integrating them into the final budgets to be submitted to same-level financial regulators and other relevant authorities in accordance with regulatory provisions of the Law on State Budget. For public services that the Government orders or commissions at the non-inclusive prices, state grants offset against costs not yet included in the price of the public service in question must be included in the budget; For public goods and services, state budget expenditures used as the state subsidy must be included in the budget.

Where public goods and services are on the list of paid public goods and services, budgetary units must include fees or charges retained for provision and supply of services and collection of fees and charges under law on fees and charges.

Article 23. Dividing up and allocating the budget

1. Dividing up the budget to spend on commissioning and ordering public goods and services, and allocating it by a superior managing body to a state-owned public service unit; dividing up the budget to spend on ordering and purchasing or tendering for public goods and services, and allocating it by a superior managing body to other public service provider; a producer or supplier of a public good or service (or the budget for commissioning a public good or service where prescribed in specialized law) shall be subject to the Law on State Budget, written documents providing guidance on implementation of the Law on State Budget, regulatory provisions of other relevant law and this Decree.

2. Based on the budget allocated by a competent authority, the superior managing body shall divide up that budget and allocate it to its directly-affiliated units, clearly distinguishing part of the budget used as funding for commissioning, ordering or tendering for supply of state-funded public services from part of the budget used as the subsidy on public goods and services.

Ministries, central, local authorities or immediately-inferior managing bodies can delegate authority to commission, order or tender for public goods and services to state-owned public service units; other public service providers; producers and suppliers of public utilities within the budgets that they are allocated.

3. The act of allocating the budgets for ordering state-funded public services to state-owned public service units shall be performed according to the calculation schedule of prices of public services prescribed in regulatory provisions in force.

Article 24. Implementing the budget

1. Disbursing budgeted funds for the commissioning process

According to the budgets allocated by competent authorities; spending rules and regulations in force; performance testing results; and other relevant documents (if any), state-owned public service units are entitled to advances and payments in accordance with the Law on State Budget and other regulations in force.

Where specialized law prescribes the act of commissioning public utilities, disbursement of funds for commissioning these public utilities shall be subject to the Law on State Budget, specialized law, other relevant law and regulatory provisions in force.

2. Disbursing budgeted funds for the ordering and tendering process

a) For budgeted funds for ordering public goods and services from state-owned public service units: Based on the budget allocated by a competent authority; the decision to place an order issued by a superior managing body to a state-owned public service unit; unit and total price of public good or service on order; report on acceptance testing of the public good or service that has been produced or supplied under regulations of the competent authority; annual performance testing report (by using Form No. 02 attached hereto); other relevant documents (if any), the state-owned public service unit receiving the order is entitled to advances or payments prescribed in the Law on State Budget and other regulatory provisions in force.

b) For budgeted funds for implementation of agreements to purchase and tender for public goods and services from other public service providers; producers or suppliers of public utilities: Based on the budgets allocated by competent authorities; the agreements entered into between purchasers and suppliers of other public service providers; producers or suppliers of public utilities; unit prices, total prices, subsidies, selling prices; product acceptance testing reports required by competent authorities; annual contract acceptance testing and discharge reports (by using Form No. 04 attached hereto); other relevant documents (if any), contracting agencies can give advances and payments to suppliers winning orders according to the Law on State Budget, specialized law, other relevant law and regulatory provisions in force.

3. Funds for placement of orders and conclusion of agreements to provide public goods and services; surpluses (the amount by which the amount of money received is greater than the amount of money spent) arising from such placement of orders and conclusion of agreements (if any) shall be subject to the following regulations:

a) Suppliers that are state-owned public service units may enjoy financial freedom according to the Government’s Decree No. 16/2015/ND-CP dated February 14, 2015, prescribing the financial autonomy mechanism of state-owned public service units; the Government’s Decree No. 141/2016/ND-CP dated October 10, 2016, prescribing the financial autonomy mechanism of state-owned public service units in economic and other public sectors; the Government’s Decree No. 54/2016/ND-CP dated June 14, 2016, prescribing the autonomy mechanism of public science and technology organizations; other Decrees on the autonomy mechanism of state-owned public service units in health, training, education, vocational education, culture, sports, tourism, information and communication sectors and written documents stating amendments or supplements thereto (if any).

b) Suppliers of other public services; producers and suppliers of public utilities can, at their discretion, decide these amounts in accordance with law in force and regulatory provisions of specialized law (if any); must fulfill their financial obligations to the Government.

