In procurement activities, dividing a project into multiple lots or parts has become an increasingly common approach to enhance competition and select contractors best suited to each work item. However, if such division is not conducted in compliance with applicable laws, it may lead to legal risks or even be regarded as an unlawful division of a procurement package. The following article provides a comprehensive analysis of the concept of a multi-part procurement package, its objectives, the relevant legal framework, and common issues encountered during implementation.
I. Introduction to issues relating to multi-part procurement packages
In public procurement, a multi-part procurement package refers to a procurement arrangement in which a project or a large procurement package is divided into several separate parts, enabling contractors to submit bids for individual parts. Such an approach is commonly applied to projects involving multiple technical components or distinct scopes of work.
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Dividing a procurement package into multiple parts may enhance competition, create opportunities for a wider range of contractors to participate, and enable the procuring entity to select the most suitable contractor for each specific work item. However, the division of procurement packages must comply with applicable legal regulations to avoid unreasonable fragmentation or the intentional division of procurement packages for the purpose of restricting competition.
II. Understanding multi-part procurement packages
1. What is a multi-part procurement package, and when should it be applied?
A multi-part procurement package is a procurement arrangement whereby a large procurement package is divided into several independent work components. Contractors may submit bids for one, several, or all parts, depending on their qualifications and business capabilities.
Such a procurement model is generally adopted for large-scale projects comprising multiple technical components or different professional disciplines. Dividing a procurement package into multiple parts enhances competition, broadens participation opportunities for contractors, and enables the project owner to select the contractor most qualified for each specific work component.
2. How does a multi-part procurement package differ from a single-package procurement arrangement?
A multi-part procurement package is divided into several independent work components within the same procurement package, allowing contractors to bid for and be awarded one or multiple parts. In contrast, a single-package procurement arrangement is not divided, and the entire scope of work is awarded to one contractor or one consortium contractor.
These two procurement methods also differ in terms of procurement costs and the procedures for re-tendering. According to Clause 7, Article 14 of Decree No. 214/2025/ND-CP, where re-tendering is required for only one part of a multi-part procurement package, the costs of preparing and appraising the bidding documents or request documents shall be capped at 50% of the applicable cost calculated based on the estimated value of the part subject to re-tendering, rather than being calculated based on the total value of the entire procurement package.
3. What are the objectives of using multi-part procurement packages in a project?
The application of a multi-part procurement package is intended to provide greater flexibility in contractor selection while improving the overall efficiency of procurement activities. By dividing a procurement package into multiple work components, the project owner may select different contractors possessing the qualifications best suited to each specific component, thereby enhancing competition and optimizing project implementation.
Moreover, multi-part procurement packages provide greater flexibility in handling situations that arise during the procurement process. According to Clause 10, Article 140 of Decree No. 214/2025/ND-CP, if one or more parts of a procurement package receive no bids or no responsive bids, the project owner may report the matter to the competent authority and separate such part into an independent procurement package for a new contractor selection process. Such a mechanism prevents the entire procurement process from being delayed merely as one component fails to attract a qualified contractor.
In addition, dividing procurement packages into multiple parts provides flexibility in contract execution and administration. In case a single contractor is awarded all parts, only one contract will be executed. Conversely, if different contractors are awarded different parts, separate contracts may be concluded for each work component. Such an arrangement clearly defines the responsibilities and scope of work assigned to each contractor.
However, when applying the multi-part procurement model, the project owner must continue to comply with the fundamental principles governing procurement activities prescribed under Clause 1, Article 88 of the Law on Procurement 2023 (as amended in 2025), including the principles of competition, fairness, transparency, economic efficiency, and accountability in handling situations arising during the procurement process.
4. Who has the authority to decide whether a project should be divided into multiple procurement parts?
Under the procurement laws, the decision to divide a project into multiple procurement parts must be specified in the project's contractor selection plan. Pursuant to Clause 2, Article 40 of the Law on Procurement 2023 (as amended by Clause 22, Article 1 of the Law amending the Law on Procurement; the Law on Investment under the Public-Private Partnership Model; the Customs Law; the Law on Value-Added Tax; the Law on Export and Import Duties; the Law on Investment; the Law on Public Investment; and the Law on Management and Use of Public Assets 2025), the project owner is responsible for preparing and approving the contractor selection plan, which defines the scope, contents, and method for dividing procurement packages or their constituent parts.
III. Legal regulations governing multi-part procurement package
1. Under the current procurement law, what criteria permit a procurement contract to be divided into separate parks?
The law provides mechanisms for addressing situations arising in relation to divided-part procurement packages. Specifically, pursuant to Clause 10, Article 140 of Decree No. 214/2025/ND-CP, the following rules apply:
- If one or more parts receive no bids or no responsive bids, the project owner may separate such part(s) into independent procurement packages for contractor selection in accordance with the law.
- If one contractor is awarded all parks, only one contract shall be executed; if different contractors are awarded different parks, separate contracts shall be executed for each awarded park.
- If the bid price for a particular park exceeds the estimated value of such a park, causing the aggregate proposed contract price to exceed the approved procurement package price, the project owner shall resolve the matter in accordance with the legal provisions governing procurement contingencies.
- Where necessary, the project owner may approve contractor selection results for each part, provided that the proposed contract price for each park does not exceed the approved value allocated to such a park within the procurement package.
2. What are the principal risks associated with implementing multi-part procurement packages?
First, there is the risk of reduced project integration. If multiple contractors perform different parks within the same procurement package, coordinating schedules, technical requirements, and contractual responsibilities may become more complex, potentially resulting in project delays or disputes.
