Online bidding for national rice reserve guarantees transparency and fairness

The effort is not only intended to establish a competitive environment, assure transparency, effectiveness, and publicity, as well as to mitigate administrative procedures and reduce costs for both the bid solicitor and the contractor. It also strengthens the digitalization process and the professionals of the state Reserve sector.

In the past, the General Department of State Reserve (GDSR) has implemented the National Bidding Network System for the rice purchasing bidding package for the national reserve.

In 2024, the Prime Minister tasked GDSR with the responsibility of planning the purchase of 220,000 tons of rice to improve the national reserve resources. This purchase was intended to meet the demands of export, supply, support, and rescue in the event of an emergency.

GDSR synchronized the bidding process in accordance with legal regulations, thereby enhancing the integration of information and technology into the rice purchasing tendering for the national reserve.

Concurrently, the General Department of State Reserves (state reserve) has instructed 22 regional state reserve departments to consolidate the selection of contractors for the procurement of national reserve rice through the national tendering network system. The entire objective of procuring 220,000 tons of rice for storage in 2024 is divided into 196 bidding packages. The initial round of tendering, which commenced on May 8, 2024, resulted in 31 bidders participating. 22 contractors were awarded the contract to supply 114,700 tons out of a total of 220,000 tons, which amounted to 52% of the plan. The regional STATE RESERVE Departments have been tasked by the General Department of State Reserves with the responsibility of conducting the second round of tendering for the remaining rice, which was opened on July 1, 2024.

All information regarding contractor selection is publicly accessible online by the regional state reserve departments in the organization of purchasing national reserve rice for storage. All contractors who are interested in the national reserve rice supply packages can access the same information on the national bidding network system. This facilitates the rapid and precise retrieval of tendering invitation information by all interested contractors, thereby fostering a competitive environment that is equitable for all. The decision to participate in the bidding packages is wholly based on the calculations of the contractors, who determine whether to bid with prices that are higher, lower, or equal to the package price in order to compete with other contractors.

Furthermore, the national bidding network mechanism guarantees transparency through bidding. The system publicly posts all information related to the submission of bid documents, the ranking list of contractors, the results of contractor selection, and the reasons for non-selection. This ensures that contractors are informed and have the right to appeal if they believe their rights and interests have been impacted.

Additionally, the regional state reserve departments make the criteria for contractor selection publicly available on the national tendering network system, enabling all interested contractors to study and participate. These criteria are specified in the bidding invitation documents (E-HSMT). Consequently, the criteria for selecting contractors for each product can be investigated on the national bidding network system or obtained from the regional state reserve departments.

The General Department of State Reserves has explicitly mandated that all contractors, upon winning the bid and participating in the procurement process, must supply national reserve storage rice that meets the quality standards as specified. This is in addition to ensuring the quantity of rice available for storage.

Circular No. 78/2019/TT-BTC, dated November 12, 2019, by the Minister of Finance on national technical regulations for national reserve rice, specifies the standard for rice purchased for national reserve storage. Specifically, the standard is for "Long grain rice, type 15% broken, of domestic origin, milled from paddy harvested in the Winter-Spring crop of 2024 in the Southern region, ensuring the quality standards specified in Section 2.1 QCVN 06:2019/BTC issued with Circular No. 78/2019/TT-BTC dated November 12, 2019, by the Minister of Finance on national technical regulations for national reserve rice."

Concurrently, the contractor is required to submit a Certificate of Quality Assurance for the national reserve standards, which is issued by authorized certification units, for the quantity of rice that is being stored in the national reserve (quality inspection certificate).

The regional state reserve departments have been granted the authority to operate as investors and bidders in the organization of contractor selection, signing, and execution of contracts for the purchase of rice for the national reserve with the contractors by the General Department of State Reserves. Consequently, the units execute all responsibilities associated with the delivery, receipt, quality assessment of rice, and resolution of contract violations per the terms of the signed contract. Contractors who violate the contract will be handled following the provisions of the contract, and the process will be publicly disclosed on the national bidding network system following regulations.

Furthermore, the General Department of State Reserves has established inspection teams to verify the quality management of rice during the storage process and to re-inspect it upon its completion, thereby guaranteeing that the principles of bidding are following legal regulations on bidding. Purchased rice for the national reserve must satisfy the reserve's quality standards.