4. After completion of the commissioning, ordering or tendering process, if the results of the acceptance testing conducted by the superior managing body indicate that the acquired public good or service fails to meet the prescribed requirements; the amount or quantity thereof is inadequate as expected; or there is any reason to suspend or cease the commissioning, ordering or tendering process, actions to transfer, dispose of or withdraw budgeted funds in surplus shall be taken in accordance with the Law on State Budget and written instructional documents thereof.

Article 25. Accounting for budgeted funds

1. Public service units shall record budgeted funds for commissioning and ordering public services in the final accounts of budgetary units that are submitted to superior managing bodies for their approval and review in accordance with regulations of the Law on State Budget and regulatory provisions in force.

2. Accounting for budgeted funds for implementation of agreements to purchase and tender for public goods and services from other public service providers; producers or suppliers of public utilities (or commissioning funds prescribed in specialized law) shall be as follows: At the end of each fiscal year, the purchaser and the supplier involved in the ordering, commissioning and tendering process shall conduct the contract acceptance testing and discharge; shall keep accounts of budgeted funds under the Law on State Budget, specialized law, other relevant law and regulatory provisions in force.

As per terms and conditions of the agreement already in effect; the budget allocated by the competent authority; the decision on unit and total prices of the public good or service to be ordered (or to be commissioned) of the competent authority, and the selling price regulated by the State; the subsidy; the report on contract acceptance testing and discharge and other relevant documents (where available), the agency ordering, tendering for (or commissioning) the public good or service shall disburse and account for budgeted funds for the commissioning, ordering or tendering process that are allocated to other public service providers; producers or suppliers of public utilities; and proceed to collaborate with the state budget in completing the final accounts of these budgeted funds in accordance with regulations in force.

Chapter V

IMPLEMENTATION

Article 26. Responsibilities of Ministries, central authorities and all-level People’s Committees

1. Responsibilities of Ministries and central authorities

a) Solicit the Prime Minister to give his consent to releasing, amending or supplementing classification lists of state-funded public services under the jurisdiction of Ministries or central authorities; classification lists of public utilities of Ministries or central authorities in accordance with Article 5 herein in order to ensure that they are adapted for use over time;

b) Release, amend and supplement the followings under their respective authority:

- Economic – technical norms or cost norms (if any) applied to public goods and services that are used as a basis to determine and announce unit prices and total prices of public goods and services.

- Unit prices, total prices of public goods and services; subsidies on public utilities of Ministries and central authorities that are subject to price and other relevant law.

- Quality criteria and standards of public goods and services; supervision, assessment and quality inspection mechanisms, rules and regulations on examination and acceptance testing of public goods or services under their jurisdiction.

c) Solicit the Prime Minister to give his consent to releasing, amending or supplementing classification lists of particular state-funded public services prescribed in clause 3 of Article 7 herein (if any).

2. Responsibilities of provincial People’s Committees

a) Adopt, amend or supplement classification lists of state-funded public services; classification lists of public utilities under their jurisdiction in accordance with Article 5 herein in order to ensure that they are adapted for use over time;

b) Adopt, amend and supplement economic – technical norms or cost norms (if any) applied to public goods and services that are used as a basis to determine and announce unit prices and total prices of public goods and services; Quality criteria and standards of public goods and services; supervision, assessment and quality inspection mechanisms, rules and regulations on examination and acceptance testing of public goods or services under their jurisdiction;

c) Adopt unit prices, total prices of public goods and services; subsidies on public utilities under their jurisdiction in accordance with law on prices and regulatory provisions of relevant law.

