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.
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