New round of bidding to be opened to buy insufficient quantity of reserve rice under Prime Minister's direction

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The General Department of State Reserve has directed regional departments of State reserve to increase rice and paddy reserves under the direction of the Prime Minister. Illustrative photo. Source: internet.

If enterprises continue to abandon contracts, it will be reported to the superior

On the afternoon of March 31, the Prime Minister chaired the Government's permanent meeting on food security. In this meeting, the Prime Minister asked the Ministry of Finance to urgently buy sufficient quantity of 190,000 tons of rice and 90,000 tons of paddy and possibly buy higher volumes to reserve according to the approved national reserve targets of 2020, promptly meeting urgent and unexpected requests.

Following this direction, the General Department of State Reserve has opened a bidto purchase 190,000 tons of rice, the kind of15% broken rice grains and rice and it is expected to enter the warehouse before June 15.

In a document sent to the Ministry of Industry and Trade on April 3 for commenting on the draft report to the Prime Minister on the rice export management plan, the Ministry of Finance said the General Department of State Reserve had opened a bid and won 178,000 of 190,000 tons of rice in reserve in 2020 but then bid winners extended time to sign the contract and did not comply with the contract negotiation.

Many enterprises that have been approved by the General Department of State Reserve for winning results and notified of the winning results,have re-sent documents to refuse to sign the contract.

On April 13, a series of units under the General Department of State Reserve issued a notice to cancel the winning results. The reason is that many bid winners did not come to sign the contract and refused to supply rice.

Mr. Do Viet Duc, General Director of the General Department of State Reserve, said that in the near future, units will report to the superior and will conduct a new round of bidding at 22 of the departments of State reserves around the country. The plan will be reported in detail. Enterprises that abandon the contract after winning the bidding will be handled according to the provisions of the Bidding Law.

Duc said at the time of bid opening, prices and supplies were guaranteed, but in recent days, enterprises said that prices in the market increased, supplies are not guaranteed, so they cannot buy rice, leading them to be unlikely to supply rice.

Regarding the opening of a new round of bidding, the General Department of State Reserve will have to shorten the time and order procedures as prescribed by law as possible and try to open the bid after ten days and buy enough rice as prescribed. If enterprises continue to abandon the contract, it will be reported to the superior agencies.

Process is strict according to the Bidding Law

The bidding process is quite strict according to the Bidding Law. Before opening the bid, the General Department of State Reserve conducted a survey of market price and calculated production costs and submitted to the Ministry of Finance for introducing a maximum purchase price.

The General Department of State Reserve has also issued a document to guide the selection of contractors to supply rice for national reserves in 2020, including detailed instructions on publishing information in bidding; formulating, appraising, approving and issuing bidding documents; order and organization of contractor selection, tender evaluation, verification and approval of contractor selection results.

In particular, in order for the units to have time to publish information and prepare for the bidding in accordance with the Bidding Law, the General Department of State Reserve has directed departments of State reserve to post the notice of tender invitation on the national bidding network system and on the Bidding Newspaper, ensuring the content and time in accordance with regulations.

The General Department of State Reserve has directed the regional departments of State reserve to focus on evaluating bids, finalizing signing contracts and carrying the contract of purchasing to the national reserve warehouse in the shortest time, while ensuring the objectives of competition, fairness, transparency and economic efficiency.

In addition, the General Department of State Reserve has requested units during the implementation process to proactively monitorand grasp the situation of the food market to propose competent authorities to decide on adjustments on increasing or decreasing the purchase price in a timely fashion; to ensure the principle that the national reserve food must be of sufficient quantity, quality, and the purchase price is close to the market price and the state budget savings must be considered.

In order to ensure the best fulfillment of the duty to buy rice and paddy, the General Department of State Reserve has assigned the regional departments of State reserve to review and plan to prepare conditions related to warehouses, tools, supplies and preservation to ensure that the warehoused goods are promptly preserved according to the regulations on preservation of national reserve goods.