3. Ministry of Labor, War Invalids and Social Affairs shall take charge of and cooperate with the Ministry of Home Affairs, the Ministry of Finance and other relevant Ministries and agencies in providing instructions about personnel wages or salaries included in costs or values and unit prices of public goods and services shown in Appendix II; personnel wages or salaries included in unit prices of state-funded public goods and services shown in Chart 02 of Appendix I to this Decree for businesses that are awarded contracts through the ordering or tendering (or commissioning, once provided in specialized law) process.

4. Ministers, Heads of Ministerial-level agencies, Presidents of provincial People’s Committees shall, based on general regulations on commissioning, ordering or tendering for state-funded public services; public utilities specified in Chapter II and III herein (including information shown in Forms attached hereto), elaborate on and supplement regulations on the commissioning, ordering or tendering process (where necessary) in order to ensure that they are conformable with management requirements and particular characteristics of specific sectors and other regulatory provisions of relevant law.

5. The Ministry of Health shall seek the Prime Minister’s decision on ordering state-funded medical examination, treatment and prophylaxis services by state health regulators from health establishments controlled by military units based in border or island areas where civil health services are suffering a lot of disadvantages, leading to failure to meet medical needs of the population; health military health services are provided by applying the combined civil-military healthcare model.

6. Ministries, central authorities and all-level People's Committees shall play a command and managerial role in, or authorize their directly-controlled agencies to perform, the process of commissioning, ordering or tendering form public goods and services; shall bear responsibility for effective use of budgeted funds for carrying out these processes under their jurisdiction, and for contractor selection results in accordance with regulatory provisions of the Law on Bidding.

Article 27. Responsibilities of state-owned public service units; other public service providers; producers or suppliers of public utilities

1. State-owned public service units receiving commissions or orders to supply state-funded public services shall assume the following responsibilities:

a) Ensure fulfillment of assigned duties specified in decisions of competent authorities;

b) Bear responsibility to their superior managing bodies for the public goods or services that they administer; avoid ordering the public services that have been ordered by their superior managing bodies from other units;

c) Bear legal responsibility for validity and legitimacy of public good and service supply dossiers and plans.

2. Other public service providers; producers or suppliers of public utilities shall have the following rights and obligations:

a) Conclude contracts or agreements in accordance with law (or be entitled to commissions in accordance with specialized law);

b) Receive payments or charges at the prices or subsidies stated in agreements or contracts in effect, specialized law and other regulatory provisions of relevant law;

c) Offset the costs that they incur at their own expense to make these costs equal to the bid-winning prices at which they are awarded contracts to provide public goods and services;

d) Bear responsibility to agencies ordering, tendering for (or commissioning) public goods and services for the provided ones;

dd) Bear legal responsibility for validity and legitimacy of public good and service supply dossiers and plans.

Article 28. Inspection and supervision

1. Ministries, central authorities and all-level People’s Committees

a) Heads of central authorities shall be responsible for directing, inspecting, monitoring and supervising performance of Ministries and central authorities involved in the process of commissioning, ordering and tendering for public goods and services funded by the central government budget;

b) Presidents of all-level People’s Committees shall be responsible for directing, inspecting, monitoring and supervising performance of local authorities involved in the process of commissioning, ordering and tendering for public goods and services funded by the local government budget.

2. Financial regulators

a) The Ministry of Finance shall collaborate with Ministries and central authorities in inspecting the process of commissioning, ordering and tendering for public goods and services under the spending duties of the central government budget;

b) All-level local financial regulators shall collaborate with local specialized regulatory authorities in inspecting the process of commissioning, ordering and tendering for public goods and services under the spending duties of the local government budget;

c) All-level State Treasuries shall consult decisions on commissioning, ordering and tendering for public goods and services; budgets allocated by competent authorities; decisions and agreements binding on the ordering and tendering process; product acceptance testing reports; reports on acceptance testing of the ordered public goods or services; contract acceptance testing and discharge reports; other related documents prescribed herein, regulatory provisions of specialized law and relevant law to control spending of, and disburse budgeted funds for commissioning and ordering public goods and services to, state-owned public service units administering these public goods and services; or shall consult contracts or agreements binding upon the ordering, tendering (or commissioning) process to control spending of, and disburse budgeted funds for commissioning and ordering public goods and services to, other public service providers; producers or suppliers of public utilities in accordance with the Law on State Budget and other regulatory provisions in force.

