Bid package history
On May 12, 2023, the Department of Health approved the list of contractors meeting the technical requirements of the construction package of the Quang Nam Traditional Medicine Hospital. On May 31, 2023, at the proposal of the inviting party, the Department of Health approved the list of ranked construction contractors.
The Meico - Loc Phuoc Thinh - Dai Thien Phat - Handaco joint venture ranked 1st with a bid price after discount of more than 68.6 billion VND, Phuong Dong Technical Infrastructure Construction Joint Stock Company over 76 billion VND and Phat Dat Company Limited nearly 77.3 billion VND.
The consortium Meico - Loc Phuoc Thinh - Dai Thien Phat - Handaco was selected. However, this contractor did not provide sufficient bidding documents when comparing and did not attend the commitment date to supplement the documents (June 30, 2023).
The Inviting Party has decided to invite the remaining two bidders to the Department of Health (July 13, 2023) to sign the minutes of comparison and sign the minutes of contract negotiation.
However, only Phuong Dong Technical Infrastructure Construction Joint Stock Company participated. The inviting party announced that Phuong Dong Technical Infrastructure Construction Joint Stock Company had sufficient documents after comparing and successfully negotiating the contract.
The trouble with validating contractor selection for this package stems from the “unforeseen” situation that occurred during the selection process.
According to Mr. Mai Van Muoi - Director of the Department of Health, the bid package posted on the national bidding network is more than 85.6 billion VND (construction and installation is nearly 57.8 billion VND, equipment is 11.5 billion VND...). The updated bid package on September 7, 2022 is more than 73.98 billion VND (construction and installation is more than 60.54 billion VND, equipment is more than 8.57 billion VND).
However, the inviting party has not yet posted the updated price of this bidding package on the national bidding network. The inviting party has not complied with the agreed contents between the parties (investor, inviting party, project manager, appraisal consultant) on the content of working with the two remaining contractors (to notify the updated price of the bidding package, not to negotiate the contract), and the posting of the invitation letter does not ensure the time, leading to misunderstandings and recommendations from the contractors. The Department of Health has sent a document to the Department of Planning and Investment for comments on handling the bidding situation of this construction bidding package.
According to the inspection and supervision team of bidding activities under the Department of Planning and Investment responding to the Department of Health on August 28, 2023, the inviting party violated the regulations on posting information in bidding and the time for evaluating E-HSDT.
The inviting party's handling of the situation was not in accordance with the investor's direction and the validity period of the E-HSDT of the bidders had expired. The Department of Planning and Investment has advised the Provincial People's Committee and the Provincial People's Committee has assigned the investor to consider, decide and carry out the procedures for canceling the bid, reorganizing the selection of contractors for the construction and installation of equipment for the Quang Nam Provincial Traditional Medicine Hospital, items: 100-bed patient treatment area, medicinal herb preparation area and other auxiliary items in accordance with legal regulations, ensuring competition, fairness, transparency and economic efficiency in bidding.
Right, wrong will wait for a trial?
On March 18, 2024, the Department of Health issued a decision to cancel the bid. Phuong Dong Technical Infrastructure Construction Joint Stock Company responded and sent a petition. This contractor stated that this incident did not fall under any circumstances to cancel the bid. The contractor's technical and financial documents... were evaluated as satisfactory. The contractor was invited to successfully negotiate the contract.
However, after the negotiation was completed, the contractor waited, but there was no information about the contractor selection results, then the Quang Nam Department of Health canceled the bid with the reason of "handling the situation". Phuong Dong Technical Infrastructure Construction Joint Stock Company said that the decision to cancel the bid was incorrect and requested to cancel this decision.
Mr. Nguyen Trung Thanh - Head of Technical Department of Phuong Dong Technical Infrastructure Construction Joint Stock Company said that the investor canceled the bid illegally because they could not give any legitimate reason. They said they would handle the situation. But if they were to handle the situation, why would they invite other contractors to negotiate the contract?
“Phuong Dong has completed the comparison and has a letter of discount according to the adjusted unit price, but why unilaterally cancel the bid? The reason for canceling the bid is to handle the situation but no specific content is given,” said Mr. Thanh.
The Department of Planning and Investment found that there were too many problems in the contractor selection process. The investor did not post the contractor selection plan within the prescribed time. In addition, the information posted on the contractor selection plan was inaccurate, such as the wrong investor name and the wrong approval date.
Failure to update information on the contractor selection plan on the national bidding network when adjusting the contractor selection plan. Failure to update the bid package price on the national bidding network when approving the updated bid package price.
The E-HSDT evaluation period lasted nearly 8 months, not ensuring the regulations. The inviting party did not ask the remaining two bidders to make a bid but instead organized negotiations with Phuong Dong Technical Infrastructure Construction Joint Stock Company, which was not in accordance with the investor's instructions on handling situations in bidding, and the inviting party's handling did not fall within the cases of handling situations that have been instructed.
The Department of Planning and Investment responded to the contractor Phuong Dong on June 5, 2024 (signed by Director of the Department of Planning and Investment Nguyen Quang Thu) stating many points. According to the Department of Planning and Investment, the inspectors of this department have drawn up a record of administrative violations and issued a decision to administratively fine Toan Thanh Consulting Joint Stock Company (the inviting party) with a total amount of 50 million VND.
Quang Nam Provincial People's Committee has requested the Department of Health to review the responsibilities of relevant individuals under its management in monitoring, managing, and organizing bidding, failing to promptly report, handle, and remedy the failure of the inviting party to comply with regulations, and failing to promptly consider and resolve the contractor's recommendations.
The Department of Planning and Investment acknowledged that the errors and violations of the bidding party and the investor in the process of selecting contractors for the above package cannot be overcome. The Provincial People's Committee has agreed to assign the Department of Health to review, decide and carry out procedures for canceling the bid, reorganizing the selection of contractors in accordance with legal regulations, ensuring competition, fairness, transparency and economic efficiency in bidding.
The Provincial People's Committee also requires the investor and the bidding party to be responsible for compensating for damages (if any) to related parties according to the law on compensation for damages and other relevant regulations due to errors and violations of the law on bidding.
According to the Department of Planning and Investment, the notice of invitation to bid and organization of contractor selection in 2023, so the deadline for resolving complaints in bidding for the above package has expired. And the Department of Health canceled the bid on March 18, 2024. If it finds that its legitimate rights and interests are affected, Phuong Dong Technical Infrastructure Construction Joint Stock Company has the right to file a lawsuit in court.
The investor said the cancellation was right, the contractor said it was wrong. This case may need to wait for a hearing to be clearer. Mr. Nguyen Trung Thanh - Head of Technical Department of Phuong Dong Technical Infrastructure Construction Joint Stock Company said that the investor's unilateral cancellation of the bid was illegal and against regulations. Even the bidding party said there was no reason to cancel the bid. The contractor is waiting for the lawyer to complete the documents and procedures to sue the investor.
Source: https://baoquangnam.vn/goi-thau-thi-cong-va-lap-dat-thiet-bi-cong-trinh-benh-vien-y-hoc-co-truyen-quang-nam-huy-thau-dung-luat-hay-khong-3136574.html
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