Centralized procurement of State assets can not exceed norms

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Many goods and services are on the list of centralized procurement of State assets.

Therefore, there are no cases of the procurement of State assets that do not meet the needs or exceed the prescribed norms.

In the documents sent to the delegates of some provinces and cities, the Ministry of Finance issued many provisions such as Government’s resolutions; the Prime Minister’s Decisions, the Ministry of Finance’s circulars to institutionalize the Party's policy on strengthening the fight against corruption and waste in the management of State assets.

The procurement of public assets to be publicized

According to the Ministry of Finance, the implementation of centralized procurement of State assets aims at overcoming non-demand assets, exceeding the norms and reducing negative problems arising in procurement activities. The procurement in the centralized form will contribute to ensuring publicity, transparency, including the publicity of commissions from procurement and meet the requirements of modern equipment and property.

As a result, the management practices have also changed towards administrative reforms, limiting unprofessional units to procure assets, reducing time in line with the Law, contributing to thrift, and fighting against corruption and waste.

The centralized procurement of State assets is implemented at two levels: national level; and ministerial and local level. In particular, centralized procurement at the national level is applicable to cars (except for cars in service of high-ranking officials of the Party and State authorities) and specialized cars for use with attached special-use equipment and automobiles with the special structure according to professional requirements and special-purpose automobiles at the people's armed force units). State assets which are centrally procured at ministries, branches and localities shall be decided by ministries and localities.

At present, centralized procurement is carried out in one of two ways: centralized procurement of State assets on the basis of the framework agreement and centralized procurement of State assets on the basis of direct contracting.

The procurement process for State assets under the 11-stage framework agreement was also specified, including the preparation and approval of cost estimates; summarizing the need for centralized procurement, including contractor selection, purchasing, asset maintenance, etc. In particular, it is strictly prohibited to divide the project, procurement estimates into packages that are contrary to the regulation for limiting the participation of contractors.

Accordingly, the procuring entity is responsible for signing the framework agreement on the basis of the needs and cost of the entities using the asset and the norm of assets. The units using State assets shall be fully proactive in proposing the required assets, including technical requirements, the value of assets, signing contracts for receiving property and taking initiative in making payments from sources.

On the basis of such strict regulations, the Ministry of Finance confirmed that: There is no procurement of assets that do not meet the requirements or exceed the prescribed norms. "The bidding process is fully compliant with the law on bidding and is implemented in a strict and transparent manner, from the stage of preparing bidding documents, the division of the tender package", the Ministry of Finance said.

Great savings for State budget spending

Actually, it is possible to assert that the centralized procurement of State assets is a "safeguard" against corruption and wastes in public procurement.

According to the Ministry of Finance, since the pilot implementation in 24 ministries, sectors and localities from 2008 to 2016, there had been great savings for the State budget. According to the data, the difference between the estimate and the actual number of procurement of ministries, sectors and localities participating in the pilot was more than 467 billion vnd.

The Ministry of Finance estimated that if the centralized procurement of all goods and services is implemented, the annual budget is expected to save 30,000 billion vnd.

The effect is not only reflected in the reduction in spending on large batches, but also on good quality inputs, consistent pricing, and technical similarities. If widening the scope of application, the difference and efficiency of public procurement will be much larger.

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More importantly, the implementation of centralized procurement at the ministries, sectors and localities will overcome the status of procurement in excess of standards, norms, over the actual needs ineffectively; limiting violations in public procurement.