Article 29. Grandfather clause

If state-funded public services; public utilities have been already commissioned, ordered or tendered for by superior managing bodies before the entry into force of this Decree, regulations laid down in the Government’s Decree No. 130/2013/ND-CP dated October 16, 2013 on production and supply of public utilities; the Prime Minister’s Decision No. 39/2008/QD-TTg dated March 14, 2008, setting forth regulations on tendering, ordering and commissioning state-funded public services, shall be applied until completion of the duties assigned by superiors; discharge of purchase agreements or contracts to supply public goods and services.

Article 30. Entry into force

1. This Decree shall come into force as from June 1, 2019, and apply in the 2019 budget year.

2. The Government’s Decree No. 130/2013/ND-CP dated October 16, 2013 on production and supply of public utilities; and the Prime Minister’s Decision No. 39/2008/QD-TTg dated March 14, 2008, setting forth regulations on tendering for, ordering and commissioning state-funded public services, shall be superseded by this Decree.

3. Ministers, Heads of Ministry-level agencies, Heads of Governmental bodies, and Presidents of People’s Committees of centrally-affiliated cities and provinces, shall be responsible for enforcing this Decree./.

APPENDIX I

STATE-FUNDED PUBLIC SERVICES OBTAINED THROUGH THE COMMISSIONING, ORDERING OR TENDERING PROCESS

(To the Government’s Decree No. 32/2019/ND-CP dated April 10, 2019)

Chart 01

CLASSIFICATION OF STATE-FUNDED PUBLIC SERVICES OBTAINED THROUGH THE COMMISSIONING, ORDERING OR TENDERING PROCESS BY SECTORS OR INDUSTRIES

* Authority to issue the detailed classification list of state-funded public services by specific industries or sectors falling within the remit of Ministries, central authorities and local authorities as shown in Chart 01 shall be subject to point a of clause 3 and clause 6 of Article 22 in the Government’s Decree No. 16/2015/ND-CP dated February 14, 2015, prescribing the autonomy mechanism of state-owned public service units and Appendix to the Prime Minister’s Decision No. 695/QD-TTg dated May 21, 2015 regarding the Plan of action for implementation of the Government’s Decree No. 16/2015/ND-CP and written documents stating amendments and supplements thereto (if any).

Chart 02

SEVERAL CLASSIFICATION LISTS OF STATE-FUNDED PUBLIC SERVICES OBTAINED THROUGH THE ORDERING OR TENDERING PROCESS

I. CLASSIFICATION LIST OF STATE-FUNDED PUBLIC SERVICES OBTAINED THROUGH THE ORDERING PROCESS

1. Printing banknotes and valuable papers; minting coins; printing, casting gold bullion.

2. Maritime safety; coastal information services.

3. Railway infrastructure management and maintenance services.

4. Port and terminal operation services.

II. CLASSIFICATION LIST OF STATE-FUNDED PUBLIC SERVICES OBTAINED THROUGH THE ORDERING OR TENDERING PROCESS

1. Management and maintenance of road infrastructure; operation and commercial use of road ferry terminals (if economic – technical norms and unit prices of these services are adopted by competent authorities for use as a basis to order them from enterprises).

2. Inland waterway management and maintenance.

3. Management of parks; cultivation, management and care of ornamental trees on sidewalks and streets; at medians and roundabouts.

4. City street lighting services.

5. Collection, sorting, transportation and treatment of waste and public hygiene.

6. Production of radio and television programs, thematic documentaries, feature films ordered or sponsored by the government.

