Why was the Deo Ca Consortium Disqualified?
Previously, the Vietnam Airports Corporation (ACV) invited bids for Package 4.7, which involved the construction and installation of aircraft parking equipment at the passenger terminal and other works for Component 3 of Phase 1 of the Long Thanh International Airport project.
The project, with a bid price of over VND 6,300 billion, was to be awarded through a single-stage two-envelope bidding process, with the selection of the contractor done offline.
The construction of Long Thanh Airport is being expedited. |
Two consortia of leading companies participated in this bid. Consortium 1 consisted of eight contractors led by Deo Ca Group Joint Stock Company and included Deo Ca Construction Joint Stock Company, Deo Ca Transport Infrastructure Investment Joint Stock Company, Lizen Joint Stock Company, Thang Long Corporation – Joint Stock Company, Hoang Long Investment and Construction Joint Stock Company, Hoa Hiep Limited Liability Company, and Son Hai Group Joint Stock Company (referred to as the Deo Ca Consortium).
Consortium 2 comprised six contractors, led by ACC Airport Construction Joint Stock Company, along with Truong Son Construction Corporation, Vietnam Import-Export and Construction Joint Stock Company, Vietnam Development Investment Construction Joint Stock Company, Cienco 4 Group Joint Stock Company, and Aviation Construction 647 Joint Stock Company.
On August 13, 2024, ACV issued Notification No. 3351/TB-TCTCHK VN, announcing the list of bidders who met and did not meet the technical requirements. Accordingly, the Deo Ca Consortium was disqualified for failing to meet the eligibility criteria specified in the invitation to bid for Package 4.7.
Specifically, a member of the Deo Ca Consortium, Hoang Long Investment and Construction Joint Stock Company, with the national bidding network code vn2800177056, had been suspended from the system from June 30, 2024, until the approval of the list of bidders.
Regarding this issue, the Deo Ca Consortium has submitted two documents to ACV, requesting to be reconsidered for technical evaluation. However, ACV has denied their request, asserting that the consortium had violated the law and must be disqualified from the bidding process.
 A portion of ACV’s response letter regarding Package 4.7.
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According to a bidding expert, the mistake made by the Deo Ca Consortium member in this case could be described as rather silly. Point a, Clause 11, Article 12, Decree 24/2024/ND-CP stipulates that bidders must pay an annual fee of VND 330,000 to maintain their name and capacity on the national bidding network system.
It is likely that this consortium member forgot to pay the fee and was suspended from June 30, 2024, without their knowledge. This mistake has been commonly made by many bidders in the past. However, if the bidding is conducted through the national bidding network, the failure to pay the fee will prevent the bidder from downloading the documents, allowing them to quickly identify and rectify the issue by paying the fee to regain eligibility.
What does the Deo Ca Consortium have to say?
In relation to this incident, on August 22, a representative of the Deo Ca Consortium stated that on August 12, 2024, ACV issued a decision approving the list of bidders who met the technical requirements for Package 4.7. The decision disqualified the Deo Ca Consortium due to the error “the consortium member Hoang Long Investment and Construction Joint Stock Company, with the national bidding network code vn2800177056, has been suspended from the system from June 30, 2024, until the evaluation report on the technical capacity of the bids was issued. The bidder does not meet the condition specified in item f of the CDNT 5. The bidder’s eligibility criteria are not in a state of suspension or termination from the system.”
The Deo Ca Consortium representative asserted that at the time of the evaluation of the bid dossiers, the consortium member Hoang Long Investment and Construction Joint Stock Company had an active bidding account and was functioning normally on the national bidding network system. Moreover, at that time, there was no decision approving the results of the selection of the contractor for Package 4.7.
The suspension of the account of Hoang Long Investment and Construction Joint Stock Company was due to the late payment of the fee. Based on the Law on Bidding, the Deo Ca Consortium argued that ACV’s assessment of Hoang Long Investment and Construction Joint Stock Company as not meeting the eligibility criteria specified in the invitation to bid was incorrect. The Deo Ca Consortium has submitted a document to the Bidding Management Department under the Ministry of Planning and Investment for guidance and clarification on this matter.
On August 15, the Bidding Management Department issued a response regarding the eligibility of the bidder. Specifically, the document stated that “a bidder (an organization) that meets all the conditions stipulated in Clause 1, Article 5 of the Law on Bidding shall be considered to meet the eligibility requirements when participating in bids for packages that do not apply online bidding within the scope of this Law. The stipulation in the invitation to bid that the bidder ‘is not in a state of suspension or termination from the system’ to ensure eligibility as in the case of online bidding is inappropriate.”
It is understood that the Deo Ca Consortium has submitted three documents to ACV, requesting to be reconsidered for technical evaluation. However, ACV has not accepted their request, maintaining that the Deo Ca Consortium has violated the law and must be disqualified from the bidding process, despite the Deo Ca Consortium’s bid being approximately VND 416 billion lower than that of the ACC Consortium.
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