Second, risks may arise during the tendering and bid evaluation process. If the bidding documents fail to clearly define the bidding conditions, evaluation methodology, or scope of work for each park, evaluating bids may become difficult, thereby affecting transparency and fairness.
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In addition, there are financial and economic risks. In some cases, the aggregate contract prices for all awarded parks may exceed expectations or surpass the approved procurement package budget if cost estimates for individual lots are inaccurate.
Finally, legal risks may arise if the procurement package is divided without a legitimate basis or if such division is perceived as an unlawful splitting of procurement packages intended to restrict competition or favor particular contractors. In such circumstances, the project owner or procuring entity may be subject to complaints, denunciations, or legal sanctions under the procurement laws.
IV. Questions regarding multi-part procurement packages
1. What qualification requirements apply to contractors participating in multi-part procurement packages?
Contractors participating in multi-part procurement packages must satisfy the general eligibility and qualification requirements prescribed by procurement law. These requirements are specified in the bidding documents and must correspond to the scope of work of each park.
According to Clause 3, Article 5 of the Law on Procurement 2023 (as amended in 2025), an individual contractor is considered eligible if such a contractor:
- Possesses full civil legal capacity under the laws of the country of which he or she is a citizen;
- Holds the required professional qualifications where prescribed by law; and
- Satisfies the requirements relating to fair competition in procurement and is not prohibited from participating in procurement activities.
2. What sanctions may apply if the project owner fails to disclose complete information regarding a multi-part procurement package?
Pursuant to Article 36 of Decree No. 122/2021/ND-CP, if the project owner fail to disclose complete information of procurement package, the following sanctions may apply:
- A fine ranging from 15,000,000 VND to 20,000,000 VND for failure to comply with the prescribed deadlines for providing or publishing procurement information.
- A fine ranging from 20,000,000 VND to 30,000,000 VND for failing to publish, or publishing incomplete bidding documents, or for publishing bidding documents inconsistent with the approved version.
- A fine ranging from 30,000,000 VND to 50,000,000 VND for failing to provide or publish procurement information as required by law.
In addition, under Clause 2, Article 4 of Decree No. 122/2021/ND-CP, these sanctions apply to organizations. If the violator is an individual, the applicable fine shall be 50% of the fine imposed on an organization.
3. What are the legal consequences if a contractor uses falsified qualification documents to win a multi-part procurement package?
The use of falsified qualification documents to participate in and obtain the award of a multi-part procurement package constitutes fraudulent conduct in procurement activities and is strictly prohibited by law.
Specifically, under Clause 4, Article 16 of the Law on Procurement 2023, the falsification or manipulation of procurement information, documents, or records, or the intentional provision of false information in a bid to distort the contractor selection results, constitutes fraud.
If it is discovered that a contractor obtained the contract award through the use of falsified documents, the contractor selection results may be cancelled.Under Clause 1, Article 17 of the Law on Procurement 2023, a procurement process shall be cancelled if the successful bidder has committed a prohibited act in procurement activities, including fraud.
4. What is the legal basis and procedure for resolving complaints or denunciations relating to multi-part procurement packages?
Complaints, denunciations, or petitions relating to multi-part procurement packages are handled in accordance with the Law on Procurement 2023 (as amended in 2025), particularly Articles 89, 90, and other relevant provisions governing the settlement of procurement petitions.
If the lawful rights and interests of a contractor, investor, or other relevant organization are adversely affected during the contractor selection process or by the contractor selection results, such party may submit a petition to the competent authority requesting a review.
The basic procedure includes the following steps:
- Step 1: Upon identifying potential violations during the procurement process (including divided-lot procurement packages), the contractor or relevant organization may submit a petition requesting a review of the bidding documents, contractor selection process, or contractor selection results.
- Step 2: The project owner or procuring entity is responsible for considering and responding to the petition within its authority. If the petition concerns contractor selection results, a Procurement Petition Resolution Council may participate in the review.
- Step 3: If the petitioner disagrees with the initial decision or receives no response within the statutory time limit, the petitioner may submit a further petition to the competent authority for reconsideration.
- Step 4: If the petitioner remains dissatisfied with the outcome, he or she may file a complaint, submit a denunciation, or initiate legal proceedings before the competent court in accordance with applicable law. However, once a complaint, denunciation, or court action has been initiated, the procurement petition procedure shall terminate.
5. What should bidders or third parties do if they discover evidence that a procurement package has been unlawfully divided to favor particular contractors?
Clause 6, Article 16 of the Law on Procurement 2023 (as amended in 2025) identifies the following as a prohibited act undermining fairness and transparency in procurement: Dividing a project or procurement estimate into procurement packages in violation of law for the purpose of applying direct contracting, restricting contractor participation, or creating an advantage for one or more contractors.
If the matter involves serious legal violations, the reporting party may also submit the case to the inspectorate or other competent authorities for inspection, investigation, and enforcement in accordance with applicable law.
V. Are you looking for a trusted legal expert to assist with matters relating to multi-part procurement packages?
With a team of lawyers possessing extensive expertise in the Law on Procurement 2023 (as amended in 2025) and practical experience in procurement dispute resolution, NPLaw provides comprehensive legal services, including advice on procurement regulations, review of bidding documents, preparation of petitions, complaints and denunciations, and representation before competent authorities to protect clients' lawful rights and interests.
Timely legal assistance can significantly reduce legal risks and ensure that procurement activities are conducted transparently and in full compliance with applicable laws.
The above information is provided for reference purposes only. For legal advice tailored to your specific circumstances, please contact NPLaw Firm for prompt assistance.