7. Internet radio and television services for overseas Vietnamese.

APPENDIX II

CLASSIFICATION LISTS OF PUBLIC UTILITIES OBTAINED THROUGH THE ORDERING OR TENDERING PROCESS
(To the Government’s Decree No. 32/2019/ND-CP dated April 10, 2019)

I. PUBLIC UTILITIES OBTAINED THROUGH THE ORDERING PROCESS

1. Management and operation of large irrigation and hydraulic projects; irrigation and hydraulic projects of critical importance; provision of irrigation and hydraulic public utilities stipulated in law on irrigation.

2. Supply of electricity and clean water in mountainous, isolated, remote, border and island areas.

3. Vaccines and biologicals: (i) available for use in the prevention and control of group A and group B communicable diseases prescribed according to the Law on Prevention and Control of Infectious Diseases; (ii) available for use in the expanded immunization program; (iii) made by only one domestic producer.

4. Several other public utilities made available according to the Prime Minister’s decision.

* With regard to the public utilities stated in paragraph 1 above that are obtained through the ordering process, if any specialized law allows them to be obtained through the commissioning method, they can be produced or supplied through the commissioning method; notwithstanding, the ordering method is recommended to procure this type of public utility.

II. PUBLIC UTILITIES OBTAINED THROUGH THE ORDERING OR TENDERING PROCESS

1. Management and operation of small irrigation and hydraulic projects; supply of irrigation and hydraulic public utilities prescribed in law on irrigation.

2. Urban public transit services.

3. Drainage services for cities and concentrated rural residential areas.

4. Urban funeral and cemetery services.

5. Production, supply and storage of plant varieties, livestock breeds and aquatic breeds.

6. Industrial-scale plasma extracts (e.g. Albumin, Gammaglobulin, clotting factor concentrates).

7. Manufacturing of HCG reproductive hormone products for fish.

8. Transportation and supply of essential goods and services for people in mountainous, remote and isolated areas.

9. Logistics services for offshore fishing.

10. Management, operation and maintenance of storm shelters for fishing boats.

11. Several other public utilities made available according to the Prime Minister’s decision.

Form No. 01

DECISION ON ORDERING STATE-FUNDED PUBLIC SERVICES

ISSUING AUTHORITY¹

Pursuant to the Government’s Decree No. / /ND-CP dated (day…month…year…), prescribing the act of commissioning, ordering and tendering for public-sector goods and services funded by the state budget's regular expenditures;

Pursuant to the Decree/Decision…, stipulating functions and duties of…

Pursuant to the Decision on the year…budget

Pursuant to…

Upon the request of…

HEREIN DECIDES

Article 1. To order the public service funded by the year…state budget from the state-owned public service unit.... This Decision must be composed of the following information:

1. Name of the public service funded by the state budget on order…

a) Quantity and amount of public services on order.

b) Quality of the ordered public service.

c) Start date and completion deadline.

d) Unit price and total value of the ordered public service stated in the competent authority’s decision.

dd) Order budget composed of the followings in detail:

- State budget funding for placement of the order (at the all-inclusive price) or state grants used for offsetting part of the costs not yet included in the to-be-ordered public service price or charge (at the non-inclusive rate).

- Fees or charges retained to pay for service provision or fee or charge collection according to law on fees and charges.

- Revenue earned from administering the public service on order at the prices of public services set by the Government.

- Other funding sources (if any).

e) Payment and accounting method;

g) Product testing and transfer method;

h) Rights and obligations of the supplier;

i) Rights and obligations of the purchaser;

k) In addition, interested parties may require additional information provided that such information do not violate law.

* Apart from the order information above, Ministries, central and local authorities may add several other information about the order that they place in order to conform to managerial requirements in specific sectors or details about the order as prescribed in specialized law (if any).

2. Name of the classification list of public services funded by the state budget… (as shown in paragraph 1 above).

3. Name of the classification list of public services funded by the state budget… (as shown in paragraph 1 above).

Article 2. In reference to the basis for ordering the public service funded by the state budget, the supplier’s Head shall stick to those shown in Article 1 herein, regulations of the Law on State Budget and regulatory provisions of relevant law.

Article 3. This Decision shall enter into force as from the signature date. Heads of relevant agencies and the supplier’s Head shall be responsible for implementing this Decision./.

