DECREE 349/2026/ND-CP: RAISING THE PRICE THRESHOLD FOR DIRECT CONTRACTING

On September 9, 2026, the Government issued Decree No. 349/2026/ND-CP (hereinafter referred to as 'Decree 349') amending and supplementing a number of articles of the Government's Decree No. 214/2025/ND-CP ('Decree 214') dated August 4, 2025 detailing a number of articles and measures for implementing the Law on Bidding regarding Contractor Selection (which was amended and supplemented by Decree No. 165/2026/ND-CP dated May 15, 2026 and Decree No. 170/2026/ND-CP dated May 15, 2026). Decree 349 supplements regulations to resolve a number of practical situations arising in bidding activities, specifically:

1. Adjusting the mechanism for obtaining quotations to determine package prices

Decree 349 continues to require the investor to obtain at least 01 quotation for goods and services and must publish the request for quotation on the National Bidding Network System. However, the minimum time limit for suppliers to submit quotations has been adjusted from 05 days to 03 working days from the date of publishing the request for quotation.

Notably, Decree 349 supplements a mechanism for determining the average price in case of multiple quotations. Accordingly, if a quotation or an item within a quotation has a price that is 30% higher or lower than the average price, the investor has the right to exclude such quotations to determine the average price.

For certain procurement cases in the medical sector such as drugs, chemicals, testing materials, medical equipment, and components, accessories, and replacement parts used for medical equipment, Decree 349 provides a separate mechanism: the minimum time limit for publishing a request for quotation is 10 days, and in case there are 2 or more quotations, the Investor may select the highest quotation appropriate to their financial capacity and professional requirements.

The new regulation aims to create a more flexible basis for investors in determining package prices, while limiting the impact of quotations with abnormal discrepancies.

2. “Raising” the price threshold allowed for applying direct contracting

The 2023 Law on Bidding allows investors to apply direct contracting for certain types of packages with prices not exceeding the prescribed 'threshold'. To conform with practical situations, Decree 349 raises the maximum package price threshold that investors are allowed to apply direct contracting to a significantly higher level (2 to 3 times) compared to Decree 214, specifically:

3. Clarifying and simplifying the ordinary direct contracting procedure

Decree 349 clarifies the ordinary direct contracting procedure compared to Decree 214 as follows:

a. The investor is not obligated to appraise the request for proposals; in case there is a request for appraisal, it shall be implemented according to relevant regulations.

b. During the evaluation of the designated contractor's proposal, the investor shall conduct price negotiations to ensure that the proposed winning price is economical and economically efficient without requiring a fixed saving ratio as prescribed in Decree 214. However, the proposed winning price after negotiation must still meet the prescribed conditions and not exceed the approved package price.

In case of a goods procurement package or a mixed EP, PC, or EPC package lacking sufficient data to reference prices as prescribed, or when deemed necessary, the investor shall require the contractor to explain the price structure of the goods as a basis for negotiating the winning price.

c. The request for proposals, bid opening minutes, and evaluation report shall be published on the National Bidding Network System concurrently with the time the investor posts the contractor selection results.

In addition, Decree 349 also supplements the regulation that for a package subject to direct contracting under the ordinary procedure while simultaneously subject to direct contracting under the simplified procedure, the investor may choose to apply either of the two procedures.

4. Strengthening the management of subcontractors

4.1. Responsibilities of contractors and subcontractors:

a. The contractor may propose the parts of work, the value of the parts of work using subcontractors, and the names of subcontractors in the bid or proposal; the proposal must ensure it does not exceed the maximum value for subcontractors specified in the bidding documents or the request for proposals.

If, at the time of participating in the bid, the name of the intended subcontractor has not been determined, the contractor may not name the subcontractor but must clearly state the part of work and the value of the part of work using the subcontractor.

b. For special subcontractors executing important works of the package, the evaluation of the capacity and experience of the special subcontractors shall be carried out in accordance with the regulations stated in the bidding documents or the request for proposals. When using a special subcontractor, the main contractor is not required to meet the capacity and experience requirements for the part of work assigned to the special subcontractor.

c. During contract performance, the replacement or supplementation of subcontractors, or the change of the part of work or the value of the work using subcontractors, must be approved by the investor and the supervision consultant as prescribed.

d. The main contractor remains fully responsible for the quantity, quality, schedule, and contractual obligations, including for the part of work performed by subcontractors. The main contractor is responsible for ensuring full and timely payment to the subcontractors.

e. For joint venture contractors, each joint venture member may only use subcontractors not exceeding the percentage calculated on the part of work undertaken by that member in the signed joint venture agreement and contract.

f. The contractor may sign contracts to purchase raw materials, fuel, materials, supplies, spare parts, machinery, equipment, or rent construction equipment and personnel from suppliers or individuals to execute the package. In this case, the suppliers or individuals are not subcontractors; the part of work and the value of this part of work shall not be counted towards the value of work using subcontractors and shall not be considered a violation of the provisions at point g of this clause.

4.2. Responsibilities of the investor concerning subcontractors:

a. The investor must stipulate the maximum percentage of the value of work allowed to use subcontractors in the bidding documents or the request for proposals.

b. The investor shall update on the National Bidding Network System any changes regarding the list, scope of work, and percentage of using subcontractors during the execution of the contract.

5. Other related issues

a. Clarifying the deadline for submitting petitions on bidding documents: Decree 349 requires contractors, agencies, and organizations to send petitions on bidding documents to the investor at least 03 working days before the bid closing time (Decree 214 prescribed that the contractor only needed to send it before the bid closing time).

b. Supplementing the processing mechanism in case a package has only one participating contractor: in this case, if the bid basically meets the requirements of the bidding documents but fails to meet the technical requirements under the bidding documents for goods items which are ordinary, common materials and equipment readily available on the market, with the total value of these goods items in the package price accounting for a proportion of not more than 1% of the package price, the investor shall consider and decide to allow the contractor to supplement or replace such goods. The price of the supplemented or replaced goods must not be higher than the unit price of the originally offered goods.

c. Supplementing the mechanism for restoring the validity of bids and bid securities: In case the evaluation process is prolonged, leading to the expiration of the bid, proposal, or bid security, the investor may request the contractor to restore their validity as prescribed. If the contractor disagrees or refuses to restore the validity of the bid, proposal, or bid security, the contractor's bid or proposal will no longer be considered or evaluated, and they shall not be penalized for violation under the bidding law.

Decree 349 takes effect from September 9, 2026.