PART IV:
Selection of Bidders
 

Article 17: Selection Criteria

     All bidders enjoy equal treatment and access to public bidding procedure, limited bidding procedure, domestic price comparison, international comparison and direct contracting on the basis of objective selection criteria specified in the respective tender documents. For these reasons, bidders may be excluded from a procurement procedure if they fail to satisfy one or more selection criteria set out by the procuring entity or project owner.

     If requested by a bidder, the procuring entity or project owner must give the bidder, in writing, the reasons for any exclusion from a procurement procedure. The information required for the selection of bidders shall be limited to the subject of the tender documents. The procuring entity or project owner shall protect the technical or trade secrets of the bidders disclosed during the procedure.

Eligible Bidders :

     • Individuals, firms, and enterprises established in Lao PDR which are in conformity with the provisions of the law and have fulfilled their obligations with regard to the payment of duties and taxes. State Operating Enterprise will be permitted to bid if it is legally and financially autonomous and operates under commercial law is not a dependent agency of the project entity.

     • International enterprises not registered in Lao PDR can bid if they are established in conformity with the law in their country of origin and have fulfilled its obligation with regard to the payment of duties and taxes. If they are awarded a contract, they will be required to implement the contract in accordance with the Rule of Tax Registration and Management of Tax Payers of the Ministry of Finance No. 2349/MOF, dated 30 December 2003.

     • In the case of a Joint Venture (JV):

     • All parties to the JV shall be jointly and severally liable; and

     • A JV shall nominate a representative who shall have the authority to conduct all businesses for and on behalf of any and all parties of JV during the bidding process and, in the event the JV is awarded the contract, during the contract execution.

Award of Contract Criteria

     1. General suitability

(a) A bidder shall not have a conflict of interest with the scope of the proposed contract. Any bidder found to have a conflict of interest shall be disqualified. A conflict of interest could be considered to be one or more of the following, but not be limited to bidder(s):

• have controlling shareholders in common with another bidder(s);

• receive or have received any direct or indirect subsidy from any other bidder;

• have the same legal representative as another bid for purposes of this bid;

• have a relationship with each other, directly or though common third parties, that puts them in a position to have access to information about or influence on the bid of another bidder, or influence the decisions of the procuring entity regarding the concerned bidding process;

• submit more than one (1) bid in this bidding process, except for alternative offers permitted in the tender document;

• participates as a consultant in the preparation of the design or technical specifications for the goods and related services that are the subject of the bid.

(b) Any bidder shall be disqualified, if:

• The company is in a bankruptcy situation and its assets are administered by a committee appointed by the court; or the company is bankrupt and the court has appointed a liquidation committee to settle its debts or the company has entered into an arrangement with creditors; or is in any analogous situation arising from the implementation of the laws of regulations of the country of establishment;

• It has been found guilty of professional misconduct by a tribunal;

• It has not fulfilled its obligations with regard to the payment of duties, taxes, social security or other payment due in accordance with the laws of the country of establishment;

• It is guilty of misrepresentation in supplying information required under Part IV of these Implementing Rules and Regulations. Where the qualifications of a bidder are suspect, the bidder will be required to obtain from the relevant judicial or administrative authorities of the country of establishment evidence that none of the above applies. In the case of countries recognizing solemn declaration, such a bidder will be required to make such a declaration before a judicial or administrative authority;

• Has been determined to be involved in any fraudulent or corrupt practice.

     2. Financial capacity

      The procuring entity or project owner may require the bidders to furnish evidence of their financial capacity to fulfill the requirements of the contract. The procuring entity or project owner shall set out the level of financial capacity required from the bidders in the tender documents. Such evidence may be furnished by:

     • Certified statements from bankers including, if necessary, details of available line of credits;

     • Presentation of the bidder's balance sheet or extracts from the balance sheets for the last three years; and

     • Overall turnover and the turnover in respect with civil works, supply of goods or services similar to those required in the contract for the three previous years. The procuring entity or project owner shall indicate the references it requires in the tender documents.

     3. Technical ability

     Depending on the nature, quantity and purposes of the goods, services or works, evidence of technical ability may be furnished by means of:

     • The professional and educational qualifications of the bidder and/or its managerial and supervisory staff and, in particular, of persons responsible for carrying out the particular works or services for the proposed contract;

     • In the case of works: A list of works carried out over the last 3 years, together with certificates of satisfactory execution for similar works, issued by previous clients. Such certificates will indicate the value, date and site of the works and shall specify whether they were properly executed.

     • In the case of goods and services: A list of supplied goods and services in the past 3 years with the sums, dates and purchasers (public and private). Such list is to be evidenced by certificates issued or signed by the purchaser.

     • A list of the bidder's machinery, namely tools, plants and technical equipment, including quality control system directly carried out or by sub-contracting.

     • In the case of goods: Detailed descriptions and/or types of goods to be supplied, which, if the procuring entity so requires, authenticity must be certified.

     • In the case of goods incorporated into works: Certificates drawn up by official quality control institutes or agencies of recognized competence attesting conformity to specifications or standards for products. The procuring entity or project owner shall state in the tender documents the references required.
 

Article 18: Reference List of Suppliers and Contractors

     • Ministry of Finance in cooperation with the competent authorities, each year shall maintain the list of firms, enterprises, joint ventures, individuals and foreign contractors and suppliers participating in public procurement that have experience, qualifications and financial stability.

     • The selection or acceptance of a firm entitled to register as a bidder shall meet the conditions set out in Article 17 above.

     • The reference list of contractors and suppliers will demonstrate their suitability and qualifications according to the Public Procurement Decree. Registration of contractors and suppliers on the reference list is not a pre-requisite for bidding. Other interested bidders shall be given an equal opportunity of submitting bids. Post-qualification of successful bidders shall be undertaken prior to contract award.
 

Article 19: Creation of the Reference List

     At the recommendation of the Director, Procurement Monitoring Office, the Ministry of Finance may create the list in the following manner:

     • A ministry or several ministries wishing to establish a list of bidders or suppliers shall forward a report to the Director of the Procurement Monitoring Office; 

     • Representatives of the ministry(s) and of the Procurement Monitoring Office will meet to discuss the requirements for admission to the list;

     • Once the selection criteria have been finalized , the Procurement Monitoring Office shall invite applications from contractors and suppliers list through a Lao language newspaper and, where appropriate, in an English language newspaper published in Lao PDR;

     • Following advertisement , such reference list will be opened for admission for the following 2 months;

    • In conjunction with representatives of the concerned ministries, the Procurement Monitoring Office shall evaluate the suitability of contractors or suppliers within 2 months. Thereafter, at the recommendation of the Director of the Procurement Monitoring Office, the Ministry of Finance will formally adopt the list;

     • The list will be kept at the Procurement Monitoring Office and at the relevant ministry where it may be consulted by any interested party upon request;

    • Requests for admission to the list may thereafter be made at any time and a decision for admission will be taken within 2 months. The list will be updated by the Director of the Procurement Monitoring Office accordingly. The Minister of Finance will formally adopt the list at the recommendation of the Director of the Procurement Monitoring Office in September of each year.