____________________

¹ Ministry, central authority, provincial People’s Committee, district People’s Committee or directly-controlled managing body that is granted authorization to issue the decision.

Form No. 02

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
-------------------

…, day....month....year....

ACCEPTANCE TESING REPORT

Pertaining to the order for the state-funded public service

Pursuant to the Government’s Decree No. / /ND-CP dated (day…month…year…), prescribing the act of commissioning, ordering and tendering for public-sector goods and services funded by the state budget's regular expenditures;

Pursuant to the Decree/Decision, stipulating functions and duties of…

Pursuant to the Decision No…of the Ministry, central authority, provincial People’s Committee, district People’s Committee or the directly-controlled managing body that is authorized to order the state-funded public service from the state-owned public service unit...

Pursuant to the acceptance testing report and transfer note of the ordered state-funded public service…

Pursuant to ………………………………………………………………………………………………

Today, on day…month…year…, we, the undersigned including:

- Purchaser’s representative:

+ Mr./Mrs. ………………………………………., title …………………………………………

+ Mr./Mrs. ………………………………………., title …………………………………………

+ ……………………………………………………………………………………………………

- Supplier’s representative:

+ Mr./Mrs. ………………………………………., title …………………………………………

+ Mr./Mrs. ………………………………………., title …………………………………………

+ ……………………………………………………………………………………………………

are herein agreed on the acceptance testing of the ordered state-funded public service as follows:

1. Name of the state-funded public service on order …

a) Quantity and amount of public services on order.

b) Tested quantity and amount.

c) Quality of the ordered public service.

d) Unit price and total value of the ordered public service stated in the decision on placement of the order.

dd) Unit price and total value adjusted according to the competent authority’s decision (if any).

e) Order budget specified in the order-placing decision.

g) Accounting for ordering costs (specifying the amount and quantity of the public service administered over time and by unit price, total value, or unit price and total value adjusted under the competent authority’s decision).

h) Follow-up budget or budget surplus to be returned.

i) Others (if any).

* Purchaser’s comments.

* Supplier’s comments.

2. Name of the state-funded public service on order … (the same as paragraph 1 above).

Form No. 03

AGREEMENT ON PROVISION OF STATE-FUNDED PUBLIC SERVICE (OR PRODUCTION AND SUPPLY OF PUBLIC UTILITY)

Pursuant to the Civil Code;

Pursuant to the Government’s Decree No. / /ND-CP dated (day…month…year…), prescribing the act of commissioning, ordering and tendering for public-sector goods and services funded by the state budget's regular expenditures;

Pursuant to the Decree/Decision…, stipulating functions and duties of…

Pursuant to the Decision on the year…budget

Pursuant to …………………………………………………………………………………………

Today, on day…month…year…, we, the undersigned including:

- Party A: (The purchaser: …………………..…….……..)

+ Address: ………………………………………………………………………………………….

+ Telephone number: ………………………………………., Fax: ……………………………

+ Tax identification number (where available): ……………………. …………………………………………………………………………..

+ Account info: ………………………………………………………………………………………

+ Represented by Mr. (Mrs.): ……………………………………………………………………………………..

+ Title: ………………………………………………………………………….

- Party B (the Supplier: ………………………………………….)

+ Address: …………………………………………………………………………………………..

+ Telephone number: ………………………………………., Fax: ……………………………..

+ Tax identification number: ……………………………………………………………………….

+ Account info: ………………………………………………………………………………………

+ Represented by Mr. (Mrs.): ..…………………………………………………

+ Title: ………………………………………………………………………….

After entering into discussions, both parties agree to sign the purchase agreement, including the following terms and conditions:

Article 1. Agreement content

1. Name of the state-funded public service on order (or the public utility on order):

a) Quantity and amount on order.

b) Product quality.

c) Start date and completion deadline.

d) Unit price and total value of the order stated in the competent authority’s decision.

dd) Contract value composed of the followings in detail:

- State budget funding for placement of the order (at the all-inclusive price) or state grants used for offsetting part of the costs not yet included in the to-be-ordered public service price or charge (at the non-inclusive rate).

- Fees or charges retained to pay for service provision or fee or charge collection according to law on fees and charges.

- Revenue earned from administering the public service on order at the prices of public services set by the Government.

- Other funding sources (if any).

e) Payment and accounting method.

g) Product testing and transfer method.

h) Rights and obligations of the supplier.

i) Rights and obligations of the purchaser.

k) Responsibilities of the contracting parties in case of breach and settlement mechanism.

l) In addition, both parties may add several other information provided that such information do not violate law.

2. For the agreement on production and supply of the public utility, in addition to those stated in paragraph 1 above, the followings may be added depending on the specifications of the ordered public utility:

- Amount and quantity of the subsidized public utility.

- Subsidy limit, received amount of subsidy.

- Sales generated and expenses incurred from production and supply of the public utility.

- Reasonable costs of production and supply of the public utility.

- Selling price; value of the ordered public utility.

- Delivery time, location, method.

- Responsibilities of the contracting parties in case of breach and settlement mechanism.

- Other information specified in specialized law (if any).

3. Apart from the order information specified in paragraph 1 and 2 above, Ministries, central and local authorities may add several other information to purchase agreements in order to ensure conformity to managerial requirements in specific sectors or consistency with details given in the sample agreement prescribed in specialized law (if any).

Article 2. Responsibilities of each contracting party

Article 3. Other clauses ……………………………………………………………….

Form No. 04

CONTRACT ACCEPTANCE TESTING AND DISCHARGE REPORT

Regarding provision of the state-funded public service (or production and supply of the public utility)

Pursuant to the Civil Code;

Pursuant to the Government’s Decree No. / /ND-CP dated (day…month…year…), prescribing the act of commissioning, ordering and tendering for public-sector goods and services funded by the state budget's regular expenditures;

Pursuant to the Decree/Decision………………………………………………………………..

Pursuant to the Agreement No. …………………………………………………………………

Pursuant to the performance report on provision of the state-funded public service (or production and supply of the public utility);

Pursuant to the report on acceptance testing and transfer of the ordered good ………….

Pursuant to ………………………………………………………………………………………..

Today, on day…month…year…, we, the undersigned, including:

- Party A: (The purchaser: …………………………………)

+ Address: ………………………………………………………………………………………..…

+ Telephone number: ……………………………………….., Fax: ……………………………

+ Tax identification number (where available): …………………………………………………

+ Account info: ……………………………………………………………………………………..

+ Represented by Mr. (Mrs.): …………………………………………………………………….

+ Title: ……………………………………………………………..…………….

- Party B (the Supplier: ……………………………………………)

+ Address: ………………………………………………………………………………………….

+ Telephone number: ……………………………………….., Fax: ……………………………

+ Tax identification number: ………………………………………………………………………

+ Account info: ……………………………………………………………………………………..

+ Represented by Mr. (Mrs.): ……………………………………………………………………..

+ Title: ………………………………………………………………………….

Are agreed to acceptance testing and discharge of the agreement on provision of the state-funded public service (or production and supply of the public utility), including the following information:

- Amount and quantity specified in the agreement: ………………………………..

Quantity and amount of the ordered good that undergoes the acceptance testing process: ……………………….

- Unit price, total price of the ordered good according to the agreement: ……………………………………………….

- Unit price and total value adjusted according to the competent authority’s decision (if any): ………………

- Contract value: …………………………………………………………………………………

- Amount paid ………………………………………………………………………………..

- Disbursed amount: ……………………………………………………………………..

- Follow-up budget or budget surplus to be returned: ………………………………

* With respect to the agreement on production and supply of the public utility, the following information may be added:

- Agreed-upon subsidy amount: …………………………………………………………

- Tested subsidy amount: ………………………………………………

- Disbursed subsidy amount: ……………………………………………………………..

- Follow-up subsidy or subsidy surplus to be returned: ………………………………

* Others (if any).

* Purchaser’s (Party A’s) comments: ………………………………………………

* Supplier’s (Party B’s) comments: …………………………………………………….